from Exec Edge Editorial staff
Dutch Bros Inc. (NYSE: BROS ) coffee chain reported a 53% jump in sales in the third quarter, sending its shares down 5% in the aftermarket.
The Oregon-based company reported that total revenue rose to $198.6 million compared to $129.8 million in the same period in 2021. System same-store sales rose 1.7% compared to the same period in 2021 .and by 11.4% on a 3-year basis.
Jot Ritchie, CEO and President of Dutch Bros Inc., stated, “We continue to execute on our growth strategy by leveraging our strong new store opening team and our proven operating instruction and loyalty program to engage and to connect with new and existing customers. In the third quarter, we opened a record 38 stores, grew revenue by more than 50% and once again expanded our company-operated stores’ gross profits quarter-on-quarter. For perspective, we opened nearly as many stores this quarter as we did in all of 2019, and we’ve opened at least 30 stores in 5 consecutive quarters. The portability and adoption of the Dutch Bros brand remains impressive as we grow from west to east across the country. Our 2020 and 2021 new store classes are generating annualized volumes that are approximately 10% higher than our system average and are demonstrating predictable and consistent sales performance and margin growth.”
Dutch Bros opened 38 new stores, 34 of which were company-operated, in 11 states. Stores opening in the third quarter of 2022 achieved an annualized AUV of $1.9 million.