Dutch Bros (BROS) 10-Q 8 May 24 2024 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2024	May 01, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-40798
Entity Registrant Name	DUTCH BROS INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	87-1041305
Entity Address, Address Line One	110 SW 4th Street
Entity Address, City or Town	Grants Pass,
Entity Address, State or Province	OR
Entity Address, Postal Zip Code	97526
City Area Code	541
Local Phone Number	955-4700
Title of 12(b) Security	Class A Common Stock, par value $0.00001 per share
Trading Symbol	BROS
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001866581
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false
Class A common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		88,419,220
Class B common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		58,226,680
Class C common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		23,879,467
Class D common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		6,653,303

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 262,719	$ 133,545
Accounts receivable, net	11,659	9,124
Inventories, net	45,393	46,953
Prepaid expenses and other current assets	15,308	15,637
Total current assets	335,079	205,259
Property and equipment, net	585,271	542,440
Finance lease right-of-use assets, net	380,932	382,734
Operating lease right-of-use assets, net	234,352	199,673
Intangibles, net	4,615	5,415
Goodwill	21,629	21,629
Deferred income tax assets, net	507,357	402,995
Other long-term assets	4,080	3,865
Total assets	2,073,315	1,764,010
Current liabilities:
Accounts payable	38,763	29,957
Accrued compensation and benefits	23,061	31,405
Other accrued liabilities	17,281	15,770
Other current liabilities	5,613	6,423
Deferred revenue	29,110	30,349
Current portion of finance lease liabilities	10,681	9,482
Current portion of operating lease liabilities	9,417	10,239
Current portion of long-term debt	12,618	4,491
Total current liabilities	146,544	138,116
Deferred revenue, net of current portion	6,313	6,676
Finance lease liabilities, net of current portion	368,198	367,775
Operating lease liabilities, net of current portion	226,877	191,419
Long-term debt, net of current portion	233,571	93,175
Tax receivable agreements liability	395,841	290,920
Other long-term liabilities	8	8
Total liabilities	1,377,352	1,088,089
Commitments and contingencies (Note 15)
Stockholders’ equity:
Preferred stock, $0.00000 par value per share - 20,000 shares authorized; zero shares issued and outstanding as of March 31, 2024 and December 31, 2023	0	0
Additional paid-in capital	424,721	379,391
Accumulated other comprehensive income	925	544
Accumulated deficit	(8,530)	(15,592)
Total stockholders' equity attributable to Dutch Bros Inc.	417,118	364,345
Non-controlling interests	278,845	311,576
Total equity	695,963	675,921
Total liabilities and equity	2,073,315	1,764,010
Class A common stock
Stockholders’ equity:
Common stock	1	1
Class B common stock
Stockholders’ equity:
Common stock	1	1
Class C common stock
Stockholders’ equity:
Common stock	0	0
Class D common stock
Stockholders’ equity:
Common stock	$ 0	$ 0

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Preferred stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Preferred stock, authorized (in shares)	20,000,000	20,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding ( in shares)	0	0
Class A common stock
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, authorized ( in shares)	400,000,000	400,000,000
Common stock, issued (in shares)	86,575,000	69,958,000
Common stock, outstanding (in shares)	86,575,000	69,958,000
Class B common stock
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, authorized ( in shares)	144,000,000	144,000,000
Common stock, issued (in shares)	60,071,000	60,629,000
Common stock, outstanding (in shares)	60,071,000	60,629,000
Class C common stock
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, authorized ( in shares)	105,000,000	105,000,000
Common stock, issued (in shares)	23,879,000	35,864,000
Common stock, outstanding (in shares)	23,879,000	35,864,000
Class D common stock
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, authorized ( in shares)	42,000,000	42,000,000
Common stock, issued (in shares)	6,653,000	10,669,000
Common stock, outstanding (in shares)	6,653,000	10,669,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
REVENUES
Total revenues	$ 275,099	$ 197,267
COSTS AND EXPENSES
Cost of sales	203,326	151,523
Selling, general and administrative	46,194	45,976
Total costs and expenses	249,520	197,499
INCOME (LOSS) FROM OPERATIONS	25,579	(232)
OTHER EXPENSE
Interest expense, net	(6,393)	(7,886)
Other income, net	5,801	1,307
Total other expense	(592)	(6,579)
INCOME (LOSS) BEFORE INCOME TAXES	24,987	(6,811)
Income tax expense	8,772	2,580
NET INCOME (LOSS)	16,215	(9,391)
Less: Net income (loss) attributable to non-controlling interests	9,153	(5,549)
NET INCOME (LOSS) ATTRIBUTABLE TO DUTCH BROS INC.	$ 7,062	$ (3,842)
Net income (loss) per share of Class A and Class D common stock:
Basic (in dollars per share)	$ 0.08	$ (0.07)
Diluted (in dollars per share)	$ 0.08	$ (0.07)
Weighted-average shares of Class A and Class D common stock outstanding:
Basic (in shares)	83,328	56,664
Diluted (in shares)	83,410	56,664
Company-operated shops
REVENUES
Total revenues	$ 248,085	$ 173,164
Franchising and other
REVENUES
Total revenues	$ 27,014	$ 24,103

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 16,215	$ (9,391)
Other comprehensive income (loss):
Unrealized gain (loss) on derivative securities, effective portion, net of income tax expense (benefit) of $79 and $(80), respectively	674	(824)
Comprehensive income (loss)	16,889	(10,215)
Less: comprehensive income (loss) attributable to non-controlling interests	9,446	(6,150)
Comprehensive income (loss) attributable to Dutch Bros Inc.	$ 7,443	$ (4,065)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Unrealized gain (loss) on derivative securities, effective portion, net of income tax expense (benefit)	$ 79	$ (80)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands	Total	Additional Paid-in-Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Non-Controlling Interests	Class A common stock	Class A common stock Common Stock	Class B common stock	Class B common stock Common Stock	Class C common stock	Class C common stock Common Stock	Class D common stock	Class D common stock Common Stock
Beginning balance (in shares) at Dec. 31, 2022							45,544,000		64,699,000		41,056,000		12,411,000
Beginning balance at Dec. 31, 2022	$ 251,976	$ 145,613	$ 813	$ (17,310)	$ 122,858		$ 1		$ 1		$ 0		$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(9,391)			(3,842)	(5,549)
Unrealized gain/loss on derivative securities, effective portion, net of income tax expense	(842)	(18)	(223)		(601)
Equity-based compensation expense	9,170	3,200			5,970
Issuance of Class A common stock pursuant to vesting of equity awards, net of stock withheld for tax and forfeitures (in shares)							122,000
Issuance of Class A common stock pursuant to vesting of equity awards, net of stock withheld for tax and forfeitures	(1,895)	(661)			(1,234)
Effect of exchange of Dutch Bros OpCo Class A common units	0	1,054			(1,054)
Tax impact of other equity-based compensation transactions	(315)	(315)
Ending balance (in shares) at Mar. 31, 2023							45,666,000		64,699,000		41,056,000		12,411,000
Ending balance at Mar. 31, 2023	248,703	148,873	590	(21,152)	120,390		$ 1		$ 1		$ 0		$ 0
Beginning balance (in shares) at Dec. 31, 2023						69,958,000	69,958,000	60,629,000	60,629,000	35,864,000	35,864,000	10,669,000	10,669,000
Beginning balance at Dec. 31, 2023	675,921	379,391	544	(15,592)	311,576		$ 1		$ 1		$ 0		$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	16,215			7,062	9,153
Unrealized gain/loss on derivative securities, effective portion, net of income tax expense	539	(135)	381		293
Equity-based compensation expense	1,933	991			942
Issuance of Class A common stock pursuant to vesting of equity awards, net of stock withheld for tax and forfeitures (in shares)							58,000
Issuance of Class A common stock pursuant to vesting of equity awards, net of stock withheld for tax and forfeitures	(875)	1,867			(2,742)
Issuance of Class A common stock sold pursuant to secondary offerings (in shares)							16,559,000
Effect of exchange of Dutch Bros OpCo Class A common units	0	40,377			(40,377)
Impacts of Tax Receivable Agreements	2,230	2,230
Surrender and cancellation of Class B, C & D common stock (in shares)									(558,000)		(11,985,000)		(4,016,000)
Ending balance (in shares) at Mar. 31, 2024						86,575,000	86,575,000	60,071,000	60,071,000	23,879,000	23,879,000	6,653,000	6,653,000
Ending balance at Mar. 31, 2024	$ 695,963	$ 424,721	$ 925	$ (8,530)	$ 278,845		$ 1		$ 1		$ 0		$ 0

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Stockholders’ Equity (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]
Unrealized gain on derivative securities, effective portion, income tax expense (benefit)	$ 79	$ (80)

Condensed Consolidated Statem_6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net income (loss)	$ 16,215	$ (9,391)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	21,253	14,779
Non-cash interest expense	278	182
Gain on disposal of assets	(1)	(232)
Equity-based compensation	1,933	9,170
Deferred income taxes	8,395	2,146
Remeasurement gain on TRAs	(5,687)	(1,294)
Non-cash operating lease cost	3,320	2,698
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, net	(2,535)	3,188
Inventories, net	1,560	(4,728)
Prepaid expenses and other current assets	483	(3,450)
Other long-term assets	84	(349)
Accounts payable	8,299	462
Accrued compensation and benefits	(8,344)	(3,626)
Other accrued liabilities	768	(58)
Other current liabilities	(810)	(309)
Deferred revenue	(1,602)	(3,535)
Operating lease liabilities	(2,416)	(2,576)
Net cash provided by operating activities	41,193	3,077
Cash flows from investing activities:
Purchases of property and equipment	(57,462)	(43,283)
Proceeds from disposal of fixed assets	0	240
Net cash used in investing activities	(57,462)	(43,043)
Cash flows from financing activities:
Proceeds from line of credit	0	40,000
Payments on finance lease liabilities	(2,094)	(3,369)
Proceeds from long-term debt	150,000	0
Payments on long-term debt	(1,590)	(651)
Tax withholding payments upon vesting of equity awards	(873)	(1,896)
Net cash provided by financing activities	145,443	34,084
Net increase (decrease) in cash and cash equivalents	129,174	(5,882)
Cash and cash equivalents, beginning of period	133,545	20,178
Cash and cash equivalents, ending of period	262,719	14,296
Supplemental disclosure of cash flow information
Cash paid for interest	8,413	7,829
Income taxes paid	0	1,030
Supplemental disclosure of noncash investing and financing activities
Additions of property and equipment accrued as of end of period	$ 15,131	$ 13,434

