HighGravityData

Dutch Bros — Feb 12, 2025 release

Fiscal 2024 fourth-quarter results · 8-K Item 2.02 · Exhibit 99.1 · 0001866581-25-000035
Open on SEC.gov ↗
Showing in the filing
Total system shop openings
“at least 160”
Period
FY2025
Measure
Company-defined measure
Source
Guidance table
All guidance in this release · 6
Total revenues for FY2025
“between $1.555 billion and $1.575 billion”
Total system shop openings for FY2025
“at least 160”
Capital expenditures for FY2025
“between $240 million to $260 million”
Same shop sales growth for FY2025
“in the range of 2% to 4%”
Adjusted EBITDA for FY2025
“between $265 million and $275 million”
Adjusted SG&A leverage year-over-year for FY2025
“approximately 80 basis points”
Exhibit 99.1 · full document
Exhibit 99.1 Dutch Bros Inc. Reports Fourth Quarter and Fiscal Year 2024 Financial Results Achieves 35% Year-Over-Year Revenue Growth in the Fourth Quarter Delivers 6.9% system and 9.5% company-operated Same Shop Sales Growth in the Fourth Quarter Provides Initial 2025 Guidance GRANTS PASS, Ore. - February 12, 2025 - Dutch Bros Inc. (NYSE: BROS; “Dutch Bros” or the “Company”), one of the fastest-growing brands in the quick service beverage industry in the United States by location count, today reported financial results for the fourth quarter and year ended December 31, 2024. Christine Barone, Chief Executive Officer and President of Dutch Bros, stated, “We delivered exceptional performance in the fourth quarter as we ended 2024 on a high note. In the quarter, we drove an impressive 35% revenue growth and system same shop sales growth of 6.9%. We believe our brand is resonating with customers, as we delivered 2.3% system same shop transaction growth, the largest year-over-year increase in over two years.” Barone continued, “Our efforts to develop our foundational transaction drivers - innovation, paid media, and our Dutch Rewards loyalty program - are working. We believe these efforts are contributing to current momentum and that there is considerable runway for further growth. Additionally, we see a clear path forward with multi-year transaction driving initiatives that layer on top of this foundation with opportunity to unlock throughput and ramp mobile order in 2025. In 2026 and beyond, we are excited about opportunities with expanding our food offerings.” Fourth Quarter 2024 Highlights • Opened 32 new shops, 25 of which were company-operated, across 11 states. • Total revenues grew 34.9% to $342.8 million as compared to $254.1 million in the same period of 2023. • System same shop sales 1 and transactions increased 6.9% and 2.3%, respectively, relative to the same period in 2023. Company-operated same shop sales 1 and transactions increased 9.5% and 5.2%, respectively, relative to the same period of 2023. • Company-operated shop revenues increased 38.2% to $314.2 million, as compared to $227.4 million in the same period of 2023. • Company-operated shop gross profit was $67.3 million as compared to $42.3 million in the same period of 2023. In the fourth quarter of 2024, company-operated shop gross margin, which includes 110 bps of pre-opening costs, was 21.4%, a year-over-year increase of 280 bps. • Company-operated shop contribution 2 , a non-GAAP financial measure, grew 50.8% to $90.9 million as compared to $60.2 million in the same period of 2023. In the fourth quarter of 2024, company-operated shop contribution margin, which includes 110 bps of pre-opening costs, was 28.9%, a year-over-year increase of 240 bps. Dutch Bros Inc. | Earnings Release | 1 • Selling, general, and administrative expenses were $72.2 million (21.1% of revenue) as compared to $56.9 million (22.4% of revenue) in the same period of 2023. • Adjusted selling, general, and administrative expenses 2 , a non-GAAP financial measure, were $64.4 million (18.8% of revenue) as compared to $43.8 million (17.2% of revenue) in the same period of 2023. • Net income was $6.4 million as compared to a net loss of $3.8 million in the same period of 2023. • Adjusted EBITDA 2 , a non-GAAP financial measure, grew 41.2% to $48.8 million as compared to $34.6 million in the same period of 2023. • Adjusted net income 2 , a non-GAAP financial measure, was $12.5 million as compared to $7.4 million in the same period of 2023. • Net income (loss) per share of Class A and Class D common stock - diluted was $0.03 as compared to $(0.02) per share in the same period of 2023. • Adjusted net income per fully exchanged share of diluted common stock 2 , a non-GAAP financial measure, was $0.07 as compared to $0.04 in the same period of 2023. Full Year 2024 Highlights: • Opened 151 new shops, 128 of which were company-operated, across 18 states. • Total revenues grew 32.6% to $1.28 billion as compared to $965.8 million in 2023. • System same shop sales 1 increased 5.3% and transactions