GRANTS PASS, Ore., USA – Dutch Bros Inc. hosted on March 27, 2025, an Investor Day at its support center in Tempe, AZ. The event was also webcast live. During the presentation, the Dutch Bros management team provided updates on the business and its long-term growth goals.
“We are pleased to deliver quarter-to-date Q1 same shop sales above our expectations, supported by positive traffic and strong business momentum. This positive trend is a testament to the strength of our brand and the dedication of our team,” said Christine Barone, Chief Executive Officer and President of Dutch Bros.
“Last month, we proudly opened our 1,000th shop, and with a strong roadmap ahead, we are focused on our bold goal of reaching 2,029 shops in 2029. Led by field operations teams deeply rooted in our culture and hungry to grow, and supported by a leadership team with complementary skills and firsthand knowledge of scale, we are well positioned to deliver sustainable, long-term value while staying true to our mission of making a massive difference, one cup at a time.”
Dutch Bros Inc.: First Quarter 2025 Update and Guidance
- System shop openings totaled 27 shops through March 24th, with up to 3 additional shops expected to open through the end of the quarter.
- System same shop sales¹ increased 4.6% through March 24th, relative to the comparable period in 2024.
- Adjusted selling, general and administrative expenses² (“Adjusted SG&A”) are expected to be approximately $56 million.
Reiterated Prior Long-Term Growth Algorithm
The Company reiterated its long-term revenue growth and Adjusted EBITDA growth algorithm and added a long-term company-operated shop contribution margin goal:
- Annual Revenue Growth of ~20% supported by annual new shop growth in the mid-teens and low-single digit same shop sales growth.
- Annual Adjusted EBITDA Growth of 20%+, in excess of the Company’s annual revenue growth rate goal, driven by continued progress in Adjusted SG&A leverage.
- Company-Operated Shop Contribution Margin to approach goal of ~30% while maintaining this level to support long-term shop-level investments.
Total Addressable Market Update
The Company updated its total addressable market and set a new development goal:
- Total Addressable Market elevated for system shop openings to 7,000+.
- Goal of 2,029 system shops in 2029.
Executive Team Hiring Update
In Q1, Dutch Bros further strengthened its leadership team with the appointment of Brian Cahoe as Chief Development Officer. In this role, Cahoe is responsible for overseeing the Company’s new shop growth and development strategy. He brings nearly 25 years of experience in the quick service restaurant industry, most recently serving as Chief Development Officer for KFC U.S. at Yum! Brands (NYSE: YUM).
Entry Into Consumer Packaged Goods Market
In a separate press release issued today, the Company announced its plans to enter the consumer packaged goods market. In partnership with Trilliant Food & Nutrition, LLC, Dutch Bros plans to launch a line of packaged coffee and related products to be sold in retail outlets.
1. Same shop sales represent the estimated percentage change in year-over-year sales for the comparable shop base, which we define as shops open for 15 months or longer as of the first day of the reporting period. Same shop sales can be impacted by changes in customer transaction counts and by changes in the per-ticket amounts. Management uses these metrics as an indicator of shop growth and future expansion strategy.
2. Adjusted SG&A is a non-GAAP financial measure. We have not reconciled guidance for Adjusted SG&A to the corresponding U.S. 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 U.S. GAAP financial measure is not available without unreasonable effort.
