Dutch Bros. Inc. is on track to meeting its store expansion goal.
The fast-growing coffee chain said it is targeting at least 150 new shop openings for 2023. The openings would enable Dutch Bros. to reach its goal of 800 shops by the end of 2023.
In its third-quarter earnings release, the company noted that it opened a record 38 locations (of which 34 were company-operated) across 11 states during the quarter, which is almost as many as it opened during the entire year of 2019. Dutch Bros has opened at least 30 shops in five consecutive quarters.
“We expect to cap off our first full year as a public company by reaching our 2022 development target of at least 130 new shops,” said president and CEO John Ricci.
Dutch Bros. went public in September 2021. The company said in its filing at the time that it hopes to eventually have 4,000 shops, with the majority of its growth to be company-owned locations
Dutch Bros’ total revenue in the third quarter grew 53.0% to $198.6 million. System same-shop sales grew 1.7% over the year-ago period.
Net income was $1.6 million as compared to a net loss of $(116.8) million in the same period of 2021.
“Dutch Bros’ portability and brand acceptance remains impressive as we grow from west to east across the country,” said Ricci. “Our 2020 and 2021 classes of new shops are generating annualized volumes that are approximately 10% higher than our system average and are exhibiting predictable and consistent sales performance and upward margin progression.
Dutch Bros raised its annual revenue guidance based upon the performance of its new shops and strong pipeline, Ricci added, saying the company remains confident in its expectation to generate at least $90.0 million in adjusted EBITDAthis year,
For the full year, Dutch Bros’ total revenues are now projected to be at least $725 million.
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