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Dec 31, 2023

Dutch Bros Q4 2023 Earnings Report

Dutch Bros reported strong Q4 2023 results with significant revenue growth and new shop openings.

Key Takeaways

Dutch Bros Inc. reported a 25.9% increase in total revenues, reaching $254.1 million for the fourth quarter of 2023. The company opened 37 new shops, with system same shop sales increasing by 5.0%. Despite the revenue growth, the company reported a net loss of $3.8 million.

Total revenues grew by 25.9% to $254.1 million compared to Q4 2022.

System same shop sales increased by 5.0%, and company-operated same shop sales increased by 4.6%.

Opened 37 new shops, 32 of which were company-operated.

Net loss was $3.8 million, compared to $2.8 million in the same period of 2022.

Total Revenue
$254M
Previous year: $202M
+25.9%
EPS
$0.04
Previous year: $0.03
+33.3%
Systemwide Sales
$375M
Previous year: $298M
+25.8%
Systemwide Same Shop Sales
5%
Previous year: -0.6%
-933.3%
Company-operated Same Shop Sales
4.6%
Previous year: -2.1%
-319.0%
Gross Profit
$59.1M
Previous year: $54.4M
+8.8%
Cash and Equivalents
$134M
Previous year: $20.2M
+561.8%
Free Cash Flow
-$15.7M
Previous year: -$36.1M
-56.5%
Total Assets
$1.76B
Previous year: $1.19B
+48.7%

Dutch Bros

Dutch Bros

Dutch Bros Revenue by Segment

Forward Guidance

Dutch Bros anticipates total system shop openings between 150 to 165 and projects total revenues between $1.190 billion and $1.205 billion for 2024.

Positive Outlook

  • Total system shop openings are expected to be in the range of 150 to 165.
  • Total revenues are projected to be between $1.190 billion and $1.205 billion.
  • Same shop sales growth is estimated to be in the low single digits.
  • Adjusted EBITDA is estimated to be between $185 million to $195 million.
  • Adjusted SG&A is estimated to be between $183 million and $189 million.

Challenges Ahead

  • Costs related to the support center expansion in Arizona will be excluded from Adjusted EBITDA and Adjusted SG&A.
  • Capital Expenditures are estimated to be between $280 million to $320 million, primarily related to new shop construction.
  • This estimate includes approximately $10 million in incremental spend related to our roasting facility.
  • This estimate includes $6 million to $10 million in capital expenditures related to the Arizona office expansion.
  • Stock based compensation, which is also excluded from Adjusted EBITDA and Adjusted SG&A, is estimated to be in the range of $12 million to $17 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income