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Dutch Bros Coffee eyes $ 100 million IPO

Two months after publicly filing plans for an IPO, Dutch Bros Coffee announced in new documents on Friday that it plans to raise $ 100 million.

The number of shares to be offered and the price range for the proposed offer have not yet been determined. The brand intends to list its shares as “BROS” on the New York Stock Exchange.

In the past five and a half years, the chain has grown from 254 stores in seven states to 471 locations in eleven states as of June 30. Of these, 264 were franchise and 207 were company-owned. Since 2008, the brand has only given franchises to existing operators. In the first half of 2021, the company entered Texas and Oklahoma for the first time and achieved record sales. In October 2018, Dutch Bros announced that it had sold a minority state to private equity firm TSG Consumer Partners with the aim of reaching 800 deals in five years.

Last year was Dutch Bros’ 14th consecutive year of sales growth in the same business. Additionally, AUVs rose 3 percent year over year to approximately $ 1.7 million. In 2020, the chain had sales of $ 327.4 million. $ 5.7 million in net income and $ 69.8 million in adjusted EBITDA. For the twelve months ended June 30, Dutch Bros had sales of $ 40.5 million, net income of $ 6.3 million and adjusted EBITDA of $ 80.1 million.

Twenty-nine percent of Dutch Bros sales are made between 12 p.m. and 4 p.m., followed by 22 percent between 9 a.m. and 12 p.m., 17 percent before 9 a.m., 16 percent between 4 p.m. and 7 p.m. and 15 percent between 7 p.m. and close of business.

Dutch Bros was founded by Travis and Dane Boersma in 1992 when the brothers started selling espresso out of a handcart in Grant Pass, Oregon. The duo bought their first drive-thru location in 1994. About 30 years later, the menu features a selection of hot and cold espresso drinks, cold brew coffee products, tea, lemonade, smoothies and the proprietary Dutch Bros. Blue Rebel Energy drinks and curated items from a secret menu. The Blue Rebel Drink is the largest mix with 24 percent.

“Every visit to Dutch Bros should feel like a party,” said a company file. “Broistas really look forward to serving our customers and are interested in how they can make their day better. Runners greet customers before they reach the drive-thru window to personalize each order and explain our menu if necessary. They use tablets to take orders so broistas can sequence beverage production and manage car throughput in the drive-through lane to ensure quality, speed and service remain consistent throughout the day. Broistas serve our drinks with a smile, an encouraging word or a high five. “

BofA Securities, JP Morgan Securities LLC, Jefferies LLC, Barclays Capital Inc. and Piper Sandler & Co. are acting as lead book running managers for the proposed offering. Robert W. Baird & Co. and William Blair & Company, LLC are acting as book-running managers for the proposed offering. Cowen, Stifel, Nicolaus & Company, Incorporated, AmeriVet Securities, Inc., Penserra Securities LLC, R. Seelaus & Co., LLC and Tribal Capital Markets, LLC are acting as co-managers for the proposed offering.

Dutch Bros is one of several chains keeping an eye on the stock market this year. Krispy Kreme officially returned to the public at the beginning of July, while Portillo’s and Sweetgreen are expecting the same. Panera and Torchy’s Tacos were also linked to potential IPOs earlier this year.

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