Has Dutch Bros (BROS) Stock Been Good for Investors?
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By Anders Bylund – Dec 11, 2025 at 11:33AMKey PointsDutch Bros stock has gained 60.6% since its September 2021 IPO, slightly ahead of the S&P 500's 53% return.The company's market cap soared 336%, but heavy stock dilution limited shareholder gains.The coffee chain has doubled its store count since going public, funded partly by secondary stock offerings -- and plans to almost double again by 2029.These 10 Stocks Could Mint the Next Wave of Millionaires ›NYSE: BROSDutch BrosMarket Cap$7.8BToday's Changeangle-down(0.64%) $0.39Current Price$61.40Price as of December 11, 2025 at 12:11 PM ETHas Dutch Bros stock been a winner so far? The answer depends on how you measure success.Coffee chain Dutch Bros (BROS +0.64%) has been around since 1992, but joined the public stock market much later. The company raised $557 million in its initial public offering (IPO) on Sept. 17, 2021. How have early investors fared in the roughly four years since then? Image source: Getty Images. Dutch Bros beat the market, but just barely As of Dec. 9, Dutch Bros stock has gained 60.6% since the IPO. The S&P 500 (^GSPC 0.18%) stock market index rose 53% over the same period, though. In other words, Dutch Bros hasn't exactly crushed the market since going public. BROS data by YCharts Move the goalposts, change the story Dutch Bros' stock returns change dramatically if I shift the starting point of the comparison by just a few days. For example, the stock posted an underwhelming 14% return since Sept. 20, 2021 -- just three calendar days after the IPO. I could also cherry-pick a starting date to make Dutch Bros look mighty good: BROS data by YCharts The market cap grew faster than your portfolio Either way, Dutch Bros' stock has seen robust but not mind-blowing returns over time. But the stock started out with a modest $1.71 billion market cap, and now it's up to $7.48 billion. That's a 336% increase -- far ahead of the double-digit gains its investors experienced.Advertisement That mismatch is the result of massive stock dilution. That's a two-part issue: Dutch Bros ran several secondary stock offerings in 2023 and 2024, bolstering a cash-poor balance sheet. The company had 57.4 million fully diluted shares outstanding in the second quarter of 2023. By the end of 2024, the diluted share count had ballooned to 115.2 million. The company also offers stock-based compensation to some employees. That non-cash expense accounted for 19% of Dutch Bros' selling, general, and administrative costs in 2023, for instance. Backing out just that line item from 2023's bottom line would lift full-year earnings from $0.03 to $0.27 per diluted share. This program also adds a significant number of additional shares every year, on top of the company's secondary stock offerings. ExpandNYSE: BROSDutch BrosToday's Change(0.64%) $0.39Current Price$61.40Key Data PointsMarket Cap$8BDay's Range$60.74 - $62.0752wk Range$47.16 - $86.88Volume28KAvg Vol3.9MGross Margin26.17%Dividend YieldN/A Why Dutch Bros keeps selling stock Dutch Bros is raising capital for a reason, of course. The store count has exploded from 503 drive-through coffee shops in September 2021 to 1,043 locations in the latest report. And nearly all of the additional stores are company-owned, while the number of franchised operations only increased by 20%. Management aims to have a cheeky 2,029 coffee shops in operation by the year 2029. Those stores don't just build themselves.
So Dutch Bros sells stock, takes on loans, and builds company-owned locations across the country in a spirited growth effort. Just keep in mind that the ambitious growth strategy also limits its stock returns due to heavy dilution along the way.About the AuthorAnders Bylund is a contributing Motley Fool media and technology analyst covering semiconductors, cloud computing, internet infrastructure, quantum computing, and streaming media. Previously, Anders was a systems administrator for Nielsen Technology and CSX, gaining hands-on experience with enterprise-class systems. He was also a freelance writer for Ars Technica, TIME, USA Today, CNN, WIRED, and AOL's Daily Finance. He holds a bachelor’s degree in English and a master’s degree in library and information sciences from Florida State University. He believes in coyotes and time as an abstract.TMFZahrimX@TMFZahrimRead NextDec 5, 2025 •By Jennifer SaibilIs Dutch Bros (BROS) Stock a Buy for 2026?Nov 28, 2025 •By Lawrence NgaIs Dutch Bros the Next Starbucks -- or the Next Shake Shack?Nov 24, 2025 •By Geoffrey SeilerThe Ultimate Growth Stock to Buy With $1,000 Right NowNov 15, 2025 •By Geoffrey Seiler1 Growth Stock Down 35% to Buy Right NowNov 12, 2025 •By Will HealyCould Buying Dutch Bros Stock Today Set You Up for Life?Nov 11, 2025 •By Jennifer SaibilPrediction: Dutch Bros Stock Will Soar Over the Next 5 Years. Here's 1 Reason Why.