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Dutch Bros BROS Initial unearned franchise fees — Contract with Customer, Liability

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Other financials

Income statement

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Revenue$464.4M+30.8%
Gross profit$107.5M+19.4%
Operating income$34.3M+10.4%
Net income$16.1M+4.8%
EPS (diluted)$0.130.0%

Balance sheet

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Cash & equivalents$263.5M-16.7%
Total debt$1.1B+12.1%
Total equity$696.4M+16.3%
Total assets$3.1B+12.3%

Cash flow

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Operating cash flow$84.7M+130%
CapEx$57.0M+25.1%
Free cash flow$27.7M+420%

Valuation

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Market cap$9.7B-10.3%
Enterprise value$10.58B-7.2%
P/E120.4×-128×
P/S5.6×-2.4×

Profitability

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Gross margin25.3%-1.1pp
Operating margin9.4%+1.2pp
Net margin4.6%+1.4pp
FCF margin5.2%+2.8pp

Returns & leverage

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Return on equity12.4%+3.9pp
Debt / equity1.6×-0.1×
Current ratio1.3×-0.6×

Where this comes from

Reported directly by Dutch Bros in its filing.

Tagged under the XBRL concept us-gaap:ContractWithCustomerLiability.

The official record: Dutch Bros’s 10-Q, filed May 6, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Dutch Bros's initial unearned franchise fees — contract with customer, liability?
Dutch Bros (BROS) reported initial unearned franchise fees — contract with customer, liability of $2.66M in Q1 2026.
What does initial unearned franchise fees — contract with customer, liability mean?
This is the amount of money collected from franchisees for future services that the company has not yet delivered.
How do you interpret initial unearned franchise fees — contract with customer, liability?
An increase suggests a growing pipeline of new franchise locations under development, while a decrease may indicate a slowdown in new store openings or the rapid conversion of existing commitments into operational shops.
How does initial unearned franchise fees — contract with customer, liability compare across companies?
This is a standard liability for franchisors; peers in the restaurant and retail sector typically report this as deferred revenue or contract liabilities, with higher balances indicating stronger future unit growth potential.