Dutch Bros Continues to Capture a Growing Share of Our Drinking Money
2026-06-02 15:07:00 ET
Dutch Bros (NYSE: BROS) continued to shrug off a soft economy in the first quarter as drive-thru demand held up remarkably well. Same-shop sales grew by 8.3% across the system, fueled by a 5% rise in the number of transactions. Texas was its busiest market, with the largest number of locations and comps growth of nearly 20%.
While its organic growth is impressive, it's the coffee chain's massive market opportunity that's the real draw for investors. It ended Q1 with 1,177 locations, up 16% year over year, but that leaves Dutch Bros an attractive runway for further growth in the medium term, as management has set a target of having 2,029 stores operating in 2029.
The investment story is fairly simple. Dutch Bros is a scalable concept with compelling unit economics, and it can almost triple its store count before crossing the halfway point toward its long-term target of 7,000 shops.
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