Dutch Bros. Inc. reported better-than-expected third-quarter earnings and sales, fuelled in part by its new mobile ordering system and continued store growth.
The drive-thru coffee chain opened 38 new shops (33 of which were company-operated) across 11 states during the quarter, for a total 950 locations across 18 states. The company said it is making “major” investments in its development and construction team. It also has increased the use of data analytics for site selection.
On the earnings call, Dutch Bros said it expects to accelerate shop openings in 2025 to at least 160 shops and further accelerate openings in 2026. The company has said it plans to operate over 4,000 shops in the next 10 to 15 years.
“Our 2025 pipeline is strong, positioning us to accelerate new shop growth,” stated Christine Barone, CEO and President of Dutch Bros. “We believe our refined real estate strategy is working, as we are seeing strong new shop productivity as we have shifted our development focus and elevated our site selection process.”
On the earnings call, Barone said that Dutch Bros began a limited food test in six shops during the third quarter, including an expanded bakery offering and sweet and savoury hot food options.
