Market Hit: Leveraging Consumer Edge Data to Understand Dutch Bros (BROS) Earnings Beat

Consumer Edge US Transaction data was predictive of Dutch Bros (BROS) system-wide sales beat, as the coffee chain reported 31% system-wide sales growth, close to CE Implied Reported Growth of +33% and above consensus estimates of +23%. BROS management attributed the beat to their highly successful product launches of protein coffee and boba, as it resonated with younger consumers, a key focus area for the company.

Dutch Bros Reported System-Wide Sales vs. CE US Transact

BROS strong performance contrasted with coffee peer Starbucks, who cited weakness in the “occasional consumer” which likely skews younger. Starbucks stated a need for product innovation to win back this segment which seeks both variety and value. You can read more about the miss here

*Consumer Edge credit/debit card data, USA1+USA2 eMax Panel; Data does not include third-party delivery spend

Younger Consumer-Targeted Innovation Resulted in Share Gains

Dutch Bros product innovation could be resonating with younger consumers, resulting in share gains. Dutch Bros spend mix grew 2% sequentially in the 18-34 segment while Starbucks fell close to 1% sequentially and 3% over the past 2 quarters. Could these younger customers create a long-term loyal base for years to come?

*Consumer Edge credit/debit card data, USA1+USA2 Cohort Panel; Data does not include third-party delivery spend; STARBUCKS represents sum of STARBUCKS and STARBUCKS CARD brand spend

Consumer Edge is the leading provider of alternative data for consumer spending behavior, and the only provider of global revenue signals. If you’d like to benefit from using CE Transact US, CE Vision, or other products for Dutch Bros insights, beverage data, and other industry data year-round to track trends and market hits like these, reach out to insights@consumer-edge.com.

About the Authors

Michael Gunther is the VP Head of Insights for the CEIC. Explore more of his insights here and follow him on LinkedIn.

Greg Potter is a Financial Analyst for the CEIC. Explore more insights and follow him on LinkedIn.