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 fourth quarter and year ended December 31, 2024.
Christine Barone, Chief Executive Officer and President of Dutch Bros, stated, “We delivered exceptional performance in the fourth quarter as we ended 2024 on a high note. In the quarter, we drove an impressive 35% revenue growth and system same shop sales growth of 6.9%. We believe our brand is resonating with customers, as we delivered 2.3% system same shop transaction growth, the largest year-over-year increase in over two years.”
Barone continued, “Our efforts to develop our foundational transaction drivers – innovation, paid media, and our Dutch Rewards loyalty program – are working. We believe these efforts are contributing to current momentum and that there is considerable runway for further growth.
Additionally, we see a clear path forward with multi-year transaction driving initiatives that layer on top of this foundation with opportunity to unlock throughput and ramp mobile order in 2025. In 2026 and beyond, we are excited about opportunities with expanding our food offerings.”
Dutch Bros.: Fourth Quarter 2024 Highlights
- Opened 32 new shops, 25 of which were company-operated, across 11 states.
- Total revenues grew 34.9% to $342.8 million as compared to $254.1 million in the same period of 2023.
- System same shop sales1 and transactions increased 6.9% and 2.3%, respectively, relative to the same period in 2023. Company-operated same shop sales1 and transactions increased 9.5% and 5.2%, respectively, relative to the same period of 2023.
- Company-operated shop revenues increased 38.2% to $314.2 million, as compared to $227.4 million in the same period of 2023.
- Company-operated shop gross profit was $67.3 million as compared to $42.3 million in the same period of 2023. In the fourth quarter of 2024, company-operated shop gross margin, which includes 110 bps of pre-opening costs, was 21.4%, a year-over-year increase of 280 bps.
- Company-operated shop contribution2, a non-GAAP financial measure, grew 50.8% to $90.9 million as compared to $60.2 million in the same period of 2023. In the fourth quarter of 2024, company-operated shop contribution margin, which includes 110 bps of pre-opening costs, was 28.9%, a year-over-year increase of 240 bps.
- Selling, general, and administrative expenses were $72.2 million (21.1% of revenue) as compared to $56.9 million (22.4% of revenue) in the same period of 2023.
- Adjusted selling, general, and administrative expenses2, a non-GAAP financial measure, were $64.4 million (18.8% of revenue) as compared to $43.8 million (17.2% of revenue) in the same period of 2023.
- Net income was $6.4 million as compared to a net loss of $3.8 million in the same period of 2023.
- Adjusted EBITDA2, a non-GAAP financial measure, grew 41.2% to $48.8 million as compared to $34.6 million in the same period of 2023.
- Adjusted net income2, a non-GAAP financial measure, was $12.5 million as compared to $7.4 million in the same period of 2023.
- Net income (loss) per share of Class A and Class D common stock – diluted was $0.03 as compared to $(0.02) 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 $0.07 as compared to $0.04 in the same period of 2023.
Full Year 2024 Highlights
- Opened 151 new shops, 128 of which were company-operated, across 18 states.
- Total revenues grew 32.6% to $1.28 billion as compared to $965.8 million in 2023.
- System same shop sales¹ increased 5.3% and transactions decreased 0.1% compared to 2023. Company-operated same shop sales and transactions increased 6.8% and 1.5%, respectively, compared to 2023.
- Company-operated shop revenues increased 35.9% to $1.17 billion, as compared to $857.9 million in 2023.
- Company-operated shop gross profit was $260.0 million as compared to $180.2 million in 2023. In 2024, company-operated shop gross margin, which includes 130 bps of pre-opening costs, improved to 22.3%, a year-over-year increase of 130 bps.
- Company-operated shop contribution², a non-GAAP financial measure, grew 43.1% to $346.8 million as compared to $242.3 million in 2023. In 2024, company-operated shop contribution margin, which includes 130 bps of pre-opening costs, improved to 29.7%, a year-over-year increase of 150 bps.
- Selling, general, and administrative expenses were $234.0 million (18.3% of revenue) as compared to $205.1 million (21.2% of revenue) in 2023.
- Adjusted selling, general, and administrative expenses2, a non-GAAP financial measure, were $202.7 million (15.8% of revenue) as compared to $159.1 million4 (16.5% of revenue) in 2023.
- Net income was $66.5 million as compared to $10.0 million in 2023.
- Adjusted EBITDA2, a non-GAAP financial measure, increased 43.9% to $230.3 million as compared to $160.1 million in 2023.
- Adjusted net income2, a non-GAAP financial measure, was $87.8 million as compared to $50.2 million in 2023.
- Net income per share of Class A and Class D common stock – diluted was $0.34 as compared to $0.03 in 2023.
- Adjusted net income per fully exchanged share of common stock2, a non-GAAP financial measure, was $0.49 as compared to $0.30 in 2023.
Dutch Bros.: Initial 2025 Guidance
- Total revenues are estimated to be between $1.555 billion and $1.575 billion.
- Total system shop openings in 2025 are estimated to be at least 160. Capital expenditures are estimated to be between $240 million to $260 million.
- Same shop sales1 growth for 2025 is estimated to be in the range of 2% to 4%.
- Adjusted EBITDA³ is estimated to be between $265 million and $275 million, which assumes the impact of elevated coffee costs, partially offset by approximately 80 basis points of Adjusted SG&A leverage year-over-year.
1. Same shop sales is defined in the section “Select Financial Metrics”.
2. Reconciliation of U.S. 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 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.
