Dutch Bros Inc. (BROS – Free Report) has been experiencing strength in its underlying business and expansion initiatives. The company has been enhancing its footprint across newer markets by opening shops systemwide.
We note that Dutch Bros Coffee launched two cereal-inspired beverages, including the Cinnamon Swirl and Marshmallow Dream. Such beverages bring the essence of the ‘bottom-of-the-bowl’ cereal milk. From Jan. 3, these drinks are available at more than 950 locations.
The Cinnamon Swirl has cinnamon sugar cereal milk, while the Marshmallow Dream provides a marshmallow cereal milk experience, topped with the company’s signature Soft Top. Both the drinks come in different forms, including as a Latte, Protein Latte, Freeze or Chai Latte for the Cinnamon Swirl and as a Latte, Protein Latte or Freeze for the Marshmallow Dream.
The company’s brand portfolio offers the Dutch Bros Rebel energy drink, specialty coffee, teas, nitrogen-infused cold brew, lemonades and sodas among others.
What’s More to Know About BROS?
Shares of this Zacks Rank #2 (Buy) company have gained 33% in the past six months, outperforming the industry’s 13.8% rise.
Image Source: Zacks Investment Research
Much of this growth is attributed to the company’s robust results in third-quarter 2024. The company reported better-than-expected results, while both earnings and revenues increased year over year during the third quarter. Gains from the company’s strategic and operational initiatives aided the results.
The company’s brand is resonating well with customers, evident from the highest same-shop transaction growth quarter in two years, outside of the Leap Day’s impact. The company saw 28% growth in revenues and a 2.7% rise in systemwide same-shop sales, which topped management’s expectations. It accelerated the mobile-order rollout in the quarter with 90% system and 96% company-operated shop coverage as of Sept. 30, 2024.
Its real-estate strategy is working well, as evident from solid new shop productivity. The company’s store-opening endeavors also bode well. BROS has been making key investments in its development and construction teams, whereas the company’s pipeline for 2025 is sturdy. Such efforts poise the company well for growth.
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