Dutch Bros reports Q1 EPS 9c, consensus 2c

Reports Q1 revenue $275M, consensus $255.9M. Christine Barone, CEO, stated, “We are pleased with our performance in the first quarter – we delivered exceptional results and witnessed the momentum we saw leaving 2023 continue into Q1. Headlining Q1 performance was 10.0% system same shop sales growth, the strongest single quarter since Q4 2021, and 39% year-over-year growth in revenue to $275 million. These outstanding top-line metrics were underpinned by excellent margin flow through. Given this strong start to 2024, and despite a continued volatile economic backdrop for the consumer, we are comfortable raising our guidance for the year. System same shop sales growth featured a healthy combination of ticket expansion and traffic. Our traffic trajectory is particularly encouraging, and has now improved for two consecutive quarters. We believe our success is due in part to the plans we began setting in motion last year, underscored by two strong new product launches in Q1. Notably, a record 66% of all transactions in Q1 came through Dutch Rewards members, which allows us to efficiently and effectively connect with our customers. We are also seeing traction driving awareness in new markets, and are investing more to capitalize on this opportunity. Bolstered by strong system same shop sales growth, system AUVs expanded to $2.0 million, once again the highest on record. We also continued to deliver strong new shop openings, tying a record 45 new shops opened in the quarter. This marks the 11th consecutive quarter of 30 or more new shop openings and demonstrates the consistency by which we are executing our growth plans.”