Fast growing Oregon-originated drive-thru coffee chain Dutch Bros ended its fiscal year on a high, beating expected earnings and revenue and, earlier this month, opening its 1,000th outlet, in Orlando, Fla.
The drive-thru coffee chain, once mainly a staple of the West Coast and Southwest, has continued its aggressive expansion in 2024, opening 151 new stores – of which 128 were company-operated – across 18 states, bringing its total to 982 locations at Dec. 31, 2024.
And this month, Dutch Bros broke through the 1,000 location barrier, a quarter of the way to its eventual target of 4,000 stores. In 2025, the company said that it expects to open at least 160 locations, which will include debuts in some new U.S. cities.
Dutch Bros’ net income totaled $6.4 million for the quarter ended Dec. 31, compared with a net loss of $3.8 million in the year-prior period as total revenues jumped 34.9% to $342.8 million, significantly ahead of analyst estimates of $317.8 million.
Same shop sales and transactions increased 6.9% and 2.3%, respectively, compared with the same period in 2023, while company-operated same store sales and transactions increased 9.5% and 5.2%.
For the full year, total revenues grew 32.6% to $1.28 billion, up from $965.8 million in 2023 and Dutch Bros expects revenue for 2025 between $1.555 billion and $1.575 billion, again more than analyst estimates.
Dutch Bros Earnings
“We believe our brand is resonating with customers, as we delivered 2.3% system same shop transaction growth, the largest year-over-year increase in over two years,” said Dutch Bros president and CEO Christine Barone. “Our efforts to develop our foundational transaction drivers – innovation, paid media, and our Dutch Rewards loyalty program – are working. We believe these efforts are contributing to current momentum and that there is considerable runway for further growth.”
It is currently the fourth largest branded coffee chain in the U.S. by outlets, behind only Starbucks, Dunkin’ Donuts and Panera Bread, and its four main markets are Texas, Arizona, Oregon and California, where its format has proven a hit with suburban customers especially, and it made its Florida debut around a year ago.
The drive-thru coffee chain has also sought to develop its Dutch Rewards loyalty program and in the final quarter 70% of sales came from members compared with around 60% in the fourth quarter of 2023.
Dutch Bros Shares Soar
Investors responded well to the update and Dutch Bros’ stock price jumped over a quarter on the update, and it is up over 210% in the past 12 months.
Last year Dutch Bros also announced a large-scale reorganization of its support center operations, with approximately 40% of its back office staff relocating to its Phoenix, Arizona office last year, although Dutch Bros has maintained a significant presence in southern Oregon, where its roasting, accounting and some other support functions are still based.
Dutch Bros began with a single coffee cart in Grants Pass, Oregon and has grown over the last 33 years to over 830 shops across 16 states employing approximately 24,000 people.
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