With a recent market sale, many growth stocks have fallen from their maximums. One such shares that could give a portfolio of an investor Dutch Bros (Nyse: bros).
AND coffee shop There are several potential growth drivers in the next few years that should help power supply.
The largest growth driver for most restaurant shares is the expansion of the trade. This is what fueled by companies like McDonald’s,, Laceand Starbucks (NASDAQ: SBUX) Where they are today.
On this front, the Dutch bros is very well set. The company finished 982 locations last year, 670 of which were owned by the company. In the meantime, it currently operates in only 12 countries, most of which are in the western part of the US -the farthest east to which it spread to Tennessee, where there are three locations.
Oregon, where the company was founded, is the largest market with 155 locations, followed by California with 149, by comparison, Starbucks operated 17,049 total locations in the US at the end of the year. This included more than 3000 stores in California alone.
Significant is that the Dutch stores are very basic, and most of the new buildings fall between 800 square meters and 1,000 square meters. Most shops have no seating; They rely on a walking window and more ribbons to drive. As such, the costs for the construction of a new location are not particularly high, and the returns are strong.
Last year, the company added 151 new stores, 128 of which was owned by the company. He plans to increase this to about 160 new locations this year, which would represent about 16% of the unit growth. Most of this growth will come in the second half of 2025, as the company worked to re -evaluate and optimize its real estate strategy.
Now, the expansion itself does not ensure success. Donut trade Krypy cream It quickly spread to the early 2000s before he had to declare bankruptcy. Restaurant operators have to grow carefully, and the Dutch Bros seems to do so, using their operating cash flow to build their own base of the store.
Dutch Bros also enjoyed a solid Sales in the same store Growth with this metric jumping 6.9% in the last quarter. This was guided by increasing price as well as 2.3% of transaction growth. The shops operating companies worked even better with a comparable sales sale, climbing 9.5%, and transactions increased by 5.2%.
One driver was the introduction of a mobile order. Although a little late into the game, the Dutch Bros now has mobile order options in 96% of its stores. However, only 8% of its orders come from mobile devices, so this initiative has room for growth. It also binds to mobile ordering with its loyalty program. This is a great way to stay in contact with customers and encourage them for frequent visits.
