Dutch Bros Stock Gains on Earnings Surprise, Boost to Guidance

Dutch Bros opened 38 shops during the quarter, extending its reach to 1,081 stores across 17 states. (Maranie Staab/Bloomberg)

Key Points

• Dutch Bros reported third-quarter revenue of $423.6 million, a 25% increase year over year, exceeding Wall Street estimates.
• Adjusted net income rose to $33.5 million, or 19 cents per diluted share, surpassing the consensus estimate of 17 cents.
• The company raised its full-year 2025 revenue forecast to between $1.61 billion and $1.615 billion, with same-shop sales growth projected at 5%.

Dutch Bros brewed up another strong quarter, issuing results showing both rapid expansion and steady sales momentum at its coffee stands.

In the third quarter, the drive-through beverage chain reported revenue of $423.6 million, up 25% from a year earlier, compared with Wall Street expectations of $414 million. Adjusted net income rose to $33.5 million, or 19 cents per diluted share, up from 16 cents a year earlier. The consensus call on Wall Street was for 17 cents.

The stock rose as much as 4% in after-hours trading on Wednesday.

Dutch Bros’ strong revenue resulted both from higher same-shop sales—the increase was 5.7% from the year-earlier quarter—and a brisk pace of new openings. The chain opened 38 shops during the quarter, extending its reach to 1,081 stores across 17 states. The company said its development pipeline indicates more than 2,000 shops by 2029.

CEO Christine Barone said the results show the brand’s “differentiated strategy”—a drive-through-focused model with various innovative drinks—and the enthusiasm of its in-store staff, are driving transaction growth.

Dutch Bros said that because the momentum of sales held up through October, it was raising its financial forecasts for the full year. The company now expects total 2025 revenue between $1.61 billion and $1.615 billion, up from its projection of $1.59 billion to $1.60 billion three months ago. Same-shop sales are expected to grow 5%, up from the 4.5% prior projection.

Write to Evie Liu at evie.liu@barrons.com