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Dutch Bros Inc. Announces First Quarter 2022 Financial Results, Sees Revenue Up 54%

By: Alexis Rubinstein, Managing Editor - Coffee Network

 
Alexis Rubinstein
Managing Editor

CoffeeNetwork (New York) - Dutch Bros Inc. (NYSE: BROS) one of the fastest-growing brands in the food service and restaurant industry in the United States by location count, today reported financial results for the first quarter ended March 31, 2022. The Company also revised its full year 2022 outlook.

First Quarter 2022 Highlights:

  • Opened 34 new shops, our second-highest quarterly opening count on record. All shops opened in the quarter were company-operated shops.
  • Total revenues grew 54.0% to $152.2 million as compared to $98.8 million in the same period of 2021.
  • Company-operated shop revenues increased 67.1% to $130.2 million as compared to $77.9 million in the same period of 2021.
  • System same shop sales grew 6.0% in the first quarter and 11.1% vs. 2019. Company-operated same shop sales grew 5.1% in the first quarter, reflecting higher traffic and check, partially offset by intentional sales transfer, and 9.9% vs. 2019.
  • Company-operated shop gross profit was $16.6 million as compared to $17.6 million2 in the same period of 2021.
  • Company-operated shop contribution3, a non-GAAP financial measure, grew 14.1% to $23.8 million as compared to $20.8 million2 in the same period of 2021.
  • Net loss was $(16.3) million as compared to $(4.8) million in the same period of 2021. For the first quarter of 2022, we recognized $9.9 million of non-cash equity-based compensation.
  • Adjusted EBITDA3, a non-GAAP financial measure, was $9.7 million as compared to $18.7 million2 in the same period of 2021. Rapid escalations in dairy costs well above historic levels drove increases in our cost of sales. Costs related to more rapid new unit growth, escalating minimum wage in select mature markets, and other factors drove increases in labor costs. The timing of certain maintenance and travel costs also contributed to increased operating and other costs.
  • Adjusted net income (loss)3, a non-GAAP financial measure, was $(2.5) million as compared to $12.3 million2 in the same period of 2021.
  • Net loss per share of Class A and Class D common stock - diluted was $(0.10) and Adjusted net loss per fully exchanged share of common stock, a non-GAAP financial measure, was $(0.02).

Outlook

  • For full year 2022, Dutch Bros is providing the following outlook:
  • Total system shop openings are now expected to increase to at least 130, of which at least 110 shops will be company-operated.
  • Total revenues are projected to remain in the range of $700 million to $715 million, reflecting our continued expansion in shop openings.
  • 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 our company-operated shops and our decision to take modest price increases during the year.
  • Capital expenditures are still estimated to be in the range of $175 million and $200 million, which includes approximately $15 million to $20 million for our new roasting facility that we project will open in 2023.

For Q2 2022, Dutch Bros is providing the following outlook:

  • Total shop openings are expected to be at least 30, of which nearly all shops will be company-operated.
  • Same shop sales are estimated to be flat to slightly negative as we face 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, our largest rollover of the year.

Alexis Rubinstein

  • Coffee

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