Organization and Background

Organization and Background	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Background	NOTE 1 — Organization and Background Business Dutch Bros is in the business of operating and franchising drive-thru coffee shops as well as the wholesale and distribution of coffee, coffee-related products, and accessories. As of March 31, 2024, there were 876 shops in operation in 17 U.S. states, of which 582 were company-operated and 294 were franchised. Organization Dutch Bros Inc. was formed on June 4, 2021 as a Delaware corporation for the purpose of facilitating an IPO and other related transactions in order to carry on the business of Dutch Bros OpCo. Dutch Bros Inc. is the sole managing member of Dutch Bros OpCo and operates and controls all of the business and affairs of Dutch Bros OpCo. As a result, Dutch Bros Inc. consolidates the financial results of Dutch Bros OpCo and reports a non-controlling interest representing the economic interest in Dutch Bros OpCo held by the other members of Dutch Bros OpCo. The Company’s fiscal year end is December 31. As of March 31, 2024, Dutch Bros Inc. held 100.0% of the voting interest and 52.6% of the economic interest of Dutch Bros OpCo. The Continuing Members held none of the voting interest and the remaining 47.4% of the economic interest of Dutch Bros OpCo.

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	NOTE 2 — Basis of Presentation and Summary of Significant Accounting Policies Financial Statements Presentation The Company’s condensed consolidated financial statements as of March 31, 2024 and for the three months ended March 31, 2024 and 2023 have been prepared in accordance with GAAP and pursuant to the rules and regulations of the SEC, consistent in all material respects with those applied in the Company’s 2023 Form 10-K and as updated by this Form 10-Q. The Company has made estimates and judgments affecting the amounts reported in its condensed consolidated financial statements and the accompanying notes. Although management bases its estimates on historical experience and assumptions that are believed to be reasonable under the circumstances, actual results could differ from those estimates. This report should be read in conjunction with the consolidated financial statements in the Company’s 2023 Form 10-K that includes additional information on accounting estimates, policies, and the methods and assumptions used in its estimates. Significant Accounting Policies Updates There have been no material updates to the Company’s significant accounting policies during the three months ended March 31, 2024 from those previously reported in the Company’s 2023 Form 10-K. Recently Issued Accounting Standards In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this Update enhance the transparency and decision usefulness of income tax disclosures, primarily through improvements to the rate reconciliation and income taxes paid information, specifically requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation, and (2) income taxes paid disaggregation by jurisdiction. These amendments allow investors to better assess how an entity's operations and related tax risks and tax planning and operational opportunities affects its income tax rate and prospects for future cash flows. These amendments are effective for public business entities' annual periods beginning after December 15, 2024, and should be applied on a prospective basis. Early adoption is permitted for annual financial statements that have not yet been issued. The Company is currently assessing the potential impacts of this standard on its income tax disclosures, and expects to provide additional detail and disclosures under the new guidance. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Revenue Recognition	NOTE 3 — Revenue Recognition Revenue The following table disaggregates revenue by major component: Three Months Ended March 31, (in thousands) 2024 2023 Company-operated shops $ 248,085 $ 173,164 Franchising 25,771 22,645 Other 1,243 1,458 Total revenues $ 275,099 $ 197,267 Deferred Revenue Deferred revenue activity related to the Company’s gift card and loyalty programs was as follows: Three Months Ended March 31, (in thousands) 2024 2023 Beginning balance $ 34,616 $ 26,904 Revenue deferred - gift card activations, loyalty app loads, and loyalty points and rewards earned 89,394 78,711 Revenue recognized - gift card, loyalty app, loyalty rewards redemptions, and breakage (91,057) (79,729) Ending balance 32,953 25,886 Less: current portion (28,696) (21,754) Deferred revenue, net of current portion, gift card and loyalty programs $ 4,257 $ 4,132 Deferred revenue may also include sales to distributors where the performance obligation has not been satisfied and control has not been transferred to the customer as of the reporting date, as well as initial unearned franchise fees from franchise partners. These deferred revenues reported in the Company’s condensed consolidated balance sheets were as follows: (in thousands) March 31, 2024 December 31, 2023 Initial unearned franchise fees from franchise partners $ 2,470 $ 2,409 Total deferred revenue, excluding gift card and loyalty programs 2,470 2,409 Less: current portion (414) (412) Deferred revenue, net of current portion, excluding gift card and loyalty programs $ 2,056 $ 1,997 Revenue recognized during the three months ended March 31, 2024 and 2023 that was included in the respective deferred revenue liability balances at the beginning of the period are shown below. Three Months Ended March 31, (in thousands) 2024 2023 Gift card redemptions 1 $ 4,017 $ 3,235 Earned franchise fees 113 114 _____________________ 1 Amounts exclude cash loads and transactions related to the Company’s loyalty rewards program. Future recognition of initial unearned franchise fees as of March 31, 2024 is as follows: (in thousands) Remainder of 2024 $ 316 2025 376 2026 334 2027 289 2028 240 Thereafter 915 Total $ 2,470

Organization Realignment and Re

Organization Realignment and Restructuring	3 Months Ended
	Mar. 31, 2024
Restructuring and Related Activities [Abstract]
Organization Realignment and Restructuring	NOTE 4 — Organization Realignment and Restructuring On January 29, 2024, the Company’s Board of Directors approved an organizational realignment and restructuring plan to expand the Company’s support operations at its Phoenix, Arizona office. As part of this large-scale initiative, the Company will relocate certain of its support center staff from the Grants Pass, Oregon headquarters to the Phoenix office, and anticipates that by January 1, 2025, approximately 40% of the Company’s total support operations staff will be located in Phoenix, Arizona. All affected employees were either offered an opportunity to continue employment in the Phoenix office or were offered a severance package; these communications were largely completed by February 9, 2024. The Company expects to incur total aggregate charges of approximately $24 million to $31 million related to this initiative, consisting of (i) approximately $19 million to $26 million in employee-related costs, including relocation, retention and transition costs, termination benefits, and duplicate transition wages and benefits; and (ii) approximately $5 million in other charges, including consulting fees and costs. Substantially all of the estimated charges are expected to result in current and future cash expenditures. The Company records severance related to this initiative as a one-time termination benefit and recognizes the expense ratably over the employees’ required future service period. For any lease terminations that may occur, the Company would write-off the right-of-use assets and lease liabilities, including any applicable penalties, as of the date the parties to the lease agree to its termination. For any lease abandonments, the Company would reassess the right-of-use assets’ useful lives as of the date the Company decides to abandon the lease and would recognize accelerated amortization over the period from the decision date to the date the Company expects to cease use of the asset. Any lease liabilities related to abandoned leases would continue to be amortized over the original lease term until and unless the terms of the lease are modified. All other costs, including other employee transition costs, recruitment and relocation costs, and third-party costs, are recognized in the period incurred. During the three months ended March 31, 2024, the Company recorded restructuring charges for employee-related costs of $2.6 million in selling, general and administrative expense on the condensed consolidated statement of operations related to one-time termination benefits and relocation costs as follows: (in thousands) Three Months Ended March 31, 2024 Relocation and travel costs $ 2,429 One-time termination benefits 196 Total restructuring costs incurred $ 2,625 As of March 31, 2024, the accruals for our corporate restructuring costs are included in accounts payable, accrued compensation and benefits, and accrued expenses on the condensed consolidated balance sheet and totaled approximately $2.1 million. The following table summarizes the activity included in our restructuring liability for the three months ended March 31, 2024: (in thousands) Liability, December 31, 2023 Charges Cash Payments Liability, March 31, 2024 Relocation and travel costs $ — $ 2,429 $ (522) $ 1,907 One-time termination benefits — 196 — 196 Totals $ — $ 2,625 $ (522) $ 2,103

Inventories

Inventories	3 Months Ended
	Mar. 31, 2024
Inventory Disclosure [Abstract]
Inventories	NOTE 5 — Inventories Inventories, net consist of the following: (in thousands) March 31, 2024 December 31, 2023 Raw materials $ 25,185 $ 28,523 Finished goods 20,208 18,430 Total inventories $ 45,393 $ 46,953

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2024
Property, Plant and Equipment [Abstract]
Property and Equipment	NOTE 6 — Property and Equipment Property and equipment, net consists of the following: (in thousands) Useful Life (Years) March 31, 2024 December 31, 2023 Software 3 $ 7,175 $ 7,212 Equipment and fixtures 3 — 7 173,890 157,352 Leasehold improvements 5 — 15 45,800 42,441 Buildings 10 — 20 321,809 269,186 Land N/A 7,781 7,338 Aircraft 1 N/A 9,195 9,195 Construction-in-progress 2 N/A 149,988 166,054 Property and equipment, gross 715,638 658,778 Less: accumulated depreciation (130,367) (116,338) Property and equipment, net $ 585,271 $ 542,440 _______________ 1 Aircraft is depreciated under the consumption method. 2 Construction-in-progress primarily consists of construction and equipment costs for new and existing shops, as well as our new roasting facility in Texas. Depreciation expense included in the Company’s condensed consolidated statements of operations was as follows: Three Months Ended March 31, (in thousands) 2024 2023 Cost of sales $ 13,918 $ 9,110 Selling, general and administrative expenses 248 412 Total depreciation expense $ 14,166 $ 9,522

