Dutch Bros. CEO Christine Barone sits down with Jim Cramer

We had a lot of big breakdowns today. We also had some extraordinary rallies. Take Dutch Bros, Oregon based coffee chain put a blowout quarter last night, company or $0.08 per share. Wall Street was only expecting to break even higher than expected Revenues get this 10% same store sales growth versus the 4% theaters we’re looking for. This was driven by both higher price and, crucially, higher traffic. Not many companies can raise prices without driving away customers, but Dutch Bros just did it. No wonder the stock shot up 12% today. That said, still flat for the year. So maybe you got a chance here. Let’s check in with Christine Barone. She’s the new president CEO of Dutch Bros Get a better read on the corner. What’s next is running. Welcome to Man Buddy. Thank you so much for having me. Jeff, I brought you an iced protein milk annihilator. Well, you know I can’t resist. Is there any way I can breakthrough the three dimensions of this and have my absolute favorite drink from my daughter lived in Oregon. Thank you for covering on the show and thank you for knowing my drink. I want to ask you first of all, these are spectacular numbers. There’s some other high profile change that did not deliver including Starbucks. I know you’re not going to knock the Starbucks, but they had they had a low single digit declines. How can you explain your 10% comp versus King which had low single digit? Well, I think if you look at our quarter, we were really performing on all cylinders. So we were driving innovation. We launched protein milk, coffee in the quarter. We launched Boba in the quarter, which were both hugely successful. We, we grew our awareness with paid media and we were also super focused on our rewards program. And so our most our customers who come in a lot came in even more. All right. So how do you deal with the lines? I would imagine that is the single biggest problem, especially if you’re going to go mobile order, what you’re doing, you’re trialing, absolutely. So what we focus on is speed, quality and service for our customers and with our broistas. And so speed is absolutely something that we’re always focused on helping our customers get through the lines faster. But they still love to have that awesome conversation with our Bro E Well, it is fun, I have to admit. Now let me ask you, I want people to understand the scope of what a real growth story is. A growth story is a company who’s accelerating comps, making more money. That is in a certain number of states where it’s clearly proven of concept. It could be anywhere. How many Dutch pros could we have in the United States? Well, we are on the path to 4000 Dutch Bros. We had 876 this quarter and we just opened our first two shops in Florida. So we are now in 17 states Now when I think of that, why, why does everything work in every state? We know that there are some companies are just regional companies. These drinks seems to resonate. Your new drinks are resonating everywhere in the country, correct? Absolutely. Well, I’ve got to tell you the one thing that I thought I would, looking at the prices, it’s not necessarily cheap. I mean, you’ve got a small 395 and that is much well under Starbucks. But when I get my large, when I get my 32 ounce, it’s not, it’s not inexpensive. Can you Will people pay up to, say, 6 bucks for A5 and a quarter drink? Now, I think what customers are coming in for is they’re coming in for the experience. And so they’re balancing what they’re paying with what they’re getting. And I think when you come to a Dutch Bros, it’s not just about the beverage, It’s really about the service and that conversation you’re having with us. Now, let me ask you, do you do we had a fellow OS, The mentalist comes on. I love him. He knows everybody’s name. How did people remember my name And a little? Well, no, Ashland’s a nice town, but how did people remember my name and two different ones who never watched cable and knew my daughter’s name? Is there some trick to knowing people’s names like your people do? It’s actually not a trick. It’s actually really authentic. We hire people that really want to connect with others and that comes directly from our proistas. It’s not something that comes from trainer training. It comes from hiring awesome people. Well, OK, so you hire awesome people in Florida. How do you find them? I mean, what is the way you can keep great managers and and the pipeline there and how do you find these great people? Because it is not. Other chains are having and struggling to find the right people. So it all starts with how we grow. So we only grow as we’re ready to have people who are ready to go into these new markets and open new shops. So we have our operators that move from all over the country to our new markets to introduce Dutch Bros to to these new markets. They move into a new market. They introduce the brand. We bring our MOB, which is our group of trainers, to a new market and they really light our stores up, turn it into a party and do such an incredible job in training new employees on all of our beverages and ourselves. It is a show. And I want to ask you a question if long time ago Home Depot wasn’t in New York and then I I was, This is when I was a hedge fund manager. They opened one in Elmont, Long Island. And I told Karen Kramer that when they open in New York, you’re going to catch a double. When are you going to open in New York? Dutch Bros All right. Well, we’re we’re coming one day. But today we’re really focused on Florida, we’re focused on Texas, we’re focused on Tennessee and then starting to move up the East Coast. All right. Now you are you going to go how many are going to be parking lot Dutch Bros and how many are going to be these build out Dutch Bros. So we’re really focused on building out drive through locations and with that we do have parking spaces within our Dr. throughs which should be quite helpful as we roll out mobile order and pay. And are you averaging 2 million unit all over the country. We shared that our average unit volumes for the quarter were $2,000,000, but that’s extraordinary. I mean it’s very hard to get to that level. It took Chipotle forever to get there and this is just coffee. Well, we’ve been doing this since 1992 and for 30 years and I think I’ve worked on a lot of things to get this right. Now give me your background because you did just take over and we knew previous management and it from the day they came public. What is your connection with Dutch Bros? So I joined Dutch Bros 15 months ago and I am just thrilled to be a part of this team. I love going into our shops, making drinks with our baristas, and I just see such incredible potential for what we can do in this country. I love being a part of a brand that is growing so quickly and really growing in the right way through our people. Well, look, I I’m. I’ve been sold for a long time and I’m glad that you’re on board. That is Christine Baroni. She’s the president and CEO of Dutch Bros Bros Guys, you haven’t missed anything. This stock I really think could be a rocket. Thank you, Christine. So glad you came on the show. Thank you so much. When we return, Master the markets 1 stock at a time. The lightning round is up next. Don’t miss a second of Mad Money. Follow at Jim Cramer on X. Have a question? Tweet Kramer Hashtag Mad Mentions Send Jim an e-mail to [email protected] or give us a call at one 807 Four Three. CNBC Miss something? Head to madmoney.cnbc.com.