GRANTS PASS, Ore., USA – Dutch Bros Inc., one of the fastest-growing brands in the quick service beverage industry in the United States by location count, today reported financial results for the second quarter ended June 30, 2024. Christine Barone, Chief Executive Officer and President of Dutch Bros, stated, “Our quarterly performance demonstrates the long runway ahead for Dutch Bros as we once again delivered strong top-line and profitability growth.
Revenue rose 30%, including a 4.1% increase in system same-shop sales, and was underpinned by excellent margin flow through. With strong results 2024 to date despite the volatile consumer backdrop and expectations for a robust second half to the year, we are pleased to be raising our annual guidance.”
Dutch Bros Inc.: Second Quarter 2024 Highlights
- Opened 36 new shops, 30 of which were company-operated, across 13 states.
- Total revenues grew 30.0% to $324.9 million as compared to $249.9 million in the same period of 2023.
- System same shop sales¹ increased 4.1% relative to the same period in 2023, inclusive of the impact of our fortressing strategy, where some sales are being transferred from existing shops to new shops. Company-operated same shop sales increased 5.2%, relative to the same period of 2023.
- Company-operated shop revenues increased 33.6% to $295.3 million, as compared to $221.0 million in the same period of 2023.
- Company-operated shop gross profit was $70.0 million as compared to $52.1 million in the same period of 2023. In the second quarter of 2024, company-operated shop gross margin, which includes 150bps of pre-opening costs, was 23.7%, a year-over-year increase of 10bps.
- Company-operated shop contribution², a non-GAAP financial measure, grew 36.1% to $91.1 million as compared to $66.9 million in the same period of 2023. In the second quarter of 2024, company-operated shop contribution margin, which includes 150bps of pre-opening costs, was 30.8%, a year-over-year increase of 50 bps.
- Selling, general, and administrative expenses were $58.1 million (17.9% of revenue) as compared to $51.7 million (20.7% of revenue) in the same period of 2023.
- Adjusted selling, general, and administrative expenses², a non-GAAP financial measure, were $47.6 million (14.6% of revenue) as compared to $38.9 million (15.6% of revenue) in the same period of 2023.
- Net income was $22.2 million as compared to $9.7 million in the same period of 2023.
- Adjusted EBITDA2, a non-GAAP financial measure, grew 34.1% to $65.2 million as compared to $48.6 million in the same period of 2023.
- Adjusted net income2, a non-GAAP financial measure, was $31.2 million as compared to $20.9 million in the same period of 2023.
- Net income per share of Class A and Class D common stock – diluted was $0.12 as compared to $0.05 per share in the same period of 2023.
- Adjusted net income per fully exchanged share of diluted common stock2, a non-GAAP financial measure, was $0.19 as compared to $0.13 in the same period of 2023.
Revised 2024 Outlook
- Total revenues are now projected to be between $1.215 billion and $1.230 billion, up from the prior range of $1.20 billion and $1.215 billion.
- Same shop sales growth is expected to remain in the low single digits.
- Adjusted EBITDA³ is now estimated to be between $200 million and $210 million, up from the prior range of $195 million to $205 million and Adjusted SG&A3 is estimated to be between $190 million and $200 million, up from the prior range of $183 million and $189 million.
- Total system shop openings in 2024 are now expected to be at the lower end of the previously communicated range of 150 to 165.
- Capital Expenditures are estimated to be between $270 million to $290 million from the prior range of $280 million to $320 million.
1. Same shop sales is defined in the section “Select Financial Metrics”.
2. Reconciliation of GAAP to non-GAAP results is provided in the section “Non-GAAP Financial Measures”.
3. We have not reconciled guidance for Adjusted EBITDA or Adjusted SG&A to the corresponding GAAP financial measure because we do not provide guidance for the various reconciling items. We are unable to provide guidance for these reconciling items because we cannot determine their probable significance, as certain items are outside of our control and cannot be reasonably predicted due to the fact that these items could vary significantly from period to period. Accordingly, reconciliation to the corresponding GAAP financial measure is not available without unreasonable effort.
