Dutch Bros off to ‘strong start’ as same-store sales jump 10%; to open 150-165 shops

Dutch Bros had 876 locations across 17 states at the end of its first quarter.

Dutch Bros Inc. reported better-than-expected earnings and revenue amid expansion into new markets, record-breaking system average unit volume and new product launches.

The fast-growing drive-thru coffee chain opened a record 45 shops across 14 states during its first quarter — the 11th consecutive quarter of 30 or more new shop openings — of which 40 were company-operated. Dutch Bros remains on track to open a total of 150 to 165 new locations this year. 

The retailer reported net income of $16.2 million for the quarter ended March 31, compared to a loss of $9.4 million in the year-ago period.

Total revenue grew 39.5% to $275.1 million, ahead of analysts’ estimates of $255.70 million. Same-store sales rose 10%. System AUVs expanded to $2.0 million, the highest on record, the company noted.

“System same-shop sales growth featured a healthy combination of ticket expansion and traffic,” said Christine Barone, who took the reins as CEO in January. “Our traffic trajectory is particularly encouraging, and has now improved for two consecutive quarters.”

Barone credited Dutch Bros’ success partially to two strong new product launches in the first quarter. The new items included protein coffee and Boba beverages.

“Notably, a record 66% of all transactions in Q1 came through Dutch Rewards members, which allows us to efficiently and effectively connect with our customers,” she added. “We are also seeing traction driving awareness in new markets, and are investing more to capitalize on this opportunity.”

Dutch Bros increased its expectations for revenues and profitability in the period.

“Given this strong start to 2024, and despite a continued volatile economic backdrop for the consumer, we are comfortable raising our guidance for the year,” Barone said.

Executive Leadership Transitions

Dutch Bros said that Joshua Guenser has been named CFO, from his previous role as incoming CFO, effective May 9. Guenser will succeed Charley Jemley, who will step into the role of strategic advisor and will provide support for a transitional period prior to his planned retirement.

This transition follows the previously announced appointment by the board of Brian Maxwell to the newly created role of vice chair, and Sumi Ghosh to the role of president of operations from his previous role of incoming president of operations, effective April 1.

Dutch Bros had 876 locations across 17 states as of March 31, 2024.