Dutch Bros shares dropped 6.1% after the company reported strong second-quarter results in August 2026, raised its full-year guidance, and decided not to outbid 7 Brew for dozens of Salad and Go drive-thru locations. The company had initially agreed to acquire up to 65 Salad and Go sites for US$105 million, but 7 Brew's winning bid was US$143.2 million for 73 locations. Dutch Bros reaffirmed its goal of opening 2,029 shops by 2029 and plans to open 185 new stores in 2026, emphasizing disciplined expansion over rapid site accumulation. Analysts' optimistic forecasts for 2029 revenue of about US$3.7 billion and earnings of US$258 million may need revisiting given the decision, while the company's own projections suggest US$3.5 billion revenue and US$217.2 million earnings by 2029, implying a fair value of US$77.76 per share, a 62% upside from its current price.
Dutch Bros IncDutch Bros shares fell 6.1% after passing on the Salad and Go deal, and analysts may need to revisit optimistic forecasts.
