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Mar 31, 2022
Dutch Bros Q1 2022 Earnings Report
Dutch Bros' first quarter results were announced, featuring revenue growth and new shop openings, but also margin pressure from inflation.
Key Takeaways
Dutch Bros Inc. reported a 54% increase in total revenues to $152.2 million for the first quarter of 2022, driven by new shop openings and same shop sales growth. However, the company experienced a net loss of $16.3 million and margin pressure due to record inflation, leading to a revised full-year outlook with a more conservative stance on adjusted EBITDA.
Opened 34 new shops, all company-operated, marking the second-highest quarterly opening count on record.
Total revenues increased by 54.0% to $152.2 million compared to the same period in 2021.
System same shop sales grew by 6.0% in the first quarter, and company-operated same shop sales grew by 5.1%.
Revised full-year 2022 outlook includes plans to open at least 130 new shops and projects total revenues between $700 million and $715 million.
Dutch Bros
Dutch Bros
Dutch Bros Revenue by Segment
Revenue by Segment
Company-operated shops Revenue
CapyFin.comFranchising and other Revenue
CapyFin.com Forward Guidance
For the full year 2022, Dutch Bros expects to open at least 130 total system shops, with at least 110 being company-operated. Total revenues are projected to be in the range of $700 million to $715 million. Same shop sales growth is estimated to be approximately flat, and adjusted EBITDA is expected to be at least $90 million. Capital expenditures are still estimated to be in the range of $175 million and $200 million including the new roasting facility.
Positive Outlook
- Total system shop openings are expected to increase to at least 130, with at least 110 shops being company-operated.
- Total revenues are projected to remain in the range of $700 million to $715 million.
- Focus on continued expansion in shop openings.
- Capital expenditures include investment in a new roasting facility expected to open in 2023.
- Continued commitment to people-first culture and community involvement.
Challenges Ahead
- Same shop sales growth is now estimated to be approximately flat.
- Adjusted EBITDA is now estimated to be at least $90 million, reflecting near-term margin pressure in company-operated shops.
- Decision to take modest price increases during the year.
- Macro-economic headwinds impacting consumer discretionary income and gas prices.
- April same shop sales were (3.7)% in 2022 compared to 22.6% in 2021.
Revenue & Expenses
Visualization of income flow from segment revenue to net income