Intangible Assets

Intangible Assets	3 Months Ended
	Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	NOTE 7 — Intangible Assets The details of the intangible assets are as follows: (in thousands) Weighted-average amortization period (in years) March 31, 2024 December 31, 2023 Reacquired franchise rights 3.09 $ 27,049 $ 27,049 Less: accumulated amortization (22,434) (21,634) Intangibles, net $ 4,615 $ 5,415 Amortization expense included in the Company’s condensed consolidated statements of operations was as follows: Three Months Ended March 31, (in thousands) 2024 2023 Cost of sales $ 800 $ 911

Leases

Leases	3 Months Ended
	Mar. 31, 2024
Leases [Abstract]
Leases	NOTE 8 — Leases The components of lease cost were as follows for the periods presented: Three Months Ended March 31, (in thousands) Statement of Operations Classification 2024 2023 Finance lease cost Amortization of right-of-use assets Cost of sales $ 6,287 $ 4,346 Interest on lease liabilities Interest expense 5,452 3,455 Total finance lease cost 11,739 7,801 Operating lease cost Cost of sales 5,991 4,512 Variable lease cost Cost of sales 1,559 1,378 Total lease cost $ 19,289 $ 13,691 Supplemental cash flow information related to leases as of March 31, 2024 is as follows for the periods presented: Three Months Ended March 31, (in thousands) 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 5,452 $ 3,455 Operating cash flows from operating leases 5,087 4,390 Financing cash flows from finance leases 2,094 3,369 Right-of-use assets obtained in exchange for lease obligations: Finance leases 3,715 42,036 Operating leases 37,815 7,912
Leases	NOTE 8 — Leases The components of lease cost were as follows for the periods presented: Three Months Ended March 31, (in thousands) Statement of Operations Classification 2024 2023 Finance lease cost Amortization of right-of-use assets Cost of sales $ 6,287 $ 4,346 Interest on lease liabilities Interest expense 5,452 3,455 Total finance lease cost 11,739 7,801 Operating lease cost Cost of sales 5,991 4,512 Variable lease cost Cost of sales 1,559 1,378 Total lease cost $ 19,289 $ 13,691 Supplemental cash flow information related to leases as of March 31, 2024 is as follows for the periods presented: Three Months Ended March 31, (in thousands) 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 5,452 $ 3,455 Operating cash flows from operating leases 5,087 4,390 Financing cash flows from finance leases 2,094 3,369 Right-of-use assets obtained in exchange for lease obligations: Finance leases 3,715 42,036 Operating leases 37,815 7,912

Debt

Debt	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Debt	NOTE 9 — Debt Credit Facility On August 4, 2023, the Company amended its senior secured credit facility, dated February 28, 2022, with JPMorgan Chase Bank, N.A. (as amended, the 2022 Credit Facility) to increase borrowing capacity by $150 million to a total of $650 million. The 2022 Credit Facility consists of a $350 million revolving credit facility, a term loan facility of up to $100 million, and a delayed draw term loan facility of up to $200 million. The 2022 Credit Facility also includes sublimits for letters of credit and swingline loans of up to $50 million and $15 million, respectively. The 2022 Credit Facility expires on February 28, 2027 (the Maturity Date). On February 20, 2024, the Company drew $150 million on its delayed draw term loan facility before this portion expired on February 28, 2024. The remaining $50 million of the delayed draw term loan is available until February 2025. Interest on borrowings under the 2022 Credit Facility is based on (a) the Alternate Base Rate plus an applicable margin, or (b) the Adjusted Term SOFR plus an applicable margin, and is payable in accordance with the selected interest rate period (at least quarterly) and upon maturity. Principal payments for the term loans are required on a quarterly basis in accordance with an amortization schedule up through and including the Maturity Date. The Company is required to pay a commitment fee on a quarterly basis, at a per annum rate of between 0.20% and 0.45% (depending on the Company’s maximum net lease-adjusted total leverage ratio) based on the (i) average daily unused portion of the revolving credit facility, and (ii) the daily undrawn amount of the delayed draw term loan facility. These fees are recorded as interest expense on the Company’s condensed consolidated statements of operations. The 2022 Credit Facility contains financial covenants that require the Company to not exceed a maximum net lease-adjusted total leverage ratio and maintain a minimum fixed charge coverage ratio. The 2022 Credit Facility also contains certain negative covenants that, among other things, limit the Company’s ability to incur additional debt, grant liens on assets, merge with or acquire other companies, make other investments, dispose of assets, and make restricted payments. Obligations under the 2022 Credit Facility are guaranteed by Dutch Bros OpCo and certain of its subsidiaries, and secured by a first priority perfected security interest in substantially all of the assets of the guarantors. As of March 31, 2024, no amounts were outstanding on the Company’s revolving credit facility, and $349.2 million was available for borrowing, net of a $0.8 million letter of credit, and approximately $244.1 million of principal was outstanding on the term loan facilities. The term loans bear interest at approximately 6.93% as of March 31, 2024, excluding the impact from the Company’s interest rate swap. The Company was in compliance with its financial covenants as of that date. Long-Term Debt The Company’s long-term debt consisted of the following for the periods presented: (in thousands) March 31, 2024 December 31, 2023 Term loans under credit facility $ 244,063 $ 95,625 Finance obligation 1 3,022 3,022 Unsecured note payable 387 415 Total debt 247,472 99,062 Less: loan origination fees (1,283) (1,396) Less: current portion (12,618) (4,491) Total long-term debt, net of current portion $ 233,571 $ 93,175 _______________ 1 Represents failed sale-leaseback arrangements. Future annual maturities of long-term debt as of March 31, 2024 are as follows: (in thousands) Remainder of 2024 $ 9,463 2025 17,311 2026 32,943 2027 184,733 2028 — Thereafter 3,022 Total $ 247,472

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Mar. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	NOTE 10 — Derivative Financial Instruments The Company has a receive-variable (Receive Leg), pay-fixed (Pay Leg) interest rate swap with JPMorgan Chase Bank, N.A. The interest rate swap has a notional amount of $70 million and hedges interest rate risk on the term loan under the 2022 Credit Facility. The interest rate swap matures on February 28, 2027 and has a fixed rate of 2.67% per annum for the Pay Leg. The variable rate on the Receive Leg of the interest rate swap is the one-month adjusted term SOFR plus an applicable margin. As of March 31, 2024, the one-month adjusted term SOFR was 5.33%. The Company typically designates all interest rate swaps as cash flow hedges, and accordingly, records the change in fair value for the effective portion of the interest rate swap in AOCI rather than in current period earnings until the underlying hedged transaction affects earnings. As of March 31, 2024, the Company expects to reclassify a gain of approximately $1.5 million from AOCI to earnings within the next twelve months. Designated as a Level 2 instrument within the fair value hierarchy, the fair value and effect of the derivative instrument included in the Company’s consolidated financial statements was as follows: (in thousands) Balance Sheet Classification March 31, December 31, Derivative instrument designated as cash flow hedge: Interest rate swap contract Prepaid expenses and other current assets $ 1,525 $ 1,371 Other long-term assets 1,300 837 Total derivative instrument designated as cash flow hedge $ 2,825 $ 2,208 Three Months Ended March 31, (in thousands) Financial Statements Classification 2024 2023 Derivative instrument designated as cash flow hedge: Income (loss) recognized in other comprehensive income (loss) before reclassifications Statement of Comprehensive Income (Loss) $ 1,222 $ (571) Reclassification from accumulated other comprehensive income (loss) to earnings for the effective portion Statement of Operations - Interest expense, net (469) (333) Income tax benefit (expense) Statement of Operations - Income tax expense (79) 80

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 11 — Income Taxes Three Months Ended March 31, (in thousands) 2024 2023 Income tax expense $ 8,772 $ 2,580 Effective tax rate 35.1 % (37.9) %

Equity-Based Compensation

Equity-Based Compensation	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Equity-Based Compensation	NOTE 12 — Equity-Based Compensation Restricted Stock Awards Activity for the Company’s RSAs was as follows: (in thousands, except per share amounts) Restricted Stock Awards Weighted-average grant date fair value per share Balance, December 31, 2023 1,283 $ 23.00 Vested (1,245) 23.00 Balance, March 31, 2024 38 $ 23.00 Restricted Stock Units Activity for the Company’s RSUs was as follows: (in thousands, except per share amounts) Restricted Stock Units Weighted-average grant date fair value per share Balance, December 31, 2023 648 $ 35.99 New grants 693 29.67 Vested (87) 31.06 Forfeitures (64) 32.85 Balance, March 31, 2024 1,190 $ 31.77 Total release date fair value of vested restricted stock awards and units for the three months ended March 31, 2024 and 2023 are presented below. (in thousands, except per share amounts) Three Months Ended March 31, 2024 Weighted-average vest date fair value per share Three Months Ended March 31, 2023 Weighted-average vest date fair value per share Restricted stock awards $ 38,665 $ 31.06 $ 34,293 $ 27.15 Restricted stock units 2,664 30.49 5,441 27.22 Equity-Based Compensation Equity-based compensation expense is recognized on a straight-line basis and is included in the Company’s condensed consolidated statements of operations as follows: Three Months Ended March 31, (in thousands) 2024 2023 Cost of sales $ 94 $ — Selling, general, and administrative expenses 1,839 9,170 Total stock-based compensation expense $ 1,933 $ 9,170 As of March 31, 2024, total unrecognized stock-based compensation related to unvested stock awards was $30.0 million, which will be recognized as follows: (in thousands) Remainder of 2024 $ 9,970 2025 11,302 2026 7,626 2027 1,117 Total unrecognized stock-based compensation $ 30,015

