Dutch Bros Q3 sales surge 25%, raises full-year guidance
The fast-growing Dutch Bros brewed up another strong quarter as it continues to expand its reach into the Midwest and other new markets.
The drive-thru coffee chain opened 38 shops during the third quarter — 34 of which were company-operated — and is on track to open 160 locations this year. The growth includes expansion into six contiguous new states.
Dutch Bros ended the quarter with 1,081 locations across 24 states. It expects to open approximately 175 shops in 2026, and has set a goal of 2,029 shops in 2029.
Net income rose to $27.28 million in the quarter ended Sept. 30, up from $21.71 million in the year-ago period. Adjusted earnings per share were $0.19, topping analysts’ estimates of $0.17 per share.
Total revenue grew 25.2% to $423.6 million, ahead of estimates of $411.1 million. Company-operated same-shop sales increased 7.4%, and company-operated same shop transactions increased 6.8%. Systemwide same-shop sales increased 5.7% and systemwide same-shop transactions increased 4.7%.
“The third quarter marks our fifth consecutive quarter of positive transaction growth, elevating Dutch Bros to a category of its own," stated president and CEO Christine Barone. “New shop productivity remains elevated, systemwide AUVs are at record highs, and the strong system same shop sales performance through October continues to build the confidence we have in our trajectory of 2,029 shops in 2029.”
Dutch Bros has introduced an expanded food menu in approximately 160 locations. The company plans to roll out the menu across the chain by the end of next year. On the earnings call, Barone said the company is excited about the opportunity with food.
“Early shop results suggest that we could expect an approximate 4% comp lift in shops that have food, with about a quarter of that coming from transaction growth,” she told analysts.
Barone added that Dutch Bros was raising its full-year guidance based on results through its third quarter and ongoing strength through October. Total revenues are now projected to be between approximately $1.61 billion and $1.615 billion. Same shop sales growth is now expected to be approximately 5%.
