Dutch Bros Shares Surge 25% After Earnings Report, Cramer Calls It 'The Real Deal'

Dutch Bros Inc., a popular coffee chain, saw its stock price jump nearly 25% in after-hours trading on Wednesday. This surge came after the company announced its fourth-quarter earnings, which exceeded analysts' expectations. The strong performance and positive forecast for 2025 attracted attention from investors and financial commentators alike.

Following the earnings announcement, Jim Cramer, a well-known host on CNBC, shared his enthusiastic views on the company via X, previously known as Twitter. He said, "Cramer-fave Dutch Bros crushes it. As watchers know, these guys are the real deal." Cramer’s comments highlight his favorable view of the company's performance and its potential for continued growth.

Strong Earnings Results

Dutch Bros reported earnings of 7 cents per share, which surpassed the analyst consensus of 2 cents. Revenue rose significantly to $342.8 million, well above the expected $317.8 million, and marked a substantial increase from $254.12 million in the same quarter last year. The company has demonstrated impressive financial growth, with a reported 35% increase in revenue and a 6.9% rise in same-shop sales.

CEO Christine Barone discussed the company’s achievements, emphasizing that their brand has gained traction with customers, leading to a 2.3% increase in transactions at the same shops — the largest growth observed in over two years.

Expansion Plans and Future Outlook

Looking to the future, Dutch Bros plans to expand its presence by opening at least 160 new system shops in the fiscal year 2025. The company already opened 32 new locations during the fourth quarter, 25 of which were directly operated by the company. Revenues from company-operated shops grew by 38.2% to reach $314.2 million compared to last year.

The company anticipates fiscal 2025 revenues to fall between $1.55 billion and $1.57 billion, indicating a strong growth trajectory as it continues to meet consumer demand.

Market Reaction and Analyst Ratings

On Wednesday, before the earnings announcement, Dutch Bros' stock closed at $64.71. Following the report, it surged to $80.79 in after-hours trading, pushing the company's market capitalization above $9 billion. Over the past year, the stock has gained over 130%.

However, despite the stock's impressive performance, recent ratings from analysts at B of A Securities, Jefferies, and Stifel have shown a mixed outlook. The latest consensus price target is $67.67, which suggests potential downside from the current trading levels.

In summary, Dutch Bros continues to demonstrate strong financial performance and growth potential, capturing the attention of both investors and financial analysts.

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