decreased 0.1% compared to 2023. Company-operated same shop sales and transactions increased 6.8% and 1.5%, respectively, compared to 2023. • Company-operated shop revenues increased 35.9% to $1.17 billion, as compared to $857.9 million in 2023. • Company-operated shop gross profit was $260.0 million as compared to $180.2 million in 2023. In 2024, company-operated shop gross margin, which includes 130 bps of pre-opening costs, improved to 22.3%, a year-over-year increase of 130 bps. • Company-operated shop contribution 2 , a non-GAAP financial measure, grew 43.1% to $346.8 million as compared to $242.3 million in 2023. In 2024, company-operated shop contribution margin, which includes 130 bps of pre-opening costs, improved to 29.7%, a year-over-year increase of 150 bps. • Selling, general, and administrative expenses were $234.0 million (18.3% of revenue) as compared to $205.1 million (21.2% of revenue) in 2023. • Adjusted selling, general, and administrative expenses 2 , a non-GAAP financial measure, were $202.7 million (15.8% of revenue) as compared to $159.1 million 4 (16.5% of revenue) in 2023. • Net income was $66.5 million as compared to $10.0 million in 2023. • Adjusted EBITDA 2 , a non-GAAP financial measure, increased 43.9% to $230.3 million as compared to $160.1 million in 2023. • Adjusted net income 2 , a non-GAAP financial measure, was $87.8 million as compared to $50.2 million in 2023. • Net income per share of Class A and Class D common stock - diluted was $0.34 as compared to $0.03 in 2023. • Adjusted net income per fully exchanged share of common stock 2 , a non-GAAP financial measure, was $0.49 as compared to $0.30 in 2023. Dutch Bros Inc. | Earnings Release | 2 Initial 2025 Guidance • Total revenues are estimated to be between $1.555 billion and $1.575 billion. • Total system shop openings in 2025 are estimated to be at least 160. Capital expenditures are estimated to be between $240 million to $260 million. • Same shop sales 1 growth for 2025 is estimated to be in the range of 2% to 4%. • Adjusted EBITDA 3 is estimated to be between $265 million and $275 million, which assumes the impact of elevated coffee costs, partially offset by approximately 80 basis points of Adjusted SG&A leverage year-over-year. _________________ 1     Same shop sales is defined in the section “Select Financial Metrics”. 2     Reconciliation of U.S. GAAP to non-GAAP results is provided in the section “Non-GAAP Financial Measures”. 3     We have not reconciled guidance for Adjusted EBITDA or Adjusted SG&A to the corresponding U.S. GAAP financial measure because we do not provide guidance for the various reconciling items. We are unable to provide guidance for these reconciling items because we cannot determine their probable significance, as certain items are outside of our control and cannot be reasonably predicted due to the fact that these items could vary significantly from period to period. Accordingly, reconciliation to the corresponding U.S. GAAP financial measure is not available without unreasonable effort. Conference Call and Webcast Today Christine Barone, Chief Executive Officer and President, and Josh Guenser, Chief Financial Officer, will host a conference call and webcast today at 5:00 p.m. Eastern Time (ET) to discuss financial results for the fourth quarter and year ended December 31, 2024. Event : Fourth Quarter 2024 Conference Call and Webcast Date : Wednesday, February 12, 2025 Time : 5:00 p.m. ET Dial In : 1-201-493-6779 Webcast : https://investors.dutchbros.com under “Events & Presentations”. The webcast will be archived shortly after the conference call has concluded. We will also publish earnings presentation slides related to these financial results on our website https://investors.dutchbros.com under “Events & Presentations”. Dutch Bros Inc. | Earnings Release | 3 About Dutch Bros Inc. Dutch Bros Inc. (NYSE: BROS) is a high growth operator and franchisor of drive-thru shops that focus on serving high QUALITY, hand-crafted beverages with unparalleled SPEED and superior SERVICE. Founded in 1992 by brothers Dane and Travis Boersma, Dutch Bros began with a double-head espresso machine and a pushcart in Grants Pass, Oregon. While espresso-based beverages are still at the core of what we do, Dutch Bros now offers a wide variety of unique, customizable cold and hot beverages that delight a broad array of customers. We believe Dutch Bros is more than just the products we serve—we are dedicated to making a massive difference in the lives of our employees, customers and communities. This combination of hand-crafted and high-quality beverages, our unique drive-thru experience and our community-driven, people-first culture has allowed us to successfully open new shops and continue to share the “Dutch Luv” at 982 locations across 18 states as of December 