NYSE$BROS

Dutch Bros Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Dutch Bros reported a strong Q2 2023 with significant revenue growth and margin expansion.

Dutch Bros Inc. reported a 34% increase in quarterly revenue to $250 million, driven by new shop openings and systemwide same shop sales growth of 3.8%. The company opened 38 new shops, bringing the total to 754. Company-operated shop gross margin improved to 23.6%, and net income was $9.7 million, a significant increase compared to the previous year. Leadership transition was announced, with Christine Barone set to become CEO on January 1, 2024.

  • Total revenues grew by 34.1% to $249.9 million compared to the same period in 2022.
  • System same shop sales increased by 3.8%.
  • Opened 38 new shops, bringing the total shop count to 754.
  • Net income was $9.7 million, compared to a loss of $(1.8) million in the same period of 2022.

Headline financials

Total Revenue

$250M

Previous: $186M+34.1%
EPS (adj)

$0.13

Previous: $0.05+160.0%
Systemwide sales

$375M

Previous: $297M+26.2%
Systemwide same shop sales

3.8%

Previous: -3.3%+215.2%
Company-operated same shop sales

1.6%

No prior period
Total shop count, end of period

754

Previous: 603+25.0%
Company-operated shops, end of period

473

No prior period
Franchised shops, end of period

281

No prior period
Company-operated new openings

35

Previous: 26+34.6%
Franchised new openings

3

No prior period
Capital Expenditures

-$102M

Previous: -$83.9M-22.0%
Free Cash Flow

-$99.6M

Previous: -$84.8M-17.5%
Net Income

$2.75M

Previous: -$906K+403.8%
Operating Income

$19.6M

Previous: $2.67M+633.6%
Gross Profit

$71.2M

Previous: $45M+58.3%
Cash & Equivalents

$23.7M

Previous: $21.3M+11.4%
Total Assets

$1.37B

Previous: $950M+44.1%
Stock-Based Comp

$10.1M

Previous: $10.4M-2.8%

Revenue & EPS history

Dutch Bros · Revenue · Quarterly

$250M

Q2 2023+34.1%vs Q2 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Dutch Bros · $250M total across 2 segments · Q2 2023

  • Company-operated shops
    $221M+37.7%
  • Franchising and other
    $28.9M+11.8%

Forward guidance

Dutch Bros provided guidance for the year 2023, expecting at least 150 total system shop openings with at least 130 being company-operated. Total revenues are projected to be at the lower end of the previously communicated range of $950 million to $1 billion. Same shop sales growth is estimated to remain in the low single digits. Adjusted EBITDA is now estimated to be between $135 million and $140 million. Capital expenditures are estimated to be in the range of $225 million to $250 million.

Tailwinds

  • Total system shop openings in 2023 are expected to remain at least 150, of which at least 130 shops will be company-operated.
  • Adjusted EBITDA is now estimated to be between $135 million and $140 million, up from at least $125 million.
  • Reflects stronger than expected year-to-date profitability trends.
  • Improved traffic trends
  • Q3 pricing actions.

Headwinds

  • Total revenues are projected to be at the lower end of the previously communicated range of $950 million to $1 billion.
  • Reflects current new shop AUV trends of approximately $1.7 million.
  • Same shop sales growth is estimated to remain in the low single digits.
  • Revised revenue expectations.
  • Increased levels of investment in support of key priorities.

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 Q2 2023

Historical avgQ2 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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