Q1 2024 Dutch Bros Inc Earnings Call Transcript
Key Points
- Dutch Bros Inc reported a strong revenue increase of 39% year-over-year, reaching $275 million in Q1.
- Adjusted EBITDA saw a significant rise of 120% year-over-year, totaling $53 million.
- Same shop sales growth was robust at 10%, marking the strongest single quarter growth since Q4 2021.
- The company successfully opened 45 new shops, maintaining a consistent expansion rate for the 11th consecutive quarter.
- Dutch Bros Inc's rewards program contributed to a record 66% of all transactions, enhancing customer engagement and sales.
- Despite strong sales, the company noted potential challenges with ingredient costs, particularly sugar and cocoa prices, which could impact future profitability.
- The introduction of the California minimum wage increase on April 1 may affect labor cost leverage in upcoming quarters.
- Some product outages occurred due to high demand, particularly for the newly launched BofA, which could affect sales consistency.
- The company anticipates needing to make further investments in technology and marketing to support growth, which could impact short-term margins.
- While new shop openings are strong, the company is cautious about the pace of future deep infill and is focusing on expanding into new markets, which may take time to mature and achieve expected sales levels.
Thank you for standing by, and welcome to the Dutch Cross, Inc. First Quarter 2024 Earnings Conference Call and Webcast. This conference call and webcast are being recorded today, May seventh, 2024 at 5 P.M. Eastern time and will be available for replay shortly.
After Peter has concluded following the company's presentation, we will open up the lines for questions. Instructions to queue up will be provided at that time I would now like to turn the conference over to Kayla Barton, Petroplus, Senior Director, Investor Relations and Capital. Please go ahead.
Good afternoon and welcome. I'm joined by Christine Barone, a CEO and President; and Charlie Jemley, CFO. We issued our earnings press release for the quarter ended March 31st, 2024. After the market closed today. The earnings press release along with the supplemental information deck, have been posted to our Investor Relations website at investors dot group.com.
Please be aware that all statements in our prepared remarks and in response to your questions
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