1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Valuation
Discussion
Symbol
BROS
Event Date
2021-09-15
Sector
Consumer
Subsector
Hotels, Restaurants & Leisure
Offer Range
$23.00-$23.00
Shares Offered
21.05M
99M
$3.1B
21.3%
Implied Upside vs Midpoint
Description
Dutch 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 Grants Pass, Oregon. While espresso-based beverages are still at the core of what we do, Dutch Bros now offers a wide variety of unique, customizable cold and hot beverages that delight a broad array of customers. In 2020, approximately 82% of our beverages were served cold. We believe Dutch Bros is more than just the products we serve—we are dedicated to making a massive difference in the lives of our employees, customers and communities. This combination of hand-crafted and high-quality beverages, our unique drive-thru experience and our community-driven, people-first culture has allowed us to successfully open new shops and continue to share the “Dutch Luv.” Today, we believe that Dutch Bros is one of the fastest-growing brands in the foodservice and restaurant industry in the United States by location count. In the past five and a half years, we have increased our shop count from 254 shops in seven states at the end of 2015 to 471 shops in 11 states as of June 30, 2021. As of June 30, 2021, 264 of our shops were franchised and 207 were company-operated. Company-operated shops generated a shop-level contribution margin, a non-GAAP financial measure, of 29% in 2020, prior to expenses related to the COVID-19 pandemic, resulting in highly attractive returns on our invested capital. While our current franchise partners continue to open new shops in their existing markets, the highly attractive financial returns generated by our new shops, coupled with our desire to ensure our people development and culture, have caused us to focus primarily on company-operated shops as we accelerate our new shop development. Despite the COVID-19 pandemic and September 2020’s west coast wildfires, systemwide average unit volume (“AUV”) grew approximately 3% during 2020 to approximately $1.7 million. With an average check of approximately $7.50, we are busy from early morning through the end of the day to generate these AUVs. 2020 also represented our fourteenth consecutive year of positive same shop sales growth. In 2020, we generated $327.4 million of revenue, $5.7 million of net income, and $69.8 million of Adjusted EBITDA, a non-GAAP financial measure, resulting in an Adjusted EBITDA margin, a non-GAAP financial measure, of 21.3%. In the twelve months ended June 30, 2021, we generated $404.5 million of revenue, $6.3 million of net income, and $80.1 million of Adjusted EBITDA, resulting in an Adjusted EBITDA margin of 19.8%. Our Adjusted EBITDA grew from $39.6 million in 2018 to $80.1 million in the twelve months ended June 30, 2021. The Dutch Bros Experience Dutch Bros is entirely focused on delivering on its core values of quality, speed and service in every interaction we have. Every visit to Dutch Bros should feel like a celebration. Broistas are genuinely excited to serve our customers and interested in how they can make their day better. Runners greet customers before they get to the drive-thru window to personalize every order and, when needed, explain our menu. They use tablets to take orders, allowing broistas to sequence the crafting of beverages and manage car throughput in the drive-thru lane, ensuring that quality, speed and service remain consistent throughout the day. Broistas serve our beverages with a smile, an encouraging word or a high-five. --- Our principal executive offices are located at 110 SW 4th Street, Grants Pass, Oregon 97526. Our telephone number is (541) 955-4700. Our website address is www.dutchbros.com.
Dutch Bros Inc. annual income statement and balance sheet, FY 2022 to FY 2025, as reported in SEC filings.
| Metric | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|---|
| Revenue | $739M | $966M | $1.3B | $1.6B |
| Gross profit | $181M | $251M | $340M | $424M |
| Operating income | ($2.6M) | $46.2M | $106M | $161M |
| Net income | ($4.8M) | $1.7M | $35.3M | $79.8M |
| Metric | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|---|
| Total assets | $1.2B | — | $2.5B | $3.0B |
| Total liabilities | $934M | — | $1.7B | $2.1B |
| Total equity | $252M | $676M | $764M | $898M |
| Cash & equivalents | $20.2M | $134M | $293M | $269M |