Latest news with #DutchBros'
Chicago Tribune
a day ago
- Business
- Chicago Tribune
Dutch Bros Coffee sets sights on Naperville as company with cult following expands into Illinois
Dutch Bros Coffee, a java chain with something of a cult following, wants to lock down its first suburban Chicago location in Naperville. With stores already being built in Edwardsville and Urbana, company representatives will go before the Naperville Planning and Zoning Commission Wednesday to present plans for a third Illinois location at 1230 S. Naper Blvd. in the Market Meadows shopping center off 75th Street. The proposed 986-square-foot business would be consistent with other Dutch Bros locations, incorporating both drive-thru and walk-up window options, according to documents submitted to the city. It would feature an outdoor seating area and dual drive-thru lanes with a queuing capacity for more than 20 vehicles. The company is seeking city approval for requests to amend the shopping center's original planned unit development (PUD) as well as for preliminary and final plat approval. Commission members will review the project and make a recommendation to the Naperville City Council, which has final approval authority. Dutch Bros started as a pushcart coffee operation in downtown Grants Pass, Oregon, in 1992, according to the company's website. Franchising began in Oregon in 2000 and the company now has more than 1,000 locations across the country selling coffee, smoothies, energy drinks and sodas. According to published reports, the chain has a devoted following who call themselves the 'Dutch Mafia.' They have popularized drinks with such names as the Golden Eagle, the Caramelizer and the Annihilator and love to order secret menu items like the Cold Brew Kicker and Double Torture, according to a recent Parade magazine article. If a revised PUD is approved by the council, the triangular-shaped parking lot site on which the business is to be built would mean the loss of about 39 parking spots. However, sufficient parking for shopping center customers would remain, company documents said. According to a traffic study done for the proposed location, no changes would be needed for the shopping center's entrances and exits. Customers would access the Dutch Bros' store via the existing north-side drive aisle. The study found that drive-through queues should not adversely affect traffic flow on the shopping center's main drive aisles. However, the study did note that demand is expected to be high in the first few months after opening because it will be Dutch Bros' first location in the Chicago area. Its hours are expected to be 5 a.m. to 10 p.m. Sunday through Thursday and 5 a.m. to 11 p.m. Friday and Saturday. The chain has strategies to help mitigate traffic concerns, including having staff take orders and deliver drinks outside in order to speed up service and ease traffic flow and initially using off-duty police officers to direct traffic. Employees will regularly reevaluate traffic and make adjustments as necessary, the study said. Naperville has already had a taste of the kind of business a drive-thru coffee shop can generate. Last fall, 7 Brew opened a location at Ogden and Iroquois avenues that has seen major success, often drawing long lines for a chain that boasts more than 20,000 unique drink options.
Miami Herald
07-08-2025
- Business
- Miami Herald
Starbucks may lose ground to fast-growing coffee rival
Dutch Bros, a fast-growing Starbucks rival, is disrupting the specialty coffee market with a major expansion plan to directly challenge Starbucks' dominance in key markets like California and Texas. Like Starbucks, Dutch Bros' roots stretch back to the Pacific Northwest, where it operated as a coffee pushcart in Oregon in 1992. Dane and Travis Boersma founded the company with money Dane had set aside from operating a Dairy Queen after Travis suggested selling espresso in Grants Pass. Don't miss the move: Subscribe to TheStreet's free daily newsletter Today, the company looks a lot different. Dutch Bros sells specialty coffee drinks at over 1,000 stores, mainly in the Western US, and plans to open another 1,000 directly or via franchises by 2029. Unlike Starbucks, Dutch Bros focuses on speed and drive-throughs, rather than an in-store cafe experience. Still, most Starbucks offer drive-through service, and Dutch Bros' expansion plan sets the stage for a fierce battle over on-the-go market share in the coming years. Bloomberg/Getty Images Dunkin remains concentrated mainly in the Northeast, and while Starbucks' reach is nationwide, Dutch Bros' (BROS) footprint overlaps with Starbucks in major markets, including California and Texas, where Starbucks and Dutch Bros operate the largest number of stores, often near each other. Dutch Bros' top five states by number of