Loyalty members couldn’t get enough of Dutch Bros last quarter. The same can be said of Wall Street.
The drive-thru beverage chain on Wednesday reported stronger-than-expected sales in the fourth quarter and then said that it’s beating tough comparisons in the current period.
The company’s loyal customers drove much of that. Members of the Dutch Rewards loyalty program accounted for 71% of the chain’s transactions in the quarter, a key reason for a 6.9% increase in same-store sales.
Mobile order also helped, as this was the first full quarter in which just about all the chain’s locations accepted such orders. And company executives said Wednesday that an increase in advertising drove awareness, particularly in newer markets.
“A lot of things are working well at the same time,” CEO Christine Barone told analysts on Wednesday. “It’s not just one thing. We’re actually quite happy to see everything work perfectly together.”
As if to prove the point, executives then noted that same-store sales so far this quarter appear to be perfectly fine, despite a host of economic and weather-related challenges. A year ago, same-store sales rose 10%, and executives suggested they will likely report positive results this period, despite the tough comparison.
“We’re very pleased with how we’re starting the year,” Barone said.
The result generated some real enthusiasm among investors. Dutch Bros stock rose well over 20% in after-hours trading on Wednesday. That came on top of a stock that was already up 19% so far in 2025.
“It’s a little tough to find anything wrong,” one analyst noted on the company’s earnings call.
Dutch Bros is one of the fastest-growing chains in the U.S. right now. The Grants Pass, Oregon-based company went public in 2021 and generated strong sales. But it stumbled in 2022 and into 2023 as rapid expansion drained sales from some shops.
Barone took over as CEO last year and the company has regained its momentum, outperforming rival Starbucks while helping to establish drive-thru beverages as a major source of restaurant industry growth. The company now has 950 shops and executives believe they have plenty of room for more growth as it expands eastward.
Dutch Bros only recently added mobile ordering capabilities. The capability is now in 96% of the chain’s shops systemwide. And there were 5.4 million such transactions through the end of 2024.
Customers who make such orders visit the chain’s shops more frequently, Barone said.
Digital ads also drove sales. The company said that it increased paid digital ads, particularly in newer markets, to increase brand awareness. “It’s becoming clear that the upside of paid advertising has a positive impact on the business,” Barone said.
That also raised the profile of the chain’s newer shops, which performed better as the quarter went on. Those shops also drove more mobile order sales, executives said.
As for the future, Dutch Bros continues to test an expanded food offering in about eight shops. The company only features four menu items at most locations. Barone said that the limited nature of that food menu may cost the company transactions from beverage customers that want something to eat.
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