The announcement comes two years after the US coffee chain’s $557m initial public offering, with more than two-thirds of the expected $300m designated for debt repayments
Dutch Bros currently operates approximately 770 stores across 14 US states | Photo credit: Dutch Bros
Oregon-based Dutch Bros has announced a public offering of its stock to raise $300m.
In an SEC filing, the drive-thru coffee chain said it will use $203m of the funds to repay outstanding debt, with the remainder going towards ‘working capital and general corporate purposes’.
Dutch Bros currently operates approximately 770 stores across 14 US states and expects to reach 800 outlets by the end of 2023. It has a wider goal of operating 1,000 stores by the first half of 2025 before setting its sites on 4,000 locations.
While it continues to post strong revenues, with sales rising 34% year-on-year in the second quarter of 2023 to reach $250m, the coffee chain’s rapid expansion has inhibited profitability.
Dutch Bros reported consecutive net losses in 2021 and 2022 of $121.1m and $19.3m respectively. However, indicating a turnaround, the coffee chain achieved consecutive quarterly profits in the first half of 2023.
Founded in 1992, Dutch Bros’ previously raised $557m in an IPO in September 2021, $200m of which was used to repay debt.
In August 2023, the drive-thru coffee chain announced that current President Christine Barone will take over as CEO from Joth Ricci effective 1 January 2024.