locations, according to ScrapeHero: Texas: 223California: 203Oregon: 157Arizona: 89Washington: 72 Starbucks' top five states by number of locations: California: 3,186Texas: 1,473Florida: 940New York: 760Washington: 712 Dutch Bros edge is offering coffee lovers a relatively fast and easy way to get their fix. It still serves up espresso, but its specialty drink line-up has expanded in recent years to include flavor mashups and refreshers, similar to offerings at Starbucks and other rivals. Related: Starbucks' problems may be too big to fix For example, Dutch Bros most popular drinks include the Golden Eagle with espresso, vanilla, caramel, and a caramel drizzle, and its Rebel Energy drink lineup, including Double Rainbro and Shark Attack. It also sells milkshakes, smoothies, and other drinks. Those beverages are resonating with customers, given the company's revenue and same store sales growth. Dutch Bros' second quarter earnings results revealed revenue grew 28% year over year to $415.8 million, with company-owned locations accounting for $380.5 million, up 29%. "Our business continues to fire on all cylinders, guided by a focused strategy, strong execution, and our amazing people," said Dutch Bros CEO Christine Barone. Across all locations, same shop sales rose 6.1%, and it wasn't just because of price increases or inflation. Same shop transactions at Dutch Bros company-operated stores increased 5.9% from last year and 3.7% overall. Management says transaction growth is tied to efforts to increase drink innovation, including its Dulce de leche, sour Berry and Matcha beverages. It's also amped up advertising focusing attention on its Dutch Rewards program, which represented 72% of system transactions, up 5% from last year. More Retail Stocks: Troubled retailer files Chapter 11 bankruptcy, liquidates storesWayfair struggles to reverse concerning customer behaviorWalmart introduces mobile new store format for younger customers As for new locations, Dutch Bros opened 31 new stores in the quarter, 30 of which it owns directly, in 13 states. The coffee business remains nicely profit-friendly, too. Dutch Bros. All those specialty drinks sold resulted in a net income of $38.4 million, up from $22.2 million last year, and adjusted earnings per share, or EPS, grew 37% to 26 cents from 19 cents one year ago. Dutch Bros drinks are flying out of the drive-through, but it's content to leave the in-store business largely to Starbucks. Instead, its secret weapon in growing sales rests largely on establishing a vibe with millennials and Gen Z customers with sweeter drinks, in an environment that can be considered a bit more hip, as evidenced by the fact that their baristas are called broistas. Related: Forget coffee: Dutch Bros. new menu aims to take on Starbucks Those broista's aim for a fun, high-energy atmosphere driven with the pushcart, know your customer, style customer service. "Since 1992, we have been trailblazing a category-defining people-first culture within the drive-through beverage industry," said Barrone. "When combined with our relentless focus on speed, quality and service, our people-first culture is not only our differentiator, but it is our most powerful competitive advantage." This year, Dutch Bros plans to open 160 stores and it's targeting 4.5% same shop revenue growth, resulting in revenue of $1.59 billion to $1.6 billion. Further out, its also testing food, leaning into solid order-ahead sales, and planning to launch consumer packaged goods (CPG) in 2026 to bring Dutch Bros to grocery and convenience stores like Starbucks and Dunkin. To be sure, Starbucks is much larger, and deeply embedded, with many loyal fans. It has struggled in recent years, though. Workers have increasingly attempted to unionize over pay and increased workloads, and some customers have balked at the quality of their food and speed of their service. That may mean that there's an opening for Dutch Bros to chip away at Starbucks market share, a very large opportunity given Starbucks 41,000 stores worldwide brought in over $9.4 billion in revenue last quarter. "Dutch Bros is in growth mode, and we are just getting started with a long-term addressable market of 7,000 shops nationwide," said Barrone. Investors appear to agree. Dutch Bros' stock price surged after the earnings release, jumping 22% on August 7. Related: Forget Amazon, this online retailer is growing even faster The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
20-05-2025
- Business
- Yahoo
We Think Dutch Bros' (NYSE:BROS) Robust Earnings Are Conservative
Dutch Bros Inc. (NYSE:BROS) recently posted some strong earnings, and the market responded positively. We did some digging and found some further encouraging factors that investors will like. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Importantly, our data indicates that Dutch Bros' profit was reduced by US$16m, due to unusual items, over the last year. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And, after all, that's exactly what the accounting terminology implies. Assuming those unusual expenses don't come up again, we'd therefore expect Dutch Bros to produce a higher profit next year, all else being equal. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Unusual items (expenses) detracted from Dutch Bros' earnings over the last year, but we might see an improvement next year. Because of this, we think Dutch Bros' earnings potential is at least as good as it seems, and maybe even better! Furthermore, it has done a great job growing EPS over the last year. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. Case in point: We've spotted 1 warning sign for Dutch Bros you should be aware of. This note has only looked at a single factor that sheds light on the nature of Dutch Bros' profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Prediction: Dutch Bros Long-Term Prospects Will Outweigh Any Consumer Slowdown
Dutch Bros is facing a difficult consumer economy. However, the coffee chain's quarterly results showed why investors should stick with the stock. The company has a huge food and store expansion opportunity. 10 stocks we like better than Dutch Bros › While Dutch Bros (NYSE: BROS) has rallied off its 2025 lows, the stock is still well off its highs for the year, since there continues to be some worry about the state of the consumer economy. However, the drive-thru coffee chain's recent quarterly earnings report showed why a potential slowdown shouldn't scare investors away from the stock. My prediction is that the company's long-term prospects will outweigh any near-term slowdown in consumer spending. There have been clear signs that the consumer has been under some pressure, especially in the restaurant space. This could be seen at various points of the income spectrum in the first quarter, with McDonald's and the higher-end Chipotle both seeing their quarterly sales decline as they called out the state of the economy. However, Dutch Bros was able to overcome weakness among consumers in the first quarter, growing its same-store sales (comps) by 4.7%, with transactions increasing 1.3%. Company-owned stores performed even better, with comps jumping 6.9% with a 3.7% rise in transactions. Comps are one of the most important metrics in the restaurant space because they show how existing locations are performing. A big part of the reason for Dutch Bros' strong comps growth in a difficult macroenvironment is that it is still in the early days of mobile ordering. The company said this accounted for about 11% of its transactions in its quarter, up from 8% in the fourth quarter. This is also helping feed into its loyalty program, which made up 72% of system transactions in the quarter. This, in turn, is letting the company introduce new products and send personalized advertising to its rewards members. And even in this weaker macroenvironment, the company has another big potential initiative that could drive comps: food. Management is currently testing a pilot program to add more food items to its menu at a few select locations. Thus far, the pilot has been a success, and the company is expanding it from eight stores to 32. It plans to offer eight food items in total, with four hot items. The company believes this will help drive sales and guest frequency in the morning. It expects a broader rollout in 2026. The strong comps helped lead to a 29.1% surge in revenue to $355.2 million, while the company continues to add new shops. And it is Dutch Bros' expansion opportunity that is one of the biggest reasons to be excited about the stock. In the quarter, it opened 30 new shops in 11 states, with 25 of the added shops company-owned. It expects to maintain this pace in the second quarter and then accelerate it in the second half of the year. At quarter end, its total shop count was 1,012, of which 695 were company owned. Overall, it is looking to open at least 160 more shops this year, representing 16% growth. Its goal is to expand its base to 2,029 locations by 2029, and management believes its total addressable market is 7,000 shops. It said it has a robust long-term real estate development pipeline that, along with strong new-store economics, should support multiple years of new locations in the mid-teens annual percentages. The company says that the productivity of its new shops continues to improve, which it attributed to its choice of locations and advertising initiatives to drive brand awareness. It said systemwide annual unit volumes (AUV) are now $2 million per store. Looking at some other important metrics, gross margins in company-owned stores were flat at 21.9%. With tariffs putting pressure on coffee prices, the company has locked in its prices for the rest of the year. It said that with tariffs, this will pressure gross margins by 110 basis points on the year. Gross margins are important because they impact profitability. