Dutch Bros' Traffic and Ticket Growth, Sustainable or Short-Lived?

Dutch Bros Inc. (BROS) delivered another strong quarter, raising questions about whether its transaction and ticket growth can endure.

In second-quarter 2025, revenues climbed 28% year over year to $416 million, while system same-shop sales rose 6.1%, fueled largely by 3.7% transaction growth. Company-operated shops performed even better, with same-store sales up 7.8% and nearly 6% driven by traffic gains. These results underscore the brand’s ability to attract customers consistently, a key differentiator in today’s competitive beverage landscape.

Management credits this momentum to a coordinated strategy: menu innovation, stepped-up advertising and loyalty-driven engagement. Seasonal drinks, expanded marketing efforts and Dutch Rewards, which accounted for 72% of second-quarter 2025 transactions, are fueling repeat visits. Meanwhile, the “order ahead” initiative and a food pilot are adding incremental sales, with early tests showing both higher tickets and traffic lift. New stores are also ramping quickly, with average unit volumes holding above $2 million, indicating robust consumer demand.

Yet the sustainability question lingers. Some second-quarter 2025 strength reflected promotional surges, merchandise and sticker drops, that may normalize in coming quarters. Rising coffee tariffs and labor pressures could also challenge margins, even as dairy cost relief provides near-term offsets. Moreover, competition in customized beverages and cold drinks remains intense, requiring continuous innovation.

For now, Dutch Bros is proving its growth playbook works. But investors should watch whether transaction gains persist beyond marketing spikes, and food and mobile initiatives scale effectively. Sustained success will depend on converting today’s buzz into durable, long-term traffic growth.

Competitors Brewing Up Pressure

While Dutch Bros has delivered impressive transaction gains, competition in the beverage space remains fierce. Starbucks Corporation (SBUX) continues to dominate with its global footprint, loyalty ecosystem and strong digital ordering mix. Its app penetration far exceeds Dutch Bros, making Starbucks a formidable rival in driving repeat traffic and ticket growth. Starbucks’ focus on cold beverages and customization directly overlaps with Dutch Bros’ core customer base, creating ongoing headwinds.

Another key competitor is Restaurant Brands International (QSR), the parent of Tim Hortons. With the broad presence in North America, Tim Hortons has been sharpening its beverage focus while expanding digital loyalty offerings. Its competitive pricing and scale make Restaurant Brands International a challenger in markets where value and convenience drive customer decisions.

BROS’ Price Performance, Valuation and Estimates

Dutch Bros’ stock has surged 103.9% in the past year against the industry’s decline of 0.8%.

Price Performance

BROS is trading at a premium to the industry, with a forward 12-month price-to-sales of 5.84X. The figure is well above the industry average of 3.73X.

P/S(F12M)

Over the past 30 days, BROS' 2025 earnings estimates have increased to 68 cents per share from 60 cents.

Dutch Bros currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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