Dutch Bros (Dutch Bros) Gross Margin % : 23.27% (As of Dec. 2023)

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What is Dutch Bros Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Dutch Bros's Gross Profit for the three months ended in Dec. 2023 was $59.1 Mil. Dutch Bros's Revenue for the three months ended in Dec. 2023 was $254.1 Mil. Therefore, Dutch Bros's Gross Margin % for the quarter that ended in Dec. 2023 was 23.27%.

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: 30.79 Max: 40.3
Current: 26.02

During the past 5 years, the highest Gross Margin % of Dutch Bros was 40.30%. The lowest was 24.48%. And the median was 30.79%.

BROS's Gross Margin % is ranked worse than
81.05% of 343 companies
in the Restaurants industry
Industry Median: 47.32 vs BROS: 26.02

Dutch Bros had a gross margin of 23.27% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Dutch Bros was 0.00% per year.

Dutch Bros Gross Margin % Historical Data

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.

* Premium members only.

Dutch Bros Gross Margin % Chart

Dutch Bros Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

40.30

35.41

30.79

24.48

26.02

Dutch Bros Quarterly Data
	Dec19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial											26.93	23.19	28.51	28.42	23.27

Competitive Comparison of Dutch Bros's Gross Margin %

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's Gross Margin % Distribution in the 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.

Dutch Bros Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Dutch Bros's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	251.3	/	965.776
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(965.776 - 714.48)	/	965.776
	=	26.02 %

Dutch Bros's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	59.1	/	254.123
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(254.123 - 194.998)	/	254.123
	=	23.27 %

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 (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 23.27% for the quarter that ended in Dec. 2023 => 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

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Dutch Bros (Dutch Bros) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Dutch Bros Inc (NYSE:BROS) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

110 SW 4th Street, Grants Pass, OR, USA, 97526

Website

https://www.dutchbros.com

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 and other.

Executives

Travis Boersma	director, 10 percent owner, officer: Executive Chairman of Board	C/O DUTCH BROS INC., PO BOX 1929, GRANTS PASS OR 97528
Dm Trust Aggregator, Llc	10 percent owner	PO BOX 398, GRANTS PASS OR 97528
Dm Individual Aggregator, Llc	10 percent owner	PO BOX 398, GRANTS PASS OR 97528
Brian Maxwell	officer: Chief Operating Officer	C/O DUTCH BROS INC., PO BOX 1929, GRANTS PASS OR 97528
Tsg7 A Management Llc	10 percent owner	C/O TSG CONSUMER PARTNERS, 1100 LARKSPUR LANDING CIRCLE, SUITE 360, LARKSPUR CA 94939
Charles Jemley	officer: Chief Financial Officer	C/O FOUR CORNERS PROPERTY TRUST, INC., 591 REDWOOD HIGHWAY, SUITE 1150, MILL VALLEY CA 94941
C. David Cone	director	4900 N. SCOTTSDALE ROAD, SUITE 2000, SCOTTSDALE AZ 85251
Sullivan Sean B.a.	director	1201 DOWDELL LANE, SAINT HELENA CA 94574
Victoria J Tullett	officer: Chief Legal Officer	C/O DUTCH BROS INC., 110 SW 4TH STREET, GRANTS PASS OR 97526
Joth Ricci	officer: CEO and President	C/O DUTCH BROS INC., PO BOX 1929, GRANTS PASS OR 97528
Tana Davila	officer: Chief Marketing Officer	110 SW 4TH STREET, GRANTS PASS OR 97526
Christine Barone	officer: President	C/O YELP INC., 350 MISSION STREET, 10TH FLOOR, SAN FRANCISCO CA 94105
John Patrick Graham	officer: Chief Marketing Officer	C/O ALIGN TECHNOLOGY INC., 2820 ORCHARD PARKWAY, SAN JOSE CA 94131
Ann M Miller	director	ONE BOWERMAN DRIVE, BEAVERTON OR 97005
Stephen Gillett	director	2401 UTAH AVE S, SEATTLE WA 98134