Dutch Bros Inc. · NYSE:BROS
Dutch Bros — Q1 2024 Earnings Presentation
19 slides from Dutch Bros's earnings presentation, May 7, 2024
Slide 1: Supplemental Earnings Slides Q1 2024
Supplemental Earnings Slides Q1 2024 1
Slide 2: Disclaimer
DISCLAIMER Forward-Looking Statements. Statements in this presentation and the accompanying oral presentation that are not statements of historical fact are forward-looking statements. Such forward-looking statements include, without limitation, statements regarding the Company’s future results of o
Slide 3: Dutch Bros is a fun loving, mind-blowing company
“DUTCH BROS IS A FUN LOVING, MIND-BLOWING COMPANY MAKING A MASSIVE DIFFERENCE, ONE CUP AT A TIME.”
Slide 4: Quarterly Financials
SHOPS REVENUE 160 876 ($M) (UNITS) 716 22% $78M $275 39% 144 582 $197 438 QUARTERLY FINANCIALS 33% $75M $248 $173 43% 278 294 $24 $27 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Company-Operated Franchised Company-Operated Franchised COMPANY-OPERATED SHOP NET INCOME AND ADJUSTED EBITDA 1 CONTRIBUTION MARGIN 1 2
Slide 5: Same Shop Sales
SAME SHOP SALES SAME SHOP SALES VS PRIOR YEARS 2022 2023 2024 Fiscal year ending December, Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Company-Operated Same Shop Sales 5.1 % (4.3)% 1.0 % (2.1)% 0.6 % (3.5)% 1.6 % 2.8 % 4.6 % 1.5 % 10.9 % Systemwide Same Shop Sales 6.0 % (3.3)% 1.7 % (0.6)% 1.0 % (2.0)% 3.8 % 4
Slide 6: Company-Operated Shop Margin Progression
COMPANY-OPERATED SHOP MARGIN PROGRESSION Company-Operated Shop Gross Profit (%) 30% 25% 22% 17% 20% 10% —% (10)% (20)% (28)% (30)% Quarters after Opening (40)% 1st Q 2nd Q 3rd Q 4th Q 2020 - 2023 average 6
Slide 7: Company-Operated Shop Results
COMPANY-OPERATED SHOP RESULTS Three Months Ended March 31, 2024 2023 ($ in millions) $ % $ % Company-operated shop revenue $ 248.1 100.0 $ 173.2 100.0 Beverage, food and packaging 63.7 25.7 49.0 28.3 Labor costs 65.4 26.4 48.5 28.0 Occupancy and other costs 41.5 16.7 30.6 17.6 Pre-opening costs 3.4
Slide 8: Company-Operated Shop Contribution Margin Bridge
COMPANY-OPERATED SHOP 1 CONTRIBUTION MARGIN BRIDGE Q1 2023 to Q1 2024 Company-Operated Shop Contribution Margin1 Bridge 0.9% 0.2% 0.4% 29.8% 4.6% (0.1)% 24.2% 0.2% (0.6)% Q1 2023 Ingredient Costs Labor Costs Menu Prices Discounts Pre-opening Costs New Shop Impact Volume Q1 2024 Contribution Margin C
Slide 9: Outlook
OUTLOOK FY 2024 Outlook Total System New Shop Openings 150 to 165 Revenue between $1.20 billion to $1.215 billion Same Shop Sales Growth approximately low single digits Adjusted EBITDA 1 between $195 million to $205 million Capital Expenditures between $280 million to $320 million Full Year 2024 Out
Slide 10: SG&A Leverage
SG&A LEVERAGE 2022 2023 2024 ($ in thousands) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Total revenues $152,156 $186,381 $198,648 $201,827 $197,267 $249,879 $264,507 $254,123 $275,099 Selling, general, and administrative 1 $ 45,214 $ 42,342 $ 45,378 $ 50,594 $ 45,976 $ 51,662 $ 50,490 $ 56,946 $ 46,194 As a percen
Slide 11: Appendix
APPENDIX
Slide 12: Income Statement
INCOME STATEMENT Three Months Ended March 31, ($ in thousands; except per share data) 2024 2023 Revenues: Company-operated stores $ 248,085 $ 173,164 Franchising and other 27,014 24,103 Total revenues $ 275,099 $ 197,267 Costs and expenses: Cost of sales 203,326 151,523 Selling, general and administ
Slide 13: Income Statement – Segments
INCOME STATEMENT – SEGMENTS Three Months Ended March 31, ($ in thousands) 2024 2023 Revenues: Company-operated shops 248,085 173,164 Franchising and other 27,014 24,103 Total revenues $ 275,099 $ 197,267 Cost of Sales: Company-operated shops 193,780 144,292 Franchising and other 9,546 7,231 Total co
Slide 14: Seasonality and AUV
SEASONALITY AND AUV TYPICAL SHOP SALES SEASONALITY TRAILING 12-MONTH AUV 1 ($M) 108% 101% 97% 94% $2.0 $1.9 $1.9 $1.9 $1.9 $1.8 2 Q1 Q2 Q3 Q4 2022 2023 2024 Company-operated Systemwide 1 AUVs are determined based on the net sales for any trailing twelve-month period for systemwide and company-operat
Slide 15: Summary Quarterly Data
SUMMARY QUARTERLY DATA 2022 2023 2024 ($ in millions; except Shop Count) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Company-Operated Shop Count 310 336 370 396 438 473 510 542 582 Total Shop Count 572 603 641 671 716 754 794 831 876 Company-Operated Shop Revenue $ 130.2 $ 160.5 $ 173.5 $ 175.5 $ 173.2 $ 221.0 $ 236
Slide 16: Non-GAAP Adjustments
NON-GAAP ADJUSTMENTS Below are the definitions of the non-GAAP adjustments that are used in the calculation of our non-GAAP measures, which are included in the GAAP to non-GAAP reconciliations on the following slides. Equity-based compensation — Non-cash expenses related to the grant and vesting of
Slide 17: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION 2022 2023 2024 ($ in thousands) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Net income (loss) $(16,279) $(1,751) $1,594 $(2,817) $(9,391) $ 9,711 $13,401 $(3,769) $16,215 Depreciation and amortization 9,182 10,539 11,810 13,197 14,779 16,516 18,116 19,724 21,253 Interest expense, net 2
Slide 18: Contact Information
CONTACT INFORMATION INVESTOR CONTACT Raphael Gross ICR investors@dutchbros.com (203) 682-8253 MEDIA CONTACT Jessica Liddell ICR Jessica.Liddell@icrinc.com (203) 682-8208 18
Slide 19: - TRAV BOERSMA
47'S ABOUT ie) FUN, ITS ABOUT PEOPLE © AND IT'S ABOUT GREAT COFFEE. ™....