Dutch Bros Inc. Outlined Long-Term Growth Strategy at Inaugural Investor Day
Expanded Total Addressable Market to 7,000+ System Shops Nationwide
Set Goal of 2,029 System Shops in 2029
Reiterated Prior Long-Term Growth Algorithm; Issued New Long-Term Company-Operated Shop Contribution Margin Goal
Announced Appointment of Brian Cahoe as Chief Development Officer
鈥淲e are pleased to deliver quarter-to-date Q1 same shop sales above our expectations, supported by positive traffic and strong business momentum. This positive trend is a testament to the strength of our brand and the dedication of our team,鈥� said Christine Barone, Chief Executive Officer and President of Dutch Bros. 鈥淟ast month, we proudly opened our 1,000th shop, and with a strong roadmap ahead, we are focused on our bold goal of reaching 2,029 shops in 2029. Led by field operations teams deeply rooted in our culture and hungry to grow, and supported by a leadership team with complementary skills and firsthand knowledge of scale, we are well positioned to deliver sustainable, long-term value while staying true to our mission of making a massive difference, one cup at a time.鈥�
First Quarter 2025 Update and Guidance
- System shop openings totaled 27 shops through March 24th, with up to 3 additional shops expected to open through the end of the quarter.
-
System same shop sales1 increased
4.6% through March 24th, relative to the comparable period in 2024.
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Adjusted selling, general and administrative expenses2 (鈥淎djusted SG&A鈥�) are expected to be approximately
$56 million
| _________________ | |
1 |
Same shop sales represent the estimated percentage change in year-over-year sales for the comparable shop base, which we define as shops open for 15 months or longer as of the first day of the reporting period. Same shop sales can be impacted by changes in customer transaction counts and by changes in the per-ticket amounts. Management uses these metrics as an indicator of shop growth and future expansion strategy. |
2 |
Adjusted SG&A is a non-GAAP financial measure. We have not reconciled guidance for Adjusted SG&A to the corresponding |
Reiterated Prior Long-Term Growth Algorithm
The Company reiterated its long-term revenue growth and Adjusted EBITDA growth algorithm and added a long-term company-operated shop contribution margin goal:
-
Annual Revenue Growth of ~
20% supported by annual new shop growth in the mid-teens and low-single digit same shop sales growth.
-
Annual Adjusted EBITDA Growth of
20% +, in excess of the Company鈥檚 annual revenue growth rate goal, driven by continued progress in Adjusted SG&A leverage.
-
Company-Operated Shop Contribution Margin to approach goal of ~
30% while maintaining this level to support long-term shop-level investments.
Total Addressable Market Update
The Company updated its total addressable market and set a new development goal:
- Total Addressable Market elevated for system shop openings to 7,000+.
- Goal of 2,029 system shops in 2029.
Executive Team Hiring Update
In Q1, Dutch Bros further strengthened its leadership team with the appointment of Brian Cahoe as Chief Development Officer. In this role, Cahoe is responsible for overseeing the Company鈥檚 new shop growth and development strategy. He brings nearly 25 years of experience in the quick service restaurant industry, most recently serving as Chief Development Officer for KFC
Entry Into Consumer Packaged Goods Market
In a separate press release issued today, the Company announced its plans to enter the consumer packaged goods market. In partnership with Trilliant Food & Nutrition, LLC, Dutch Bros plans to launch a line of packaged coffee and related products to be sold in retail outlets.
About Dutch Bros Inc.
Dutch Bros Inc. (NYSE: BROS) is a high growth operator and franchisor of drive-thru shops that focus on serving high QUALITY, hand-crafted beverages with unparalleled SPEED and superior SERVICE. Founded in 1992 by brothers Dane and Travis Boersma, Dutch Bros began with a double-head espresso machine and a pushcart in
To learn more about Dutch Bros, visit , follow Dutch Bros Coffee on Instagram, Facebook, X, and TikTok, and download the Dutch Bros app to earn points and score rewards!
Dutch Bros, our Windmill logo, Dutch Bros Rebel, and our other registered and common law trade names, trademarks and service marks are the property of Dutch Bros Inc. All other trademarks, trade names and service marks appearing in this press release are the property of their respective owners. Solely for convenience, the trademarks and trade names in this press release may be referred to without the 庐 and 鈩� symbols, but such references should not be construed as any indicator that their respective owners will not assert their rights thereto.
Forward-Looking Statements
In addition to historical information, this release contains a number of 鈥渇orward-looking statements鈥� as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, Dutch Bros鈥� projected total addressable market, the success of Dutch Bros鈥� executive transition strategies, estimated capital expenditures, benefits from Dutch Bros鈥� anticipated entry into the consumer packaged goods market, Dutch Bros鈥� possible or assumed future results of operations, including guidance for the first quarter of 2025, business strategies, growth goals, including with regard to new shop openings, annual revenue, adjusted EBITDA, and company-operated shop contribution margin, and potential growth opportunities. These statements are based on Dutch Bros鈥� current expectations and beliefs, as well as a number of assumptions concerning future events. When used in this press release, the words 鈥渁nticipates鈥�, 鈥渆stimates,鈥� 鈥減roject,鈥� 鈥渆xpects,鈥� 鈥渟hould,鈥� 鈥済uidance,鈥� 鈥済oal,鈥� and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Dutch Bros鈥� control that could cause actual results to differ materially from the results discussed in the forward-looking statements, including those related to increased customer use of Dutch Bros鈥� mobile order capabilities and the Dutch Rewards loyalty program, general economic conditions, commodity inflation, increased labor costs, disruptions in our supply chain, ability to hire and retain employees, the availability of suitable new shop sites and our ability to negotiate acceptable agreements regarding the new shop sites, and other risks, including those described under the heading 鈥淩isk Factors鈥� in our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 13, 2025, and in our future reports to be filed with the SEC. Forward-looking statements contained in this press release are made as of this date, and Dutch Bros undertakes no duty to update such information except as required under applicable law.
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For Investor Relations inquiries:
Jeff Priester
ICR
(332) 242-4370
[email protected]
For Media Relations inquiries:
Jessica Liddell
ICR
(203) 682-8208
[email protected]
Source: Dutch Bros Inc.
