DUTCH BROS INC., 10-K filed on 2/13/2025
Annual Report
v3.25.0.1
Cover - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2024
Feb. 06, 2025
Jun. 30, 2024
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2024    
Current Fiscal Year End Date --12-31    
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 300 N Valley Dr    
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 Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
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    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction Flag false    
Entity Shell Company false    
Entity Public Float     $ 4.9
Documents Incorporated by Reference
Portions of the registrant’s definitive proxy statement relating to the 2025 Annual Meeting of Stockholders of Dutch Bros Inc., which will be filed with the Securities and Exchange Commission within 120 days of December 31, 2024, are incorporated by reference in Items 10, 11, 12, 13, and 14 of Part III of this report.
    
Entity Central Index Key 0001866581    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Amendment Flag false    
Class A common stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   116,247,434  
Class B common stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   35,226,680  
Class C common stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   2,730,334  
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Audit Information
 12 Months Ended
Dec. 31, 2024
Auditor Information [Abstract]  
Auditor Name KPMG LLP
Auditor Location Portland, Oregon
Auditor Firm ID 185
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Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 293,354 $ 133,545
Accounts receivable, net 10,598 9,124
Inventories, net 36,488 46,953
Prepaid expenses and other current assets 17,501 15,637
Total current assets 357,941 205,259
Property and equipment, net 683,971 542,440
Finance lease right-of-use assets, net 374,623 382,734
Operating lease right-of-use assets, net 315,256 199,673
Intangibles, net 2,947 5,415
Goodwill 21,629 21,629
Deferred income tax assets, net 742,126 402,995
Other long-term assets 2,592 3,865
Total assets 2,501,085 1,764,010
Current liabilities:    
Accounts payable 32,225 29,957
Accrued compensation and benefits 49,778 31,405
Other accrued liabilities 26,516 15,770
Other current liabilities 7,067 6,423
Deferred revenue 42,868 30,349
Current portion of tax receivable agreements liability 71 0
Current portion of finance lease liabilities 13,256 9,482
Current portion of operating lease liabilities 13,979 10,239
Current portion of long-term debt 17,311 4,491
Total current liabilities 203,071 138,116
Deferred revenue, net of current portion 8,015 6,676
Finance lease liabilities, net of current portion 369,297 367,775
Operating lease liabilities, net of current portion 309,311 191,419
Long-term debt, net of current portion 219,755 93,175
Tax receivable agreements liability, net of current portion 627,763 290,920
Other long-term liabilities 8 8
Total liabilities 1,737,220 1,088,089
Commitments and contingencies (Note 15)
Stockholders’ equity:    
Preferred stock, $0.00001 par value per share - 20,000 shares authorized; zero shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively 0 0
Additional paid-in capital 517,074 379,391
Accumulated other comprehensive income 628 544
Retained earnings (accumulated deficit) 19,666 (15,592)
Total stockholders' equity attributable to Dutch Bros Inc. 537,369 364,345
Non-controlling interests 226,496 311,576
Total equity 763,865 675,921
Total liabilities and equity 2,501,085 1,764,010
Class A common stock    
Stockholders’ equity:    
Common stock 1 1
Class B common stock    
Stockholders’ equity:    
Common stock 0 1
Class C common stock    
Stockholders’ equity:    
Common stock 0 0
Class D common stock    
Stockholders’ equity:    
Common stock $ 0 $ 0
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Consolidated Balance Sheets (Parenthetical) - $ / shares
shares in Thousands
Dec. 31, 2024
Dec. 31, 2023
Preferred stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Preferred stock, authorized (in shares) 20,000 20,000
Preferred stock, issued (in shares) 0 0
Preferred stock, outstanding ( in shares) 0 0
Common stock, outstanding (in shares) 154,204  
Class A common stock    
Common stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Common stock, authorized ( in shares) 400,000 400,000
Common stock, issued (in shares) 115,432 69,958