31, 2024. To learn more about Dutch Bros, visit www.dutchbros.com, follow Dutch Bros Coffee on Instagram, Facebook, X, and TikTok, and download the Dutch Bros app to earn points and score rewards! Dutch Bros , our Windmill logo ( ), Dutch Bros Rebel, and our other registered and common law trade names, trademarks and service marks are the property of Dutch Bros Inc. All other trademarks, trade names and service marks appearing in this Earnings Release are the property of their respective owners. Solely for convenience, the trademarks and trade names in this Earnings Release may be referred to without the ® and ™ symbols, but such references should not be construed as any indicator that their respective owners will not assert their rights thereto. Forward-Looking Statements In addition to historical information, this release contains a number of “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, the success of Dutch Bros’ mobile order capabilities and expansion of such capabilities, continued transaction volume growth from the Dutch Rewards loyalty program, Dutch Bros’ ability to successfully expand its food offerings, estimated capital expenditures, Dutch Bros’ possible or assumed future results of operations, including guidance for 2025, new shop openings, business strategies, and potential growth opportunities. These statements are based on Dutch Bros’ current expectations and beliefs, as well as a number of assumptions concerning future events. When used in this press release, the words “estimates,” “project,” “expects,” “should,” “guidance,” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Dutch Bros’ control that could cause actual results to differ materially from the results discussed in the forward-looking statements, including those related to increased customer use of Dutch Bros’ mobile order capabilities and the Dutch Rewards loyalty program, general economic conditions, commodity inflation, increased labor costs, disruptions in our supply chain, ability to hire and retain employees, the availability of suitable new shop sites and our ability to negotiate acceptable agreements regarding the new shop sites, and other risks, including those described under the heading “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 filed with the SEC on November 7, 2024, and in our future reports to be filed with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2024. Forward-looking statements contained in this press release are made as of this date, and Dutch Bros undertakes no duty to update such information except as required under applicable law. Dutch Bros Inc. | Earnings Release | 4 DUTCH BROS INC. Condensed Consolidated Statements of Operations Three Months Ended December 31, Year Ended December 31, (in thousands, except per share amounts; unaudited) 2024 2023 2024 2023 Revenues Company-operated shops $ 314,182  $ 227,351  $ 1,165,830  $ 857,939  Franchising and other 28,604  26,772  115,185  107,837  Total revenues 342,786  254,123  1,281,015  965,776  Costs and Expenses Cost of sales 254,838  194,998  940,886  714,480  Selling, general and administrative 72,170  56,946  234,036  205,074  Total costs and expenses 327,008  251,944  1,174,922  919,554  Income from operations 15,778  2,179  106,093  46,222  Other expense Interest expense, net (6,761) (6,052) (27,020) (32,321) Other income (expense), net (1,545) 812  5,812  3,018  Total other expense (8,306) (5,240) (21,208) (29,303) Income (loss) before income taxes 7,472  (3,061) 84,885  16,919  Income tax expense 1,105  708  18,435  6,967  Net income (loss) $ 6,367  $ (3,769) $ 66,450  $ 9,952  Less: Net income (loss) attributable to non-controlling interests 2,755  (2,367) 31,192  8,234  Net income (loss) attributable to Dutch Bros Inc. $ 3,612   $ (1,402) $ 35,258   $ 1,718   Net income (loss) per share of Class A and Class D common stock: Basic $ 0.03  $ (0.02) $ 0.34  $ 0.03  Diluted $ 0.03  $ (0.02) $ 0.34  $ 0.03  Weighted-average shares of Class A and Class D common stock outstanding: Basic 114,668  75,356  103,504  62,074  Diluted 115,248  75,356  104,129  62,074  Dutch Bros Inc. | Earnings Release | 5 DUTCH BROS INC. Segment Financials   Three Months Ended December 31, Year Ended December 31, (in thousands; unaudited) 2024 2023 2024 2023 Revenues Company-operated shops $ 314,182  $ 227,351  $ 1,165,830  $ 857,939  Franchising and other 28,604  26,772  115,185  107,837  Total revenues 342,786  254,123  1,281,015  965,776  Cost of sales Company-operated shops Beverage, food & packaging 79,829  60,431  296,752  230,133  Labor costs 84,998  61,700  315,805  230,505  Occupancy & other costs 54,906  41,568  191,372  140,895  Pre-opening costs 3,581  3,404  15,133  14,083  Franchising and other 6,396  8,570  30,100  31,378  Segment cost of sales 1 229,710  175,673  849,162  646,994  Segment