Dutch Bros Inc. · NYSE:BROS
Dutch Bros — Q4 2023 Earnings Presentation
20 slides from Dutch Bros's earnings presentation, Feb 21, 2024
Slide 1: Supplemental Earnings Slides Q4 2023
Supplemental Earnings Slides Q4 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 mission statement
“DUTCH BROS IS A FUN LOVING, MIND-BLOWING COMPANY MAKING A MASSIVE DIFFERENCE, ONE CUP AT A TIME.”
Slide 4: Annual Financials
SHOPS REVENUE 831 ($M) $966 (UNITS) 160 $227 M 671 24% 31% $739 146 542 M $218 $858 396 37% % $640 34 ANNUAL FINANCIALS 275 289 $99 $108 2022 2023 2022 2023 Company-Operated Franchised Company-Operated Franchised COMPANY-OPERATED SHOP NET INCOME AND ADJUSTED EBITDA 1 3 4 CONTRIBUTION MARGIN 1 2 3 (%
Slide 5: Same Shop Sales
SAME SHOP SALES SAME SHOP SALES VS PRIOR YEAR 2021 2022 2023 Fiscal year ending December, Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Company-Operated Same Shop Sales 9.5 % 9.9 % 4.7 % 11.5 % 9.0 % 5.1 % (4.3)% 1.0 % (2.1)% 0.6 % (3.5)% 1.6 % 2.8 % 4.6 % 1.5 % Systemwide Same Shop Sales 6.7 % 9.4 %
Slide 6: 2023 Company-Operated Shop Margin
2023 COMPANY-OPERATED SHOP MARGIN Company-Operated Shop Opening Periods Company-Operated Shop Opening Periods Trailing Twelve Months Ended December 31, 2023 For the Three Months Ended December 31, 2023 Total Company- Total Company- (in milliions, except shop count and percentages) Operated Shops 201
Slide 7: Company-Operated Shop Margin Progression
COMPANY-OPERATED SHOP MARGIN PROGRESSION Company-Operated Shop Gross Profit (%) 30% 25% 22% 17% 20% 10% —% (10)% (20)% (28)% (30)% Quarters after Opening (40)% 1st Q 2nd Q 3rd Q 4th Q 2020 - 2023 average 7
Slide 8: Company-Operated Shop Results
COMPANY-OPERATED SHOP RESULTS Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 ($ in millions) $ % $ % $ % $ % Company-operated shop revenue $ 227.4 100.0 $ 175.5 100.0 $ 857.9 100.0 $ 639.7 100.0 Beverage, food and packaging 60.4 26.6 45.6 26.0 230.1 26.9 171.9 26.9 Labor
Slide 9: Company-Operated Shops Contribution
COMPANY-OPERATED SHOPS CONTRIBUTION 2022 to 2023 Company-Operated Shops Contribution Bridge 1.2% 0.2% 3.6% 28.2% 24.6% 0.7% (0.6)% (1.0)% (0.5)% 2022 Contribution Margin ¹ Ingredient Costs Labor Costs Menu Prices Pre-opening Costs Leverage (Deleverage) Loyalty Points Breakage Other, Net 2023 Contrib
Slide 10: Outlook
OUTLOOK FY 2024 Outlook Total System New Shop Openings 150 to 165 Revenue between $1.190 billion to $1.205 billion Same Shop Sales Growth approximately low single digits Adjusted EBITDA 1 between $185 million to $195 million Capital Expenditures between $280 million to $320 million Full Year 2024 Ou
Slide 11: SG&A Leverage
SG&A LEVERAGE 2022 2023 Year Ended December 31, ($ in thousands) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2023 Total revenues $ 152,156 $ 186,381 $ 198,648 $ 201,827 $ 197,267 $ 249,879 $ 264,507 $ 254,123 $ 739,012 $ 965,776 Selling, general, and administrative 1 $ 45,214 $ 42,342 $ 45,378 $ 50,594 $ 45,976 $
Slide 12: Appendix
APPENDIX
Slide 13: Income Statement
INCOME STATEMENT Three Months Ended December 31, Year Ended December 31, ($ in thousands; except per share data) 2023 2022 2023 2022 Revenues: Company-operated stores $ 227,351 $ 175,510 $ 857,939 $ 639,710 Franchising and other 26,772 26,317 107,837 99,302 Total revenues $ 254,123 $ 201,827 $ 965,7
Slide 14: Income Statement – Segments
INCOME STATEMENT – SEGMENTS Three Months Ended December 31, Year Ended December 31, ($ in thousands) 2023 2022 2023 2022 Revenues: Company-operated shops 227,351 175,510 857,939 639,710 Franchising and other 26,772 26,317 107,837 99,302 Total revenues $ 254,123 $ 201,827 $ 965,776 $ 739,012 Cost of
Slide 15: Seasonality and AUV
SEASONALITY AND AUV TYPICAL SHOP SALES SEASONALITY TRAILING 12-MONTH AUV 1 ($M) 108% 101% 97% 94% $1.9 $2.0 $1.9 $1.9 $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 Q4 Company-Operated Shop Count 310 336 370 396 438 473 510 542 Total Shop Count 572 603 641 671 716 754 794 831 Company-Operated Shop Revenue $ 130.2 $ 160.5 $ 173.5 $ 175.5 $ 173.2 $ 221.0 $ 236.5 $ 227.4 Total
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 Year Ended 2022 2023 December 31, ($ in thousands) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2023 Net income (loss) $(16,279) $(1,751) $1,594 $(2,817) $(9,391) $ 9,711 $13,401 $(3,769) $(19,253) $ 9,952 Depreciation and amortization 9,182 10,539 11,810 13,197 14,779 16,516 18,116 1
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: - TRAV BOERSMA
47'S ABOUT ie) FUN, ITS ABOUT PEOPLE © AND IT'S ABOUT GREAT COFFEE. ™....