Shares of Dutch Bros Inc. (BROS) surged over 22% in after-hours trading on Wednesday after the drive-thru coffee chain reported stellar fourth-quarter results that exceeded Wall Street's expectations. The company's strong performance was driven by aggressive expansion efforts and a focus on operational efficiencies, fueling investor optimism about its future growth prospects.

For the fourth quarter of 2024, Dutch Bros reported:

• Adjusted earnings per share of $0.07, beating analysts' estimate of $0.02
• Revenue of $342.8 million, up 34.9% year-over-year and surpassing the expected $317.8 million
• System-wide same-store sales growth of 6.9%, with company-operated same-store sales increasing by 9.5%
• Adjusted EBITDA of $48.8 million, a 41.2% increase from the prior year

The company's impressive results were driven by the opening of 32 new shops during the quarter, including 25 company-operated locations. Dutch Bros' focus on expanding its digital capabilities, including its Dutch Rewards loyalty program, also contributed to the strong performance, with rewards transactions accounting for over 70% of total transactions.

Looking ahead, Dutch Bros provided an upbeat outlook for 2025, projecting revenue between $1.555 billion and $1.575 billion and plans to open at least 160 new shops. The company anticipates same-store sales growth in the range of 2% to 4%, supported by ongoing efforts in digital and operational enhancements.

Christine Barone, CEO and President of Dutch Bros, expressed confidence in the company's growth strategies, citing the success of its mobile order capabilities, loyalty program, and plans to expand food offerings. "We believe our brand is resonating with customers, and there is considerable runway for further growth," she stated.