contribution Company-operated shops 90,868  60,248  346,768  242,323  Franchising and other 22,208  18,202  85,085  76,459  Total segment contribution $ 113,076   $ 78,450   $ 431,853   $ 318,782   Segment depreciation and amortization (25,128) (19,325) (91,724) (67,486) Selling, general and administrative (72,170) (56,946) (234,036) (205,074) Interest expense, net (6,761) (6,052) (27,020) (32,321) Other income (expense), net (1,545) 812  5,812  3,018  Income (loss) before income taxes $ 7,472   $ (3,061) $ 84,885   $ 16,919   __________________ 1 Segment cost of sales for this presentation excludes impact of depreciation and amortization. Dutch Bros Inc. | Earnings Release | 6 DUTCH BROS INC. Company-Operated Shop Results   Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 (in thousands; unaudited) $ % $ % $ % $ % Company-operated shops revenue 314,182  100.0  227,351  100.0  1,165,830  100.0  857,939  100.0  Beverage, food and packaging costs 79,829  25.4  60,431  26.6  296,752  25.5  230,133  26.9  Labor costs 84,998  27.1  61,700  27.1  315,805  27.1  230,505  26.9  Occupancy and other costs 54,906  17.5  41,568  18.3  191,372  16.4  140,895  16.4  Pre-opening costs 3,581  1.1  3,404  1.5  15,133  1.3  14,083  1.6  Depreciation and amortization 23,607  7.5  17,956  7.9  86,809  7.4  62,088  7.2  Company-operated shop costs and expenses 246,921  78.6  185,059  81.4  905,871  77.7  677,704  79.0  Company-operated shop gross profit 67,261  21.4  42,292  18.6  259,959  22.3  180,235  21.0  Company-operated shop contribution 1 90,868  28.9  60,248  26.5  346,768  29.7  242,323  28.2  _________________ 1     Reconciliation of GAAP to non-GAAP results is provided in the section “Non-GAAP Financial Measures”. DUTCH BROS INC. Summary Cash Flows Data Year Ended December 31, (in thousands; unaudited) 2024 2023 Net cash provided by operating activities $ 246,432  $ 139,915  Net cash used in investing activities (212,072) (227,280) Net cash provided by financing activities 125,449  200,732  Net increase in cash and cash equivalents $ 159,809  $ 113,367  Cash and cash equivalents at beginning of period 133,545  20,178  Cash and cash equivalents at end of period $ 293,354  $ 133,545  Dutch Bros Inc. | Earnings Release | 7 DUTCH BROS INC. Condensed Consolidated Balance Sheets (in thousands; unaudited) December 31, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 293,354  $ 133,545  Accounts receivable, net 10,598  9,124  Inventories, net 36,488  46,953  Prepaid expenses and other current assets 17,501  15,637  Total current assets 357,941  205,259  Property and equipment, net 683,971  542,440  Finance lease right-of-use assets, net 374,623  382,734  Operating lease right-of-use assets, net 315,256  199,673  Intangibles, net 2,947  5,415  Goodwill 21,629  21,629  Deferred income tax assets, net 742,126  402,995  Other long-term assets 2,592  3,865  Total assets $ 2,501,085  $ 1,764,010  LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 32,225  $ 29,957  Accrued compensation and benefits 49,778  31,405  Other accrued liabilities 26,516  15,770  Other current liabilities 7,067  6,423  Deferred revenue 42,868  30,349  Current portion of tax receivable agreements liability 71  —  Current portion of finance lease liabilities 13,256  9,482  Current portion of operating lease liabilities 13,979  10,239  Current portion of long-term debt 17,311  4,491  Total current liabilities 203,071  138,116  Deferred revenue, net of current portion 8,015  6,676  Finance lease liabilities, net of current portion 369,297  367,775  Operating lease liabilities, net of current portion 309,311  191,419  Long-term debt, net of current portion 219,755  93,175  Tax receivable agreements liability 627,763  290,920  Other long-term liabilities 8  8  Total liabilities 1,737,220  1,088,089  Equity: Common stock 1  2  Additional paid in capital 517,074  379,391  Accumulated other comprehensive income 628  544  Retained earnings (accumulated deficit) 19,666  (15,592) Total stockholders' equity attributable to Dutch Bros Inc. 537,369  364,345  Non-controlling interests 226,496  311,576  Total equity 763,865  675,921  Total liabilities and equity $ 2,501,085  $ 1,764,010  Dutch Bros Inc. | Earnings Release | 8 DUTCH BROS INC. Select Financial Metrics Three Months Ended December 31, Year Ended December 31, (in thousands, except number of shops data; unaudited) 2024 2023 2024 2023 Shop count, beginning of period Company-operated 645 510 542 396 Franchised 305 284 289 275   950 794 831   671 Company-operated new openings 25 32 128 146 Franchised new openings 7 5 23 13 Re-openings 1 — — — 1 Shop count, end of period Company-operated 670 542 670   542 Franchised 312 289 312   289 Total shop count 982 831 982   831 Systemwide AUV 2 N/A N/A $ 2,018 $ 1,973 Company-operated shops AUV 2 N/A N/A $ 1,933 $ 