In This Story
Dutch Bros Inc. Class A (BROS-7.68%) has submitted its annual report on Form 10-K filing for the fiscal year ended December 31, 2024.
The filing reports a 33% increase in total revenue year-over-year, with the company opening 151 new systemwide shops, marking an 18% increase over the previous year. The company also launched mobile ordering in over 95% of its shops.
Dutch Bros reported a net income of $66.5 million for the year, with a diluted earnings per share of $0.34. The company-operated shops segment contributed significantly to this growth, with revenues reaching $1.17 billion, a 35.9% increase from the previous year.
The company-operated shop gross profit margin improved by 130 basis points, driven by increased pricing and operational efficiencies. However, labor costs as a percentage of revenue increased slightly due to wage increases.
Franchising and other segments reported a gross profit of $80.2 million, a 12.8% increase from the prior year, driven by new shop openings and increased same shop sales.
Dutch Bros continues to focus on expanding its shop base, with a target of mid-teens annual new shop growth rate. The company is also investing in its supply chain and corporate facilities, with planned capital expenditures of approximately $240 million to $260 million for 2025.
The company reported cash and cash equivalents of $293.4 million at the end of 2024, with cash flows from operations being a principal source of liquidity.
Dutch Bros highlighted several risk factors, including competition in the beverage industry, potential increases in commodity prices, and the impact of macroeconomic conditions on consumer spending.
The filing also details Dutch Bros' organizational structure, including its dual-class common stock structure, and notes that the company is a 'controlled company' under New York Stock Exchange rules.
The company continues to focus on its growth strategies, including innovation in its beverage offerings, expanding its digital loyalty program, and enhancing its marketing efforts to drive customer engagement and sales.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Dutch Bros Inc. Class A annual 10-K report dated February 13, 2025. To report an error, please email earnings@qz.com.