Common stock, outstanding (in shares) 115,432 69,958
Class B common stock    
Common stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Common stock, authorized ( in shares) 144,000 144,000
Common stock, issued (in shares) 35,227 60,629
Common stock, outstanding (in shares) 35,227 60,629
Class C common stock    
Common stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Common stock, authorized ( in shares) 105,000 105,000
Common stock, issued (in shares) 3,545 35,864
Common stock, outstanding (in shares) 3,545 35,864
Class D common stock    
Common stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Common stock, authorized ( in shares) 42,000 42,000
Common stock, issued (in shares) 0 10,669
Common stock, outstanding (in shares) 0 10,669
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Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Revenues      
Total revenues $ 1,281,015 $ 965,776 $ 739,012
Costs and Expenses      
Cost of sales 940,886 714,480 558,096
Selling, general and administrative 234,036 205,074 183,528
Total costs and expenses 1,174,922 919,554 741,624
Income (loss) from operations 106,093 46,222 (2,612)
Other expense      
Interest expense, net (27,020) (32,321) (18,018)
Other income 5,812 3,018 3,976
Total other expense (21,208) (29,303) (14,042)
Income (loss) before income taxes 84,885 16,919 (16,654)
Income tax expense 18,435 6,967 2,599
Net income (loss) 66,450 9,952 (19,253)
Less: Net income (loss) attributable to non-controlling interests 31,192 8,234 (14,500)
Net income (loss) attributable to Dutch Bros Inc. $ 35,258 $ 1,718 $ (4,753)
Net income (loss) per share of Class A and Class D common stock:      
Basic (in dollars per share) $ 0.34 $ 0.03 $ (0.09)
Diluted (in dollars per share) $ 0.34 $ 0.03 $ (0.09)
Weighted-average shares of Class A and Class D common stock outstanding:      
Basic (in shares) 103,504 62,074 51,871
Diluted (in shares) 104,129 62,074 51,871
Company-operated shops      
Revenues      
Total revenues $ 1,165,830 $ 857,939 $ 639,710
Franchising and other      
Revenues      
Total revenues $ 115,185 $ 107,837 $ 99,302
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Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Statement of Comprehensive Income [Abstract]      
Net income (loss) $ 66,450 $ 9,952 $ (19,253)
Other comprehensive income (loss):      
Unrealized gain (loss) on derivative securities, effective portion, net of income tax expense (benefit) of $(83), $10, and $273, respectively (1) (748) 2,908
Comprehensive income (loss) 66,449 9,204 (16,345)
Less: comprehensive income (loss) attributable to non-controlling interests 31,107 7,755 (12,405)
Comprehensive income (loss) attributable to Dutch Bros Inc. $ 35,342 $ 1,449 $ (3,940)
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Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Statement of Comprehensive Income [Abstract]      
Unrealized gain on derivative securities, effective portion, net of income tax expense (benefit) $ (83) $ 10 $ 273
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Condensed Consolidated Statements of Stockholders’ Equity - USD ($)
$ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjustment
Additional Paid-in-Capital
Accumulated Other Comprehensive Income
Retained Earnings (Accumulated Deficit)
Retained Earnings (Accumulated Deficit)
Cumulative Effect, Period of Adoption, Adjustment
Non-Controlling Interests
Non-Controlling Interests
Cumulative Effect, Period of Adoption, Adjustment
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
Accounting Standards Update [Extensible Enumeration] Accounting Standards Update 2016-02 [Member]                              
Beginning balance (in shares) at Dec. 31, 2021                   34,433,000   64,699,000   49,006,000   15,441,000
Beginning balance at Dec. 31, 2021 $ 213,729 $ 423 $ 107,193 $ 0 $ (12,679) $ 122 $ 119,213 $ 301   $ 0   $ 1   $ 1   $ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                
Net income (loss) (19,253)       (4,753)   (14,500)                  
Unrealized gain (loss) on derivative securities, effective portion, net of income tax expense (benefit) 2,891   (17) 813     2,095                  
Equity-based compensation expense 41,657   13,743       27,914                  
Issuance of Class A common stock pursuant to vesting of equity awards, net of stock withheld for tax and forfeitures (in shares)                   131,000            
