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. Metrics vs Peers
3. Price Chart
4. Valuation
5. Offer Terms
6. Financial Statements
Discussion
Research report, target price, DCF and forensic scores are for subscribers. View plans
Symbol
BROS
Listed on
2021-09-15
Sector
Consumer
Subsector
Hotels, Restaurants & Leisure
Offer Price
$23.00
first filed $18.00–$20.00Shares Offered
21.05M
163.23M
$3.8B
12.9%
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.
▼ More expensive than its peers on 2 of 2 valuation measures
| Metric | Value | Peer median | Among peers | Trend |
|---|---|---|---|---|
EV / revenue | 11.5x | 5.2x | ||
Price / earnings | >100x | 49.8x | ||
Revenue growth | 37.4% | 16.5% | ||
Gross margin | 35.4% | 41.5% | ||
Operating margin | 3.3% | 7.3% | ||
Net margin | 1.7% | -4.5% | ||
Free cash flow margin | 4.0% | -2.4% | ||
Rule of 40 | 45.4% | 25.7% | ||
Net cash / market cap | 0.1% | -0.1% | ||
Debt / equity | 0.37 | 0.13 | ||
Current ratio | 1.05 | 0.64 | ||
Stock comp / revenue | 10.7% | 0.7% | ||
9 premium metrics: DCF value / price, Growth the price needs: how common, Last 12 months vs full year and 6 more Unlock | ||||
▲ Priced at $23.00, 21% above the midpoint of the first filed range ($18.00–$20.00, 2021-09-07).
Each filing is plotted ahead of the first trading day on the price chart.
| Filed | Form | Price range | Price | Shares offered | Deal size |
|---|---|---|---|---|---|
| 2021-09-07 | S-1/A | $18.00–$20.00 | — | 21,052,632 | $400.0M |
| 2021-09-13 | S-1/A | $18.00–$20.00 | — | 21,052,632 | $400.0M |
| 2021-09-16 | 424B4 | — | $23.00 | 21,052,632 | $484.2M |
Dutch Bros Inc. income statement and balance sheet, FY Dec 2022 to FY Dec 2025, as reported in SEC filings.
| Metric | FY Dec 2022after listing | FY Dec 2023after listing | FY Dec 2024after listing | FY Dec 2025after listing |
|---|---|---|---|---|
| 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 |
| Revenue growth | — | 30.7% | 32.6% | 27.9% |
| Gross margin | 24.5% | 26.0% | 26.6% | 25.9% |
| Operating margin | −0.4% | 4.8% | 8.3% | 9.8% |
| Net margin | −0.6% | 0.2% | 2.8% | 4.9% |
| Metric | FY Dec 2022after listing | FY Dec 2023after listing | FY Dec 2024after listing | FY Dec 2025after listing |
|---|---|---|---|---|
| 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 |
Backlog (RPO) $2.6M, −2.1% vs a year ago (as of Dec 31, 2025, 10-K)
Fiscal years parsed from inline XBRL in the company's SEC filings. Parentheses indicate negative values; growth compares the same length of period a year earlier.