MW Dutch Bros shares rocket higher after earnings amid plans to expand mobile orders, food service

By Bill Peters

Results come as Starbucks tries to overhaul its cafes and simplify its menu in hopes of restoring sales growth

Shares of Dutch Bros Inc. rocketed higher in extended trading Wednesday after the coffee chain put out fourth-quarter results and a full-year sales forecast that topped Wall Street's expectations, amid plans to expand mobile ordering and its food selection.

The company - whose coffee beverages tend to go heavier on the flavoring and toppings than Starbucks Corp., its much larger rival - said it expects sales this year of $1.555 billion and $1.575 billion. That was above FactSet forecasts for $1.529 billion.

However, the midpoint of Dutch Bros' (BROS) same-store sales forecast for a 2% to 4% gain was in line with Wall Street's expectations for 3% growth.

Dutch Bros reported fourth-quarter revenue of $342.8 million, up 34.9% and above the $342.8 million forecast by FactSet. The company had same-store sales growth of 6.9% and adjusted earnings per share of 7 cents. Both were above expectations.

Shares jumped 26.6% after hours on Wednesday. The stock as of Wednesday's close had run 134.9% higher over the past 12 months.

"Our efforts to develop our foundational transaction drivers - innovation, paid media, and our Dutch Rewards loyalty program - are working," Chief Executive Christine Barone said in a statement. "We believe these efforts are contributing to current momentum and that there is considerable runway for further growth."

"Additionally, we see a clear path forward with multi-year transaction driving initiatives that layer on top of this foundation, with opportunity to unlock throughput and ramp mobile order in 2025," she continued. "In 2026 and beyond, we are excited about opportunities with expanding our food offerings."

The chain reported the results as Starbucks $(SBUX)$, under new leadership, tries to overhaul its cafes and simplify its menu in hopes of restoring sales growth.

-Bill Peters

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February 12, 2025 16:44 ET (21:44 GMT)

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