Dutch Bros Inc. 1Q24: Nice!

May 21, 2024 | Insights, Restaurant Research

Dutch Bros reported +10% y/y same-shop sales, +39% revenue & a +120% increase in adjusted operating income. System AUVs increased to a record $2MM.


  • As service is a key brand differentiator, management plans to deploy more staff to make sure that customers are engaged with great conversations at the window & in the line.
  • While Mobile order helps add capacity during its peak morning daypart, the goal is to also engage personally with these customers.

Revenue Trends

  • 1Q24 comp increase of +10% y/y reflected +1% traffic, +6% pricing & +3% discount mix. Traffic, which was positive across all dayparts, improved for a second consecutive quarter.
  • FY24 comp guidance: low-single digits reflecting a difficult 2H compare.

Promotions & Marketing

  • Product innovation strategy has evolved from a focus on secret menu drops to category innovation like the recent launch of its Protein Coffee (20+ grams of milk protein) & Boba (which resonated with its Gen-Z customer base & drove ticket growth because of associated group-buying behaviors).
  • Dutch Rewards program drove 66% of all transactions during the quarter.
  • Brand awareness is sometimes 2x higher in mature markets compared to new markets.

Margin Trends

  • Company-operated shop contribution margin increased +5.6% to 29.8% during the quarter.
  • Adjusted EBITDA increased +120% y/y reflecting a +7% y/y increase in its adjusted EBITDA margin.
  • Management noted that elevated coffee seed price could eventually become a factor, consistent with the lag time from bean to cup.


  • A record 45 new shops were opened during the quarter. A new shop operator pipeline includes 375+ candidates with an average tenure of 7+ years of experience.
  • 30% of new shops will be opened in Texas during 2024 vs. 45% in the past 2 years.

Dutch Bros 1Q24 Financials

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