Dutch Bros Passes 600 Stores and Tops $1 Billion in Systemwide Sales

This is an English adaptation of a FoodBud historical article originally published on August 12, 2022.

Dutch Bros reported its second-quarter results on August 11, 2022, marking a new store-count milestone for the coffee chain. The company ended the quarter with 603 locations, passing 600 stores, and generated more than $1 billion in systemwide sales over the prior 12 months.

Its market capitalization was reported at $7.2 billion.

Second-Quarter Performance

In Q2, Dutch Bros reported revenue of $186 million, up 44.2% year over year. Revenue from company-operated shops rose 55.9% year over year to $160 million.

Comparable-store sales declined 3.3%, and the company recorded a net loss of $1.8 million.

Dutch Bros opened 31 new shops across nine states during the quarter, including 26 company-operated locations. Total store count grew 28% year over year. Over the trailing 12 months, average unit volume was $1.9 million.

The company also carried out a second round of pricing during the quarter, raising prices by about 3%.

Store Mix and Membership

At the end of Q2, Dutch Bros operated 336 company-owned shops and had 267 franchised shops.

Its loyalty base continued to expand. The brand added 450,000 active members over the prior 90 days, bringing total users to 4 million and 90-day active members to 2.6 million. On average, each shop had about 4,000 active members.

About 63% of Q2 transaction value came from Dutch Bros members. By product mix, cold beverages accounted for 80% of sales.

Cost Pressure and Expansion Outlook

Dutch Bros continued to face cost inflation. After seven consecutive quarters of rising raw-material costs, inflation eased slightly in Q2. Raw materials represented 27.1% of costs, while labor accounted for 29.4%.

For the full year, Dutch Bros guided for at least 130 new shop openings, including 110 company-operated shops.

On its earnings call, the company reiterated five growth priorities: attracting stronger employees through capital and store-scale expansion; targeting 4,000 shops over the next 10 to 15 years; increasing brand awareness and customer engagement; continuing to improve the user experience; and strengthening operations to improve margins.

Note: market-cap, expansion-target, and forward-guidance figures are historical and reflect the August 2022 source article.