Non-Controlling Interests

Non-Controlling Interests	3 Months Ended
	Mar. 31, 2024
Noncontrolling Interest [Abstract]
Non-Controlling Interests	NOTE 13 — Non-Controlling Interests Dutch Bros Inc. is the sole managing member of Dutch Bros OpCo, and, as a result, consolidates the financial results of Dutch Bros OpCo. The Company reports a non-controlling interest representing the economic interest in the Dutch Bros OpCo held by the other members of Dutch Bros OpCo. The Third Amended and Restated Limited Liability Company Agreement of Dutch Bros OpCo provides that holders of Dutch Bros OpCo Class A common units may, from time to time, require Dutch Bros OpCo to redeem all or a portion of its Dutch Bros OpCo Class A common units for newly-issued shares of Class A common stock on a one-for-one basis. In connection with any redemption or exchange, Dutch Bros Inc. will receive a corresponding number of Dutch Bros OpCo Class A common units, increasing Dutch Bros Inc.’s total ownership in Dutch Bros OpCo. Changes in Dutch Bros Inc.’s ownership in Dutch Bros OpCo, while Dutch Bros Inc. retains its controlling interest in Dutch Bros OpCo, will be accounted for as equity transactions. As such, future redemptions or direct exchanges of Dutch Bros OpCo Class A common units by the other members of Dutch Bros OpCo will result in a change in ownership and reduce the amount recorded as non-controlling interest and increase additional paid-in-capital. The following table summarizes the ownership interest in Dutch Bros OpCo: March 31, 2024 (in thousands) OpCo Units Ownership % Dutch Bros OpCo Class A common units held by Dutch Bros Inc. 1 93,228 52.6 % Dutch Bros OpCo Class A common units held by non-controlling interest holders 83,951 47.4 % Total Dutch Bros OpCo Class A common units outstanding 177,179 100.0 % _________________ 1 Includes approximately 0.04 million Dutch Bros OpCo Class A common units related to unvested restricted stock awards held by former Profits Interest Units holders. These Dutch Bros OpCo Class A common units are excluded from non-controlling interest calculations. The following table summarizes the effect of changes in ownership of Dutch Bros OpCo on the Company’s equity for the periods presented: (in thousands) Three Months Ended March 31, 2024 2023 Net income (loss) attributable to Dutch Bros Inc. $ 7,062 $ (3,842) Other comprehensive income: Unrealized gain (loss) on derivative securities, effective portion, net of income tax impacts 381 (223) Transfers from (to) non-controlling interests: Increase in additional paid-in capital as a result of equity-based compensation 991 3,200 Decrease in additional paid-in capital as a result of common stock issuances pursuant to vesting of equity awards, net of stock withheld for tax 1,867 (661) Increase in additional paid-in capital as a result of the acquisition of Dutch Bros OpCo Class A common units 40,377 1,054 Total effect of changes in ownership interest on equity attributable to Dutch Bros Inc. $ 50,678 $ (472) The weighted-average ownership percentage for the applicable reporting period is used to attribute net income (loss) to Dutch Bros Inc. and the non-controlling interest holders. The non-controlling interest holders’ weighted-average ownership percentage were as follows for the periods presented: Three Months Ended March 31, 2024 2023 Weighted-average ownership percentage 53.0 % 65.1 %

Income (Loss) Per Share

Income (Loss) Per Share	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
Income (Loss) Per Share	NOTE 14 — Income (Loss) Per Share The following tables set forth the numerators and denominators used to compute basic and diluted net income (loss) per share of Class A and Class D common stock for the periods presented. Three Months Ended March 31, (in thousands) 2024 2023 Numerator: Net income (loss) $ 16,215 $ (9,391) Less: Net income (loss) attributable to non-controlling interests 9,153 (5,549) Net income (loss) attributable to Dutch Bros Inc. $ 7,062 $ (3,842) Three Months Ended March 31, (in thousands, except per share amounts) 2024 2023 Basic net income (loss) per share attributable to common stockholders Numerator: Net income (loss) attributable to Dutch Bros Inc. $ 7,062 $ (3,842) Denominator: Weighted-average number of shares of Class A and Class D common stock outstanding - basic 83,328 56,664 Basic net income (loss) per share attributable to common stockholders $ 0.08 $ (0.07) Three Months Ended March 31, (in thousands, except per share amounts) 2024 2023 Diluted net income (loss) per share attributable to common stockholders Numerator: Undistributed net income (loss) for basic computation $ 7,062 $ (3,842) Increase in net income attributable to common stockholders upon conversion of potentially dilutive instruments 4 — Allocation of undistributed net income (loss) $ 7,066 $ (3,842) Denominator: Number of shares used in basic computation 83,328 56,664 Add: weighted-average effect of dilutive securities Restricted stock awards 44 — Restricted stock units 38 — Weighted-average number of shares of Class A and Class D common stock outstanding used to calculate diluted net loss per share 83,410 56,664 Diluted net income (loss) per share attributable to common stockholders $ 0.08 $ (0.07) The following Class A common stock equivalents were excluded from diluted net income (loss) per share in the periods presented because they were anti-dilutive: Three Months Ended March 31, (in thousands) 2024 2023 Restricted stock awards — 1,396 Restricted stock units 146 615 Total anti-dilutive securities 146 2,011

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 15 — Commitments and Contingencies Purchase Obligations The Company enters into fixed-price and price-to-be fixed green coffee purchase commitments. For both fixed-price and price-to-be fixed purchase commitments, the Company expects to take delivery of green coffee and to utilize the coffee in a reasonable period of time in the ordinary course of business. Such contracts are used in the normal purchases of green coffee and not for speculative purposes. The Company does not enter into futures contracts or other derivative instruments related to its green coffee purchase commitments. Guarantees The Company periodically provides guarantees to franchise partners for lease payments. Annually, the Company determines if a liability needs to be recorded related to these guarantees. As of March 31, 2024 and December 31, 2023, the Company had guaranteed approximately $1.4 million and $1.4 million, respectively, in franchise partners’ lease payments and has not established a liability for these guarantees as any liability arising from the guarantees is not material to the condensed consolidated financial statements. Legal Proceedings The Company is a party to routine legal actions arising in the ordinary course of and incidental to its business. These claims, legal proceedings, and litigation principally arise from alleged casualty, employment, and other disputes. In determining loss contingencies, the Company considers the likelihood of loss as well as the ability to reasonably estimate the amount of such loss or liability. An estimated loss is recognized when it is considered probable that a liability has been incurred and when the amount of loss can be reasonably estimated. Because litigation is inherently unpredictable, assessing contingencies is highly subjective and requires judgments about future events. When evaluating litigation contingencies, we may be unable to provide a meaningful estimate due to a number of factors, including the procedural status of the matter in question, developments in legislation or regulations that affect the validity of certain claims and defenses, the availability of appellate remedies, insurance coverage related to the claim or claims in question, the presence of complex or novel legal theories, and/or the ongoing discovery and development of information important to the matter. Any claim, proceeding or litigation has an element of uncertainty, and an unfavorable outcome may have a material adverse effect on the Company’s financial condition, results of operations, or cash flows. Litigation Related to Securities Claims On March 1, 2023, plaintiff Jerry Peacock filed a putative class action lawsuit in U.S. District Court for the Southern District of New York against Dutch Bros Inc. and certain of its executive officers for alleged violations of U.S. federal securities laws. On August 3, 2023, the court appointed a lead plaintiff and re-captioned the case Douglas Rein, Individually and On Behalf of All Others Similarly Situated v. Dutch Bros, Inc. et al . On August 31, 2023 an amended complaint was filed (the Amended Complaint) which asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the Exchange Act), on behalf of a proposed class consisting of those who acquired Dutch Bros Inc.’s securities between November 10, 2021 and May 11, 2022. The Amended Complaint generally alleges that the defendants made false or misleading statements about the impact of commodity inflation on the Company’s financial results for the first quarter of 2022. The Amended Complaint primarily seeks compensatory damages for all affected members of the purported class. The parties await a ruling on the defendants’ motion to dismiss the Amended Complaint, briefing on which was completed on November 9, 2023. In addition, on June 14, 2023, June 30, 2023, and July 18, 2023, respectively, plaintiffs Brennan Hudson, Darren Wakefield, and Amanda Boster each filed a putative stockholder derivative lawsuit in U.S. District Court for the Southern District of New York. The complaints name Dutch Bros Inc. as a nominal defendant and purport to bring claims on behalf of Dutch Bros Inc. against certain of Dutch Bros Inc.’s directors and executive officers for alleged breaches of their fiduciary duties in relation to substantially the same factual allegations as the above-described putative class action lawsuit. The complaints each primarily seek to recover for Dutch Bros Inc. compensatory damages for losses allegedly sustained by Dutch Bros Inc. related to the facts alleged, restitution, and equitable relief in the form of revisions to Dutch Bros Inc.’s governing documents. On July 27, 2023, the three actions were consolidated, and the consolidated action is now captioned In re Dutch Bros Inc. Derivative Litigation . On September 14, 2023, the court entered an order staying the consolidated action pending the resolution of the motion to dismiss in the above-described putative class action lawsuit and entry of a scheduling order in the consolidated action. On November 3, 2023, plaintiff David Briggs filed a putative stockholder derivative lawsuit in the Delaware Court of Chancery. The complaint names Dutch Bros Inc. as a nominal defendant and purports to bring claims on behalf of Dutch Bros Inc. against certain of Dutch Bros Inc.’s directors and executive officers for alleged breaches of their fiduciary duties in relation to substantially the same factual allegations as the above-described putative class action lawsuit. The complaint primarily seeks to recover for Dutch Bros Inc. compensatory damages for losses allegedly sustained by Dutch Bros Inc. related to the facts alleged, restitution, and equitable relief in the form of revisions to Dutch Bros Inc.’s governing documents. On January 24, 2024, the court entered an order staying this action pending the resolution of the motion to dismiss in the above-described putative class action lawsuit. The Company intends to vigorously defend these lawsuits. Given the nature of these cases, including that the proceedings are in their early stages, the Company is unable to predict the ultimate outcome of these cases or estimate the range of potential loss, if any. Liabilities Under Tax Receivable Agreements Under the TRAs, Dutch Bros Inc. is contractually committed to pay the non-controlling interest holders 85% of the amount of any tax benefits that Dutch Bros Inc. actually realizes, or in some cases is deemed to realize, as a result of certain transactions. As of March 31, 2024, Dutch Bros Inc. recognized $395.8 million of liabilities related to its obligations under the TRAs.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2024
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 16 — Related Party Transactions On January 22, 2024, the Company purchased a parcel of real property, on which one of the Company’s shops operates, by exercising its purchase option under an existing lease between the Company and the Co-Founder’s father, as trustee of a family trust. The total paid by the Company was approximately $0.6 million.

