Mobile ordering drives Dutch Bros’ third quarter sales growth

Dutch Bros opened 38 new stores during the quarter and currently has a presence across 18 US states | Photo credit: Dutch Bros

US drive-thru coffee chain Dutch Bros has credited the accelerated roll-out of mobile ordering across its estate as a key driver of ‘exceptional’ third quarter sales. 
 

The Oregon-based business began testing mobile ordering across its Arizona stores in February 2024 and now offers the service across 858 of its 950 stores.  

Dutch Bros received approximately 2.8 million mobile order transactions as of 31 October 2024 and saw an uptick in order frequency among users, according to Dutch Bros CEO Christine Barone. 

Mobile ordering was also a key contributor to record loyalty app registrations during the third quarter, with more than one million customers joining the Dutch Rewards scheme during the reporting period. Two-thirds of all third-quarter transactions were made by loyalty club members. 
 

Dutch Bros posted 28% year-on-year group revenue growth in the three months ended 30 September 2024 to reach $338.2m – 4% higher than the previous quarter. Company-operated stores contributed over 90% of total sales, increasing 30% year-on-year to $308.3m. 

Dutch Bros’ third quarter adjusted EBITDA grew 20% to $63.8m while net incomes increased 62% year-on-year to $63.8m. 

The coffee chain – the fourth largest in the US behind Starbucks, Dunkin’ and Panera Bread – opened 38 net new stores during the quarter and currently has a presence across 18 US states. 
 

Dutch Bros said it has invested in its development and construction teams this year to support outlet growth, increased the use of data analytics for site selection and digital marketing spend to dive brand awareness. 
 

“We believe our refined real estate strategy is working, as we are seeing strong new shop productivity as we have shifted our development focus and elevated our site selection process. We continue to demonstrate remarkable consistency in our shop opening cadence and are making major investments in our development and construction teams. Our 2025 pipeline is strong, positioning us to accelerate new shop growth,” Barone said. 

Following its ‘exceptional’ third quarter performance, Dutch Bros has raised its full-year guidance for the second time this year. Total revenues are now projected to reach $1.26bn, up from a previous forecast of $1.23bn in August 2024. 

Dutch Bros expects to open 45 net new stores in the fourth quarter and at least 160 new sites in 2025. The drive-thru chain is also planning to trial an expanded food menu next year, offering a wider range of bakery products alongside hot food options. Food currently makes up less than 2% of Dutch Bros total sales.