Two months after publicly filing plans for an IPO, Dutch Bros Coffee revealed in new documents Friday that it plans to raise $100 million.
The number of shares to be offered and the price range for the proposed offering have not yet been determined. The brand intends to list its stock as “BROS” on the New York Stock Exchange.
In the past five and a half years, the chain has grown from 254 stores in seven states to 471 locations in 11 states as of June 30. Of that total, 264 were franchised and 207 were company-owned. Since 2008, the brand has only awarded franchises to existing operators. In the first half of 2021, the company entered Texas and Oklahoma for the first time and achieved record-breaking sales. In October 2018, Dutch Bros announced that it sold a minority state to private equity firm TSG Consumer Partners, with the goal of reaching 800 stores in five years.
Last year marked Dutch Bros’ 14th straight year of same-store sales growth. Additionally, AUVs lifted 3 percent year-over-year to roughly $1.7 million. In 2020, the chain earned $327.4 million in revenue. $5.7 million in net income, and $69.8 million in adjusted EBITDA. In the 12 months ending June 30, Dutch Bros generated $40.5 million in revenue, $6.3 million in net income, and $80.1 million in adjusted EBITDA.
Twenty-nine percent of Dutch Bros’ sales come between noon and 4 p.m., followed by 22 percent for 9 a.m. to noon, 17 percent before 9 a.m., 16 percent between 4 p.m. and 7 p.m., and 15 percent between 7 p.m. and closing.
Dutch Bros was founded by Travis and Dane Boersma in 1992 when the brothers began selling espresso out of a pushcart in Grant Pass, Oregon. The duo purchased their first drive-thru location in 1994. Roughly 30 years later, the menu features a lineup of hot and cold espresso-based beverages, cold brew coffee products, tea, lemonade, smoothies, the proprietary Dutch Bros. Blue Rebel energy drinks, and curates items from a secret menu. The Blue Rebel drink represents the largest mix at 24 percent.
“Every visit to Dutch Bros should feel like a celebration,” the company said in a filing. “Broistas are genuinely excited to serve our customers and interested in how they can make their day better. Runners greet customers before they get to the drive-thru window to personalize every order and, when needed, explain our menu. They use tablets to take orders, allowing broistas to sequence the crafting of beverages and manage car throughput in the drive-thru lane, ensuring that quality, speed and service remain consistent throughout the day. Broistas serve our beverages with a smile, an encouraging word or a high-five.”
BofA Securities, J.P. Morgan Securities LLC, Jefferies LLC, Barclays Capital Inc., and Piper Sandler & Co. are acting as lead book-running managers for the proposed offering. Robert W. Baird & Co. and William Blair & Company, LLC are acting as book-running managers for the proposed offering. Cowen, Stifel, Nicolaus & Company, Incorporated, AmeriVet Securities, Inc., Penserra Securities LLC, R. Seelaus & Co., LLC and Tribal Capital Markets, LLC are acting as co-managers for the proposed offering.
Dutch Bros is one of several chains eyeing the stock market this year. Krispy Kreme officially reentered the public sphere at the beginning of July, while Portillo’s and Sweetgreen expect to do the same. Panera and Torchy’s Tacos were also linked to possible IPOs earlier this year.
