Dutch Bros Inc.: Initiation of Coverage – An Improving Digital Footprint Is Changing The Game! 

This is our first report on drive-thru shops franchisor, Dutch Bros, Inc. The company reported an impressive performance in the fourth quarter and fiscal year 2023 in their earnings call. They noted an exceptional year, and that they began 2024 with robust momentum. Their revenue and adjusted EBITDA increased by 31% and 76% respectively year-over-year. Moreover, they opened 159 new shops, out of which 146 were company-operated, and achieved their highest annual unit volumes on record. These notable results were backed by excellent flow-through, driving a substantial expansion of Dutch Bros’ margins, demonstrating the robustness of their growth narrative.