Dutch Bros (BROS) TD Cowen 8th Annual Future of the Consumer Conference summary

Business Performance and Growth

• Achieved 10% same-shop sales growth and 39% revenue growth in Q1, with record $2M AUV for shops open 15+ months.

• Opened 45 new shops in Q1, reaching 876 total locations, including first entries into Florida, and 11 consecutive quarters of 30+ shop openings.

• Adjusted EBITDA grew 120% year-over-year to $53 million, with 700 bps margin expansion.

• SG&A fell below 15% of revenue for the first time post-IPO, showing 370 bps of leverage.

• Beverage-focused model with 97% of sales from drinks, leveraging a diverse menu and drive-thru format.

Innovation, Customer Engagement, and Brand

• Launched Protein Coffee and Poppin' Boba, both driving repeat purchases and menu expansion.

• Enhanced rewards program and ongoing investment in Dutch Rewards and paid advertising to drive traffic and engagement.

• Paid advertising ramped up in new markets to build brand awareness and drive trial.

• Service and customer connection remain core differentiators, supported by a people-centric culture and fun environment.

• Executive team expanded with experienced leaders in operations, finance, and people since early 2024.

Technology and Operational Strategy

• Mobile order and pay being tested, with rollout to most shops expected by year-end 2024.

• High app engagement: 66% of transactions use the rewards app, indicating readiness for mobile order adoption.

• Shop layouts support operational flexibility, with walk-up windows and escape lanes for efficient service.

• Operational focus on maintaining service quality and barista experience as technology is integrated.

• Site selection and shop design are being adjusted to accommodate mobile order and future demand.