Oregon drive-thru chain Dutch Bros said company President Christine Barone will take over as CEO on Jan. 1. A former Starbucks executive, Barone will succeed Joth Ricci, who has run Dutch Bros since 2019.
Dutch Bros sells cold drinks and coffees at 754 shops on the West Coast, Southwest and the South. The company, based in the small souther Oregon town of Grants Pass, aims to have 4,000 stores nationwide within the next 15 years.
The company hired Barone last February. She spent five years as a Starbucks vice president, running various parts of the business, and then spent six years as CEO of an Arizona-based restaurant chain called True Food Kitchen.
“Since joining us in February, she’s become an integral part of this organization, demonstrating her passion and ability to affect positive change in our business,” Dutch Bros co-founder and Chairman Travis Boersma said in a written statement. “She has the experience and knowledge to help us scale, as well as a true passion for people.”
Ricci, who previously ran the Portland specialty coffee brand Stumptown, led Dutch Bros through years of rapid growth and the biggest initial public offering in Oregon history. Ricci has become increasingly prominent in state business affairs, serving as the on-stage host for the annual Oregon Business Summit and taking a leading role in public policy discussions.
Dutch Bros said the next five months will serve as a transition period for Barone and Ricci. The company said Ricci is not looking for new jobs right now as he prepares to step down.
Dutch Bros didn’t immediately disclose what it will pay Barone, 49. When it hired her, the company set Barone’s salary at $625,000, plus a $900,000 signing bonus and stock awards worth $3.1 million. The company said it will disclose her compensation as CEO after her promotion takes effect in January.
Dutch Bros valued Ricci’s compensation at $1.1 million last year, but in 2021 — the year of Dutch Bros’ IPO — he received stock awards worth $61 million. Ricci is 55.
Also Tuesday, Dutch Bros’ reported second-quarter financial results. The company reported quarterly sales of $249.9 million, up 24% from a year ago.
Profits totaled $9.7 million, or 5 cents a share. That compares to a loss of $1.8 million, 2 cents a share, in the second-quarter last year.
Dutch Bros told investors Tuesday it doesn’t expect to hit $1 billion in sales in 2023. The company had previously forecast revenues could be that high this year, but said Tuesday that the pace of sales at newly opened stores suggest annual sales will be closer to $950 million. That’s despite menu price increases of about 6% over the past year.
Dutch Bros shares climbed 2.3% in late trading Tuesday afternoon, to $28.62. The stock has traded between $25.45 and $54.18 in the past year.
