Dutch Bros Inc. · NYSE:BROS
Dutch Bros — Q3 2023 Earnings Presentation
20 slides from Dutch Bros's earnings presentation, Nov 7, 2023
Slide 1: Supplemental Earnings Slides Q3 2023
Supplemental Earnings Slides Q3 2023 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 ($M) (UNITS) 794 153 $66M $265 641 24% 33% $199 510 QUARTERLY FINANCIALS 370 140 $63M 38% 36% $236 $174 271 284 $25 $28 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Company-Operated Franchised Company-Operated Franchised COMPANY-OPERATED SHOP NET INCOME AND ADJUSTED EBITDA 1 CONTRIBUTION MARGIN 1 2
Slide 5: Same Shop Sales
SAME SHOP SALES SAME SHOP SALES VS PRIOR YEAR 2021 2022 2023 Fiscal year ending December, Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Company-Operated Same Shop Sales 9.5 % 9.9 % 4.7 % 11.5 % 9.0 % 5.1 % (4.3)% 1.0 % (2.1)% 0.6 % (3.5)% 1.6 % 2.8 % Systemwide Same Shop Sales 6.7 % 9.4 % 7.3 % 10.1 % 8.4
Slide 6: 2023 Company-Operated Shop Margin
2023 COMPANY-OPERATED SHOP MARGIN Company-Operated Shop Opening Periods Company-Operated Shop Opening Periods Trailing Twelve Months Ended September 30, 2023 For the Three Months Ended September 30, 2023 Total Company- Total Company- (in milliions, except shop count and percentages) Operated Shops 2
Slide 7: Company-Operated Shop Margin Progression
COMPANY-OPERATED SHOP MARGIN PROGRESSION Company-operated Shop Gross Profit (%) 30% 26% 23% 18% 20% 10% —% (10)% (20)% (29)% (30)% Quarters after Opening (40)% 1st Q 2nd Q 3rd Q 4th Q 2020 - 2023 average 7
Slide 8: Company-Operated Shop Results
COMPANY-OPERATED SHOP RESULTS Three Months Ended September 30, 2023 2022 ($ in millions) $ % $ % Company-operated shop revenue $ 236.5 100.0 $ 173.5 100.0 Beverage, food and packaging 61.3 25.9 47.1 27.1 Labor costs 61.5 26.0 49.0 28.3 Occupancy and other costs 36.1 15.3 28.5 16.4 Pre-opening costs
Slide 9: Company-Operated Shops Contribution
Company-Operated Shops Contribution Q3 2022 to Q3 2023 Company-Operated Shops Contribution Bridge 0.8% 0.4% 31.0% 4.1% 0.5% (0.3)% 25.6% 0.6% (0.6)% (0.1)% Q3 2022 Ingredient Costs Shop Opex Labor Costs Menu Prices Discounts Pre-opening Costs Leverage (Deleverage) Other, Net Q3 2023 Contribution Mar
Slide 10: Outlook
OUTLOOK FY 2023 Outlook Total System New Shop Openings at least 150 Company-operated Shop Openings at least 130 Revenue lower end of the range of $950 million to $1 billion Same Shop Sales Growth approximately low single digits Adjusted EBITDA 1 between $150 million and $155 million Capital Expendit
Slide 11: SG&A Leverage
SG&A LEVERAGE 2022 2023 ($ in thousands) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Total revenues $ 152,156 $ 186,381 $ 198,648 $ 201,827 $ 197,267 $ 249,879 $ 264,507 Selling, general, and administrative 1 $ 45,214 $ 42,342 $ 45,378 $ 50,594 $ 45,976 $ 51,662 $ 50,490 As a percentage of total revenue 29.7 % 22.7 % 22.8
Slide 12: Appendix
APPENDIX
Slide 13: Income Statement
INCOME STATEMENT Three Months Ended September 30, ($ in thousands; except per share data) 2023 2022 Revenues: Company-operated stores $ 236,472 $ 173,501 Franchising and other 28,035 25,147 Total revenues $ 264,507 $ 198,648 Costs and expenses: Cost of sales 189,323 148,092 Selling, general and admi
Slide 14: Income Statement – Segments
INCOME STATEMENT – SEGMENTS Three Months Ended September 30, ($ in thousands) 2023 2022 Revenues: Company-operated shops 236,472 173,501 Franchising and other 28,035 25,147 Total revenues $ 264,507 $ 198,648 Cost of Sales: Company-operated shops 179,480 138,781 Franchising and other 9,843 9,311 Tota
Slide 15: Seasonality and AUV
SEASONALITY AND AUV TYPICAL SHOP SALES SEASONALITY TRAILING 12-MONTH AUV 1 ($M) 108% 101% 97% 94% $1.9 $1.9 $1.9 $2.0 $1.9 $1.8 2 Q1 Q2 Q3 Q4 2021 2022 2023 Company-operated Systemwide 1 AUVs are determined based on the net sales for any trailing twelve-month period for systemwide and company-operat
Slide 16: Summary Quarterly Data
SUMMARY QUARTERLY DATA 2022 2023 ($ in millions; except Shop Count) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Company-Operated Shop Count 310 336 370 396 438 473 510 Total Shop Count 572 603 641 671 716 754 794 Company-Operated Shop Revenue $ 130.2 $ 160.5 $ 173.5 $ 175.5 $ 173.2 $ 221.0 $ 236.5 Total Revenue $ 152.2 $
Slide 17: 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 18: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION 2022 2023 ($ in thousands) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Net income (loss) $(16,279) $ (1,751) $ 1,594 $ (2,817) $ (9,391) $ 9,711 $13,401 Depreciation and amortization 9,182 10,539 11,810 13,197 14,779 16,516 18,116 Interest expense, net 2,489 3,596 5,011 6,922 7,886 9,058 9,3
Slide 19: 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 19
Slide 20: It's about fun, people and great coffee
47'S ABOUT ie) FUN, ITS ABOUT PEOPLE © AND IT'S ABOUT GREAT COFFEE. ™....