1,902 Systemwide same shop sales 3, 4 6.9  % 5.0  % 5.3  % 2.8  % Ticket 4.6  % 5.4  % 5.4  % 7.3  % Transactions 2.3  % (0.4) % (0.1) % (4.5) % Company-operated same shop sales 3 9.5  % 4.6  % 6.8  % 1.5  % Ticket 4.3  % 4.9  % 5.3  % 7.2  % Transactions 5.2  % (0.3) % 1.5  % (5.7) % Systemwide sales 4 $ 476,268 $ 375,149 $ 1,819,018 $ 1,444,433 Company-operated operating weeks 5 8,513 6,819 31,708 24,395 Franchising and other operating weeks 5 4,003 3,743 15,579 14,624 Dutch Rewards transactions as a percentage of total transactions 6 70.6  % 65.4  % 67.8  % 64.5  % Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 (in thousands; unaudited) $ % $ % $ % $ % Company-operated shop revenues 314,182 100.0  227,351 100.0  1,165,830 100.0  857,939 100.0  Company-operated shop gross profit 67,261 21.4  42,292 18.6  259,959 22.3  180,235 21.0  Company-operated shop contribution 7 90,868 28.9  60,248 26.5  346,768 29.7  242,323 28.2  Selling, general, and administrative expenses 72,170 21.1  56,946 22.4  234,036 18.3  205,074 21.2  Adjusted selling, general, and administrative expenses 7 64,399 18.8  43,790 17.2  202,720 15.8  159,101 16.5  Net income (loss) 6,367 1.9  (3,769) (1.5) 66,450 5.2  9,952 1.0  Adjusted EBITDA 7 48,822 14.2  34,575 13.6  230,283 18.0  160,062 16.6  Dutch Bros Inc. | Earnings Release | 9 ___________ 1     Re-opening of a shop that was temporarily closed in 2021. 2     AUVs are determined based on the net sales for any trailing twelve-month period for systemwide and company-operated shops that have been open a minimum of 15 months. AUVs are calculated by dividing the systemwide and company-operated shop net sales by the total number of systemwide and company-operated shops, respectively. Management uses these metrics as an indicator of shop growth and future expectations of mature locations. 3     Same shop sales represents the estimated percentage change in year-over-year sales for the comparable shop base, which we define as shops open for 15 complete months or longer as of the first day of the reporting period. Same shop sales can be impacted by changes in customer transaction counts and by changes in the per-ticket amounts. Management uses these metrics as an indicator of shop growth and future expansion strategy. The number of shops included in the systemwide and company-operated comparable bases for the respective periods are presented in the following table. Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Systemwide shop base 754  603  641  503  Company-operated shop base 473  336  370  246  4     Systemwide sales and systemwide same shop sales are operating measures that include sales at company-operated shops and sales at franchised shops during the comparable periods presented. Franchise sales represent sales at all franchise shops and are revenues to our franchisees. We do not record franchise sales as revenues; however, our royalty revenues and advertising fund contributions are calculated based on a percentage of franchise sales. As these metrics include sales reported to us by our non-consolidated franchise partners, these metrics should be considered as a supplement to, not a substitute for, our results as reported under U.S. GAAP. Management uses these metrics as indicators of our system’s overall financial health, growth and future expansion prospects. 5     Company-operated and franchise shops operating weeks are calculated based on the number operating days for the shop base and dividing by 7. Our shop base is defined as shops opened as of the end date of the periods presented. The operating weeks calculations reflect re-acquired franchises through 2022. Management uses these metrics as indicators of our system’s overall financial health, growth and future expansion prospects. 6     Dutch Rewards is our digitally-based rewards program available exclusively through the Dutch Rewards app. Management uses this metric as an indicator of customer loyalty adoption of our Dutch Rewards app and future promotional plans. 7     Reconciliation of U.S. GAAP to non-GAAP results is provided in the section “Non-GAAP Financial Measures”. Non-GAAP Financial Measures In addition to disclosing financial results in accordance with U.S. GAAP, this release contains references to the non-GAAP financial measures below. We believe these non-GAAP financial measures provide investors with useful supplemental information about our operating performance, enable comparison of financial trends and results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business and measuring our performance. Our non-GAAP financial measures reflect adjustments based on one or more of the following items, as well as the related income tax effects where applicable. Income tax effects have been calculated based on the combined total non-GAAP adjustments using our total