Dutch Bros Aims to Double Stores to 2,029 by 2029
Dutch Bros, the popular drive-thru coffee chain, has set an ambitious goal to double its store count to 2,029 locations by 2029. This expansion plan comes as the company has already doubled its stores to over 1,000 in just two years, from 2021 to today.
The company's growth is not only in store numbers but also in financial strength. Dutch Bros started generating more cash from operations than it spends on capital expenditures in late 2024. This positive cash flow is reflected in the company's recent financial performance, with $272 million in cash from operations and $73 million in free cash flow over the last year. Despite this growth, The Motley Fool's Stock Advisor team did not include Dutch Bros in their list of the 10 best stocks to buy now.
Dutch Bros, with a market cap of $7B, primarily sells iced and blended drinks through its drive-thru model. The company's stock, however, has seen a 30% drop in the last month. This decline can be partly attributed to a nearly tripling of shares outstanding, which dilutes shareholder value. Despite this, Dutch Bros offers immense potential, trading at just 35 times cash flow from operations (CFO).
Analysts at Jefferies & Company Inc., who previously recommended Dutch Bros as one of the ten best stocks for investors, did not include the company in their current top-10 list.
Dutch Bros' ambitious expansion plans and strong financial performance indicate a promising future for the company. Despite recent stock fluctuations, the company's potential remains high, making it an interesting watch for investors.
