Dutch Bros (BROS) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 28% year-over-year to $338.2M, driven by new shop openings, higher company-operated shop sales, and record system AUVs of $2 million.

• Net income rose to $21.7M, with diluted EPS of $0.11; adjusted EBITDA increased to $63.8M, up 20% year-over-year.

• Opened 38 new shops in Q3, bringing the total to 950 across 18 states, with 33 company-operated; shop count grew 19.6%.

• Mobile order rollout reached 90% system coverage, driving a 5% frequency lift among users and over 1 million new Dutch Rewards registrations in Q3.

• Paid advertising, targeted rewards, and innovation fueled brand awareness and transaction growth, especially in new and maturing markets.

Financial highlights

• Company-operated shop revenue grew 30.4% to $308.3M; same shop sales up 4.0% for company-operated and 2.7% systemwide.

• Net income attributable to Dutch Bros Inc. was $12.6M, up from $4.2M in Q3 2023; adjusted net income was $27.7M.

• Company-operated shop contribution margin was 29.5%, down 150 bps year-over-year, mainly due to higher labor and repair costs.

• Adjusted EBITDA margin was 18.9% for Q3 2024.

• Cash and cash equivalents at September 30, 2024, were $281.1M, up from $133.5M at year-end 2023.

Outlook and guidance

• Raised 2024 revenue guidance to $1.255–$1.26B, with adjusted EBITDA expected between $215–$220M.

• Expect to open 150 new shops in 2024 and at least 160 in 2025.

• System same shop sales growth projected at 4.25% for 2024; Q4 same shop sales growth expected at 1–2%.

• Capital expenditures for 2024 forecasted at $245–$265M.

• Cash flow from operations and available credit expected to fund growth and working capital needs for at least the next 12 months.