Issuance of Class A common stock pursuant to vesting of equity awards, net of stock withheld for tax and forfeitures (3,900)   (1,145)       (2,755)                  
Issuance of Class A common stock in exchange for surrender and cancellation of Class D common stock, and conversion of Dutch Bros OpCo Class A common units for surrender and cancellation of Class B and C common stock, pursuant to exchange transactions (in shares)                   10,980,000       (7,950,000)   (3,030,000)
Issuance of Class A common stock in exchange for surrender and cancellation of Class D common stock, and conversion of Dutch Bros OpCo Class A common units for surrender and cancellation of Class B and C common stock, pursuant to exchange transactions 0                 $ 1       $ (1)    
Effect of equity transactions of Dutch Bros OpCo Class A common units 0   9,410       (9,410)                  
Impacts of Tax Receivable Agreements 16,429   16,429                          
Ending balance (in shares) at Dec. 31, 2022                   45,544,000   64,699,000   41,056,000   12,411,000
Ending 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) 9,952       1,718   8,234                  
Unrealized gain (loss) on derivative securities, effective portion, net of income tax expense (benefit) (965)   (217) (269)     (479)                  
Equity-based compensation expense 39,222   15,177       24,045                  
Issuance of Class A common stock pursuant to vesting of equity awards, net of stock withheld for tax and forfeitures (in shares)                   140,000            
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)                  
Issuance of Class A common stock in exchange for surrender and cancellation of Class D common stock, and conversion of Dutch Bros OpCo Class A common units for surrender and cancellation of Class B and C common stock, pursuant to exchange transactions (in shares)                   11,005,000   (4,070,000)   (5,192,000)   (1,742,000)
Effect of equity transactions of Dutch Bros OpCo Class A common units 0   (158,152)       158,152                  
Tax impacts of other equity-related transactions 655   655                          
Impacts of Tax Receivable Agreements 301   301                          
Issuance of Class A common stock sold pursuant to secondary offerings (in shares)                   13,269,000            
Issuance of Class A common stock sold pursuant to follow-on offering, net of offering costs 330,081   330,081                          
Tax impacts of follow-on offering 46,594   46,594                          
Ending 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
Ending 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) 66,450       35,258   31,192                  
Unrealized gain (loss) on derivative securities, effective portion, net of income tax expense (benefit) (339)   (338) 84     (85)                  
Equity-based compensation expense 11,482   6,980       4,502                  
Issuance of Class A common stock pursuant to vesting of equity awards, net of stock withheld for tax and forfeitures (in shares)                   83,000            
Issuance of Class A common stock pursuant to vesting of equity awards, net of stock withheld for tax and forfeitures (1,069)   1,743       (2,812)                  
Issuance of Class A common stock in exchange for surrender and cancellation of Class D common stock, and conversion of Dutch Bros OpCo Class A common units for surrender and cancellation of Class B and C common stock, pursuant to exchange transactions (in shares)                   45,391,000   (2,402,000)   (32,319,000)   (10,669,000)
Effect of equity transactions of Dutch Bros OpCo Class A common units 0   115,989       (115,989)                  
Tax impacts of other equity-related transactions 388   388                          
Impacts of Tax Receivable Agreements 12,921   12,921                          
Stock surrendered and cancelled (in shares)                       (23,000,000)        
Stock surrendered and cancelled (1)                              
Distributions paid to non-controlling interest holders $ (1,888)           (1,888)                  
Issuance of Class A common stock sold pursuant to secondary offerings (in shares)                 45,400,000              
Ending balance (in shares) at Dec. 31, 2024 154,204,000               115,432,000 115,432,000 35,227,000 35,227,000 3,545,000 3,545,000 0 0
Ending balance at Dec. 31, 2024 $ 763,865   $ 517,074 $ 628 $ 19,666   $ 226,496     $ 1   $ 0   $ 0   $ 0
