Coffee chain shares Dutch brothers (BROS 35.46%) hit a new 52-week high today after the company reported strong third-quarter earnings. The fast-growing craft beverage maker also raised its full-year 2024 guidance.

Investors rallied behind the report and shares soared nearly 40%. As of 10:52 a.m. ET, the stock held a 38.6% gain. This has generated cumulative returns of over 50%, with the stock hitting its highest level in over two years.

Real estate strategy

Christine Barone, CEO of Dutch Bros, highlighted the company’s focus on its real estate strategy to achieve much of the successful growth it is experiencing. Overall third-quarter revenue climbed 28% year-over-year, with same-store sales growth of 2.7%, beating the company’s own estimates.

Barone said the company’s “refined real estate strategy” has led to increased productivity through an improved site selection process and a focus on new store development. On the investor conference call“Better market planning and our high paid advertising spend in new markets leads to improved productivity in new stores.”

The coffee chain added 38 new stores over a three-month period, most of which are company-operated. The company plans to open a total of 150 new stores this year. It also plans to accelerate the growth of new stores in 2025.

Even if the turnover for the year is now higher than that previously announced, it nevertheless remains oriented towards a decline. capital expenditure for 2024. This type of efficiency is what investors like to see. This doesn’t seem to be a coincidence either. Barone highlighted its use of an increasing amount of data to model new store openings.

Shares of this fast-growing company aren’t cheap, however. A forward price-to-earnings (P/E) ratio of around 120 means there is no room for error in its growth strategy. An investment third party purchasing strategy However, adding during dips could make sense after the stock surge today.