effective tax rate. These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP, and the financial results calculated in accordance with U.S. GAAP and reconciliations from these results should be carefully evaluated. Dutch Bros Inc. | Earnings Release | 10 Company-operated shop contribution (in dollars and as a percentage of revenue) Definition and/or calculation Company-operated shop segment gross profit, before company-operated shop depreciation and amortization. Usefulness to management and investors This non-GAAP measure is used by our management in making performance decisions without the impact of non-cash depreciation and amortization charges. This is a standard metric used across our industry by investors. EBITDA, Adjusted EBITDA (in dollars and as a percentage of revenue) EBITDA — definition and/or calculation Net income (loss) before interest expense (net of interest income), income tax expense, and depreciation and amortization expense. Adjusted EBITDA — definition and/or calculation Defined as EBITDA (as defined above), excluding equity-based compensation, expenses associated with equity offerings, executive transitions, (gain) loss on the remeasurement of the liability related to the Tax Receivable Agreements (TRAs), legal proceedings, sale of Aircraft, and organization realignment and restructuring costs. Usefulness to management and investors These non-GAAP measures are supplemental operating performance measures we believe facilitate comparisons to historical performance and competitors’ operating results. We believe these non-GAAP measures presented provide investors with a supplemental view of our operating performance that facilitates analysis and comparisons of our ongoing business operations because they exclude items that may not be indicative of our ongoing operating performance. Adjusted selling, general, and administrative (in dollars and as a percentage of revenue) Definition and/or calculation Selling, general, and administrative expenses, excluding depreciation and amortization, equity-based compensation expense, expenses associated with equity offerings, executive transitions, legal proceedings, and organization realignment and restructuring costs. Usefulness to management and investors This non-GAAP measure is used as a supplemental measure of operating performance that we believe is useful to evaluate our performance period over period and relative to our competitors. We believe the non-GAAP measure presented provides investors with a supplemental view of our operating performance that facilitates analysis and comparisons of our ongoing business operations because it excludes items that may not be indicative of our ongoing operating performance. Adjusted net income Definition and/or calculation Net income (loss), excluding equity-based compensation expense, expenses associated with equity offerings, executive transitions, (gain) loss on the remeasurement of the liability related to the TRAs, legal proceedings, sale of Aircraft, organization realignment and restructuring costs, and income tax effects of items excluded from net income (loss). Usefulness to management and investors This non-GAAP measure is used as a supplemental measure of operating performance that we believe is useful to evaluate our performance period over period and relative to our competitors. We believe this measure facilitates a better comparison with other companies that have different organizational and tax structures, as well as comparisons period over period. Dutch Bros Inc. | Earnings Release | 11 Adjusted fully exchanged weighted-average shares of diluted common stock outstanding Definition and/or calculation Weighted-average shares of Class A and Class D common stock outstanding - basic with addition of dilutive impacts of restricted stock awards and units, as well as the assumed exchange of all of the Dutch Bros OpCo Class A common units not held by Dutch Bros Inc. for Dutch Bros Inc. Class A common stock. Usefulness to management and investors This non-GAAP measure is used as a supplemental measure of operating performance that we believe is useful to evaluate our performance period over period and relative to our competitors. By adding in the assumed exchange of all of the outstanding Dutch Bros OpCo Class A common units not held by Dutch Bros Inc. for Dutch Bros Inc. Class A common stock, we believe this measure facilitates a better comparison with other companies that have different organizational and tax structures, as well as comparisons period over period. Adjusted net income per fully exchanged share of diluted common stock Definition and/or calculation Net income per share of Class A and Class D common stock - diluted, excluding per share impacts of equity-based compensation expense, expenses associated with equity offerings, executives