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
Segment Reporting	NOTE 17 — Segment Reporting Segment information is prepared on the same basis that the Company’s CEO, who is the chief operating decision maker (the CODM), manages the segments, evaluates financial results and makes key operating decisions. The Company’s CEO evaluates the financial performance of the Company based on two operating segments: Company-operated shops and Franchising and other. The Company-operated shops segment includes coffee shop sales to customers. The Franchising and other segment includes bean and product sales to franchise partners and includes the initial franchise fees, royalties, and marketing fees. The CODM reviews segment performance and allocates resources based upon segment contribution, which is defined as segment gross profit before depreciation and amortization. All segment revenue is earned in the United States, and there are no intersegment revenues. The CODM does not evaluate operating segments using discrete asset information, and we do not identify or allocate assets by operating segments. Selling, general and administrative expenses primarily consist of the Company’s unallocated corporate expenses. Unallocated corporate expenses include corporate administrative functions that support the segments but are not directly attributable to or managed by any segment and are not included in the reported financial results of the segments. No changes have been made to the Company’s segments during the three months ended March 31, 2024. In addition, no customer represented 10% or more of total revenue for the three months ended March 31, 2024 and 2023. Financial information for the Company’s reportable segments was as follows for the periods presented: Three Months Ended March 31, (in thousands) 2024 2023 Revenues: Company-operated shops $ 248,085 $ 173,164 Franchising and other 27,014 24,103 Total revenues 275,099 197,267 Cost of sales: Company-operated shops 193,780 144,292 Franchising and other 9,546 7,231 Total cost of sales 203,326 151,523 Segment contribution: Company-operated shops 73,999 41,873 Franchising and other 18,763 18,233 Total segment contribution $ 92,762 $ 60,106 Depreciation and amortization: Company-operated shops 19,694 13,001 Franchising and other 1,295 1,361 Total depreciation and amortization 20,989 14,362 Selling, general and administrative (46,194) (45,976) Interest expense, net (6,393) (7,886) Other income, net 5,801 1,307 Income (loss) before income taxes $ 24,987 $ (6,811)

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Undistributed net income (loss) for basic computation	$ 7,062	$ (3,842)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Financial Statements Presentation	Financial Statements Presentation The Company’s condensed consolidated financial statements as of March 31, 2024 and for the three months ended March 31, 2024 and 2023 have been prepared in accordance with GAAP and pursuant to the rules and regulations of the SEC, consistent in all material respects with those applied in the Company’s 2023 Form 10-K and as updated by this Form 10-Q.
Use of Estimates	The Company has made estimates and judgments affecting the amounts reported in its condensed consolidated financial statements and the accompanying notes. Although management bases its estimates on historical experience and assumptions that are believed to be reasonable under the circumstances, actual results could differ from those estimates. This report should be read in conjunction with the consolidated financial statements in the Company’s 2023 Form 10-K that includes additional information on accounting estimates, policies, and the methods and assumptions used in its estimates.
Recently Issued Accounting Standards	Recently Issued Accounting Standards In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this Update enhance the transparency and decision usefulness of income tax disclosures, primarily through improvements to the rate reconciliation and income taxes paid information, specifically requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation, and (2) income taxes paid disaggregation by jurisdiction. These amendments allow investors to better assess how an entity's operations and related tax risks and tax planning and operational opportunities affects its income tax rate and prospects for future cash flows. These amendments are effective for public business entities' annual periods beginning after December 15, 2024, and should be applied on a prospective basis. Early adoption is permitted for annual financial statements that have not yet been issued. The Company is currently assessing the potential impacts of this standard on its income tax disclosures, and expects to provide additional detail and disclosures under the new guidance. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregates Revenue by Major Component	The following table disaggregates revenue by major component: Three Months Ended March 31, (in thousands) 2024 2023 Company-operated shops $ 248,085 $ 173,164 Franchising 25,771 22,645 Other 1,243 1,458 Total revenues $ 275,099 $ 197,267
Schedule of Deferred Revenue Activity	Deferred Revenue Deferred revenue activity related to the Company’s gift card and loyalty programs was as follows: Three Months Ended March 31, (in thousands) 2024 2023 Beginning balance $ 34,616 $ 26,904 Revenue deferred - gift card activations, loyalty app loads, and loyalty points and rewards earned 89,394 78,711 Revenue recognized - gift card, loyalty app, loyalty rewards redemptions, and breakage (91,057) (79,729) Ending balance 32,953 25,886 Less: current portion (28,696) (21,754) Deferred revenue, net of current portion, gift card and loyalty programs $ 4,257 $ 4,132 (in thousands) March 31, 2024 December 31, 2023 Initial unearned franchise fees from franchise partners $ 2,470 $ 2,409 Total deferred revenue, excluding gift card and loyalty programs 2,470 2,409 Less: current portion (414) (412) Deferred revenue, net of current portion, excluding gift card and loyalty programs $ 2,056 $ 1,997 Revenue recognized during the three months ended March 31, 2024 and 2023 that was included in the respective deferred revenue liability balances at the beginning of the period are shown below. Three Months Ended March 31, (in thousands) 2024 2023 Gift card redemptions 1 $ 4,017 $ 3,235 Earned franchise fees 113 114 _____________________ 1 Amounts exclude cash loads and transactions related to the Company’s loyalty rewards program.
Schedule of Unearned Franchise Fees	Future recognition of initial unearned franchise fees as of March 31, 2024 is as follows: (in thousands) Remainder of 2024 $ 316 2025 376 2026 334 2027 289 2028 240 Thereafter 915 Total $ 2,470

Organization Realignment and _2

Organization Realignment and Restructuring (Tables)	3 Months Ended
	Mar. 31, 2024
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Related Charges	During the three months ended March 31, 2024, the Company recorded restructuring charges for employee-related costs of $2.6 million in selling, general and administrative expense on the condensed consolidated statement of operations related to one-time termination benefits and relocation costs as follows: (in thousands) Three Months Ended March 31, 2024 Relocation and travel costs $ 2,429 One-time termination benefits 196 Total restructuring costs incurred $ 2,625
Schedule of Restructuring Liability	The following table summarizes the activity included in our restructuring liability for the three months ended March 31, 2024: (in thousands) Liability, December 31, 2023 Charges Cash Payments Liability, March 31, 2024 Relocation and travel costs $ — $ 2,429 $ (522) $ 1,907 One-time termination benefits — 196 — 196 Totals $ — $ 2,625 $ (522) $ 2,103

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2024
Inventory Disclosure [Abstract]
Schedule of Inventories, Net	Inventories, net consist of the following: (in thousands) March 31, 2024 December 31, 2023 Raw materials $ 25,185 $ 28,523 Finished goods 20,208 18,430 Total inventories $ 45,393 $ 46,953

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2024
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment, Net	Property and equipment, net consists of the following: (in thousands) Useful Life (Years) March 31, 2024 December 31, 2023 Software 3 $ 7,175 $ 7,212 Equipment and fixtures 3 — 7 173,890 157,352 Leasehold improvements 5 — 15 45,800 42,441 Buildings 10 — 20 321,809 269,186 Land N/A 7,781 7,338 Aircraft 1 N/A 9,195 9,195 Construction-in-progress 2 N/A 149,988 166,054 Property and equipment, gross 715,638 658,778 Less: accumulated depreciation (130,367) (116,338) Property and equipment, net $ 585,271 $ 542,440 _______________ 1 Aircraft is depreciated under the consumption method. 2 Construction-in-progress primarily consists of construction and equipment costs for new and existing shops, as well as our new roasting facility in Texas. Depreciation expense included in the Company’s condensed consolidated statements of operations was as follows: Three Months Ended March 31, (in thousands) 2024 2023 Cost of sales $ 13,918 $ 9,110 Selling, general and administrative expenses 248 412 Total depreciation expense $ 14,166 $ 9,522

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	The details of the intangible assets are as follows: (in thousands) Weighted-average amortization period (in years) March 31, 2024 December 31, 2023 Reacquired franchise rights 3.09 $ 27,049 $ 27,049 Less: accumulated amortization (22,434) (21,634) Intangibles, net $ 4,615 $ 5,415
Schedule of Intangible Assets Amortization Expense / Estimated Future Amortization Expense	Amortization expense included in the Company’s condensed consolidated statements of operations was as follows: Three Months Ended March 31, (in thousands) 2024 2023 Cost of sales $ 800 $ 911

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2024
Leases [Abstract]
Schedule of Components of Lease Cost	The components of lease cost were as follows for the periods presented: Three Months Ended March 31, (in thousands) Statement of Operations Classification 2024 2023 Finance lease cost Amortization of right-of-use assets Cost of sales $ 6,287 $ 4,346 Interest on lease liabilities Interest expense 5,452 3,455 Total finance lease cost 11,739 7,801 Operating lease cost Cost of sales 5,991 4,512 Variable lease cost Cost of sales 1,559 1,378 Total lease cost $ 19,289 $ 13,691
Schedule of Supplemental Cash Flow Information Regarding Leases	Supplemental cash flow information related to leases as of March 31, 2024 is as follows for the periods presented: Three Months Ended March 31, (in thousands) 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 5,452 $ 3,455 Operating cash flows from operating leases 5,087 4,390 Financing cash flows from finance leases 2,094 3,369 Right-of-use assets obtained in exchange for lease obligations: Finance leases 3,715 42,036 Operating leases 37,815 7,912

