NYSE$BROS

Dutch Bros Inc. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Dutch Bros reported first quarter 2023 financial results, including a record 45 new systemwide shop openings and revenue increase of nearly 30%.

Dutch Bros Inc. reported strong first-quarter 2023 financial results, with a record 45 new systemwide shop openings and a revenue increase of nearly 30% to $197.3 million. The company also saw meaningful margin expansion due to improvements in labor efficiency and G&A leverage.

  • Opened 45 new shops system-wide, 42 of which were company-operated, across 9 states.
  • Total revenues grew 29.6% to $197.3 million as compared to the same period of 2022.
  • Company-operated shop revenues increased 33.0% to $173.2 million, as compared to the same period of 2022.
  • Net loss was $9.4 million as compared to $16.3 million in the same period of 2022.

Headline financials

Total Revenue

$197M

Previous: $152M+29.6%
EPS (adj)

-$0.16

Previous: -$0.02-700.0%
Systemwide sales

$303M

Previous: $255M+18.9%
Systemwide same shop sales

-2.0%

Previous: 6.0%-133.3%
Company-operated same shop sales

-3.5%

Previous: 5.1%-168.6%
Total shop count, end of period

716

Previous: 572+25.2%
Company-operated shops, end of period

438

Previous: 310+41.3%
Franchised shops, end of period

278

Previous: 262+6.1%
Company-operated new openings

42

Previous: 34+23.5%
Franchised new openings

3

No prior period
Capital Expenditures

-$43.3M

Previous: -$40M-8.3%
Free Cash Flow

-$47.1M

Previous: -$44.9M-4.9%
Net Income

-$3.84M

Previous: -$4.95M+22.3%
Operating Income

-$232K

Previous: -$14.2M+98.4%
Gross Profit

$45.7M

Previous: $31M+47.6%
Cash & Equivalents

$14.3M

Previous: $26.8M-46.6%
Total Assets

$1.26B

Previous: $885M+43.0%
Stock-Based Comp

$9.17M

Previous: $9.9M-7.4%

Revenue & EPS history

Dutch Bros · Revenue · Quarterly

$197M

Q1 2023+29.6%vs Q1 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Dutch Bros · $197M total across 2 segments · Q1 2023

  • Company-operated shops
    $173M+33.0%
  • Franchising and other
    $24.1M+9.7%

Forward guidance

Dutch Bros is reaffirming the following full-year 2023 outlook:

Tailwinds

  • Total system shop openings in 2023 are expected to be at least 150, of which at least 130 shops will be company-operated.
  • Total revenues are projected to be between $950 million and $1 billion.
  • Same shop sales growth is estimated to be in the low single digits.
  • Expect low-single digits growth from pricing to roll-over into 2023 from pricing action taken in 2022.
  • Adjusted EBITDA is estimated to be approximately $125 million.

Headwinds

  • Includes approximately $8 million elected to make in labor investments related to wage increases in federal minimum wage markets.
  • Includes approximately $11 million in mandated wage increases in markets that do not adhere to the federal minimum wage standard.
  • Capital expenditures are estimated to be in the range of $225 million to $250 million.
  • Includes approximately $15 million to $20 million in spending in 2023 for our new roasting facility projected to open in 2024.
  • At this point we have no plans to take additional pricing action in 2023.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+1.6%

Avg return

Earnings day

+3.5%

Avg return

5 days after

+3.0%

Avg return

30 days after

61%

11 / 18 earnings

Positive

+33.1%

Q3 2024

Best reaction

-38.5%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-9.2%-14.2%-6.0%
Q4 2025+4.7%+5.1%-6.9%
Q3 2025-4.2%+0.8%+5.2%
Q1 2025+8.9%+18.6%+23.4%
Q4 2024+29.1%+31.9%-3.4%
Q3 2024+33.1%+44.0%+64.0%
Q2 2024-19.9%-22.8%-15.6%
Q1 2024+12.1%+27.1%+36.2%
Q4 2023+1.0%+6.2%+23.7%
Q3 2023+1.1%+3.5%+3.6%
Q2 2023+18.2%+19.4%-4.0%
Q1 2023-11.5%-19.4%-6.3%
Q4 2022-8.9%-12.1%-23.3%
Q3 2022+10.7%+2.3%+0.2%
Q2 2022+8.9%+10.9%-12.9%
Q1 2022-38.5%-37.5%-15.7%
Q4 2021-8.3%+2.4%+14.6%
Q3 2021+2.2%-3.1%-22.1%
Q2 2021
Q1 2021
Q4 2020
Q3 2020
Q2 2020
Q1 2020

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