BROSNEUTRAL

Return on Equity (ROE)

13.8%

Higher than 61% of Consumer Cyclical sector peers

Updated 120h ago

Sector Performance

61th percentile

BROS

13.8%

Sector Median

8.7%

Sector Avg

-37.7%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from every dollar of shareholders' equity—a 13.8% ROE means Dutch Bros earned $0.138 for each $1 of equity in the most recent period.

That figure exceeds the Consumer Cyclical sector median of 8.6% and places the company in the 63rd percentile among its peers, indicating above-average profitability relative to the industry. Year-over-year change is not available, but quarter-over-quarter ROE improved by 17.9%, moving from 11.7% to the current 13.8%. The combination of an already above-median ROE with a double-digit quarterly increase suggests improving earnings efficiency, which lowers investment risk compared to peers with stagnant or declining returns. This positive metric supports the overall NEUTRAL verdict—while the ROE is solid and trending up, it alone does not tip the balance to a more bullish view given other factors under consideration.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about BROS?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does BROS's Return on Equity (ROE) compare to its sector?

BROS's Return on Equity (ROE) of 13.8% compares to a Consumer Cyclical sector median of 8.7%, placing it in the 61th percentile.

Who are BROS's closest peers by Return on Equity (ROE)?

The closest Consumer Cyclical peers by Return on Equity (ROE) include: LI (-2.5%), XPEV (-3.6%), HMC (-3.8%), CROX (-6.1%), CZR (-10.7%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.