Dutch Bros to accelerate openings in 2025 to 160-plus sites; testing food options
Dutch Bros. Inc. reported better-than-expected third-quarter earnings and sales, fueled in part by its new mobile ordering system and continued store growth.
The drive-thru coffee chain opened 38 new shops (33 of which were company-operated) across 11 states during the quarter, for a total 950 locations across 18 states. The company said it is making “major” investments in its development and construction team. It also has increased the use of data analytics for site selection.
On the earnings call, Dutch Bros said it expects to accelerate shop openings in 2025 to at least 160 shops and further accelerate openings in 2026. The company has said it plans to operate over 4,000 shops in the next 10 to 15 years.
“Our 2025 pipeline is strong, positioning us to accelerate new shop growth,” stated Christine Barone, CEO and president of Dutch Bros. "We believe our refined real estate strategy is working, as we are seeing strong new shop productivity as we have shifted our development focus and elevated our site selection process.”
On the earnings call, Barone said that Dutch Bros began a limited food test in six shops during the third quarter, including an expanded bakery offering and sweet and savory hot food options
“Based on the early results, it is likely a more robust food venue will play a role for Dutch Bros in the future, and we will continue our testing in the coming quarters,” she told analysts. “With food making up less than 2% of our sales right now, we clearly see the opportunity.”
Dutch Bros' net income rose to $21.7 million for the quarter ended Sept. 30, as compared to $13.4 million in the year-ago period. Adjusted earnings per share came to $0.16 per share,
Total revenues grew 27.9% to $338.2 million. Systemwide same-shop sales rose 2.7%.
"We delivered exceptional performance in the third quarter as we executed our strategic and operational initiatives,” Barone said. “We believe our brand is resonating with customers, as we had the highest same shop transaction growth quarter in two years, outside of the impact of Leap Day.”
[READ MORE: Dutch Bros to aid growth with support center expansion]
The company upped its 2024 outlook, with total revenue projected to rise to between $1.255 billion and $1.260 billion, up from its previously estimated range of $1.215 billion to $1.230 billion.
