Dutch Bros Coffee Tenant Overview


  • Absolute NNN
  • No landlord responsibilities


  • Non-investment grade credit
  • A lot of franchisee operated stores, means doing proper due diligence on credit of guarantor, performance of store, etc.

Earnings Highlights

Dutch Bros 10-Q
  • Total revenues grew 34.1% to $249.9 million as compared to $186.4 million in the same period of 2022.
  • Company-operated shop revenues increased 37.7% to $221.0 million, as compared to $160.5 million in the same period of 2022.
  • Opened 38 new shops, bringing total shop count to 754 as of June 30, 2023, a 25.0% increase from June 30, 2022 (as of August, already up to 838 locations).

Tenant Description

Dutch Bros is a popular coffee chain that operates in the net lease commercial real estate space. Founded in 1992 by Dane and Travis Boersma in Grants Pass, Oregon, Dutch Bros has grown into a prominent player in the specialty coffee industry. They are publicly traded on the NYSE under the ticker "BROS". The company's unique drive-thru concept and commitment to providing high-quality coffee and exceptional customer service have helped it gain a loyal customer base across the United States.

Dutch bros yearly revenue is estimated to be 739 million and over 800 locations. With 133 of these locations being new in the last 3 years. Joth Ricci, Chief Executive Officer of Dutch Bros Inc states “We are targeting 150 new systemwide shops, which will enable us to achieve our five-year goal of 800 systemwide shops by year-end. Additionally, we expect to be within striking distance of $1 billion in revenue in 2023 and 1,000 systemwide shops by the first half of 2025, creating jobs and opportunities for our employees and the communities in which we serve.”

Average Cap Rate
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price $2,433,445
NOI $101,249
$/Square Foot $2,987.09 - $3,041.81
Building SF 800 - 975
Lot Size 0.79 Acres
Lease Term 10-15 Years
Escalations 10% every 5 years is the avg
Stock Symbol BROS
Credit Rating
Moody's N/A
Average Cap Rate Trend
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
Fort Worth, TX 4.50%
Ridgecrest, CA 4.25%
Lancaster, CA 3.25%