Dutch Bros Stock Sees Dramatic Spike After Strong Earnings Report

Dutch Bros (BROS) stock experienced a significant surge during trading on Thursday, with shares climbing by 26.8% as of 11:30 a.m. ET. At one point, the stock saw an increase of up to 33.5% earlier in the day.

The surge in stock price coincided with the company's release of its fourth-quarter results after the market closed yesterday. Dutch Bros reported impressive sales and earnings figures that surpassed analysts' expectations, along with positive guidance for 2025.

Dutch Bros Stock Rises Following Strong Q4 Results

For the fourth quarter, Dutch Bros announced non-GAAP (adjusted) earnings per share of $0.07 with total sales around $342.8 million. This performance significantly exceeded Wall Street's average predictions, which estimated adjusted earnings per share at $0.02 with sales of $318.8 million.

Year-over-year, revenue increased by 34.9% during the quarter, and the company expanded its footprint by opening 32 new shops. Additionally, same-store sales grew by 6.9%, with company-operated locations achieving even higher growth of 9.5% during this time.

Dutch Bros finished the year with 982 locations and experienced a 33% annual revenue increase, reaching $1.28 billion. The chain's growth was fueled by the opening of 151 new shops last year, and the company plans to keep this momentum going in 2025.

Future Outlook for Dutch Bros

Looking ahead, Dutch Bros anticipates opening at least 160 new locations this year. Correspondingly, capital expenditures are expected to range between $240 million and $260 million. Same-store sales are projected to grow between 2% and 4% for 2025.

For revenue in 2025, estimates suggest a range between $1.555 billion and $1.575 billion, reflecting a growth of 22.2% at the midpoint of this projection. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are forecasted to be between $265 million and $275 million, equating to a growth of roughly 17.2%. Given these impressive growth figures and the planned new store openings, Dutch Bros appears positioned for strong performance in the upcoming year.

stocks, earnings, growth