$400 Mln IPO
Here is all you need to know about Allbird’s public listing
The lead book-runners in the offering are Bank of America Securities, JPMorgan, and Jefferies. The management intends to use the proceeds for repurchasing shares from existing shareholders, thereby achieving financial flexibility. Also, a small portion of the proceeds will be used for charity.
In Expansion Mode
The Grants Pass-headquartered company is America’s largest drive-through coffee chain that operates in the private sector. It was founded in February 1992 by dairy-farmer brothers Travis Boersma and Dane Boersma, who is among the largest shareholders currently. Since opening the first franchise more than two decades ago, the business picked up momentum and currently serves customers in 11 states through 470 drive-thru locations.
In a move that is referred to as a ‘game-changer, the management stopped selling franchises to partners outside the Dutch Bros system in 2008, which helped in expediting growth. Statistics show that same-store sales grew consistently for about 14 years.
Mixed 2020
In fiscal 2020, revenues increased 37% annually to $327.4 million, with company-owned stores accounting for about three-fourths of that. However, a sharp increase in costs weighed on profits, which plunged 80% to $5.7 million. At the end of 2020, there were 182 company-owned shops.
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Based on an analysis that showed there is long-term potential for 4,000 Dutch Bros locations in the U.S, the company has developed a strong new-shop pipeline with 250 new sites spread across existing and new markets.