In This Article:
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Total Revenue Growth (2024): 33% increase.
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New Shop Openings (2024): 151 new shops, 128 company-operated.
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System Same-Shop Sales Growth (2024): 5.3% increase.
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Adjusted EBITDA Growth (2024): 44% increase.
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Adjusted EBITDA Margin (2024): Expanded by 140 basis points to 18%.
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Adjusted EPS (2024): $0.49 per share.
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Q4 Revenue: $343 million, a 35% increase year over year.
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Q4 System Same-Shop Sales Growth: 6.9% increase.
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Q4 Company-Operated Same-Shop Sales Growth: 9.5% increase.
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Q4 Adjusted EBITDA: $49 million, a 41% increase year over year.
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Q4 Adjusted EPS: $0.07 per share.
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System-Wide AUVs: $2 million.
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Cash and Cash Equivalents (End of 2024): $293 million.
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Net Cash Position (End of 2024): Approximately $59 million.
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2025 Revenue Guidance: $1.555 billion to $1.575 billion, 21% to 23% growth.
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2025 New Shop Openings Guidance: At least 160 new shops.
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2025 System Same-Shop Sales Growth Guidance: 2% to 4%.
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2025 Adjusted EBITDA Guidance: $265 million to $275 million, 15% to 20% growth.
Release Date: February 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Dutch Bros Inc (NYSE:BROS) achieved a 33% total revenue growth in 2024, driven by 18% new shop growth and 5.3% system same-shop sales growth.
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The company opened 151 new shops in 2024, with strong new shop performance and improved productivity.
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Adjusted EBITDA grew by 44% in 2024, with a 41% increase in Q4 alone, reflecting strong financial health.
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The Dutch rewards program saw a record 71% of transactions from members, indicating high customer engagement.
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Mobile order functionality is now available in 96% of system shops, contributing to increased transaction growth and customer convenience.
Negative Points
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Coffee prices have risen, and Dutch Bros Inc (NYSE:BROS) expects approximately 110 basis points of net COGS margin pressure in 2025.
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The company anticipates making wage investments in 2025, which may offset expected leverage from sales growth.
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Capital expenditures for 2025 are estimated to be between $240 million and $260 million, primarily for new shop construction.
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The company is facing potential construction delays and raw material cost increases, which could impact the development pipeline.
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Despite strong growth, Dutch Bros Inc (NYSE:BROS) is rolling off about 3 points of net pricing in 2025, implying modest pricing power.
Q & A Highlights
Q: Can you elaborate on the factors behind the significant acceleration in company-operated comps? A: Christine Barone, CEO, explained that the acceleration was due to multiple factors working together, including the strength of the brand, the rewards program, paid advertising, and mobile order adoption. New shop performance, particularly in newer markets like Texas, also contributed significantly. Josh Guenser, CFO, added that strong traffic performance allowed them to reduce discounting, enhancing ticket flow.