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Condensed Consolidated Statements of Stockholders’ Equity (Parenthetical) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Statement of Stockholders' Equity [Abstract]      
Unrealized (loss) gain on derivative securities, effective portion, net of income tax (benefit) expense $ (83) $ 10 $ 273
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Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash flows from operating activities:      
Net income (loss) $ 66,450 $ 9,952 $ (19,253)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:      
Depreciation and amortization 93,005 69,135 44,728
Non-cash interest expense 1,113 887 691
Non-cash donation expense 1,811 0 0
Gain on disposal of assets (1,277) (23) (340)
Equity-based compensation 11,482 39,222 41,657
Deferred income taxes 15,421 5,946 1,078
Remeasurement gain on TRAs (4,247) (2,638) (3,466)
Non-cash operating lease cost 15,765 11,413 9,919
Changes in operating assets and liabilities, net of acquisitions:      
Accounts receivable, net (1,474) 2,842 (1,322)
Inventories, net 10,465 (7,724) (15,817)
Prepaid expenses and other current assets (2,282) (4,775) (695)
Other long-term assets 611 (578) 1,147
Accounts payable 3,658 3,903 1,606
Accrued compensation and benefits 18,373 11,699 5,333
Other accrued liabilities 10,601 3,738 643
Other current liabilities 644 484 1,001
Deferred revenue 13,858 5,571 3,367
Other long-term liabilities 0 0 (672)
Operating lease liabilities (7,545) (9,139) (9,722)
Net cash provided by operating activities 246,432 139,915 59,883
Cash flows from investing activities:      
Purchases of property and equipment (221,738) (228,457) (187,880)
Proceeds from disposal of fixed assets 9,666 1,177 1,359
Acquisition of shops from franchisees 0 0 (6,051)
Net cash used in investing activities (212,072) (227,280) (192,572)
Cash flows from financing activities:      
Proceeds from line of credit 2,449 90,000 157,705
Payments on line of credit (2,449) (202,705) (10,000)
Payments on finance lease liabilities (10,541) (12,432) (5,838)
Proceeds from long-term debt 150,000 1,647 1,375
Payments on long-term debt (11,053) (2,613) (1,982)
Payments of debt issuance costs 0 (1,350) (2,749)
Proceeds from equity offering, net of underwriting discounts and commissions 0 331,200 0
Payment of deferred offering costs 0 (1,119) (250)
Tax withholding payments upon vesting of equity awards (1,069) (1,896) (3,900)
Distributions to non-controlling interest holders (1,888) 0 0
Net cash provided by financing activities 125,449 200,732 134,361
Net increase in cash and cash equivalents 159,809 113,367 1,672
Cash and cash equivalents, beginning of period 133,545 20,178 18,506
Cash and cash equivalents, end of period 293,354 133,545 20,178
Supplemental disclosure of cash flow information      
Interest paid 39,103 34,969 17,613
Income taxes paid, net of refunds 2,253 1,731 1,316
Supplemental disclosure of noncash investing and financing activities      
Additions of property and equipment accrued as of end of period 12,635 13,880 6,731
Transfer between line of credit and term loan facility $ 0 $ 0 $ 100,000
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Organization and Background
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Background
NOTE 1 — Organization and Background
Business
Dutch Bros Inc., a Delaware corporation, together with its subsidiaries (the Company, we, us, or our, collectively) 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 December 31, 2024, there were 982 shops in operation in 18 U.S. states, of which 670 were company-operated and 312 were franchised.
Organization
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 December 31, 2024, Dutch Bros Inc. held 100.0% of the voting interest and 65.1% of the economic interest of Dutch Bros OpCo. The Continuing Members held none of the voting interest and the remaining 34.9% of the economic interest of Dutch Bros OpCo.
During 2024, in connection with various equity-related transactions by the Company’s Sponsor and Co-Founder, Dutch Bros Inc. issued approximately 45.4 million shares of Class A common stock in exchange for approximately 10.7 million shares of Class D common stock and conversion of approximately 34.7 million Dutch Bros OpCo Class A common units on a one-for-one basis. These transactions in total increased the Company’s interest in Dutch Bros OpCo to 65.1% as of December 31, 2024 from 45.5% as of the prior year-end.
