Dutch Bros vs Wendy's
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KIRA’s take AI analyst
I put Dutch Bros and Wendy's side by side, using each one’s latest annual report. Here is what stands out:
- Wendy's is the larger business, with $2.2B of revenue in fiscal 2025 against $1.6B for Dutch Bros.
- Dutch Bros grew revenue faster (27.9%, against −3.1%).
- Wendy's kept more of each dollar of sales as operating profit (15.8% operating margin, against 9.8%).
- Wendy's turned more of its sales into free cash flow (11.2% FCF margin, against 3.3%).
- Dutch Bros earned a higher return on the capital invested in it (11.9%, against 7.8%).
- Investors pay more for each dollar of Dutch Bros’s earnings: a P/E of 58.4x against 9.4x for Wendy's.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Dutch Bros
BROS
5/10
Revenue growth5-year growthReturn on capitalPiotroski F-scoreNet debt / EBITDA
Wendy's
WEN
5/10
Gross marginOperating marginNet marginFCF marginShare count change
Side by side
Best in the row
| Latest fiscal year | BROS FY25 | WEN FY25 |
|---|---|---|
| Size | ||
| Market cap | $5.7B | $1.2B |
| Revenue | $1.6B | $2.2B |
| Free cash flow | $54.4M | $243M |
| Net income | $79.8M | $165M |
| Growth | ||
| Revenue growth | 27.9% | −3.1% |
| 5-year growth | 38.0% | 4.7% |
| Share count change | 20.8% | −5.6% |
| Profitability | ||
| Gross margin | 25.9% | 63.6% |
| Operating margin | 9.8% | 15.8% |
| Net margin | 4.9% | 7.6% |
| FCF margin | 3.3% | 11.2% |
| Return on capital | 11.9% | 7.8% |
| Return on equity | 13.1% | — |
| Balance sheet | ||
| Net debt | $353M | $3.1B |
| Net debt / EBITDA | 1.3x | 6.3x |
| Dividends and buybacks | $0.0M | $330M |
| Valuation & quality | ||
| P/E | 58.4x | 9.4x |
| Piotroski F-score | 5 | 4 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.