The US-based coffee chain Dutch Bros has over 500 locations, according to their third-quarter financial results. In addition, the company provided a preview of its prospects for the fourth quarter and preliminary expectations for new store openings in 2022.
Unlike some other coffee businesses, this company has benefited tremendously from the global pandemic, especially in 2020 when some coffee shops were forced to temporarily close while others permanently shut down. In a survey of US consumers by World Coffee Portal, the percentage of consumers that favoured drive-thru over walking into a coffee shop grew from 48% in 2019 to 63% in 2020.
In the third quarter of this year, which ended on September 30th, the coffee chain opened 33 new coffee shops, 30 of which were owned by the company. The company’s total revenue grew 49.8% to $129.8 million year-on-year, and revenues from company-owned shops grew 62.9% to $108.7 million year-on-year.
Profits from company-owned stores make up almost half of the company’s portfolio, and the reported gross profit is $22.9 million, which is 18% higher as compared to the same period in 2020.
We are very pleased with the strength of our third quarter and year-to-date results which are exceeding the optimistic set of expectations we established going into 2021.Chief Executive Officer and President of Dutch Bros Joth Ricci
A clear set of growth-minded objectives was also announced by the company for the upcoming year. Ricci stated that it ‘includes expanding what is already a strong pipeline of homegrown regional operators and combining that with a disciplined, people-led growth strategy that creates the potential for at least 4,000 shops nationwide’.
As part of the fourth-quarter outlook, the company projected the revenues to be between $125 and$128 million, and ‘ at least’ 112 new store openings next year.