Further, in May 2024, pursuant to a share surrender agreement, among the Company, Dutch Bros OpCo, and our Co-Founder, our Co-Founder surrendered 23 million shares of Class B common stock, and the shares were cancelled by the Company. The surrender and cancellation of these shares had no impact on the economic interest in Dutch Bros OpCo held by our Co-Founder.
n 2023, we completed a follow-on offering of approximately 13.3 million shares of Class A common stock at a public offering price of $26.00 per share, which resulted in net proceeds of approximately $331.2 million. The proceeds were used to purchase an equal number of Class A common units of Dutch Bros OpCo. Dutch Bros OpCo used the proceeds for working capital and general corporate purposes, including principal repayment of the Company’s revolving credit facility and for payment of offering costs.
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Basis of Presentation and Summary of Significant Accounting Policies
 12 Months Ended
Dec. 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
Our consolidated financial statements as of December 31, 2024 and for the three years then ended have been prepared in accordance with GAAP and pursuant to the rules and regulations of the SEC
Significant Accounting Policies
Principles of Consolidation
The consolidated financial statements include the accounts of our Company and subsidiaries that we control due to ownership of a majority voting interest or pursuant to accounting guidance for non-controlling interests. All intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates
The presentation of consolidated financial statements in conformity with GAAP requires that we make estimates and assumptions, primarily related to long-lived asset valuation, leases, deferred revenue, tax receivable agreements, income taxes, and equity-based compensation that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Although we base our estimates on historical experience and assumptions that are believed to be reasonable under the circumstances, actual results could differ from those estimates.
Cash and Cash Equivalents
Cash and cash equivalents include all short-term highly liquid instruments with original maturities of three months or less at the time of purchase, as well as credit card receivables for sales to customers in company-operated shops that generally settle within two to five business days. Our cash accounts are maintained at various high credit quality financial institutions and may exceed federally insured limits. We have not experienced any losses in such accounts.
Fair Value Measurements
We apply fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in our consolidated financial statements. We categorize assets and liabilities, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy as set forth below. The three levels of the hierarchy are defined as follows:
Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2 – Observable inputs other than quoted prices in active markets for identical assets or liabilities, quoted prices for identical assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 – Inputs that are both unobservable and significant to the overall fair value measurements reflecting an entity's estimates of assumptions that market participants would use in pricing the asset or liability.
Our consolidated balance sheets include cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses and other current liabilities, for which the carrying amounts approximate fair value due to their short-term maturity. The fair value of our variable-rate credit facilities approximate their carrying amounts as the cost of borrowing is variable and approximates current market prices, which is considered Level 2 in the fair value hierarchy.
Derivative Instruments
We manage exposure to fluctuations in interest rates within our consolidated financial statements according to a hedging policy. Under this policy, we may from time to time enter into interest rate swap agreements to fix a portion of interest expense and hedge interest rate risk. A swap agreement is a contract between two parties to exchange cash flows based on specified underlying notional amounts, assets and/or indices. We do not enter into derivative instruments for speculative purposes or for any other purpose other than to manage its risks related to fluctuations in interest rates.
By using swap instruments, we are exposed to potential credit risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. We minimize this credit risk by entering into transactions with carefully selected, credit-worthy counterparties.
Cash Flow Hedges
Cash flow hedges related to anticipated transactions are designated and documented at the inception of each hedge. Cash flows from hedging transactions are classified in the same categories as the cash flows from the respective hedged items.
For derivative instruments that are designated and qualify as a cash flow hedge, the derivative's gain or loss is reported as a component of other comprehensive income and recorded in accumulated other comprehensive income on the Company’s consolidated balance sheets. The gain or loss is subsequently reclassified into net earnings when the hedged exposure affects net earnings, in the same line item as the underlying hedged item on our consolidated statements of operations.
