Dutch Bros Inc. · NYSE:BROS
Dutch Bros — Q4 2022 Earnings Presentation
21 slides from Dutch Bros's earnings presentation, February 2023
Slide 1: Supplemental Earnings Slides Q4 2022
Supplemental Earnings Slides Q4 2022 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) 671 $202 538 133 $62M 25% $140 QUARTERLY FINANCIALS 396 44% 271 125 $176 46% $114 $61M 267 275 54% $26 $26 Q4 2021 Q4 2022 Q4 2021 Q4 2022 Company-Operated Franchised Company-Operated Franchised COMPANY-OPERATED SHOP NET INCOME AND ADJUSTED EBITDA 1 3 CONTRIBUTION MARGIN 1
Slide 5: Annual Financials
SHOPS REVENUE ($M) (UNITS) 1M 26 150 At least 130 -$ 671 Company- $739 11M - 35 $261 % $950M - $1B 133 22% $2 % 538 operated 1M 29 25% $498 $24 396 48% 271 125 $640 ANNUAL FINANCIALS 46% $404 6M $23 58% 267 275 $94 $99 $99 2021 2022 Outlook 2021 2022 Outlook Company-Operated Franchised Company-Opera
Slide 6: Same Shop Sales
SAME SHOP SALES SAME SHOP SALES VS PRIOR YEAR AND MULTI-YEAR STACK 2020 2021 2022 Fiscal year ending December, Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Company-Operated Same Shop Sales (3.3)% 0.1 % 2.5 % 6.8 % 0.8 % 9.5 % 9.9 % 4.7 % 11.5 % 9.0 % 5.1 % (4.3)% 1.0 % (2.1)% 0.6 % % 2 Year Stack 1
Slide 7: 2022 Company-Operated Shop Margin
2022 COMPANY-OPERATED SHOP MARGIN Company-Operated Shop Opening Periods Company-Operated Shop Opening Periods For the Year Ended December 31, 2022 For the Three Months Ended December 31, 2022 Total Company- Total Company- (in milliions, except shop count and percentages) Operated Shops 2018 and Prio
Slide 8: Company-Operated Shop Margin Progression
COMPANY-OPERATED SHOP MARGIN PROGRESSION Company-operated Shop Gross Profit (%) 30% 24% 26% 20% 20% 10% —% (10)% (20)% (31)% (30)% Quarters after Opening (40)% 1st Q 2nd Q 3rd Q 4th Q 2020 - 2022 average 8
Slide 9: Company-Operated Shop Results
COMPANY-OPERATED SHOP RESULTS Three Months Ended December 31, Year Ended December 31, 2022 2021 ¹ 2022 2021 ($ in millions) $ % $ % $ % $ % Company-operated shop revenue $ 175.5 100.0 $ 114.2 100.0 $ 639.7 100.0 $ 403.7 100.0 Beverage, food and packaging 45.6 26.0 30.7 26.8 171.9 26.9 102.2 25.3 Lab
Slide 10: Company-Operated Shops Contribution 2021 to 2022
COMPANY-OPERATED SHOPS CONTRIBUTION 2021 to 2022 Company-Operated Shops Contribution Bridge 2 25.5% 0.4% 0.2% 4.3% 0.4% 0.5% 24.6% (0.8)% (0.1)% (3.8)% (0.9)% (0.7)% (0.4)% Cost Increases (5.8)% 2021 Contribution Ingredient Costs Shop Opex Labor Costs Maintenance Costs Menu Prices Discounts Pre-open
Slide 11: Outlook
OUTLOOK FY 2023 Outlook Total System New Shop Openings at least 150 Company-operated Shop Openings at least 130 Revenue $950 million to $1 billion Same Shop Sales Growth approximately low single digits Adjusted EBITDA 1 at least $125 million Capital Expenditures $225 million to $250 million Full Yea
Slide 12: SG&A Leverage
SG&A LEVERAGE 2021 ¹ 2022 Year Ended December 31, ($ in thousands) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 ¹ 2022 Total revenues $ 98,785 $ 129,208 $ 129,803 $ 140,080 $ 152,156 $ 186,381 $ 198,648 $ 201,827 $ 497,876 $ 739,012 Selling, general, and administrative 2 $ 35,986 $ 33,488 $ 153,700 $ 41,355 $ 45,21
Slide 13: Appendix
APPENDIX
Slide 14: Income Statement
INCOME STATEMENT Three Months Ended December 31, Year Ended December 31, ($ in thousands; except per share data) 2022 2021 ¹ 2022 2021 ¹ Revenues: Company-operated stores $ 175,510 $ 114,198 $ 639,710 $ 403,746 Franchising and other 26,317 25,882 99,302 94,130 Total revenues $ 201,827 $ 140,080 $ 73
Slide 15: Income Statement – Segments
INCOME STATEMENT – SEGMENTS Three Months Ended December 31, Year Ended December 31, ($ in thousands) 2022 2021 ¹ 2022 2021 ¹ Revenues: Company-operated shops 175,510 114,198 639,710 403,746 Franchising and other 26,317 25,882 99,302 94,130 Total revenues $ 201,827 $ 140,080 $ 739,012 $ 497,876 Cost
Slide 16: Seasonality and AUV
SEASONALITY AND AUV TYPICAL SHOP SALES SEASONALITY TRAILING 12-MONTH AUV 1 ($M) 108% $1.9 $1.9 $1.9 101% $1.8 97% $1.7 94% $1.5 2 Q1 Q2 Q3 Q4 2020 2021 2022 Company-operated Systemwide 1 AUVs are determined based on the net sales for any trailing twelve-month period for systemwide and company-operat
Slide 17: Summary Quarterly Data
SUMMARY QUARTERLY DATA 2021 ¹ 2022 ($ in millions; except Shop Count) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Company-Operated Shop Count 191 207 241 271 310 336 370 396 Total Shop Count 453 471 503 538 572 603 641 671 Company-Operated Shop Revenue $ 77.9 $ 103.0 $ 108.7 $ 114.2 $ 130.2 $ 160.5 $ 173.5 $ 175.5 Tota
Slide 18: 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 19: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION 2021 ¹ 2022 Year Ended December 31, ($ in thousands) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 Net income (loss) $ (4,822) $ 11,889 $(116,830) $ (8,168) $(16,279) $ (1,751) $ 1,594 $ (2,817) $ (117,931) $ (19,253) Depreciation and amortization 5,350 5,681 6,696 7,490 9,182 10,
Slide 20: 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 20
Slide 21: - TRAV BOERSMA
47'S ABOUT ie) FUN, ITS ABOUT PEOPLE © AND IT'S ABOUT GREAT COFFEE. ™....