Management ActionsActions of the new management team have led to early elements of the bull case playing out, though more tangible efforts are expected to have a larger impact in 2025 & 2026.
Margin StoryThe margin upside story is less understood, with several tailwinds including sales leverage from positive traffic, lower wages as development shifts eastward, growing scale for more efficiencies, and a declining percentage development growth rate.
Market Strategy ExecutionWhile Dutch Bros' strategy to improve traffic is resonating, particularly menu innovation, targeted Dutch Rewards loyalty offers, and marketing efforts, the full potential of these strategies remains to be fully realized.