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Schedule of Debt Instruments	The Company’s long-term debt consisted of the following for the periods presented: (in thousands) March 31, 2024 December 31, 2023 Term loans under credit facility $ 244,063 $ 95,625 Finance obligation 1 3,022 3,022 Unsecured note payable 387 415 Total debt 247,472 99,062 Less: loan origination fees (1,283) (1,396) Less: current portion (12,618) (4,491) Total long-term debt, net of current portion $ 233,571 $ 93,175 _______________ 1
Schedule of Maturities of Long-Term Debt	Future annual maturities of long-term debt as of March 31, 2024 are as follows: (in thousands) Remainder of 2024 $ 9,463 2025 17,311 2026 32,943 2027 184,733 2028 — Thereafter 3,022 Total $ 247,472

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Fair Value Derivative Instruments Included in Condensed Consolidated Balance Sheets	Designated as a Level 2 instrument within the fair value hierarchy, the fair value and effect of the derivative instrument included in the Company’s consolidated financial statements was as follows: (in thousands) Balance Sheet Classification March 31, December 31, Derivative instrument designated as cash flow hedge: Interest rate swap contract Prepaid expenses and other current assets $ 1,525 $ 1,371 Other long-term assets 1,300 837 Total derivative instrument designated as cash flow hedge $ 2,825 $ 2,208
Schedule of Derivatives Instruments Effect on Condensed Consolidated Statement of Operations	Three Months Ended March 31, (in thousands) Financial Statements Classification 2024 2023 Derivative instrument designated as cash flow hedge: Income (loss) recognized in other comprehensive income (loss) before reclassifications Statement of Comprehensive Income (Loss) $ 1,222 $ (571) Reclassification from accumulated other comprehensive income (loss) to earnings for the effective portion Statement of Operations - Interest expense, net (469) (333) Income tax benefit (expense) Statement of Operations - Income tax expense (79) 80

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Schedule of Income Tax Expense (Benefit)	Three Months Ended March 31, (in thousands) 2024 2023 Income tax expense $ 8,772 $ 2,580 Effective tax rate 35.1 % (37.9) %

Equity-Based Compensation (Tabl

Equity-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Activity of Company's Restricted Stock	Activity for the Company’s RSAs was as follows: (in thousands, except per share amounts) Restricted Stock Awards Weighted-average grant date fair value per share Balance, December 31, 2023 1,283 $ 23.00 Vested (1,245) 23.00 Balance, March 31, 2024 38 $ 23.00
Schedule of Activity of Company's Restricted Stock Units	Activity for the Company’s RSUs was as follows: (in thousands, except per share amounts) Restricted Stock Units Weighted-average grant date fair value per share Balance, December 31, 2023 648 $ 35.99 New grants 693 29.67 Vested (87) 31.06 Forfeitures (64) 32.85 Balance, March 31, 2024 1,190 $ 31.77 Total release date fair value of vested restricted stock awards and units for the three months ended March 31, 2024 and 2023 are presented below. (in thousands, except per share amounts) Three Months Ended March 31, 2024 Weighted-average vest date fair value per share Three Months Ended March 31, 2023 Weighted-average vest date fair value per share Restricted stock awards $ 38,665 $ 31.06 $ 34,293 $ 27.15 Restricted stock units 2,664 30.49 5,441 27.22
Schedule of Equity-Based Compensation	Equity-based compensation expense is recognized on a straight-line basis and is included in the Company’s condensed consolidated statements of operations as follows: Three Months Ended March 31, (in thousands) 2024 2023 Cost of sales $ 94 $ — Selling, general, and administrative expenses 1,839 9,170 Total stock-based compensation expense $ 1,933 $ 9,170
Schedule of Total Unrecognized Stock Based Compensation Related to Unvested Stock Awards	As of March 31, 2024, total unrecognized stock-based compensation related to unvested stock awards was $30.0 million, which will be recognized as follows: (in thousands) Remainder of 2024 $ 9,970 2025 11,302 2026 7,626 2027 1,117 Total unrecognized stock-based compensation $ 30,015

Non-Controlling Interests (Tabl

Non-Controlling Interests (Tables)	3 Months Ended
	Mar. 31, 2024
Noncontrolling Interest [Abstract]
Schedule of Ownership Interest	The following table summarizes the ownership interest in Dutch Bros OpCo: March 31, 2024 (in thousands) OpCo Units Ownership % Dutch Bros OpCo Class A common units held by Dutch Bros Inc. 1 93,228 52.6 % Dutch Bros OpCo Class A common units held by non-controlling interest holders 83,951 47.4 % Total Dutch Bros OpCo Class A common units outstanding 177,179 100.0 % _________________ 1 Includes approximately 0.04 million Dutch Bros OpCo Class A common units related to unvested restricted stock awards held by former Profits Interest Units holders. These Dutch Bros OpCo Class A common units are excluded from non-controlling interest calculations.
Schedule of Changes in Ownership	The following table summarizes the effect of changes in ownership of Dutch Bros OpCo on the Company’s equity for the periods presented: (in thousands) Three Months Ended March 31, 2024 2023 Net income (loss) attributable to Dutch Bros Inc. $ 7,062 $ (3,842) Other comprehensive income: Unrealized gain (loss) on derivative securities, effective portion, net of income tax impacts 381 (223) Transfers from (to) non-controlling interests: Increase in additional paid-in capital as a result of equity-based compensation 991 3,200 Decrease in additional paid-in capital as a result of common stock issuances pursuant to vesting of equity awards, net of stock withheld for tax 1,867 (661) Increase in additional paid-in capital as a result of the acquisition of Dutch Bros OpCo Class A common units 40,377 1,054 Total effect of changes in ownership interest on equity attributable to Dutch Bros Inc. $ 50,678 $ (472)
Schedule of Non-Controlling Interest Holders' Weighted-Average Ownership Percentage	The non-controlling interest holders’ weighted-average ownership percentage were as follows for the periods presented: Three Months Ended March 31, 2024 2023 Weighted-average ownership percentage 53.0 % 65.1 %

Income (Loss) Per Share (Tables

Income (Loss) Per Share (Tables)	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Net Income (Loss) Per Share	The following tables set forth the numerators and denominators used to compute basic and diluted net income (loss) per share of Class A and Class D common stock for the periods presented. Three Months Ended March 31, (in thousands) 2024 2023 Numerator: Net income (loss) $ 16,215 $ (9,391) Less: Net income (loss) attributable to non-controlling interests 9,153 (5,549) Net income (loss) attributable to Dutch Bros Inc. $ 7,062 $ (3,842) Three Months Ended March 31, (in thousands, except per share amounts) 2024 2023 Basic net income (loss) per share attributable to common stockholders Numerator: Net income (loss) attributable to Dutch Bros Inc. $ 7,062 $ (3,842) Denominator: Weighted-average number of shares of Class A and Class D common stock outstanding - basic 83,328 56,664 Basic net income (loss) per share attributable to common stockholders $ 0.08 $ (0.07) Three Months Ended March 31, (in thousands, except per share amounts) 2024 2023 Diluted net income (loss) per share attributable to common stockholders Numerator: Undistributed net income (loss) for basic computation $ 7,062 $ (3,842) Increase in net income attributable to common stockholders upon conversion of potentially dilutive instruments 4 — Allocation of undistributed net income (loss) $ 7,066 $ (3,842) Denominator: Number of shares used in basic computation 83,328 56,664 Add: weighted-average effect of dilutive securities Restricted stock awards 44 — Restricted stock units 38 — Weighted-average number of shares of Class A and Class D common stock outstanding used to calculate diluted net loss per share 83,410 56,664 Diluted net income (loss) per share attributable to common stockholders $ 0.08 $ (0.07)
Schedule of Common Stock Equivalents were Excluded from Diluted Net Income (loss) Per Share	The following Class A common stock equivalents were excluded from diluted net income (loss) per share in the periods presented because they were anti-dilutive: Three Months Ended March 31, (in thousands) 2024 2023 Restricted stock awards — 1,396 Restricted stock units 146 615 Total anti-dilutive securities 146 2,011

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
Schedule of Financial Information for Reportable Segments	Financial information for the Company’s reportable segments was as follows for the periods presented: Three Months Ended March 31, (in thousands) 2024 2023 Revenues: Company-operated shops $ 248,085 $ 173,164 Franchising and other 27,014 24,103 Total revenues 275,099 197,267 Cost of sales: Company-operated shops 193,780 144,292 Franchising and other 9,546 7,231 Total cost of sales 203,326 151,523 Segment contribution: Company-operated shops 73,999 41,873 Franchising and other 18,763 18,233 Total segment contribution $ 92,762 $ 60,106 Depreciation and amortization: Company-operated shops 19,694 13,001 Franchising and other 1,295 1,361 Total depreciation and amortization 20,989 14,362 Selling, general and administrative (46,194) (45,976) Interest expense, net (6,393) (7,886) Other income, net 5,801 1,307 Income (loss) before income taxes $ 24,987 $ (6,811)

Organization and Background (De

Organization and Background (Details)	Mar. 31, 2024 store state
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Number of stores	876
Number of states in which entity operates | state	17
Percentage of voting interest held	100%
Class A common units held by Dutch Bros Inc.
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Percentage of class A common units held by Dutch Bros.	52.60%
Continuing LLC Equity Owners
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Voting interest held by noncontrolling interest	0%
Dutch Bros OpCo Class A common units held by non-controlling interest holders
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Dutch Bros OpCo Class A common units held by non-controlling interest holders	47.40%
Company-operated shops
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Number of stores	582
Franchising
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Number of stores	294

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Disaggregates Revenue by Major Component (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Total revenues	$ 275,099	$ 197,267
Company-operated shops
Disaggregation of Revenue [Line Items]
Total revenues	248,085	173,164
Franchising
Disaggregation of Revenue [Line Items]
Total revenues	25,771	22,645
Other
Disaggregation of Revenue [Line Items]
Total revenues	$ 1,243	$ 1,458

