Dutch Bros Aims for Double Digit Store Count Growth by 2029

As the coffee industry continues to evolve, Dutch Bros is positioning itself as a leader in innovation and growth. With its focus on cold beverages and customized drinks, the company has been able to attract a loyal customer base. In recent years, Dutch Bros has more than doubled its store count, and now it's setting its sights on reaching 2,029 stores by 2029.

This ambitious goal is part of the company's long-term plan for revenue growth, with a target of 20% annual expansion driven by new store openings and same-store sales increases. To achieve this, Dutch Bros is taking a multi-pronged approach, investing in technology, menu innovation, and operational efficiency. By leveraging its unique drive-thru model and mobile ordering capabilities, the company aims to make its stores more convenient and appealing to customers.

A Strong Track Record of Growth

Dutch Bros has already demonstrated its ability to scale and grow rapidly. In 2025, the company reported a 29% year-over-year increase in revenue, with same-store sales growth of 4.7%. This performance was driven by a combination of increased traffic and higher average ticket prices. Net income also rose significantly, from $16.2 million in the previous quarter to $22.5 million.

The company's recent milestone of opening its 1,000th store is a testament to its aggressive expansion strategy. With plans to open at least 160 new stores this year, Dutch Bros is well on track to meet its goal of doubling its store count again by 2029. This growth will be driven by a combination of new store openings and same-store sales increases, which the company expects to average around 20% annually.

Innovative Approaches to Drive Growth

To support its expansion plans, Dutch Bros is investing heavily in technology and operational efficiency. The company has recently launched mobile ordering, which has already shown promising results, accounting for 10% of all orders and driving membership registrations. Additionally, Dutch Bros is experimenting with different store layouts and menu offerings to boost sales and customer engagement.

One example of this approach is the introduction of new food options in stores, aimed at increasing morning engagement and generating higher beverage sales during a critical time of day. By offering a wider range of products and services, Dutch Bros is positioning itself as a one-stop shop for customers seeking convenience and value.

Risk and Valuation Considerations

While Dutch Bros has demonstrated strong growth and profitability, investors should be aware of the risks associated with investing in a rapidly expanding company. As a relatively new entrant to the public market, Dutch Bros faces challenges related to scalability and operational efficiency. Additionally, its valuation is currently high, with a price-to-earnings (P/E) ratio of 160, which may be considered nosebleed level by some investors.

However, on a price-to-sales (P/S) basis, Dutch Bros' stock appears more reasonable, at around 5 times trailing-12-month sales. For investors willing to take on risk and with a long-term perspective, Dutch Bros could offer significant growth potential and returns.

What the Experts Say

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Conclusion

Dutch Bros is an exciting growth stock with a strong track record of innovation and expansion. By leveraging its unique drive-thru model, mobile ordering capabilities, and menu offerings, the company aims to reach 2,029 stores by 2029 and achieve long-term revenue growth of 20% annually. While there are risks associated with investing in Dutch Bros, including high valuation and scalability challenges, investors willing to take on risk may find this stock an attractive addition to their portfolios. As always, it's essential for investors to conduct thorough research and due diligence before making any investment decisions.