Achieves $325 million in Revenues in Quarter, a 30% Increase Year-over-Year

36 New Shop Openings During Quarter, Surpasses 900th Shop Milestone

Raises Revenue and Adj. EBITDA Guidance

GRANTS PASS, Ore.–(BUSINESS WIRE)–Dutch Bros Inc. (NYSE: BROS; “Dutch Bros” or the “Company”), one of the fastest-growing brands in the quick service beverage industry in the United States by location count, today reported financial results for the second quarter ended June 30, 2024.

Christine Barone, Chief Executive Officer and President of Dutch Bros, stated, “Our quarterly performance demonstrates the long runway ahead for Dutch Bros as we once again delivered strong top-line and profitability growth. Revenue rose 30%, including a 4.1% increase in system same-shop sales, and was underpinned by excellent margin flow through. With strong results 2024 to date despite the volatile consumer backdrop and expectations for a robust second half to the year, we are pleased to be raising our annual guidance.”

Barone continued, “The traffic-driving initiatives that we began implementing in 2023 are continuing to drive our business momentum. Approximately 67% of all transactions during the second quarter came through Dutch Rewards members, as our enhanced app is enabling us to efficiently and effectively connect with our loyal customers. We are also seeing phenomenal traction driving awareness in new markets through paid advertising and plan to further invest in this opportunity.”

Barone concluded, “We also continued with successful new shop openings and our mobile order roll-out. We added 36 shops in the second quarter, marking the 12th consecutive quarter of 30 or more new shop openings. As of June 30th, we had 38 shops in Arizona, California, and Texas with mobile order capabilities and have since expanded the rollout to approximately 200 shops as of the end of July. We are increasingly optimistic that we will have mobile order capabilities in a majority of our shops by year-end.”

Second Quarter 2024 Highlights

• Opened 36 new shops, 30 of which were company-operated, across 13 states.
• Total revenues grew 30.0% to $324.9 million as compared to $249.9 million in the same period of 2023.
• System same shop sales¹ increased 4.1% relative to the same period in 2023, inclusive of the impact of our fortressing strategy, where some sales are being transferred from existing shops to new shops. Company-operated same shop sales increased 5.2%, relative to the same period of 2023.
• Company-operated shop revenues increased 33.6% to $295.3 million, as compared to $221.0 million in the same period of 2023.
• Company-operated shop gross profit was $70.0 million as compared to $52.1 million in the same period of 2023. In the second quarter of 2024, company-operated shop gross margin, which includes 150bps of pre-opening costs, was 23.7%, a year-over-year increase of 10bps.
• Company-operated shop contribution², a non-GAAP financial measure, grew 36.1% to $91.1 million as compared to $66.9 million in the same period of 2023. In the second quarter of 2024, company-operated shop contribution margin, which includes 150bps of pre-opening costs, was 30.8%, a year-over-year increase of 50 bps.
• Selling, general, and administrative expenses were $58.1 million (17.9% of revenue) as compared to $51.7 million (20.7% of revenue) in the same period of 2023.
• Adjusted selling, general, and administrative expenses², a non-GAAP financial measure, were $47.6 million (14.6% of revenue) as compared to $38.9 million (15.6% of revenue) in the same period of 2023.
• Net income was $22.2 million as compared to $9.7 million in the same period of 2023.
• Adjusted EBITDA²,a non-GAAP financial measure, grew 34.1% to $65.2 million as compared to $48.6 million in the same period of 2023.
• Adjusted net income², a non-GAAP financial measure, was $31.2 million as compared to $20.9 million in the same period of 2023.
• Net income per share of Class A and Class D common stock – diluted was $0.12 as compared to $0.05 per share in the same period of 2023.
• Adjusted net income per fully exchanged share of diluted common stock², a non-GAAP financial measure, was $0.19 as compared to $0.13 in the same period of 2023.

Revised 2024 Outlook

• Total revenues are now projected to be between $1.215 billion and $1.230 billion, up from the prior range of $1.20 billion and $1.215 billion.
• Same shop sales growth is expected to remain in the low single digits.
• Adjusted EBITDA³ is now estimated to be between $200 million and $210 million, up from the prior range of $195 million to $205 million and Adjusted SG&A³ is estimated to be between $190 million and $200 million, up from the prior range of $183 million and $189 million.
• Total system shop openings in 2024 are now expected to be at the lower end of the previously communicated range of 150 to 165.
• Capital Expenditures are estimated to be between $270 million to $290 million from the prior range of $280 million to $320 million.