Revenue Recognition - Schedul_2

Revenue Recognition - Schedule of Deferred Revenue Activity Related to the Company’s Gift Card and Loyalty Programs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Change In Contract With Customer, Liability [Roll Forward]
Less: current portion	$ (29,110)		$ (30,349)
Deferred revenue, net of current portion, gift card and loyalty programs	6,313		6,676
Card, reward redemptions and breakage
Change In Contract With Customer, Liability [Roll Forward]
Beginning balance	34,616	$ 26,904
Revenue deferred - gift card activations, loyalty app loads, and loyalty points and rewards earned	89,394	78,711
Revenue recognized - gift card, loyalty app, loyalty rewards redemptions, and breakage	(91,057)	(79,729)
Ending balance	32,953	25,886	$ 34,616
Less: current portion	(28,696)	(21,754)
Deferred revenue, net of current portion, gift card and loyalty programs	$ 4,257	$ 4,132

Revenue Recognition - Schedul_3

Revenue Recognition - Schedule of Deferred Revenue (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Disaggregation of Revenue [Line Items]
Less: current portion	$ (29,110)	$ (30,349)
Deferred revenue, net of current portion, gift card and loyalty programs	6,313	6,676
Franchising
Disaggregation of Revenue [Line Items]
Outstanding performance obligation	2,470	2,409
Customer advances and sales to distributors and franchise fee
Disaggregation of Revenue [Line Items]
Outstanding performance obligation	2,470	2,409
Less: current portion	(414)	(412)
Deferred revenue, net of current portion, gift card and loyalty programs	$ 2,056	$ 1,997

Revenue Recognition - Schedul_4

Revenue Recognition - Schedule of Deferred Revenue Liability (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Gift card redemptions
Disaggregation of Revenue [Line Items]
Deferred revenue recognized	$ 4,017	$ 3,235
Franchising
Disaggregation of Revenue [Line Items]
Deferred revenue recognized	$ 113	$ 114

Revenue Recognition - Schedul_5

Revenue Recognition - Schedule of Future Recognition of Unearned Franchise Fees (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unearned franchise fees, future recognition	$ 2,470
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	9 months
Unearned franchise fees, future recognition	$ 316
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Unearned franchise fees, future recognition	$ 376
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Unearned franchise fees, future recognition	$ 334
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Unearned franchise fees, future recognition	$ 289
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Unearned franchise fees, future recognition	$ 240
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period
Unearned franchise fees, future recognition	$ 915

Organization Realignment and _3

Organization Realignment and Restructuring - Narrative (Details) - Organization Realignment and Restructuring - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Jan. 29, 2024	Dec. 31, 2023
Restructuring Cost and Reserve [Line Items]
Percentage of support center staff to be relocated		40%
Restructuring charges	$ 2,625
Accrual for corporate restructuring costs	$ 2,103		$ 0
Third-Party and Other Costs
Restructuring Cost and Reserve [Line Items]
Restructuring and related cost, expected cost		$ 5,000
Minimum
Restructuring Cost and Reserve [Line Items]
Restructuring and related cost, expected cost		24,000
Minimum | Employee-Related Costs
Restructuring Cost and Reserve [Line Items]
Restructuring and related cost, expected cost		19,000
Maximum
Restructuring Cost and Reserve [Line Items]
Restructuring and related cost, expected cost		31,000
Maximum | Employee-Related Costs
Restructuring Cost and Reserve [Line Items]
Restructuring and related cost, expected cost		$ 26,000

Organization Realignment and _4

Organization Realignment and Restructuring - Schedule of Restructuring Related Charges (Details) - Organization Realignment and Restructuring $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Restructuring Cost and Reserve [Line Items]
Total restructuring costs incurred	$ 2,625
Relocation and travel costs
Restructuring Cost and Reserve [Line Items]
Total restructuring costs incurred	2,429
One-time termination benefits
Restructuring Cost and Reserve [Line Items]
Total restructuring costs incurred	$ 196

Organization Realignment and _5

Organization Realignment and Restructuring - Restructuring Liability (Details) - Organization Realignment and Restructuring $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Restructuring Reserve [Roll Forward]
Beginning balance	$ 0
Charges	2,625
Cash Payments	(522)
Ending balance	2,103
Relocation and travel costs
Restructuring Reserve [Roll Forward]
Beginning balance	0
Charges	2,429
Cash Payments	(522)
Ending balance	1,907
One-time termination benefits
Restructuring Reserve [Roll Forward]
Beginning balance	0
Charges	196
Cash Payments	0
Ending balance	$ 196

Inventories - Schedule of Inven

Inventories - Schedule of Inventories, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 25,185	$ 28,523
Finished goods	20,208	18,430
Total inventories	$ 45,393	$ 46,953

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 715,638	$ 658,778
Less: accumulated depreciation	(130,367)	(116,338)
Property and equipment, net	$ 585,271	542,440
Software
Property, Plant and Equipment [Line Items]
Useful Life (Years)	3 years
Property and equipment, gross	$ 7,175	7,212
Equipment and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 173,890	157,352
Equipment and fixtures | Minimum
Property, Plant and Equipment [Line Items]
Useful Life (Years)	3 years
Equipment and fixtures | Maximum
Property, Plant and Equipment [Line Items]
Useful Life (Years)	7 years
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 45,800	42,441
Leasehold improvements | Minimum
Property, Plant and Equipment [Line Items]
Useful Life (Years)	5 years
Leasehold improvements | Maximum
Property, Plant and Equipment [Line Items]
Useful Life (Years)	15 years
Buildings
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 321,809	269,186
Buildings | Minimum
Property, Plant and Equipment [Line Items]
Useful Life (Years)	10 years
Buildings | Maximum
Property, Plant and Equipment [Line Items]
Useful Life (Years)	20 years
Land
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 7,781	7,338
Aircraft
Property, Plant and Equipment [Line Items]
Property and equipment, gross	9,195	9,195
Construction-in-progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 149,988	$ 166,054

Property and Equipment - Sche_2

Property and Equipment - Schedule of Property and Equipment Depreciation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Property, Plant and Equipment [Line Items]
Total depreciation expense	$ 14,166	$ 9,522
Cost of sales
Property, Plant and Equipment [Line Items]
Total depreciation expense	13,918	9,110
Selling, general and administrative expenses
Property, Plant and Equipment [Line Items]
Total depreciation expense	$ 248	$ 412

Intangible Assets - Schedule of

Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Acquired Finite-Lived Intangible Assets [Line Items]
Less: accumulated amortization	$ (22,434)	$ (21,634)
Intangibles, net	$ 4,615	5,415
Franchise rights
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted-average amortization period (in years)	3 years 1 month 2 days
Reacquired franchise rights	$ 27,049	$ 27,049

Intangible Assets - Schedule _2

Intangible Assets - Schedule of Intangible Assets Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cost of sales
Finite-Lived Intangible Assets [Line Items]
Cost of sales	$ 800	$ 911

Leases - Schedule of Components

Leases - Schedule of Components of Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Finance lease cost
Amortization of right-of-use assets	$ 6,287	$ 4,346
Interest on lease liabilities	5,452	3,455
Total finance lease cost	11,739	7,801
Operating lease cost	5,991	4,512
Variable lease cost	1,559	1,378
Total lease cost	$ 19,289	$ 13,691

Leases - Schedule of Supplement

Leases - Schedule of Supplemental Cash Flow Information Regarding Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$ 5,452	$ 3,455
Operating cash flows from operating leases	5,087	4,390
Financing cash flows from finance leases	2,094	3,369
Right-of-use assets obtained in exchange for lease obligations:
Finance leases	3,715	42,036
Operating leases	$ 37,815	$ 7,912

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($) $ in Thousands			3 Months Ended
	Feb. 20, 2024	Aug. 04, 2023	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Aug. 03, 2023
Line of Credit Facility [Line Items]
Proceeds from line of credit			$ 0	$ 40,000
Total debt			247,472
The 2022 Credit Facility | Secured Debt
Line of Credit Facility [Line Items]
Increase in borrowing capacity		$ 150,000
Borrowing capacity		650,000
Total debt			244,100
Term loan under credit facility			244,063		$ 95,625
The 2022 Credit Facility | Secured Debt | Term Loan Facility
Line of Credit Facility [Line Items]
Borrowing capacity		100,000
The 2022 Credit Facility | Line of Credit | Revolving Credit Facility
Line of Credit Facility [Line Items]
Borrowing capacity		$ 350,000
Remaining borrowing capacity			349,200
Total debt			$ 0
Interest rate on term loan			6.93%
The 2022 Credit Facility | Line of Credit | Revolving Credit Facility | Minimum
Line of Credit Facility [Line Items]
Commitment fee percentage		0.20%
The 2022 Credit Facility | Line of Credit | Revolving Credit Facility | Maximum
Line of Credit Facility [Line Items]
Commitment fee percentage		0.45%
The 2022 Credit Facility | Line of Credit | Delayed Draw Term Loan Facility
Line of Credit Facility [Line Items]
Borrowing capacity		$ 200,000
Proceeds from line of credit	$ 150,000
Remaining borrowing capacity	$ 50,000
The 2022 Credit Facility | Line of Credit | Letter of Credit
Line of Credit Facility [Line Items]
Borrowing capacity						$ 50,000
Term loan under credit facility			$ 800
The 2022 Credit Facility | Line of Credit | Bridge Loan
Line of Credit Facility [Line Items]
Borrowing capacity						$ 15,000

Debt - Schedule of Debt Instrum

Debt - Schedule of Debt Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Line of Credit Facility [Line Items]
Finance obligation	$ 3,022	$ 3,022
Total debt	247,472	99,062
Less: loan origination fees	(1,283)	(1,396)
Less: current portion	(12,618)	(4,491)
Total long-term debt, net of current portion	233,571	93,175
Secured Debt | The 2022 Credit Facility
Line of Credit Facility [Line Items]
Term loans under credit facility	244,063	95,625
Unsecured Debt
Line of Credit Facility [Line Items]
Unsecured note payable	$ 387	$ 415

Debt - Schedule of Maturities o

Debt - Schedule of Maturities of Long-Term Debt (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Debt Disclosure [Abstract]
Remainder of 2024	$ 9,463
2025	17,311
2026	32,943
2027	184,733
2028	0
Thereafter	3,022
Total debt	$ 247,472

