Dutch Bros was founded in 1992 by two dairy farmers, brothers Dane and Travis Boersma. Dane, who franchised a Dairy Queen at the age of 22, recruited Travis, then a college student, to embark on roasting espresso together.
The duo bought their first espresso machine that year, then opened Dutch Bros as a coffee pushcart by the railroad tracks in Grant Pass, Ore. (where the company is still headquartered). Travis Boersma tells me the team strove for a “fun and cool” working environment from the get-go, without a “big, bad boss standing over your shoulder.”
The employees are given autonomy on how to serve customers and encouraged to be “cool and creative” in their interactions. Boersma, who still sits on the company’s board, said sometimes employees even realize the high-energy environment isn't for them.
Dane Boersma, whom the team called the wise man, passed away in 2009 at age 55 from ALS. But his customer-centric management philosophy endured, eventually paving the way for bubbly-yet-poised food veteran Christine Barone to become Dutch Bros’ third CEO in January 2024.
Last quarter, Dutch Bros handily beat expectations on earnings, revenue, and sales, with same-store sales growth of 10%, while Starbucks' North America and US same-store sales dipped 3%.
Its profit jumped 40% year over year to $54.3 million, while revenue increased 39% to $275 million.
The stock is up 34% in the last 12 months at a time when the broader food industry is battling uncertain macroeconomic conditions spurring things like the hamburger value wars.
Starbucks shares have fallen 26% over the past year, while Tim Hortons’ parent company Restaurant Brands International (QSR) fell 8%. McDonald’s (MCD), which is getting into the coffee game with its latest concept CosMc, is down roughly 11%.