BROS (Dutch Bros) Interest Coverage: 10.00 (As of Jun. 2026) — 154% Above Median

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BROS Dutch Bros Inc BROS
80 GF Score
Price $51.95
GF Value $60.38
Valuation Modestly Undervalued
! 5 Warning Signs
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What is Dutch Bros Interest Coverage?

Dutch Bros BROS +4.17% 80 Interest Coverage is 10.00 as of Jun. 2026, which is 154% above its 10-year median of 3.93. GuruFocus rates BROS with a GF Score™ of 80/100 and a GF Value™ of $60.38 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 262 Restaurants companies, Dutch Bros ranks better than 50% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Dutch Bros's Operating Income for the three months ended in Jun. 2026 was $70 Mil. Dutch Bros's Interest Expense for the three months ended in Jun. 2026 was $-7 Mil. Dutch Bros's interest coverage for the quarter that ended in Jun. 2026 was 10.00. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Dutch Bros's Interest Coverage or its related term are showing as below:

BROS' s Interest Coverage Range Over the Past 10 Years
Min: 1.43   Med: 3.93   Max: 12.91
Current: 6.35


BROS's Interest Coverage is ranked better than
50% of 262 companies
in the Restaurants industry
Industry Median: 6.345 vs BROS: 6.35

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Dutch Bros  (NYSE:BROS) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Dutch Bros Interest Coverage Related Terms


Dutch Bros Interest Coverage Historical Data

* Premium members only.

The historical data trend for Dutch Bros's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Dutch Bros Interest Coverage Chart

Dutch Bros Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial 0.00 0.00 1.43 3.93 5.69

Dutch Bros Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.72 6.20 4.58 4.75 10.00

BROS vs LKNCY, EAT, CAVA: Interest Coverage Comparison

For the Restaurants subindustry, Dutch Bros's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Dutch Bros's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Dutch Bros's Interest Coverage falls into.


BROS
80GF Score
Dutch Bros Inc BROS
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Dutch Bros Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Dutch Bros's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Dutch Bros's Interest Expense was $-28 Mil. Its Operating Income was $161 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,049 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*161.18/-28.305
=5.69

Dutch Bros's Interest Coverage for the quarter that ended in Jun. 2026 is calculated as

Here, for the three months ended in Jun. 2026, Dutch Bros's Interest Expense was $-7 Mil. Its Operating Income was $70 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,162 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*70.405/-7.038
=10.00

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 10.00 mean?
Dutch Bros (BROS) has a Interest Coverage of 10.00 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Dutch Bros and its competitors. This is 154% above median its historical median of 3.93. Over the past decade, Dutch Bros' Interest Coverage has ranged from 1.43 to 12.91. According to the industry distribution chart, Dutch Bros ranks #131 out of 262 companies in the Restaurants industry, placing it in the top 50%.
Is Dutch Bros' Interest Coverage too high?
Dutch Bros' current Interest Coverage of 10.00 is 154% above median its 10-year median of 3.93. Over the past 10 years, this metric has ranged from a low of 1.43 to a high of 12.91. The Restaurants industry median Interest Coverage is 6.35. Dutch Bros' value of 10.00 is 57.6% above this industry median. Based on the distribution chart, Dutch Bros ranks #131 out of 262 companies in the Restaurants industry, which is above the industry midpoint. Overall, Dutch Bros has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Dutch Bros' Interest Coverage compare to LKNCY and EAT?
According to the Restaurants industry distribution chart, Dutch Bros ranks #131 out of 262 companies for Interest Coverage. This puts Dutch Bros in the upper half of its industry. The industry median Interest Coverage is 6.35. Dutch Bros' value of 10.00 is 57.6% above this benchmark. Historically, Dutch Bros' own Interest Coverage has ranged from 1.43 to 12.91 over the past decade. While the company's 10-year median is 3.93 vs. the industry median of 6.35, Dutch Bros has consistently been above 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 Interest Coverage for a Restaurants company?
The median Interest Coverage among Restaurants companies is 6.35, based on 262 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dutch Bros's current Interest Coverage of 10.00 is 57.6% above 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Dutch Bros and its competitors. For the Restaurants industry, the median Interest Coverage is 6.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dutch Bros's current Interest Coverage is 10.00, which is 154% above median its own 10-year median of 3.93. 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 Undervalued. The stock's GF Value™ is $60.38, compared to a current price of $51.95 — trading 14% below its estimated fair value. The current Interest Coverage is 10.00, which is 154% above median its 10-year median of 3.93 and 57.6% above the Restaurants industry median of 6.35. Dutch Bros' overall GF Score™ is 80/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Dutch Bros (BROS), the current Interest Coverage is 10.00 as of Jun. 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 undervalued. The current stock price of $51.95 is trading 14% below its estimated GF Value™ of $60.38. GuruFocus considers Dutch Bros to be Modestly Undervalued.

Key valuation signals for BROS:

  • Interest Coverage: 10.00 (154% above median its 10-year median of 3.93)
  • GF Value™: $60.38 vs. price of $51.95 (14% below fair value)
  • GF Score™: 80/100 with 5 warning signs
  • Industry Position: 57.6% above the Restaurants median (#131 of 262)

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 Business Description

Address 1930 West Rio Salado Parkway, Tempe, AZ, USA, 85281
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.
80GF Score

Get the complete analysis for BROS

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$51.95
Price
$60.38
GF Value