BROSNEUTRAL

Gross Margin

23.1%

Higher than 29% of Consumer Cyclical sector peers

Updated 120h ago

Sector Performance

29th percentile

BROS

23.1%

Sector Median

36.3%

Sector Avg

30.6%

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after paying the direct costs of producing its goods or services; at 23.1%, Dutch Bros retains about 23 cents of every dollar earned after those costs.

This sits well below the sector median of 36.3%, placing the company in the 29th percentile among its Consumer Cyclical peers. Year-over-year change is not available, while quarter-over-quarter movement shows a 1.3 percentage point increase from 22.8%. The combination of a margin that is low relative to peers but showing a recent uptick suggests a company under structural cost pressure, though the small quarterly improvement may point to modest operational progress. Because the margin remains far below the sector benchmark, the level itself represents a risk that could weigh on profitability. This metric aligns with the overall NEUTRAL verdict: the low gross margin is a concern, but the slight sequential improvement prevents a clearly bearish signal.

Frequently Asked Questions

What does the Gross Margin tell investors about BROS?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does BROS's Gross Margin compare to its sector?

BROS's Gross Margin of 23.1% compares to a Consumer Cyclical sector median of 36.3%, placing it in the 29th percentile.

Who are BROS's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: PHM (24.1%), BBY (23.5%), TSLA (21.1%), XPEV (20.6%), BWA (19.2%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.