Dutch Bros CEO Says Company in 'Growth Mode' Amid Starbucks Turnaround

Dutch Bros CEO Christine Barone said the company is in "growth mode," with plans to open 2,029 stores by 2029. The rising coffee chain posted 6.1% same-store sales growth in the most recent quarter, accelerating from the first quarter. Starbucks' sluggish turnaround has stoked competition in the beverage market, but Dutch Bros is gaining share with its value proposition and expansion plans.

Dutch Bros, a rising coffee chain, is experiencing significant growth, with CEO Christine Barone indicating that the company is in "growth mode." In the most recent quarter, Dutch Bros reported a 6.1% same-store sales growth, accelerating from the first quarter's performance. The company's robust quarterly performance has been attributed to its value proposition, which includes larger drink sizes and competitive pricing [1].

Dutch Bros has plans to open 2,029 stores by 2029, and currently operates more than 1,000 stores in 18 states. The company's stock has gained over 30% in 2025, reflecting investor confidence in its growth trajectory. Analysts have noted that Dutch Bros is gaining share from Starbucks, which has experienced six consecutive quarters of US same-store sales declines [1].

The competition in the beverage market has been heating up, with Yum Brands' Taco Bell and McDonald's expanding their beverage menus. Despite the increased competition, Dutch Bros remains focused on its growth plans. The company's strategy includes opening 160 new shops this year and maintaining elevated productivity in new locations [2].

Dutch Bros' Q2 CY2025 highlights included better-than-expected revenue, with sales up 28% year-on-year to $415.8 million. The company's non-GAAP profit of $0.26 per share was 46.6% above analysts' consensus estimates. The company lifted its revenue guidance for the full year to $1.60 billion at the midpoint, a 1.9% increase from previous estimates [2].

The company's operational improvements, such as enhanced labor deployment and new throughput dashboards, have contributed to elevated same-shop sales and margin expansion. Dutch Bros' success in the second quarter has been attributed to robust transaction-driving initiatives, including menu innovations, paid advertising, and loyalty program enhancements [2].

Looking ahead, Dutch Bros' forward guidance is driven by continued shop expansion, digital engagement growth, and cautious cost discipline in the face of commodity price risks. The company plans to open at least 160 new shops this year, with new shop productivity expected to remain elevated as a key revenue growth driver [2].

References:
[1] https://finance.yahoo.com/news/dutch-bros-ceo-says-company-in-growth-mode-as-starbucks-turnaround-stokes-beverage-competition-090031858.html
[2] https://finance.yahoo.com/news/bros-q2-deep-dive-transaction-071641818.html