Dutch Bros Inc. has labelled itself as “one of the fastest growing brands in the US quick service industry” following the reporting of strong year-on-year growth in its first quarter 2025 financial results.
Revenue grew 29.1 per cent to US$355.2 million as compared to the same period last year, while 30 new shops – 25 of which were company-operated – were opened across 11 states in the United States (US). The reporting period spans 1 January to 31 March 2025.
Company-operated shops revenues increased 31.6 per cent to $326.4 million, which laid the foundations for an increase in company-operated gross margin of 29.1 per cent and $71.5 million in gross profits. Adjusted EBITDA grew 19.7 per cent to $62.9 million.
CEO and President of Dutch Bros, Christine Barone, says the growth experienced in Q1 is expected to be sustained over the rest of the year and beyond.
“Our business continues to operate from a position of strength, and we are well-positioned to thrive in this dynamic environment. The enthusiasm for our brand, the loyalty of our customers, the passion of our team and a clear vision for the future give us great confidence,” Barone says.
“We delivered exceptional results in the first quarter, starting 2025 on a high note with continued momentum.
“Our brand continues to resonate with our customers, giving us confidence that our foundational transaction drivers are working and propelling us forward. We have a clear roadmap ahead of us and are well-positioned to continue generating sustainable long-term growth.”
Dutch Bros CFO Josh Guenser says the strength of the first quarter performance has led the company to estimate it will achieve the top end of previously communicated ranges across key metrics.
“We are optimistic about our ability to navigate evolving macroeconomic conditions with robust four-wall economics and excellent cash-on-cash returns,” Guenser says.
“Given the strong performance in the first quarter and the continued momentum into the second quarter, 2025 total revenues, same shop sales growth and adjusted EBITDA are trending towards the top half of ranges we provided last quarter.”
The total revenues estimate stands between $1.555 billion and $1.575 billion, same shop sales growth of between two and four per cent, and adjusted EBITDA between $265 million and $275 million.
Total system shop openings in 2025 is estimated to be at least 160, with capital expenditures sitting between $240 million and $260 million.
