Dutch Bros Financial Ratios

Dutch Bros Inc. SEC 10K Report Seth H. Aamodt ACCT 220: Principles of Accounting Dr. Hakjoon Song April 30, 2024.

Dutch Bros. was founded in 1992, beginning operations with a single double-head espresso machine and a pushcart in Grants Pass, Oregon. Despite competing in the quick service beverage industry with market giants like Starbucks, Dutch Bros. has quickly expanded through a unique approach of customer focused service, community outreach, and a focus on quality tasting beverages. Using this approach of high-quality hand-crafted beverages, and superior service, Dutch Bros has since expanded across 16 states, with 831 shops currently in operation. With their expansion yet to spread into the eastern United States, Dutch

Dutch Bros. current assets consist of cash and cash equivalents, accounts receivable, inventories, and prepaid expenses. In 2022, Dutch Bros reported $ 82,322,000 in current assets, and in 2023 reported $ 205,259,000 in current assets. This stands as a 149% increase from 2022 to 2023. Cash and cash equivalents had the greatest increase, from $ 20,178,000 in 2022 to $ 133,545,000 in 2023, a 561% increase

Their balance sheet shows healthy growth across assets and cash, indicating fiscal responsibility and stability. Despite operating in an industry dominated by entrenched companies like Starbucks, they have rapidly expanded across 16 states, with 831 operational shops, doing so while still increasing gross profit margins. Furthermore, Dutch Bros’ strategic initiatives, like their loyalty program, and planned expansion, highlight their ability to identify opportunities. Overall, Dutch Bros presents a compelling investment opportunity or acquisition target due to their continued strong financial performance, strategic vision, and potential for further expansion. Regional Dutch Bros coffee chain brews up national expansion. CoStar.com - a. n.d. - n.d. - n.d. https://www.costar.com/article/478265115/regional-dutch-brews-coffee-chain-brews-up-national-expansion Cfohubadmin. (2021, July 16). What is a good gross profit margin? CFO Hub. https://cfohub.com/what-is-a-good-gross-profit-margin/ Maze, J. (2021, November 11). Dutch bros sales improve despite “headwinds,” thanks to loyalty. Restaurant Business. https://www.restaurantbusinessonline.com/financing/dutch-bros-sales-improve-despite-headwinds-thanks-loyalty Oost, M. van. 2023, May 28. This is why Starbucks app is actually a Banking app. LinkedIn.com.