Dutch Bros Ramps Up Expansion: Are Same-Shop Gains Holding Up?

Dutch Bros Inc. BROS is rapidly expanding its footprint, backed by focused investments in real estate, development and construction. The company’s enhanced site selection process and commitment to boosting new shop productivity are key drivers behind its growth plans. As Dutch Bros continues to scale, the strength of its same-shop performance remains a key focus.

In the first quarter of 2025, total revenues rose 29% year over year to $355.2 million. This growth was supported by a balance of new shop openings and improved shop productivity. Dutch Bros also reported strong system same-shop sales growth of 4.7%, along with steady transaction gains.

BROS is focusing on long-term expansion through investments in real estate capability and market planning. The company’s development strategy includes building a strong real estate pipeline and refining site selection to open high-quality shops. Dutch Bros opened 30 new shops in the first quarter and plans to increase the opening rate in the second half of the year. The company is aiming for at least 160 system shop openings in 2025.

Going forward, Dutch Bros aims to build a long-term growth story through consistent expansion and disciplined development. The company is targeting 2,029 total shops by 2029. Strong shop economics, expanding market presence and a total addressable market of 7,000 shops support this goal. Dutch Bros expects to deliver multiple years of mid-teens annual shop growth, driven by its focused growth strategy and solid execution.

As Dutch Bros continues to broaden national presence, its ability to balance rapid expansion with sustained same-shop sales growth will be critical. Encouragingly, its disciplined approach to development and strong unit economics provide a solid foundation for long-term value creation. If Dutch Bros can maintain this momentum while navigating operational complexities, it may be well-positioned to become a dominant player in the specialty beverage space.

Other Restaurant Operators Advancing Expansion Strategies

CAVA Group, Inc. CAVA is actively expanding its footprint as part of the long-term growth plan. In the first quarter of 2025, the company added 15 net new restaurants, increasing its total locations by 18.3% year over year to 382 units. CAVA plans to open 64 to 68 net new restaurants in 2025 and is targeting at least 1,000 restaurants by 2032. New stores are consistently exceeding sales and margin expectations, while mature locations continue to post strong unit volumes and solid margins. CAVA’s disciplined expansion, supported by efficient operations and strong unit performance, is expected to drive sustainable growth in the years ahead.

Brinker International, Inc. EAT is also pushing its expansion plans despite economic challenges. The company is focusing on growing its brand Chili’s through both domestic and international development. Brinker is working with franchise partners to strengthen Chili’s presence in existing markets while pursuing opportunities in new, fast-growing regions. In fiscal 2025, the company expects to open up to 11 new domestic Chili’s locations and 25 international units. Brinker’s strategic focus on expanding Chili’s global footprint and supporting franchise growth positions it for steady long-term expansion.

BROS’ Price Performance, Valuation and Estimates

Dutch Bros stock has risen 35.2% in the year-to-date period compared with the industry’s growth of 0.1%.

BROS is trading at a premium to the industry, with a forward 12-month price-to-sales ratio of 6.64X. The figure is well above the industry average of 4.04X.

Although Dutch Bros’ earnings estimates for 2025 have remained unchanged over the past 30 days at 61 cents per share, the projection still indicates year-over-year growth of 24.5%.

BROS stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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