What happened
Shares of Dutch Bros (BROS -3.90%) popped 22% on Thursday after the drive-thru coffee chain boosted its full-year revenue forecast.
So what
Dutch Bros' revenue soared 53% year over year to $198.6 million in the third quarter, fueled by new store openings and higher sales at existing locations.
Dutch Bros opened 38 coffee shops during the quarter and a total of 138 over the past year. The company ended September with 641 locations.
"For perspective, we opened almost as many shops this quarter as we did during the entire year of 2019 and have opened at least 30 shops in five consecutive quarters," CEO Joth Ricci said in a press release. "Dutch Bros' portability and brand acceptance remains impressive as we grow from west to east across the country."
Moreover, price hikes helped to partially offset higher commodity and labor costs. All told, Dutch Bros' adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 32.8% to $27.8 million.
Now what
This solid performance and strong ongoing sales trends prompted Dutch Bros to lift its full-year revenue outlook. Management now expects sales of at least $725 million in 2022, up from a prior forecast of at least $715 million. The company also reiterated its guidance for adjusted EBITDA of at least $90 million.
Looking further ahead, Dutch Bros expects to open at least 150 new locations in 2023, which should bring the company's total store count to over 800 shops by the end of next year.
