Travis Boersma Dutch Bros

Dutch Bros Coffee went public September 15, 2021, with co-founder and Executive Chairman Travis Boersma doing the bell-ringing honors at the New York Stock Exchange.

Wearing a T-shirt that read “Rage Against the Machine,” Dutch Bros Coffee Executive Chairman Travis Boersma rang the bell for his company’s initial public offering last week on the New York Stock Exchange, making the former dairy farmer a billionaire.

The IPO raised about $484 million and made Boersma’s 41 percent stake in BROS worth $2.3 billion, according to Bloomberg Billionaires Index.

Boersma is the company’s largest shareholder, with 71.4 million of Class A and B shares, according to the prospectus. TSG Consumer Partners, which acquired a minority stake in Dutch Bros in 2018, is the second largest shareholder, with a 31 percent stake worth nearly $1.9 billion, according to Forbes.

Shares in BROS closed at $36.92 per share on its first day of trading. That was up 61 percent from the opening price of $23. On September 21 the price hit $54.36 mid-day, up from $50.92 upon yesterday’s close.

In 2020, Dutch Bros posted $5.7 million in net income, and $69.8 million of adjusted EBITDA or gross income, and $327.4 million of revenue, its prospectus said. In the second quarter of 2021, Dutch Bros posted $114 million in revenue, up 51 percent from the same quarter last year. Net income was $2.92 million in the quarter, up 10.67 percent the year before.

Founded by Boersma and his late brother, Dane, 30 years ago, the Grants Pass, Oregon-based company sells coffee and Dutch Bros Blue Rebel energy drinks in drive-thru-only locations. As of June 30, 2021, there were 264 franchised shops and 207 company-owned units in 11 Western states. Average unit volumes in 2020 were $1.7 million, and same-store sales grew 2 percent through COVID-19.

In its S-1 filing, Dutch Bros noted the impact of the pandemic. “In keeping with our people-first culture, we also supported our employees by offering an additional $3 per hour in the form of “thank you” pay, as well as paid COVID-related leave,” it said, resulting in $8.3 million in costs directly attributable to the pandemic.

The wildfires that swept through the West Coast in September 2020 were an additional challenge, “burning communities, impacting air quality and forcing shops to reduce staff and, in some instances, close entirely until air quality improved,” it said. “Our drive-thru operating model proved resilient by providing our customers with a safe and convenient way to visit, buy a beverage and make a personal, human connection in a time of crisis,” the prospectus said.

Read Boersma's poignant letter to shareholders here.

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