We may discontinue hedge accounting when:
•it is determined that the cash flow derivative is no longer effective in offsetting changes in the cash flows of a hedged item;
•the derivative expires or is sold, terminated or exercised;
•it is no longer probable that the forecasted transaction will occur; or
•management determines that designation of the derivatives as a hedge instrument is no longer appropriate.
Refer to NOTE 10 — Derivative Financial Instruments for further discussion of the Company’s derivative instruments.
Accounts Receivable
Accounts receivable, net of allowance for credit losses, consist primarily of royalty revenues, outstanding balances for sales of roasted coffee beans, Dutch Bros Rebel, other retail-related supplies to franchisees, and vendor rebates. The allowance for credit losses is estimated based on our historical losses adjusted for current, reasonable and supportable forecasts of economic conditions and other pertinent factors affecting our customers, including review of specific accounts, financial stability and credit worthiness. Accounts receivable are charged off against the allowance for credit losses when the financial condition of our customers is adversely affected and they are unable to meet their financial obligations. We had no allowance for credit losses at December 31, 2024 and 2023.
Inventories
Inventories, net consist primarily of roasted and unroasted coffee beans, Dutch Bros Rebel, and other retail related supplies. Inventories are stated at the lower of cost or net realizable value, with cost being determined on a first-in, first-out basis. We record product returns as they are received, and obsolete and slow-moving inventory when identified, as these types of transactions have generally been immaterial to our historical operations.
Property and Equipment
Property and equipment, net are stated at historical cost less accumulated depreciation. Expenditures for maintenance, repairs, and routine replacements are charged to expense as incurred. Expenditures for major repairs and improvements that extend the useful lives of property and equipment are capitalized. When property or equipment is sold or otherwise disposed of, the asset and related accumulated depreciation are removed from the balance sheet and any gain or loss is included in income (loss) from operations in the accompanying consolidated statements of operations. Depreciation is computed on a straight-line basis over the following useful lives:
(in years)
Estimated Useful Life
Software
3
Equipment and fixtures
3 - 7
Leasehold improvements
5 - 15 1
Buildings
10 - 39
_________________
1    Lesser of lease term or useful life
We capitalize costs associated with the acquisition or development of major software for internal use and amortize the assets over the expected life of the software, generally 3 years. We only capitalize subsequent additions, modifications, or upgrades to internal-use software to the extent that such changes allow the software to perform a task it previously did not perform. Software maintenance and training costs are expensed as incurred.
Leases
We lease our company-operated shops, warehouse facilities, headquarters buildings, and certain equipment under non-cancelable lease agreements that expire on various dates through 2048. Our real estate leases consist of build-to-suit and commercial ground leases with typical initial terms of 15 or 20 years, respectively and include one to three renewal periods of five-years each. Renewals are included in the lease term when it is reasonably certain that the renewal period will be exercised. We recognize a right-of-use asset and lease liability for each lease with a contractual term of greater than 12 months at lease inception, and have elected not to recognize leases with terms of 12 months or less.
We calculate right-of-use assets and lease liabilities based on the present value of the fixed minimum lease payments, including any estimated lease incentives, at lease commencement using an estimated incremental borrowing rate corresponding to the lease term and applied on a portfolio basis. We’ve elected not to separate lease and non-lease components on real estate leases.
Lease classification is determined as operating or finance at lease commencement, and expense recognition occurs over the lease term from the date we take possession of the property. For operating leases, expense is recognized on a straight-line basis; for finance leases, expense is recognized on an accelerated basis. We record lease expense in cost of sales on our consolidated statements of operations. Variable lease costs are expensed as incurred and recognized in cost of sales on the consolidated statements of operations.
From time to time we may have sale and leaseback transactions that do not qualify for sale-leaseback accounting because of our deemed continuing involvement, which results in the transaction being recorded under the financing method. These financing obligations are included in long-term debt on our consolidated balance sheets.
For additional information, see NOTE 8 — Leases and NOTE 9 — Debt to the consolidated financial statements.
