Categories Consumer, IPO, LATEST

IPO News: What to look for when coffee chain Dutch Bros goes public

The company is planning to offer around 21 million shares in the price range of $18 to $20 apiece

In a market that is abuzz with news about tech and healthcare IPOs, this week the spotlight is on IPO-aspirant Dutch Bros, Inc. The coffee chain’s decision to list on the New York Stock Exchange under the symbol BROS is significant because only a few companies from that industry pursued initial public offering this year.

$400 Mln IPO

Dutch Bros is looking to raise around $400 million through the offering, which is expected to value the company approximately at $3.3 billion. In an updated SEC filing, the company said it would be offering around 21 million shares in the price range of $18 to $20 apiece. If underwriters exercise the right to buy additional shares and the maximum price is applied, the offering would yield up to $485 million.


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.

ipo news

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.


IPO Alert: COVID-19 test maker Cue Health is all set to go public


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.

Looking for more insights on the earnings results? Click here to access the full transcripts of the latest earnings conference calls!

Most Popular

A look at Weber’s (WEBR) first quarterly report as a public company

Shares of outdoor grill maker Weber Inc. (NYSE: WEBR) were up 9% on Wednesday after the company released its first quarterly earnings report since going public last month. The stock

Is Crocs (NASDAQ: CROX) stock still a buy after the massive rally?

While throwing markets into disarray, the widespread shutdown also had a positive effect on industries like retail and technology, but there are surprise winners like Crocs, Inc. (NASDAQ: CROX) that

Leaf Mobile CEO Darcy Taylor: Aiming to double game portfolio by year-end

Credit: agrobacter on iStock How do you see the future of mobile gaming revenues – is it going to be primarily from advertisements, or will it be more skewed towards

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top