Dutch Bros posted stronger-than-expected first-quarter sales and earnings as the drive-thru coffee chain continued to expand rapidly across the U.S., prompting the company to raise its full-year outlook and increase planned store openings for 2026.
The retailer now expects to open at least 185 new locations this year, up from previous guidance, after opening 41 shops during the first quarter. As of March 31, the company operated 1,177 locations across 25 states.
Total revenue rose 30.8% year over year to $464.4 million in the quarter ended March 31, ahead of analyst expectations of roughly $450 million. Net income increased to $23.7 million, while earnings per share climbed to $0.16 from $0.14 a year earlier.
Systemwide same-shop sales increased 8.3%, driven by a 5.1% increase in transactions, marking Dutch Bros’ seventh consecutive quarter of transaction growth. Company-operated same-shop sales rose 10.6%, with transactions up 6.9%.
CEO Christine Barone said the company remains confident in its long-term target of reaching 2,029 stores by 2029, citing continued improvements in market planning and site selection.
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Barone told analysts the company sees strong opportunities for both new builds and conversion sites, including former locations operated by limited-service restaurant chains and legacy beverage brands.
“We have no shortage of potential sites for new builds,” Barone said on the company’s earnings call, adding that the retailer also maintains a “healthy” pipeline of conversion opportunities.
The company raised its full-year revenue guidance to between $2.05 billion and $2.08 billion, up from previous expectations of $2 billion to $2.03 billion.
Dutch Bros also lifted its same-shop sales growth forecast to between 4% and 6%.
CFO Josh Guenser said the stronger guidance reflects momentum seen both during the first quarter and into the early part of the second quarter.
Dutch Bros’ continued expansion comes as drive-thru coffee chains compete aggressively for market share amid changing consumer habits and rising demand for convenience-focused formats.
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