Dutch Bros Inc. Reports Preliminary Fourth Quarter and Fiscal Year 2022 New Shop Openings and Same Shop Sales Results
GRANTS PASS, Ore.–(BUSINESS WIRE)– Dutch Bros Inc. (NYSE: BROS; the “Company”) one of the fastest-growing brands in the food service and restaurant industry in the United States by location count, today reported preliminary highlights for the quarterly and annual periods ended December 31, 20221. The Company also released revenue guidance for 2023, issued long-term growth targets and announced its participation at the 25th Annual ICR Conference and 12th Annual Jefferies Winter Restaurant, Foodservice, Gaming, Lodging & Leisure Summit.
Joth Ricci, Chief Executive Officer and President of Dutch Bros Inc., stated, “In 2022, we delivered another strong year of growth with 133 new shop openings systemwide.1 That growth is a testament to our team’s ongoing ability to execute on our proven growth strategy. For a third year in a row, we’ve exceeded our new shop development targets, doubling our shop count since March 2019, despite unprecedented disruption to communities and the economy. As we continue on our 30+ year growth journey, we’re entering 2023 from a position of strength, supported by a robust new unit pipeline, building market share in existing markets and growing our people systems.”
He continued, “In 2023, we’re targeting 150 new shops, which positions us to achieve our five-year goal of 800 systemwide shops by year-end. Additionally, we’re within striking distance of $1 billion in revenue in 2023 and 1,000 systemwide shops by the first half of 2025, creating jobs and opportunities for our employees and the communities in which we serve.”
Preliminary Fourth Quarter 2022 Highlights1:
Opened 30 new shops, of which 26 were company-operated.
System same shop sales2 declined (0.6)%, inclusive of the impact of our fortressing strategy, which results in sales being transferred from existing shops to new ones, as compared to the same period of 2021 and grew 15.2% on a 3-year stacked basis3. Company-operated same shop sales2 declined (2.1)%, inclusive of the impact of our fortressing strategy, as compared to the same period of 2021 and grew 16.2% on a three-year stacked basis3.
Preliminary Full Year 2022 Highlights1:
Opened 133 new shops, of which 120 were company-operated.
System same shop sales2 grew 1.0%, inclusive of the impact of our fortressing strategy, which results in sales being transferred from existing shops to new ones, as compared to the same period of 2021 and grew 11.4% on a three-year stacked basis3. Company-operated same shop sales2 grew 0.6%, inclusive of the impact of our fortressing strategy, as compared to the same period of 2021 and grew 10.4% on a three-year stacked basis3.
As of December 31, 2022, the Dutch Bros system consisted of 671 shops (396 company-operated and 275 franchised-operated) across 14 states1.
Preliminary Fiscal Year 2023 Outlook
For full year 2023, Dutch Bros is providing the following preliminary outlook:
Total system shop openings are expected to be at least 150, of which at least 110 shops will be company-operated.
Total revenues are projected to be in the range of $950 million to $1 billion.
Same shop sales2 growth is estimated in the low single digits.
Long-Term Growth Targets
Looking beyond 2023, Dutch Bros is providing the following long-term growth targets over the next five to ten years.
1 Historical amounts presented within this press release are preliminary, unaudited, and subject to ongoing accounting controls and procedures.
2 Same shop sales growth reflects the change in year-over-year sales for the comparable shop base, which we define as shops open for 15 complete months or longer. Management uses this metric as an indicator of shop growth and future expansion strategy. The number of shops included in the systemwide and company-operated comparable bases are presented in the following table as of the respective dates.
3 3-Year Stack is calculated as current quarter same shop sales growth plus the sum of the same shop sales growth from the same period of the prior two years. Same shop sales data is based on different shop bases for each time period.