Dutch Bros Shares Spike 25% After Hours, Jim Cramer Says His Favorite Coffee Chain Is 'The Real Deal'

Coffee chain Dutch Bros Inc. BROS saw its shares soar nearly 25% in after-hours trading Wednesday following stronger-than-expected fourth-quarter results and an optimistic 2025 outlook, drawing praise from CNBC’s Jim Cramer.

What Happened: “Cramer-fave Dutch Bros crushes it. As watchers know, these guys are the real deal,” Cramer wrote on X, formerly Twitter, after the earnings release.

Cramer-fave Dutch Bros crushes it. As watchers know, these guys are the real deal
— Jim Cramer (@jimcramer) February 12, 2025

The drive-through beverage company reported earnings of 7 cents per share, exceeding analyst estimates of 2 cents. Revenue jumped to $342.8 million, beating expectations of $317.8 million and marking a significant increase from $254.12 million in the same quarter last year.

CEO Christine Barone highlighted the company’s impressive performance, noting a 35% revenue growth and system same-shop sales growth of 6.9%. “We believe our brand is resonating with customers, as we delivered 2.3% system same-shop transaction growth, the largest year-over-year increase in over two years,” Barone said.

Why It Matters: The company’s expansion continues to accelerate, with 32 new shops opened in the fourth quarter, including 25 company-operated locations. Company-operated shop revenues increased 38.2% to $314.2 million compared to the previous year.

Looking ahead, Dutch Bros projects fiscal 2025 revenue between $1.55 billion and $1.57 billion, with plans to open at least 160 new system shops.

While the stock has gained over 130% in the past year, recent analyst consensus shows a mixed outlook. The latest ratings from B of A Securities, Jefferies, and Stifel in January 2025 suggest an average price target of $67.67, indicating a potential downside from current after-hours trading levels.

Price Action: The stock closed at $64.71 on Wednesday before surging to $80.79 in after-hours trading, pushing its market capitalization above $9 billion, according to data from Benzinga Pro.

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