Dutch Bros Inc. · NYSE:BROS
Dutch Bros — Q2 2024 Earnings Presentation
20 slides from Dutch Bros's earnings presentation, Aug 7, 2024
Slide 1: Supplemental Earnings Slides Q2 2024
Supplemental Earnings Slides Q2 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 158 912 ($M) (UNITS) $325 754 $75M 21% $250 30% 139 612 473 QUARTERLY FINANCIALS 29% $74M $295 $221 34% 281 300 $29 $30 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Company-Operated Franchised Company-Operated Franchised COMPANY-OPERATED SHOP NET INCOME AND ADJUSTED EBITDA 1 CONTRIBUTION MARGIN 1 2
Slide 5: Same Shop Sales
SAME SHOP SALES SAME SHOP SALES VS PRIOR YEARS 2022 2023 2024 Fiscal year ending December, Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Company-Operated Same Shop Sales 5.1 % (4.3)% 1.0 % (2.1)% 0.6 % (3.5)% 1.6 % 2.8 % 4.6 % 1.5 % 10.9 % 5.2 % Systemwide Same Shop Sales 6.0 % (3.3)% 1.7 % (0.6)% 1.0 % (2.0)
Slide 6: Company-Operated Shop Margin Progression
COMPANY-OPERATED SHOP MARGIN PROGRESSION Company-Operated Shop Gross Profit (%) 30% 24% 22% 17% 20% 10% —% (10)% (20)% (28)% (30)% Quarters after Opening (40)% 1st Q 2nd Q 3rd Q 4th Q 2020 - 2023 average 6
Slide 7: Company-Operated Shop Results
COMPANY-OPERATED SHOP RESULTS Three Months Ended June 30, 2024 2023 ($ in millions) $ % $ % Company-operated shop revenue $ 295.3 100.0 $ 221.0 100.0 Beverage, food and packaging 75.1 25.5 59.4 26.8 Labor costs 80.2 27.2 58.7 26.6 Occupancy and other costs 44.3 15.0 32.6 14.8 Pre-opening costs 4.6 1
Slide 8: Company-Operated Shop Contribution Margin Bridge
COMPANY-OPERATED SHOP 1 CONTRIBUTION MARGIN BRIDGE Q2 2023 to Q2 2024 Company-Operated Shop Contribution Margin1 Bridge 3.6% 30.3% 30.8% (0.5)% (0.2)% (0.8)% (1.6)% Q2 2023 Labor Costs Menu Prices New shop related items (including Volume Other Q2 2024 Contribution Margin pricing impacts) Contributio
Slide 9: Outlook
OUTLOOK FY 2024 Outlook Total System New Shop Openings 150 to 165 Revenue between $1.215 billion to $1.230 billion Same Shop Sales Growth approximately low single digits Adjusted EBITDA 1 between $200 million to $210 million Adjusted SG&A 1 between $190 million to $200 million Capital Expenditures b
Slide 10: SG&A Leverage
SG&A LEVERAGE 2022 2023 2024 ($ in thousands) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Total revenues $152,156 $186,381 $198,648 $201,827 $197,267 $249,879 $264,507 $254,123 $275,099 $324,918 Selling, general, and administrative 1 $ 45,214 $ 42,342 $ 45,378 $ 50,594 $ 45,976 $ 51,662 $ 50,490 $ 56,946 $ 46,194
Slide 11: Appendix
APPENDIX
Slide 12: Income Statement
INCOME STATEMENT Three Months Ended June 30, ($ in thousands; except per share data) 2024 2023 Revenues: Company-operated stores $ 295,268 $ 220,952 Franchising and other 29,650 28,927 Total revenues $ 324,918 $ 249,879 Costs and expenses: Cost of sales 234,637 178,636 Selling, general and administr
Slide 13: Income Statement – Segments
INCOME STATEMENT – SEGMENTS Three Months Ended June 30, ($ in thousands) 2024 2023 Revenues: Company-operated shops 295,268 220,952 Franchising and other 29,650 28,927 Total revenues $ 324,918 $ 249,879 Cost of Sales: Company-operated shops 225,252 168,873 Franchising and other 9,385 9,763 Total cos
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 $2.0 $1.9 $1.9 $1.9 2 Q1 Q2 Q3 Q4 2022 2023 2024 Company-operated Systemwide 1 AUVs are determined based on the net sales for any trailing twelve-month period for systemwide and company-operat
Slide 15: Summary Quarterly Data
SUMMARY QUARTERLY DATA 2022 2023 2024 ($ in millions; except Shop Count) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Company-Operated Shop Count 310 336 370 396 438 473 510 542 582 612 Total Shop Count 572 603 641 671 716 754 794 831 831 912 Company-Operated Shop Revenue $ 130.2 $ 160.5 $ 173.5 $ 175.5 $ 173.2 $
Slide 16: Common Units Outstanding
COMMON UNITS OUTSTANDING The following table summarizes the ownership interest in Dutch Bros OpCo1: June 30, 2024 (in thousands) OpCo Units Ownership % Dutch Bros OpCo Class A common units held by Dutch Bros Inc. 113,817 64.2% Dutch Bros OpCo Class A common units held by non-controlling interest hol
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 2024 ($ in thousands) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net income (loss) $(16,279) $(1,751) $1,594 $(2,817) $(9,391) $9,711 $13,401 $(3,769) $16,215 $22,156 Depreciation and amortization 9,182 10,539 11,810 13,197 14,779 16,516 18,116 19,724 21,253 22,350 Intere
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. ™....