Derivative Financial Instrume_3

Derivative Financial Instruments - Narrative (Details) - Designated as Hedging Instrument - Cash Flow Hedging - Interest rate swap contract	3 Months Ended
	Mar. 31, 2024 USD ($)
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Interest rate swap outstanding	$ 70,000,000
Fixed interest rate	2.67%
Expected reclassification of gain within the next twelve months	$ 1,500,000
SOFR
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Variable interest rate	5.33%

Derivative Financial Instrume_4

Derivative Financial Instruments - Schedule of Fair Value Derivative Instruments Included in Condensed Consolidated Balance Sheets (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total derivative instrument designated as cash flow hedge	$ 2,825	$ 2,208
Interest rate swap contract
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Prepaid expenses and other current assets	1,525	1,371
Other long-term assets	$ 1,300	$ 837

Derivative Financial Instrume_5

Derivative Financial Instruments - Schedule of Derivatives Instruments Effect on Condensed Consolidated Statement of Operations (Details) - Interest rate swap contract - Designated as Hedging Instrument - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Derivative Instruments, Gain (Loss) [Line Items]
Income (loss) recognized in other comprehensive income (loss) before reclassifications	$ 1,222	$ (571)
Interest Expense
Derivative Instruments, Gain (Loss) [Line Items]
Reclassification from accumulated other comprehensive income (loss) to earnings for the effective portion	(469)	(333)
Income Tax Expense
Derivative Instruments, Gain (Loss) [Line Items]
Income tax benefit (expense)	$ (79)	$ 80

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income tax expense	$ 8,772	$ 2,580
Effective tax rate	35.10%	(37.90%)

Equity-Based Compensation - Sch

Equity-Based Compensation - Schedule of Activity of Company's Restricted Stock and Restricted Stock Units (Details) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) $ / shares shares	Mar. 31, 2023 USD ($) $ / shares
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Beginning balance (in shares) | shares	1,283
Vested (in shares) | shares	(1,245)
Ending balance (in shares) | shares	38
Weighted-average grant date fair value per share
Beginning balance (in dollars per share)	$ 23
Vested (in dollars per share)	23
Ending balance (in dollars per share)	$ 23
Fair value of vested share-based payment awards | $	$ 38,665	$ 34,293
Weighted-average vest date fair value per share (in dollars per share)	31.06	27.15
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Beginning balance (in shares) | shares	648
New grants (in shares) | shares	693
Vested (in shares) | shares	(87)
Forfeitures (in shares) | shares	(64)
Ending balance (in shares) | shares	1,190
Weighted-average grant date fair value per share
Beginning balance (in dollars per share)	$ 35.99
New grants (in dollars per share)	29.67
Vested (in dollars per share)	31.06
Forfeitures (in dollars per share)	32.85
Ending balance (in dollars per share)	$ 31.77
Fair value of vested share-based payment awards | $	$ 2,664	$ 5,441
Weighted-average vest date fair value per share (in dollars per share)	30.49	27.22

Equity-Based Compensation - S_2

Equity-Based Compensation - Schedule of Equity-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Class of Stock [Line Items]
Total stock-based compensation expense	$ 1,933	$ 9,170
Cost of sales
Class of Stock [Line Items]
Total stock-based compensation expense	94	0
Selling, general and administrative expenses
Class of Stock [Line Items]
Total stock-based compensation expense	$ 1,839	$ 9,170

Equity-Based Compensation - S_3

Equity-Based Compensation - Schedule of Total Unrecognized Stock Based Compensation Related to Unvested Stock Awards (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Share-Based Payment Arrangement [Abstract]
Remainder of 2024	$ 9,970
2025	11,302
2026	7,626
2027	1,117
Total unrecognized stock-based compensation	$ 30,015

Non-Controlling Interests - Nar

Non-Controlling Interests - Narrative (Details)	Mar. 31, 2024 shares
Class A common stock | Public Stock Offering - Shares From Continuing Members
Noncontrolling Interest [Line Items]
Number of shares issued in reorganization transaction	1

Non-Controlling Interests - Sch

Non-Controlling Interests - Schedule of Ownership Interest (Details)	Mar. 31, 2024 shares
Restricted stock awards
Noncontrolling Interest [Line Items]
Number of RSAs not vested (in shares)	40,000
Dutch Bros OpCo Class A common units held by Dutch Bros Inc.
Noncontrolling Interest [Line Items]
Common units outstanding (in units)	93,228,000
Percentage of class A common units held by Dutch Bros.	52.60%
Dutch Bros OpCo Class A common units held by non-controlling interest holders
Noncontrolling Interest [Line Items]
Common units outstanding (in units)	83,951,000
Dutch Bros OpCo Class A common units held by non-controlling interest holders	47.40%
Total Dutch Bros OpCo Class A common units outstanding
Noncontrolling Interest [Line Items]
Common units outstanding (in units)	177,179,000
Ownership %	100%

Non-Controlling Interests - S_2

Non-Controlling Interests - Schedule of Changes in Ownership (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Noncontrolling Interest [Line Items]
Net income (loss) attributable to Dutch Bros Inc.	$ 7,062	$ (3,842)
Other comprehensive income:
Unrealized gain (loss) on derivative securities, effective portion, net of income tax impacts	539	(842)
Transfers from (to) non-controlling interests:
Increase in additional paid-in capital as a result of equity-based compensation	991	3,200
Decrease in additional paid-in capital as a result of common stock issuances pursuant to vesting of equity awards, net of stock withheld for tax	1,867	(661)
Increase in additional paid-in capital as a result of the acquisition of Dutch Bros OpCo Class A common units	40,377	1,054
Total effect of changes in ownership interest on equity attributable to Dutch Bros Inc.	50,678	(472)
Accumulated Other Comprehensive Income
Other comprehensive income:
Unrealized gain (loss) on derivative securities, effective portion, net of income tax impacts	$ 381	$ (223)

Non-Controlling Interests - S_3

Non-Controlling Interests - Schedule of Non-Controlling Interest Holders' Weighted-Average Ownership percentage (Details)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Noncontrolling Interest [Abstract]
Weighted-average ownership percentage	53%	65.10%

Income (Loss) Per Share - Sched

Income (Loss) Per Share - Schedule of Reconciliation of Numerator for Loss Per Share (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Earnings Per Share [Abstract]
Net income (loss)	$ 16,215	$ (9,391)
Less: Net income (loss) attributable to non-controlling interests	9,153	(5,549)
NET INCOME (LOSS) ATTRIBUTABLE TO DUTCH BROS INC.	$ 7,062	$ (3,842)

Income (Loss) Per Share - Compu

Income (Loss) Per Share - Computation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Numerator:
Net income (loss) attributable to Dutch Bros Inc.	$ 7,062	$ (3,842)
Denominator:
Weighted-average number of shares of Class A and Class D common stock outstanding - basic (in shares)	83,328	56,664
Basic net income (loss) per share attributable to common stockholders (in dollars per share)	$ 0.08	$ (0.07)
Numerator:
Undistributed net income (loss) for basic computation	$ 7,062	$ (3,842)
Increase in net income attributable to common stockholders upon conversion of potentially dilutive instruments	4	0
Allocation of undistributed net income (loss)	$ 7,066	$ (3,842)
Denominator:
Weighted-average number of shares of Class A and Class D common stock outstanding - basic (in shares)	83,328	56,664
Weighted-average number of shares of Class A and Class D common stock outstanding (in shares)	83,410	56,664
Diluted net income (loss) per share attributable to common stockholders (in dollars per share)	$ 0.08	$ (0.07)
Restricted stock awards
Denominator:
Weighted-average effect of dilutive securities, restricted stock (in shares)	44	0
Restricted stock units
Denominator:
Weighted-average effect of dilutive securities, restricted stock (in shares)	38	0

Income (Loss) Per Share - Sch_2

Income (Loss) Per Share - Schedule of Common Stock Equivalents were Excluded from Diluted Net Income (loss) Per Share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Total anti-dilutive securities (in shares)	146	2,011
Restricted stock awards
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Total anti-dilutive securities (in shares)	0	1,396
Restricted stock units
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Total anti-dilutive securities (in shares)	146	615

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Thousands	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Jul. 27, 2023 action
Other Commitments [Line Items]
Number of actions consolidated | action			3
Tax receivable agreements liability, net of current portion	$ 395,841	$ 290,920
Property Lease Guarantee
Other Commitments [Line Items]
Guarantor obligation in franchise lease payment	$ 1,400	$ 1,400

Related Party Transactions (Det

Related Party Transactions (Details) $ in Millions	Jan. 22, 2024 USD ($)
Related Party
Related Party Transaction [Line Items]
Payments to acquire real estate	$ 0.6

Segment Reporting (Details)

Segment Reporting (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) segment	Mar. 31, 2023 USD ($)
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Number of operating segments | segment	2
Revenues	$ 275,099	$ 197,267
Cost of sales	203,326	151,523
Depreciation and amortization	21,253	14,779
Selling, general and administrative	(46,194)	(45,976)
Interest expense, net	(6,393)	(7,886)
Other income, net	5,801	1,307
Operating Segments
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues	275,099	197,267
Cost of sales	203,326	151,523
Segment contribution	92,762	60,106
Depreciation and amortization	20,989	14,362
Corporate, Non-Segment
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Selling, general and administrative	(46,194)	(45,976)
Interest expense, net	(6,393)	(7,886)
Other income, net	5,801	1,307
Income (loss) before income taxes	24,987	(6,811)
Company-operated shops
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues	248,085	173,164
Company-operated shops | Operating Segments
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues	248,085	173,164
Cost of sales	193,780	144,292
Segment contribution	73,999	41,873
Depreciation and amortization	19,694	13,001
Franchising and other
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues	27,014	24,103
Franchising and other | Operating Segments
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues	27,014	24,103
Cost of sales	9,546	7,231
Segment contribution	18,763	18,233
Depreciation and amortization	$ 1,295	$ 1,361