The drive-thru coffee chain paired the Arizona, Nevada, Oklahoma and Texas real estate deal with a second-quarter earnings beat and higher full-year guidance.
Dutch Bros said Wednesday it will acquire the real estate of up to 65 Salad and Go locations across Arizona, Nevada, Oklahoma and Texas, using the bankrupt chain's drive-thru footprint to speed expansion in key markets. The transaction is expected to close in the third quarter, and the company plans to begin conversions next year, with the first rebranded shops likely opening in 2027. Financial terms were not disclosed. Chief Executive Officer Christine Barone said the potential site acquisition supports Dutch Bros' long-term growth strategy and gives it room to further densify its footprint. The move comes after Salad and Go filed for Chapter 11 bankruptcy protection (a U.S. court-supervised restructuring process) this week and closed its remaining 70 locations. The deal adds to Dutch Bros' broader conversion strategy, which aims to shorten permitting and construction timelines by reusing existing drive-thru properties. That approach follows the company's January acquisition of the 20-unit Clutch Coffee Bar chain and supports its target of reaching 2,029 locations by 2029. Dutch Bros ended the second quarter with just under 1,200 shops and said it has already secured 90% of the pipeline needed to meet that goal. The announcement accompanied second-quarter results that beat Wall Street estimates. Dutch Bros reported earnings of 33 cents per share, ahead of the 29-cent consensus estimate, while revenue rose 32.5% to $550.9 million and net income increased 34% to $51.6 million. Company-owned same-shop sales climbed 8.3% from a year earlier, systemwide same-shop sales rose 5.8%, and transaction growth was 1.7%. The company also raised its full-year outlook, projecting same-shop sales growth of 5% to 6% and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $385 million to $390 million, while planning to open at least 185 new shops this fiscal year. Even with the earnings beat and stronger guidance, Dutch Bros shares fell 14.47% to $56.17 in after-hours trading Wednesday, within a 52-week range of $44.58 to $74.65. The company opened 48 new stores in the quarter, including 44 company-operated locations.