transition costs, (gain) loss on the remeasurement of the liability related to the TRAs, legal proceedings, sale of Aircraft, organization realignment and restructuring costs, income tax effects of items excluded from net income (loss), and removal of per share impacts of controlling and non-controlling interests. Usefulness to management and investors This non-GAAP measure is used as a supplemental measure of operating performance that we believe is useful to evaluate our performance period over period and relative to our competitors. By assuming the full exchange of all of the outstanding Dutch Bros OpCo Class A common units not held by Dutch Bros Inc. for Dutch Bros Inc. Class A common stock and related net income (loss) adjustments, we believe this measure facilitates a better comparison with other companies that have different organizational and tax structures, as well as comparisons period over period. Non-GAAP adjustments Below are the definitions of the non-GAAP adjustments that are used in the calculation of our non-GAAP measures, as described above. Equity-based compensation Non-cash expenses related to the grant and vesting of stock awards, including restricted stock awards and restricted stock units in Dutch Bros Inc. to certain eligible employees. Expenses associated with equity offerings Costs incurred as a result of our equity offerings, including secondary offerings by our Sponsor. These costs include, but are not limited to, legal fees, consulting fees, tax fees, and accounting fees. Executive transitions Employee severance and related benefit costs, as well as sign-on bonus(es) for several executive level transitions occurring in 2022 and 2023, and amortized through the first quarter of 2024. TRAs remeasurements (Gain) loss impacts related to adjustments of our TRAs liabilities. Legal proceedings Loss accrual related to certain legal disputes. Sale of Aircraft Gain impact related to the sale of our airplane, hangar and related equipment to our Co-Founder. Dutch Bros Inc. | Earnings Release | 12 Organization realignment and restructuring Fees and costs, including consulting, employee-related and other costs, in connection with our comprehensive initiative to develop and implement a long-term strategy involving changes to our organizational structure to support our growth. This initiative resulted in realignment activities that occurred in 2023, and restructuring activities that commenced in 2024, and are expected to continue through the first half of 2025. Given this strategic initiative's magnitude and scope, we do not expect such costs will recur in the foreseeable future, and do not consider such costs reflective of the ongoing costs necessary to operate our business. Dilutive effects of restricted stock awards and units Addition of incremental shares of restricted stock awards and units calculated under the treasury stock method, when they are dilutive for the calculation of weighted-average shares on a non-GAAP basis. Assumed exchange of weighted-average LLC interests for shares of Class A common stock Weighted-average of all outstanding Dutch Bros OpCo Class A common units not held by Dutch Bros Inc. that are assumed to be exchanged for Dutch Bros Inc. Class A common stock. Controlling and non-controlling interest adjustments Adjustments to controlling and non-controlling interests to align the numerator of the net income (loss) per share to the denominator, which assumes the full exchange of all outstanding Dutch Bros OpCo Class A common units not held by Dutch Bros Inc. for Dutch Bros Inc. Class A common stock. Supplemental Reconciliations of U.S. GAAP Actuals to Non-GAAP Actuals Following are the reconciliations of the most comparable GAAP financial measure to non-GAAP financial measure. These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP, and the reconciliations from U.S. GAAP to Non-GAAP measures should be carefully evaluated. Please refer to "Non-GAAP Financial Measures" in this release for a detailed explanation of the adjustments made to the comparable U.S. GAAP measures, the ways management uses the non-GAAP measures, and the reasons why management believes the non-GAAP measures provide useful information for investors. Three Months Ended December 31, Year Ended December 31,   2024 2023 2024 2023 (in thousands; unaudited) $ % $ % $ % $ % Company-operated shop gross profit 67,261   21.4   42,292   18.6   259,959   22.3   180,235   21.0   Depreciation and amortization 23,607  7.5  17,956  7.9  86,809  7.4  62,088  7.2  Company-operated shop contribution 90,868   28.9   60,248   26.5   346,768   29.7   242,323   28.2   Dutch Bros Inc. | Earnings Release | 13 Three Months Ended December 31, Year Ended December 31,   2024 2023 2024 2023 (in thousands; unaudited) $ % $ % $ % $ % Net income (loss) 6,367   1.9   (3,769) (1.5) 66,450   