Dutch Bros shares drop after third-quarter sales miss expectations

Dutch Bros shares fell more than 16% in off-hours trading following third-quarter earnings results that showed same-store sales growth of 5.4%, a figure that fell below market expectations. While the company reported nine consecutive quarters of positive customer count growth, traffic growth was limited to 0.4%.

CEO Christine Barone attributed some of the quarterly volatility to rising gas prices. Despite investor concerns regarding increased competition from rivals such as McDonald’s and 7 Brew, management stated that competitive presence has not impacted average unit volumes.

On the growth front, Dutch Bros reported total revenues of $550 million and expects full-year revenue to reach at least $2.1 billion. The company has secured real estate to support an expansion to 2,029 shops by 2029 and aims to open approximately 250 shops in 2027. Additionally, the company is diversifying its menu, with energy drink sales now accounting for 27% of the mix, and mobile order-ahead adoption reaching 17% of total customer visits.