Dutch BrosBROS +2.93%79 Gross Margin % is 23.14% as of Mar. 2026, which is 13% below its 10-year median of 26.55. GuruFocus rates BROS with a GF Score™ of 79/100 and a GF Value™ of $52.66 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 353 Restaurants companies, Dutch Bros ranks worse than 79.89% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Dutch Bros's Gross Profit for the
three
months ended in Mar. 2026 was $107 Mil. Dutch Bros's Revenue for the
three
months ended in Mar. 2026 was $464 Mil. Therefore, Dutch Bros's Gross Margin % for the quarter that ended in Mar. 2026 was 23.14%.
Warning Sign:
Dutch Bros Inc gross margin has been in long-term decline. The average rate of decline per year is -5.4%.
The historical rank and industry rank for Dutch Bros's Gross Margin % or its related term are showing as below:
BROS'
s Gross Margin % Range Over the Past 10 Years
Min: 24.48 Med: 26.55 Max: 40.3
Current: 25.26
During the past 7 years, the highestGross Margin % of Dutch Bros was 40.30%. The lowest was 24.48%. And the median was 26.55%.
BROS's Gross Margin % is ranked worse than 79.89% of 353
companies
in the Restaurants industry
Industry Median: 45.71
vs BROS: 25.26
Dutch Bros had a gross margin of 23.14% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Dutch Bros was -5.40% per year.
Dutch Bros (NYSE:BROS) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Dutch Bros had a gross margin of 23.14% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Dutch Bros Gross Margin % Related Terms
Dutch Bros Gross Margin % Historical Data
* Premium members only.
The historical data trend for Dutch Bros's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BROS vs DPZ, CAVA, LKNCY: Gross Margin % Comparison
For the Restaurants subindustry, Dutch Bros's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Dutch Bros Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Dutch Bros's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Dutch Bros's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Dutch Bros (BROS) has a Gross Margin % of 23.14% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Dutch Bros and its competitors. This is 13% below median its historical median of 26.55. Over the past decade, Dutch Bros' Gross Margin % has ranged from 24.48 to 40.30. According to the industry distribution chart, Dutch Bros ranks #282 out of 353 companies in the Restaurants industry, placing it in the top 79.9%.
Is Dutch Bros' Gross Margin % too high?
Dutch Bros' current Gross Margin % of 23.14% is 13% below median its 10-year median of 26.55. Over the past 10 years, this metric has ranged from a low of 24.48 to a high of 40.30. The Restaurants industry median Gross Margin % is 45.71. Dutch Bros' value of 23.14% is 49.4% below this industry median. Based on the distribution chart, Dutch Bros ranks #282 out of 353 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, Dutch Bros has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Dutch Bros' Gross Margin % compare to DPZ and CAVA?
According to the Restaurants industry distribution chart, Dutch Bros ranks #282 out of 353 companies for Gross Margin %. This places Dutch Bros in the lower half of its industry. The industry median Gross Margin % is 45.71. Dutch Bros' value of 23.14% is 49.4% below this benchmark. Historically, Dutch Bros' own Gross Margin % has ranged from 24.48 to 40.30 over the past decade. While the company's 10-year median is 26.55 vs. the industry median of 45.71, Dutch Bros has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Restaurants company?
The median Gross Margin % among Restaurants companies is 45.71, based on 353 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dutch Bros's current Gross Margin % of 23.14% is 49.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Dutch Bros and its competitors. For the Restaurants industry, the median Gross Margin % is 45.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dutch Bros's current Gross Margin % is 23.14%, which is 13% below median its own 10-year median of 26.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dutch Bros stock overvalued right now?
Based on GuruFocus' analysis, Dutch Bros (BROS) is currently considered Modestly Overvalued. The stock's GF Value™ is $52.66, compared to a current price of $67.56 — trading 28.3% above its estimated fair value. The current Gross Margin % is 23.14%, which is 13% below median its 10-year median of 26.55 and 49.4% below the Restaurants industry median of 45.71. Dutch Bros' overall GF Score™ is 79/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Dutch Bros (BROS), the current Gross Margin % is 23.14% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Dutch Bros (BROS) Overvalued in 2026?
Based on GuruFocus' analysis, Dutch Bros stock appears to be overvalued.
The current stock price of $67.56 is trading 28.3% above its estimated GF Value™ of $52.66.
GuruFocus considers Dutch Bros to be Modestly Overvalued.
Key valuation signals for BROS:
Gross Margin %: 23.14% (13% below median its 10-year median of 26.55)
GF Value™: $52.66 vs. price of $67.56 (28.3% above fair value)
Industry Position: 49.4% below the Restaurants median (#282 of 353)
No single metric tells the full story. See the BROS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dutch Bros Inc is an operator and franchisor of drive-thru coffee shops that are focused on serving hand-crafted beverages. The company's hand-crafted beverage-focused lineup features hot and cold espresso-based beverages, cold brew coffee products, proprietary energy drinks, tea, lemonade, smoothies, and other beverages. The company has two reportable operating segments Company-operated shops and Franchising. It derives maximum revenue from Company-operated shops.
79GF Score
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