GRANTS PASS, Ore., US – Dutch Bros Inc., one of the fastest-growing brands in the food service and restaurant industry in the United States by location count, reported financial results for the third quarter ended September 30, 2021. The company also provided their fourth quarter 2021 financial outlook and our preliminary outlook for 2022 new shop openings.
Joth Ricci, Chief Executive Officer and President of Dutch Bros Inc., stated, “We are very pleased with the strength of our third quarter and year-to-date results which are exceeding the optimistic set of expectations we established going into 2021. While we are excited to have recently begun our journey as a public company, we are already focused on a clear set of growth-minded objectives that make Dutch Bros a national brand.
This includes expanding what is already a strong pipeline of homegrown regional operators and combining that with a disciplined, people-led growth strategy that creates the potential for at least 4,000 shops nationwide. As we open new stores in both existing and new markets, we will provide our customers with unique drive-thru experiences based upon Speed, Quality and Service while solidifying our strong commitment to communities.”
Third Quarter 2021 Highlights:
- Surpassed 500 operating shops with our Hutto, Texas opening (Northeast of Austin).
- Opened 33 new shops, of which 30 were company-operated
- Total revenues grew 49.8% to $129.8 million as compared to the same period last year.
- Company-operated shops revenues increased 62.9% to $108.7 million as compared to $66.7 million in the same period last year.
- System same shop sales grew 7.3% in the third quarter and 10.7% on a two-year basis. Company-operated same shop sales grew 4.7% in the third quarter and 10.1% on a two-year basis.
- Company-operated shop gross profit grew 18.0% to $22.8 million as compared to $19.3 million in the same period last year. Company-operated contribution1, excluding pre-opening and COVID costs grew 23.8% to $27.1 million as compared to $21.9 million in the same period last year.
- Net income (loss) was $(117.1) million, or $(0.15) per diluted share as compared to $6.7 million in the same period last year. In the third quarter of 2021, the company recognized $124.8 million of non-cash equity-based compensation related to our initial public offering.
- Adjusted net income1 was $11.0 million, or $0.23 per diluted share, as compared to $16.2 million in the same period last year.
- Adjusted EBITDA decreased 2.6% to $20.6 million as compared to $21.2 million in the same period last year. The decrease was primarily due to abnormally low systemwide discounts last year during the initial COVID-19 pandemic outbreak.
Initial Public Offering
On September 17, 2021, the company successfully closed our initial public offering (“IPO”) of 24,210,526 shares of Class A common stock, including the exercise in full of the underwriters’ option to purchase 3,157,894 additional shares, at a price to the public of $23.00 per share. Proceeds from the IPO were approximately $556.8 million, before deducting underwriting discounts and commissions and other offering expenses.
Our Class A common stock began trading on The New York Stock Exchange (“NYSE”) under the symbol “BROS” on September 15, 2021.
Outlook
For the fourth quarter, the company is providing the following outlook:
- Total system shop openings are expected to be at least 30.
- Total revenue is projected to be in the range of $125.0 million – $128.0 million.
- Same shop sales are estimated in the mid single-digits.
- Adjusted EBITDA is projected to be in the range of $12.5 million – $13.5 million.
For the year 2022, they are providing the following preliminary outlook for new shop openings:
- Total system shop openings are expected to be at least 112.
