Dutch Bros and Black Rock Coffee Bar: A Look at Oregon's High-Growth Coffee Chains for Investors

Dutch Bros: From Modest Start to Performance Stock

Dutch Bros, an Oregon-based drive-thru coffee chain, went public in 2021 and has rapidly caught the attention of those interested in investing in stocks. At the end of 2020, it operated 441 stores, with only 182 owned by the company and average unit volumes (AUVs) below $1.7 million per location. Net income stood at under $6 million for the year. Prior to its initial public offering (IPO), Dutch Bros was relatively small with modest sales and slim profits.

Fast forward to the second quarter of 2025, and Dutch Bros’ growth has been extraordinary. The chain now boasts over 1,000 locations, more than 700 of which are company-owned. The average annual sales per location have exceeded $2 million, and trailing twelve-month net income has soared to $89 million. Dutch Bros’ impressive expansion and improving financials make it a high return investment and a standout performance stock.

Black Rock Coffee Bar: The New Oregon Coffee Stock

If you’re looking for new stocks and investing opportunities in the coffee sector, Black Rock Coffee Bar (BRCB) is emerging as a compelling contender. Also headquartered in Oregon, Black Rock Coffee Bar went public in September, earlier in its growth journey compared to Dutch Bros. Like its rival, Black Rock focuses on drive-thru service but differentiates itself by owning 100% of its 158 locations—no franchises in the mix. Many of these stores now offer seating, enhancing the customer experience.

Expansion and Investment Analysis

Black Rock Coffee Bar’s management plans to grow its store base by 20% annually, potentially reaching around 1,000 locations by 2035—the same scale Dutch Bros has achieved now. While AUV sits at $1.2 million as of June, same-store sales have been increasing, with a 6% growth in 2024 and a 10% jump in the first half of 2025. Given the lower revenue per location, there’s ample room for future upside.

A key part of Black Rock’s growth is its new digital loyalty program, which has quickly attracted 1.8 million members in just one year since its 2024 launch. These loyalty members show higher purchase frequency, which could continue fueling same-store sales growth and overall chain performance.

Valuation and Financials

Black Rock Coffee Bar is currently valued at around $1 billion, trading at just over 5 times its trailing twelve-month revenue of $179 million. Dutch Bros, by comparison, trades at a price-to-sales (P/S) ratio of 4. This similarity in valuation suggests Black Rock could offer an attractive entry point for those seeking high return investment opportunities in the coffee sector.

Black Rock is not yet profitable, reporting a $7.2 million net loss in 2024 and a further $1.9 million loss in the first half of 2025. However, with a store-level profit margin of 29%—close to Dutch Bros’ 30%—there’s potential for increased profitability as the company grows and gains efficiencies.

Challenges and Growth Potential

Scaling a coffee chain is never easy, especially with fierce competition. Still, Black Rock Coffee Bar’s promising start and upward trajectory in store economics point to long-term potential for investors. If Black Rock continues executing its ambitious expansion and boosts its per-store revenue, it could follow in Dutch Bros’ footsteps as a top performance stock for those interested in investment analysis and stocks and investing.

This content is for informational purposes only and does not constitute financial advice.