Dutch Bros Q1 sales up 30%; reaffirms big expansion target

Dutch Bros reported a strong first quarter as it continues to expand its store footprint eastward.

The Oregon-based, fast-growing coffee chain opened a record 45 new shops across nine states during the quarter, for a total of 716 locations in 14 states. Dutch Bros, which went public in September 2021, is on track to open at least 150 new stores in 2023, of which at least 130 will be company-operated.

On the company’s earnings call, CEO Joth Ricci reaffirmed the company’s long-term goal of 4,000 shops in the next 10 to 15 years.

“The class of shops opened in 2019, 2020, and 2021 have already achieved our 30% contribution margin target, and the class of 2022 is maturing in line with our margin expectations,” Ricci stated in the earnings release. “We are hitting these targets as we continue entering new trade zones across the country. This performance gives us confidence in Dutch Bros growth strategy - both in the near-term and beyond.”

Dutch Bros reported a net loss of $9.4 million for the quarter ended March 31, as compared to $16.3 million in the year-ago period.

Total revenues rose 29.6% to $197.3 million as compared to $152.2 million in the same period of 2022.

The company reaffirmed its full-year 2023 outlook. Total revenues are projected to be between $950 million and $1 billion.