By Evie Liu

Dutch Bros shares shot up nearly 30% after the fast-growing coffee chain posted financial results for the fourth quarter that beat estimates on both earnings and sales.

For the three months ended in December, the company's total revenue grew 34.9% from the year-ago period to $342.8 million as it continues to open new stores and see strong same-store sales growth. The number came ahead of Wall Street analysts' consensus estimates of $318.8 million.

Adjusted earnings were 7 cents per share, compared with 4 cents in the same period of 2023, also higher than the 2 cents per share expected by Wall Street.

"We delivered exceptional performance in the fourth quarter as we ended 2024 on a high note," said CEO Christine Barone. "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."

Barone noted the firm's efforts to invest in innovation, paid media, and the Dutch Rewards loyalty program are contributing to its current momentum and there is considerable runway for further growth.

The CEO said she expects strong transaction volume to continue driving the firm's growth in 2025, 2026, and beyond. With its mobile order system coming online and new food products in preparation, there are more tailwinds to come, she added.

As of Wednesday's close, Dutch Bros shares have gained 133% over the past 12 months.

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

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February 13, 2025 09:50 ET (14:50 GMT)

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