5.2   9,952   1.0   Depreciation and amortization 25,521  7.4  19,724  7.7  93,005  7.3  69,135  7.2  Interest expense, net 6,761  2.0  6,052  2.4  27,020  2.1  32,321  3.3  Income tax expense 1,105  0.3  708  0.3  18,435  1.4  6,967  0.8  EBITDA 39,754   11.6   22,715   8.9   204,910   16.0   118,375   12.3   Equity-based compensation 3,262  1.0  10,205  4.0  11,482  0.9  39,222  4.1  Expenses associated with equity offerings —  —  —  —  1,489  0.1  —  —  Executive transitions —  —  400  0.2  75  —  1,000  0.1  TRAs remeasurements 1,440  0.3  (898) (0.3) (4,247) (0.3) (2,638) (0.3) Legal proceedings —  —  —  —  —  —  1,950  0.2  Sale of Aircraft —  —  —  —  (1,302) (0.1) —  —  Organization realignment and restructuring: Consulting —  —  2,153  0.8  —  —  2,153  0.2  Employee-related costs 2,262  0.7  —  —  15,549  1.2  —  —  Other costs 2,104  0.6  —  —  2,327  0.2  —  —  Total organization realignment and restructuring 4,366  1.3  2,153  0.8  17,876  1.4  2,153  0.2  Adjusted EBITDA 48,822   14.2   34,575   13.6   230,283   18.0   160,062   16.6   Dutch Bros Inc. | Earnings Release | 14 Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 (in thousands; unaudited) $ % $ % $ % $ % Selling, general, and administrative 72,170   21.1   56,946   22.4   234,036   18.3   205,074   21.2   Depreciation and amortization (393) (0.1) (398) (0.2) (1,281) (0.2) (1,648) (0.1) Equity-based compensation (3,012) (0.9) (10,205) (4.0) (10,595) (0.8) (39,222) (4.1) Expenses associated with equity offerings —  —  —  —  (1,489) (0.1) —  —  Executive transitions —  —  (400) (0.2) (75) —  (1,000) (0.1) Legal proceedings —  —  —  —  —  —  (1,950) (0.2) Organization realignment and restructuring: Consulting —  —  (2,153) (0.8) —  —  (2,153) (0.2) Employee-related costs (2,262) (0.7) —  —  (15,549) (1.2) —  —  Other costs (2,104) (0.6) —  —  (2,327) (0.2) —  —  Total organization realignment and restructuring (4,366) (1.3) (2,153) (0.8) (17,876) (1.4) (2,153) (0.2) Adjusted selling, general, and administrative 64,399   18.8   43,790   17.2   202,720   15.8   159,101   16.5   Three Months Ended December 31, Year Ended December 31, (in thousands; unaudited) 2024 2023 2024 2023 Net income (loss) $ 6,367   $ (3,769) $ 66,450   $ 9,952   Equity-based compensation 3,262  10,205  11,482  39,222  Expenses associated with equity offerings —  —  1,489  —  Executive transitions —  400  75  1,000  TRAs remeasurements 1,440  (898) (4,247) (2,638) Legal proceedings —  —  —  1,950  Sale of Aircraft —  —  (1,302) —  Organization realignment and restructuring: Consulting —  2,153  —  2,153  Employee-related costs 2,262  —  15,549  —  Other costs 2,104  —  2,327  —  Total organization realignment and restructuring 4,366  2,153  17,876  2,153  Income tax effects (2,925) (675) (3,997) (1,456) Adjusted net income $ 12,510   $ 7,416   $ 87,826   $ 50,183   Dutch Bros Inc. | Earnings Release | 15 Three Months Ended December 31, Year Ended December 31, (in thousands, except per share amounts; unaudited) 2024 2023 2024 2023 Weighted-average shares of Class A and Class D common stock outstanding - basic 114,668   75,356   103,504   62,074   Dilutive effects of restricted stock awards and units 580  —  625  —  Weighted-average shares of Class A and Class D common stock outstanding - diluted 115,248   75,356   104,129   62,074   Dilutive effects of restricted stock awards and units —  1,154  —  826  Assumed exchange of weighted-average Dutch Bros OpCo Class A common units for shares of Dutch Bros Inc. Class A common stock 62,530  100,454  73,660  104,419  Adjusted fully exchanged weighted-average shares of common stock outstanding - diluted 177,778   176,964   177,789   167,319   Net income per share of Class A and Class D common stock - diluted $ 0.03   $ (0.02) $ 0.34   $ 0.03   Controlling and non-controlling interest adjustments 0.01  —  0.03  0.03  Equity-based compensation 0.02  0.06  0.06  0.24  Expenses associated with equity offerings —  —  0.01  —  Executive transitions —  —  —  0.01  TRAs remeasurements 0.01  (0.01) (0.02) (0.02) Legal proceedings —  —  —  0.01  Sale of Aircraft —  —  (0.01) —  Organization realignment and restructuring: Consulting —  0.01  —  0.01  Employee-related costs 0.01  —  0.09  —  Other costs 0.01  —  0.01  —  Total organization realignment and restructuring 0.02  0.01  0.10  0.01  Income tax effects (0.02) —  (0.02) (0.01) Adjusted net income per fully exchanged share of diluted common stock $ 0.07   $ 0.04   $ 0.49   $ 0.30   Dutch Bros Inc. | Earnings Release | 16 For Investor Relations inquiries: Jeff Priester ICR (332) 242-4370 investors@dutchbros.com   For Media Relations inquiries: Jessica Liddell ICR (203) 682-8208 jessica.liddell@icrinc.com Dutch Bros Inc. | Earnings Release | 17
the item shown at left
other guidance in this release
Text is the filed exhibit, verbatim.