Dutch Bros Inc. ( NYSE: BROS ) rallied on Monday after updating guidance ahead of a presentation by the restaurant operator at the ICR Conference in Orlando, Florida.
For 2023, Dutch Bros. ( BROS ) is targeting 150 new shops, which is said to positions it to achieve a five-year goal of 800 systemwide shops by year-end. BROS also said that it is in striking distance of $1B in revenue in 2023 and 1K systemwide shops by the first half of 2025. Formal guidance for for 2023 revenue of $950M to $1.0B vs. $976M consensus.
For Q4, BROS said it opened 30 new shops, of which 26 were company-operated. System same shop sales declined 0.6%, inclusive of the impact of our fortressing strategy, which results in sales being transferred from existing shops to new ones. Company-operated same shop sales declined 2.1%, inclusive of the impact of the fortressing strategy.
CEO update: " For a third year in a row, we’ve exceeded our new shop development targets, doubling our shop count since March 2019, despite unprecedented disruption to communities and the economy. As we continue on our 30+ year growth journey, we’re entering 2023 from a position of strength, supported by a robust new unit pipeline, building market share in existing markets and growing our people systems."
As of December 31, the Dutch Bros system consisted of 671 shops (396 company-operated and 275 franchised-operated) across 14 states.
Shares of BROS rose 5.35% in premarket trading on Monday.
For further details see:
Dutch Bros rallies after strong guidance, unit growth forecast