Dutch Bros raises full-year guidance following strong second quarter sales

A Dutch Bros drive-thru coffee shop | Photo credit: Dutch Bros

Oregon-based Dutch Bros has raised its full-year revenue forecast after posting strong second quarter revenue and earnings growth. 
 

The drive-thru coffee chain achieved 30% year-on-year sales growth in the three months ending 30 June 2024 to reach $324.9m, with net income increasing from $9.7m in the same quarter of 2023 to $22.2m. 

Dutch Bros has increased its total 2024 revenue forecast by $30m to $1.23bn while its projected full-year adjusted EBITDA has risen by $5m to $210m. 

“Our quarterly performance demonstrates the long runway ahead for Dutch Bros as we once again delivered strong top-line and profitability growth. With strong results 2024 to date despite the volatile consumer backdrop and expectations for a robust second half to the year, we are pleased to be raising our annual guidance,” said Christine Barone, CEO, Dutch Bros. 

Dutch Bros opened 36 net new stores during the quarter to reach 912 outlets. The coffee chain opened 45 new sites in the first quarter and expects to add a further 70 stores in the second half of the year. 
 

The drive-thru coffee business also reported strong growth in loyalty memberships during the period, with approximately 67% of all transactions made by Dutch Rewards members, and greater footfall across new stores following targeted marketing spend. 

On an earnings call with investors, Barone said increased investment in paid advertising has led to ‘sequential traffic growth outpacing the system’, particularly in newer markets with lower brand awareness.  

Barone also said Dutch Bros had expanded the scope of app pre-ordering to approximately 200 stores. Additionally, the coffee chain expects mobile ordering to boost traffic to the company’s walk-up windows, which currently comprise 10% of sales.