Dutch Bros fires ‘on all cylinders’ in Q2; plots ambitious long-term growth
Dutch Bros posted another strong quarter and raised its guidance for same-store sales, revenues and adjusted EBITDA.
The fast-growing drive-thru coffee chain also continued to expand its footprint during the second quarter, opening 31 new shops across 13 states, for a total of 1,053 locations in 19 states. It remains on track to open “at least” 160 new shops this year. Dutch Bros said it expects to have 2,029 locations in 2029.
“If there’s one takeaway from today’s call, it is this: Dutch Bros is in growth mode and we are just getting started,” president and CEO Christine Barone told analysts on the company’s earnings call. “With a long term addressable market of 7,000 shops nationwide and just north of 1,000 shops today, the runway ahead is expansive.”
Dutch Bros reported that its net income rose to $38.4 million in the quarter ended June 30, up from $22.2 million in the year-ago period. Adjusted net income was $45.5 million, or $026 per share, compared to $31.2 million, or $0.19 per share, in the prior year period.
Total second-quarter revenues grew 28.0% to $415.8 million. Systemwide same shop sales increased 6.1% and systemwide same shop transactions increased 3.7%.
“Our business continues to fire on all cylinders, guided by a focused strategy, strong execution, and our amazing people,” Barone stated in the earnings release. “The momentum in our business remains strong, and our second quarter results were outstanding across multiple fronts. Our confidence in the year’s trajectory continues to grow, reinforced by the strong performance we have seen so far this year and through July.”
Based on the strong performance it has seen so far this year and through July, Dutch Bros raised its full-year guidance. Total revenues are now projected to be between $1.59 billion and $1.60 billion, with same-shop sales growth expected to be approximately 4.5%.Adjusted EBITDA is now estimated to be between $285 million and $290 million.
