Dutch Bros Accelerates Momentum Amidst Industry Evolution
The third quarter of 2024 was a period of significant growth for Dutch Bros, as the company continued to execute on its strategic and operational initiatives. According to CEO Christine Barone, Dutch Bros is uniquely positioned to thrive in an evolving industry where customers will increasingly prioritize iced beverages, personalization, and speed.
In Q3, Dutch Bros achieved a 28% revenue increase and a 20% adjusted EBITDA increase compared to the same quarter last year. The company also saw strong growth in its mobile order rollout, with 90% system and 96% company-operated shop coverage as of September 30.
Barone highlighted the importance of genuine connection, which has been a cornerstone of Dutch Bros' growth since its inception in 1992. The company's Broistas are seen as a key differentiator, with customers resonating with their exceptional culture, crews, and service.
Dutch Bros' real estate strategy is also showing signs of success, with strong new shop productivity as the company has shifted its development focus and elevated its site selection process. The 2025 shop pipeline is looking strong, positioning Dutch Bros to accelerate new shop growth.
Barone emphasized that people are at the heart of Dutch Bros' strength, with a talented Broista team driving growth and setting the company apart from competitors. The company has a robust people pipeline in place, with over 400 operator candidates who have an average tenure of more than 7 years.
Dutch Bros is making significant investments in its development and construction teams, with a focus on scaling its culture and seeding new markets with expertise, energy, and teamwork. Shop level turnover indicators are also looking favorable, with the company pleased that they are considerably more favorable than the industry and in line with expectations.
In terms of guidance, Dutch Bros is raising its guidance for 2024, citing the strength it saw in Q3 and growing momentum. CFO Josh Guenser will share more context on this in a few minutes, but for now, it's clear that Dutch Bros is accelerating its momentum amidst industry evolution."
