NYSE$BROS

Dutch Bros Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported a strong Q3 2023 with significant growth in revenue, shop openings, and same shop sales.

Dutch Bros Inc. reported a successful third quarter in 2023, marked by record revenue of $265 million, a 33% increase year-over-year. The company opened 39 new systemwide shops and achieved a 4.0% increase in systemwide same shop sales. They also updated their 2023 guidance, increasing the range for adjusted EBITDA.

  • Opened 39 new shops systemwide, including entry into Alabama and Kentucky.
  • Increased total revenues by 33.2% to $264.5 million compared to the same period in 2022.
  • System same shop sales increased by 4.0%.
  • Net income was $13.4 million, compared to $1.6 million in the same period of 2022.

Headline financials

Total Revenue

$265M

Previous: $199M+33.2%
EPS (adj)

$0.14

Previous: $0.09+55.6%
Systemwide sales

$391M

Previous: $313M+25.0%
Systemwide same shop sales

4.0%

Previous: 1.7%+135.3%
Company-operated same shop sales

2.8%

Previous: 1.0%+180.0%
Total shop count, end of period

794

Previous: 641+23.9%
Company-operated shops, end of period

510

Previous: 370+37.8%
Franchised shops, end of period

284

Previous: 271+4.8%
Company-operated new openings

37

Previous: 34+8.8%
Franchised new openings

2

Previous: 4-50.0%
Capital Expenditures

-$168M

Previous: -$135M-24.6%
Free Cash Flow

-$164M

Previous: -$133M-23.1%
Net Income

$4.21M

Previous: $1.76M+138.8%
Operating Income

$24.7M

Previous: $5.18M+376.9%
Gross Profit

$75.2M

Previous: $50.6M+48.7%
Cash & Equivalents

$150M

Previous: $34.6M+333.3%
Total Assets

$1.64B

Previous: $1.13B+45.1%
Stock-Based Comp

$9.7M

Previous: $10.6M-8.9%

Revenue & EPS history

Dutch Bros · Revenue · Quarterly

$265M

Q3 2023+33.2%vs Q3 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Dutch Bros · $265M total across 2 segments · Q3 2023

  • Company-operated shops
    $236M+36.3%
  • Franchising and other
    $28M+11.5%

Forward guidance

Dutch Bros provided its outlook for the year 2023, expecting to open at least 150 new shops, with at least 130 being company-operated. They anticipate revenue to be at the lower end of the $950 million to $1 billion range and have increased their Adjusted EBITDA estimate to be between $150 million to $155 million.

Tailwinds

  • Expect to open at least 150 new shops, with at least 130 being company-operated.
  • Expect system same shop sales growth in the low single digits.
  • Estimate Adjusted EBITDA to be between $150 million to $155 million.
  • Expect capital expenditures to be in the range of $225 million to $250 million.
  • Expect to spend approximately $15 million to $20 million for a new roasting facility, which is projected to open in 2024.

Headwinds

  • Expect revenue would be at the lower end of the range of $950 million to $1 billion.
  • Increased shop labor investments in the range of $1.5 million to $2.0 million.
  • Intend to make certain investments in business building activities throughout the fourth quarter.
  • General economic conditions could impact results.
  • Commodity inflation and increased labor costs could impact results.

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 Q3 2023

Historical avgQ3 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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro