v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting
NOTE 17 — Segment Reporting
Segment information is prepared on the same basis that our CEO, who is the CODM, manages the segments, evaluates financial results and makes key operating decisions. Our CEO evaluates financial performance based on two operating segments, which offer distinct products and services to different customers: Company-operated shops and Franchising and other. The Company-operated shops segment includes retail beverage shop sales to end consumers. The Franchising and other segment includes bean and product sales to franchise partners, initial franchise fees, royalties, and marketing fees related to the franchise partners, as well as sales of products through our website.
The CODM reviews segment performance and allocates resources based upon segment contribution, which is defined as segment gross profit before depreciation and amortization. Segment contribution is used to monitor and assess segment results compared to prior periods, forecasted results, and our annual operating plan.
All segment revenue is earned in the United States. All intercompany sales amongst the Dutch Bros entities are fully eliminated in consolidation. Further, there are no intersegment revenues. The CODM does not evaluate operating segments using discrete asset information.
Selling, general and administrative expenses primarily consist of unallocated corporate expenses. Unallocated corporate expenses include corporate administrative functions that support the segments but are not directly attributable to or managed by any segment and are not included in the reported financial results of the segments.
No changes have been made to our segments during the three and six months ended June 30, 2026. In addition, no customer represented 10% or more of total revenue for the three and six months ended June 30, 2026 and 2025.
Financial information for our reportable segments was as follows for the periods presented:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)20262025 20262025
Revenues
Company-operated shops$510,031 $380,500 $939,088 $706,921 
Franchising and other40,820 35,313 76,175 64,044 
Total revenues550,851 415,813 1,015,263 770,965 
Cost of sales
Company-operated shops
Beverage, food & packaging133,108 96,468 245,430 177,847 
Labor costs129,460 101,270 241,765 190,709 
Occupancy & other costs83,085 59,984 159,870 113,911 
Pre-opening costs8,408 4,542 14,749 10,153 
Franchising and other11,909 6,429 24,267 15,204 
Segment cost of sales1
365,970 268,693 686,081 507,824 
Segment contribution
Company-operated shops155,970 118,236 277,274 214,301 
Franchising and other28,911 28,884 51,908 48,840 
Total segment contribution$184,881 $147,120 $329,182 $263,141 
Segment depreciation and amortization(33,825)(27,076)(70,650)(53,104)
Selling, general and administrative(80,651)(65,385)(153,827)(124,306)
Interest expense, net(7,038)(7,076)(14,258)(14,191)
Other income (expense), net861 (1,983)786 (2,001)
Income before income taxes$64,228 $45,600 $91,233 $69,539 
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1    Segment cost of sales for this presentation excludes the impact of depreciation and amortization.