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed 20% year over year to $62.9 million, while adjusted earnings per share (EPS) jumped 56% from $0.09 to $0.14. Looking ahead, the company maintained its guidance for the full year. It expects around 22% revenue growth for the year, with revenue of between $1.555 billion and $1.575 billion. The forecast for comps growth is in a range of 2% to 4%. Adjusted EBITDA is expected to be between $265 million and $275 million. Even with the consumer feeling pressure, Dutch Bros finds itself in a great spot over the long term. The company should continue to see solid comps growth in the coming years from increased mobile ordering and its introduction of food items, which now represent only 2% of its sales, compared to 19% last quarter for rival Starbucks. As such, food should be a sales driver in the coming years. Between its menu expansions and that total addressable market of 7,000 shops, this is a stock to own for the long term. Before you buy stock in Dutch Bros, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Dutch Bros wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $598,613!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $753,878!* Now, it's worth noting Stock Advisor's total average return is 922% — a market-crushing outperformance compared to 169% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill and Starbucks. The Motley Fool recommends Dutch Bros and recommends the following options: short June 2025 $55 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy. Prediction: Dutch Bros Long-Term Prospects Will Outweigh Any Consumer Slowdown was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-05-2025
- Business
- Yahoo
Why Dutch Bros Stock Jumped 10% Today
Dutch Bros stock jumped as much as 10% after a strong Q1 earnings report. Same-store sales and adjusted EBITDA could come in above previous forecasts for 2025. The company has minimized tariff exposure and secured its coffee supply for the rest of the year. 10 stocks we like better than Dutch Bros › Shares of Dutch Bros (NYSE: BROS) were buzzing and popping on Thursday. The coffee chain, famous for its friendly service and drive-thru focus, posted a fresh first-quarter report on Wednesday evening. The results came in well above the analyst community's projections, driving Dutch Bros' stock as much as 10% higher in the morning session. By 12:20 p.m. ET, it had cooled down slightly to an 8.2% overnight gain. The average Wall Street analyst had expected adjusted first-quarter earnings of roughly $0.11 per share, based on top-line revenue in the neighborhood of $343.6 million. Dutch Bros' actual earnings landed at $0.14 per share, up from $0.09 per share in the year-ago report. Revenues rose 29% to $355.2 million. Management held their full-year guidance targets steady, but noted that many metrics are trending above the midpoint of earlier expectations. In particular, Dutch Bros could see surprisingly strong 2025 results in the categories of total revenues, same-store sales growth, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). CFO Josh Guenser admitted that the macroeconomic situation is unpredictable these days. But the company's exposure to tariff expenses is "limited," with most of the coffee beans it buys coming from low-tariff countries like Brazil, El Salvador, and Colombia. And Dutch Bros has secured its supplies for the rest of 2025 with preorders. "We have a strong runway ahead and are well positioned to continue producing healthy financial results in this dynamic macro environment," Guenser said on the earnings call. So Dutch Bros is still an inspiring growth story, despite macroeconomic pressure and rising ingredient prices. The stock trades 27% below February's all-time record price at 166 times trailing earnings. Dedicated growth investors can swallow the lofty valuation and invest in Dutch Bros' seemingly unstoppable growth. Before you buy stock in Dutch Bros, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Dutch Bros wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $623,103!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $717,471!* Now, it's worth noting Stock Advisor's total average return is 909% — a market-crushing outperformance compared to 162% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 5, 2025 Anders Bylund has no position in any of the stocks mentioned. The Motley Fool recommends Dutch Bros. The Motley Fool has a disclosure policy. Why Dutch Bros Stock Jumped 10% Today was originally published by The Motley Fool Sign in to access your portfolio
