US-based drive-through coffee chain Dutch Bros has reported total revenue of $324.9m in the second quarter (Q2) of 2024, a 30% increase from $249.9m in Q2 2023.
Revenue from company-operated shops surged to $295.3m, up from $221m while franchising and other revenue slightly rose to $29.7m from $28.9m.
The revenue growth includes a 4.1% increase in system same-shop sales and was underpinned by strong margin flow through.
Dutch Bros’ net income for Q2 2024 was $22.2m, a 128.8% surge from $9.7m in Q2 2023.
Costs and expenses also increased, with the cost of sales reaching $234.6m in Q2 2024, compared to $178.6m in the prior year’s corresponding period.
During the latest quarter, selling, general, and administrative expenses climbed to $58.1m from $51.7m in Q2 2023.
Total costs and expenses amounted to $292.7m in Q2 2024, a 27% rise from $230.3m in Q2 2023.
Dutch Bros reported a significant increase in income from operations, which stood at $32.2m in Q2 2024, up from $19.6m in Q2 2023.
Net income per share of Class A and Class D common stock - diluted was $0.12 in Q2 2024 as compared to $0.05 per share in the same period of 2023.
Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA), considered a non-generally accepted accounting practice financial measure, increased 34.1% to $65.2m in Q2 2024 as against $48.6m in Q2 2023.
The quarter saw Dutch Bros open 36 new shops, of which 30 were company-operated.
For the first half (H1) of 2024, total revenues grew to $600m, up 34% from $447.1m in H1 2023.
The revenue from company-operated shops reached $543.4m, compared to $394.1m while franchising and other revenue increased to $56.6m from $53m.
The cost of sales for H1 2024 was $437.9m, up from $330.2m, and total costs and expenses rose to $542.2m from $427.8m.
Income from operations for the first half of 2024 touched $57.8m, compared to $19.3m in the same period last year.
For H1 2024, net income increased to $38.4m from just $0.3m in H1 2023. After accounting for non-controlling interests, net income attributable to Dutch Bros was $11.9m for Q2 2024, up from $2.8m, and $19m for H1 2024, compared to a net loss of $1.1m.
Adjusted EBITDA was $117.7m in H1 2024 as against $72.5m in H1 2023.
In its revised outlook for 2024, Dutch Bros anticipates total revenues to range between $1.215bn and $1.230bn, an increase from the previous estimate of $1.20bn to $1.21bn.
Same-shop sales growth is expected to stay in the low single digits.
Adjusted EBITDA is projected to be between $200m and $210m, up from the prior forecast of $195m to $205m.
Adjusted selling, general, and administrative expenses is now estimated to be between $190m and $200m, an increase from the previous range of $183m to $189m.
Dutch Bros’ Q2 2024 net income grew 36.4% from $16.2m in Q1 2024, revenue by 18% from $275m, and adjusted EBITDA by 24% from $52.5m.
Dutch Bros’ shares closed at $37.70 yesterday (7 August), a 35% increase in the last 12 months.
