Dutch Bros coffee keeps perking up: Stock price soars on positive earnings and aggressive expansion

Dutch Bros Inc. shares surged more than 27% in premarket trading Thursday after the coffee chain posted better-than-expected fourth-quarter results and announced plans to expand mobile ordering and food offerings.

Revenue rose 34.9% to $342.8 million, surpassing Wall Street estimates. Same-store sales grew 6.9%, and adjusted earnings per share reached 7 cents, both exceeding expectations.

The company forecasts 2024 sales between $1.555 billion and $1.575 billion, exceeding analyst projections.

“Our efforts to develop our foundational transaction drivers—innovation, paid media, and our Dutch Rewards loyalty program—are working,” CEO Christine Barone said in a statement. “We believe these efforts are contributing to current momentum and that there is considerable runway for further growth.”

Dutch Bros stock (NYSE: BROS) has risen more than 143% in the last 12 months.

Expansion plans and growth strategy

The fast-growing Starbucks rival has made significant strides in its expansion. Dutch Bros recently opened its 1,000th store and added 151 locations in 2024 alone, which is on the lower end of projections it had made early last year.

With plans to now open at least 160 more shops this year, the company continues its aggressive growth strategy while increasing its advertising efforts and expanding its rewards program.

Barone also highlighted future plans for mobile ordering and food offerings.

“We see a clear path forward, with multi-year transaction-driving initiatives that layer on top of this foundation, with opportunity to unlock throughput and ramp mobile order in 2025,” she said. “In 2026 and beyond, we are excited about opportunities with expanding our food offerings.”

Preserving culture amid growth

As Dutch Bros continues to expand, the company said it remains committed to preserving its culture of friendly service, courtesy of the “broistas” (Dutch Bros’s term for baristas) who have been key to its success.

“As we expand [broistas’] roles, we must consider how to do so in ways that continue to foster a fun and energetic work experience that assures we continue to attract and retain the very best people,” Barone explained.