Dutch Bros Inc. (NYSE: BROS) stock continues to fall after the coffee chain cut its adjusted Ebitda forecast for 2022. BROS stock was down 36% to $21.53 at the time of writing.
On revenue of $152.2 million, Dutch Bros reported breakeven results for the first quarter of 2022. The consensus earnings estimate was $0.01 per share on $144.2 million in revenue.
Furthermore, it anticipates adjusted Ebitda of at least $90 million, down from its previous forecast of $115 million to $120 million, “reflecting near-term margin pressure in our company-operated shops and our decision to take modest price increases during the year.”
The company has kept the revenue guidance the same, which is between $700.0 million to $715.0 million in 2022. For the fiscal year ending December 31, 2022, the current consensus revenue estimate is $710.23 million.
Financial Highlights
- Opened 34 new shops, our second-highest quarterly opening count on record. All shops opened in the quarter were company-operated shops.
- Total revenues grew 54.0% to $152.2 million as compared to $98.8 million in the same period of 2021.
- Company-operated shop revenues increased 67.1% to $130.2 million as compared to $77.9 million in the same period of 2021.
- System same shop sales1 grew 6.0% in the first quarter and 11.1% vs. 2019.
- Company-operated shop gross profit was $16.6 million as compared to $17.6 million2 in the same period of 2021.
- Company-operated shop contribution, a non-GAAP financial measure, grew 14.1% to $23.8 million as compared to $20.8 million2 in the same period of 2021.
- Net loss was $(16.3) million as compared to $(4.8) million in the same period of 2021.
- Adjusted EBITDA3, a non-GAAP financial measure, was $9.7 million as compared to $18.7 million2 in the same period of 2021.
- Adjusted net income (loss), a non-GAAP financial measure, was $(2.5) million as compared to $12.3 million in the same period of 2021.
CEO’s Quote
“The consumer demand for our beverages remains strong. Our substantial top-line revenue growth of 54% was primarily driven by the 107 company-operated shops opened over the past twelve months, a 56% increase, including 34 during the first quarter, and same shop sales of 6.0%. As a people-led growth story, we are particularly encouraged by our staffing levels and the performance of our newest shops, spread across many markets, including some that generated record initial sales. Our ability to increase revenues while successfully developing new shops reinforces our commitment to offering exceptional drive-thru experiences and confidence in our long-term strategy and growth targets.”
Joth Ricci, Chief Executive Officer and President of Dutch Bros Inc.
Company Profile
Dutch Bros is a fast-growing drive-thru operator and franchisor that focuses on serving high QUALITY, hand-crafted beverages with unparalleled SPEED and superior SERVICE.
