
Daily Coffee Report 8/12/26
Daily coffee report

- Coffee
By: Alexis Rubinstein, Managing Editor - Coffee Network
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 fourth quarter and year ended December 31, 2021. The Company also provided its full year 2022 financial outlook.
Fourth Quarter 2021 Highlights:
• Opened 35 new shops, surpassing the prior record of 33 openings in a single quarter. Company operated shops represented 30 of these openings. This included opening 23 shops in the month of December alone, and six shops in six states on December 3rd, demonstrating our ability to move rapidly.
• Total revenues grew 55.8% to $140.1 million as compared to $89.9 million in the same period of 2020.
• Company-operated shops revenues increased 66.1% to $114.2 million as compared to $68.7 million in the same period of 2020.
• System same shop sales grew1 10.1% in the fourth quarter and 15.3% on a two-year basis. Company-operated same shop sales grew1 11.5% in the fourth quarter and 17.3% on a two-year basis.
• Company-operated shop gross profit grew 15.4% to $16.1 million as compared to $14.0 million in the same period of 2020.
• Company-operated shop contribution2, a non-GAAP financial measure, grew 27.2% to $21.4 million as compared to $16.8 million in the same period of 2020.
• Net loss was $(9.8) million, as compared to $(6.2) million in the same period of 2020. For the fourth quarter of 2021, we recognized $10.0 million of non-cash equity-based compensation.
• Adjusted EBITDA, a non-GAAP financial measure, was $13.3 million, as compared to $13.0 million in the same period of 2020. Included in this comparison is a year over year increase in preopening expenses of $2.5 million, driven by both 50% more company shop openings as compared to the same period in the prior year, and a spillover of expenses from a series of late third quarter 2021 openings. 2020 results were positively impacted by lower discount and promotional costs as a result of the COVID-related suspension of its legacy paper-based loyalty program. The Company transitioned its loyalty program to a digital format through the launch of its digital rewards app in February 2021, with discount and promotional costs now normalized close to the Company’s going forward run rate. Finally our 2021 results now include $3.1 million in costs related to being a public company that did not exist in the prior comparable period.
• Adjusted net income, a non-GAAP financial measure, was $3.5 million, as compared to $7.1 million in the same period of 2020.
Full Year 2021 Highlights:
• Opened 98 new shops, of which 82 were company-operated.
• Total revenues grew 52.1% to $497.9 million as compared to $327.4 million in 2020.
• Company-operated shops revenues increased 65.1% to $403.7 million as compared to $244.5 million in 2020.
• System same shop sales grew1 8.4% for the year 2021 and 10.3% on a two-year basis. Company-operated same shop sales grew1 9.0% for the year 2021 and 11.1% on a two-year basis.
• Company-operated shop gross profit grew 41.1% to $85.2 million as compared to $60.4 million in 2020. Company-operated shop contribution2, a non-GAAP financial measure, grew 44.7% to $101.5 million as compared to $70.1 million in 2020.
• Net income (loss) was $(121.1) million, as compared to $5.7 million in 2020. For the year 2021, we recognized $157.7 million of non-cash equity-based compensation.
• Adjusted EBITDA, a non-GAAP financial measure, increased 17.7% to $82.1 million as compared to $69.8 million in year 2020. Please note 2020’s comparable results were positively impacted by lower discount and promotional costs as a result of the COVID-related suspension of the Company’s legacy paper-based loyalty program.
• Adjusted net income, a non-GAAP financial measure, was $48.3 million, as compared to $49.6 million in 2020.
Outlook
For full year 2022 , Dutch Bros is providing the following outlook:
• Total system shop openings are expected to be at least 125, of which at least 105 shops will be company-operated.
• Total revenues are projected to be in the range of $700 million to $715 million.
• Same shop sales growth5 is estimated in the mid-single digits.
• Adjusted EBITDA6 is estimated to be in the range of $115 million to $120 million.
• Capital expenditures are estimated to be in the range of $175 million to $200 million.
For Q1 2022, Dutch Bros is providing the following outlook:
• Total system shop openings are expected to be at least 30, of which nearly all shops will be company-operated.
• Same shop sales growth5 is estimated in the mid-single digits.
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Daily coffee report


August 12 – Today’s focus is on inflation, with the July consumer price index data out this morning. We have this, and one more month of data, ahead of the next Federal Reserve meeting. Of course, headlines from the Middle East and the Black Sea wars also have an ongoing influence on the markets. Stock futures posted gains this morning, while the VIX traded just below 15. The dollar index traded near 99.7. Yields on 10-year Treasuries are trading near 4.66%, while yields on 2-year Treasuries are trading near 4.18%. WTI crude oil is trading near $83, while Brent trades near $88 per barrel. The grain and oilseed markets rebounded from yesterday’s losses ahead of today’s highly anticipated WASDE crop report that is due out at Noon Eastern Time.


Daily coffee report

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