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Jun 30, 2023
Dutch Bros Q2 2023 Earnings Report
Dutch Bros reported a strong Q2 2023 with significant revenue growth and margin expansion.
Key Takeaways
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.
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
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income