Dutch Bros ramping up expansion in 2027; posts strong Q3
Dutch Bros maintained momentum in its third quarter, reporting its 14th consecutive quarter of positive system-wide same-shop sales and ninth consecutive quarter of customer visit growth.
The fast-growing drive-thru coffee chain, which opened 48 new shops during the quarter for a total of 1,273 outposts, is on track to open roughly 180 locations this year. It plans to accelerate its expansion in 2027, opening 250 shops, mostly in existing states and primarily company operated.
“With record site approvals, growing inbound conversion interest and increasing real estate availability, we continue to build momentum,” CEO and president Christine Barone said on the earnings call. “We're now focused on translating that momentum into an accelerated pace of openings. We now have full visibility into the real estate pipeline to reach 2,029 shops in 2029.”
On the earnings call, Barone cited third-party research from Technomics showing that Dutch Bros outperforms the coffee industry average across every measured aspect of the guest experience, “while earning the highest rating for friendly service and the competitive set.”
Product innovation remains key to Dutch Bros strategy. The company is preparing a refreshed Matcha platform for 2027 and also testing additional hot food offerings, Barone told analysts. It's also piloting delivery services with DoorDash in several markets to evaluate its impact on customer accessibility and incremental sales.
Dutch Bros net income totaled $37.2 million for the quarter ended Sept. 30, compared to $27.3 million in the year-ago period. Adjusted earnings came in at $0.25 per share, up from $0.19 a year ago.
Total third-quarter revenues grew 29.8% to $549.8 million.
Company-operated same-shop sales increased 5.4% over the same period a year ago, with customer visits up 1.0% Systemwide same-shop sales increased 4.4%, with customer visits up 0.4%.
[READ MORE: Dutch Bros enters Chicagoland]
“Dutch Bros continues to gain share in the high-growth beverage category," Barone said in the earnings statement. “As we look ahead to 2027, we’re building on that foundation and unlocking new growth opportunities across the business. From accelerating our pace of beverage innovation to testing new hot food platforms, enhancing digital capabilities and piloting delivery, we’re creating more reasons for new and existing customers to choose Dutch Bros.”
