The drive-thru coffee chain paired stronger second-quarter results and raised full-year guidance with a deal to acquire up to 65 former Salad and Go sites across four states for future conversions.
Dutch Bros shares fell 14.47% to $56.17 in after-hours trading Wednesday even after the company reported second-quarter results above Wall Street estimates and raised its full-year outlook. Revenue rose 32.5% year over year to $550.9 million, ahead of a $525.5 million consensus estimate, while earnings were 33 cents a share versus expectations for 29 cents. Net income increased 34% to $51.6 million. Company-owned same-shop sales increased 8.3%, systemwide same-shop sales growth was 5.8%, and transaction growth was 1.7%. The company also said it will acquire the real estate and related site assets of up to 65 Salad and Go locations across Arizona, Nevada, Oklahoma and Texas after the chain filed for Chapter 11 bankruptcy protection and shut its remaining 70 locations. Dutch Bros expects the transaction to close in the third quarter and said the established drive-thru sites are intended to support expansion, with conversions expected to begin next year and the first rebranded Dutch Bros shops likely opening in 2027. Financial terms were not disclosed. Dutch Bros opened 48 stores in the quarter, including 44 company-operated locations, and said it expects to open at least 185 new shops this fiscal year. It now forecasts full-year revenue of $2.1 billion to $2.13 billion, same-shop sales growth of 5% to 6%, and adjusted EBITDA of $385 million to $390 million.