Dutch Bros Brews Up 25% After-Hours Gain on Strong Q4 Results

Dutch Bros (BROS), the popular drive-thru coffee chain, saw its shares surge by 25% in after-hours trading on February 12, 2025, following the release of its fourth quarter and fiscal year 2024 financial results. The company reported a 34.9% year-over-year increase in revenue to $342.8 million, with system same shop sales growth of 6.9% and company-operated same shop sales growth of 9.5%. Net income for the quarter was $6.4 million, compared to a net loss of $3.8 million in the same period of 2023.



The strong performance in Q4 capped off a year of impressive growth for Dutch Bros. For the full year 2024, total revenues grew 32.6% to $1.28 billion, with system same shop sales up 5.3%. The company opened 151 new shops across 18 states, with plans to open at least 160 new shops in 2025. Dutch Bros also provided initial 2025 guidance, with revenues expected between $1.555-1.575 billion, same shop sales growth of 2-4%, and Adjusted EBITDA between $265-275 million.

Christine Barone, Chief Executive Officer and President of Dutch Bros, stated, "We delivered exceptional performance in the fourth quarter as we ended 2024 on a high note. In the quarter, we drove an impressive 35% revenue growth and system same shop sales growth of 6.9%. We believe our brand is resonating with customers, as we delivered 2.3% system same shop transaction growth, the largest year-over-year increase in over two years."

The company's success can be attributed to several strategic initiatives, including:

1. Aggressive Expansion: Dutch Bros opened 32 new shops in Q4, with 25 of them being company-operated. This expansion strategy contributed to the 34.9% year-over-year revenue growth in the quarter.
2. Operational Efficiency: The company improved its operational efficiency, as evidenced by the 280 basis point increase in company-operated shop gross margin to 21.4%. This improvement suggests that Dutch Bros successfully implemented operational efficiencies and pricing strategies.
3. New Product Offerings: Dutch Bros tested food at some of its locations, which is a significant new product offering for a business built almost entirely on beverages. This initiative could boost the top line and contribute to the company's growth.

Dutch Bros' strong performance in Q4 and full year 2024 demonstrates the company's ability to execute on its growth strategy, maintain operational efficiency, and adapt to changing market conditions. As the company looks ahead to 2025, investors can expect continued growth and expansion, driven by the company's strategic initiatives and focus on customer satisfaction.