Dutch Bros sustains strong sales and outlet growth in ‘exceptional’ first quarter

Two thirds of all transactions during the first quarter were made via the Dutch Rewards loyalty app | Photo credit: Dutch Bros

Oregon-based Dutch Bros has posted record first quarter sales as customer footfall and average ticket price both increased across its US drive-thru network. 
 

Dutch Bros achieved 39% year-on-year sales growth in the three months ending 31 March 2024 to reach $275.1m, driven by a 10% rise in like-for-like sales. Two thirds of all transactions during the quarter were made via the Dutch Rewards loyalty app. 

The drive-thru coffee chain credited the additions of protein coffee and bubble tea beverages to its menu as key contributors to first quarter sales growth. Speaking to investors on an earnings call, Dutch Bros CEO Christine Barone said the chain’s protein coffee beverage achieved higher repeat purchase behaviour than typical limited time offers, while bubble tea boosted average ticket price and drove ‘an increase in group-buying’. 

“We delivered exceptional results and witnessed the momentum we saw leaving 2023 continue into the first quarter. Our traffic trajectory is particularly encouraging and has now improved for two consecutive quarters. We are also seeing traction driving awareness in new markets, and are investing more to capitalise on this opportunity,” Barone said. 

Dutch Bros opened 45 net new stores in the quarter – its joint highest quarterly outlet openings – to reach 876 sites across 17 US states. 

“This marks the 11th consecutive quarter of 30 or more new shop openings and demonstrates the consistency by which we are executing our growth plans,” Barone added. 

The drive-thru chain – the fourth largest in the US by outlets behind Starbucks, Dunkin’ and Panera Bread – is seeking to open more than 150 stores in 2024 and plans to reach 1,000 sites by the first half of 2025. 

Dutch Bros, which is forecasting full-year sales above $1.2bn for 2024, posted $966m in revenue last year.