Business Combinations
Historically, our business combination activity has been related to reacquiring franchises. We account for the acquisition of reacquired franchises using the acquisition method of accounting for business combinations. We allocate the purchase price paid for acquired assets and liabilities in connection with an acquisition based on the estimated fair value at the time of acquisition. This allocation involves a number of assumptions, estimates, and judgments in determining the fair value of the following:
•Intangible assets, including valuation methodology, estimations of future cash flows, discount rates, market segment growth rates, assumed market share, and estimated useful life;
•Deferred tax assets and liabilities, uncertain tax positions, and tax-related valuation allowances estimate; and
•Other assets and liabilities, and contingent consideration, as applicable.
Fair value measurements for reacquired franchise rights and property and equipment were determined using the income approach and cost approach, respectively. The fair value measurement of acquired assets and liabilities as of the acquisition date is based on significant inputs not observed in the market, and as such, represents a Level 3 fair value measurement.
Goodwill is measured as the excess of the purchase price paid over the net of the acquisition date fair values of assets acquired and liabilities assumed. Goodwill associated with the acquisition of reacquired franchises is allocated to the company-operated shops reportable segment and is expected to be fully deductible for tax purposes.
Goodwill
Recoverability of goodwill is reviewed by reporting unit at least annually, as of the beginning of our fourth fiscal quarter, and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The annual impairment test includes an option to perform a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying value; the qualitative test may be performed prior to, or as an alternative to, performing a quantitative goodwill impairment test. If, after assessing the totality of events or circumstances, it is determined that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying value, we are required to perform the quantitative goodwill impairment test. Otherwise, no further analysis is required. We performed the annual qualitative impairment assessments for each of the three years in the period ended December 31, 2024, and no impairment charges were recognized, nor were there any accumulated impairment losses.
Impairment of Long-Lived Assets
Long-lived assets are reviewed for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. The assessment of recoverability of property and equipment and finite-lived intangible assets is performed at the component level, which is generally an individual shop, and requires judgment and an estimate of future undiscounted shop-generated cash flows. Estimates of fair values are based on the best information available and require the use of estimates, judgments, and projections. We test for recoverability by comparing the carrying value of the asset to the undiscounted cash flows. If the carrying value is not recoverable, we would recognize an impairment loss if the carrying value of the asset exceeds the fair value. We performed an annual assessment in the fourth quarter of 2024, which indicated no changes in circumstances or triggering events for impairment.
Revenue Recognition
Consolidated revenues are recognized net of any discounts, returns, allowances and sales incentives.
Company-operated Shops Revenue
Retail sales from company-operated shops are recognized at the point in time when the products are sold to the customers. We report revenues net of sales taxes collected from customers and remitted to government taxing authorities.
Loyalty Program
Dutch Pass, our digital loyalty program accessible via mobile app, provides the following key opportunities for customers:
•Collect points based on purchases
•Convert points to rewards
•Redeem rewards for free drinks
•Share free drink rewards with other app users
•Receive birthday and other promotional awards
•Mobile ordering
•Digital gift cards
Points earned and not redeemed for rewards within 180 days automatically expire, and rewards that are not used within 180 days of issuance automatically expire. Separately, birthday and other promotional awards generally automatically expire after 30 days, depending on the specific award.
We defer revenue based on the estimated value of beverages for which the points, rewards, and awards are expected to be redeemed. Based on historical expiration rates, a portion of points, rewards, and awards are not expected to be redeemed and are recognized as breakage.
Gift Card Program
We maintain a contract liability for physical and digital gift cards sold, recognizing revenue when a gift card is redeemed. Gift cards do not have an expiration date or a service fee causing a decrement to the customer balance. Based on historical redemptions rates, a portion of gift cards are not expected to be redeemed and are recognized as breakage.
Franchising Revenue
Franchise royalty fees are generally computed as a percentage of net franchise sales and are charged for continuing support of franchisees for various services provided by us. These services are highly interrelated, and as such are accounted for as a single performance obligation.
Separately, we receive marketing fees from franchisees for promotion of the Dutch Bros brand. Contributions are based on a percentage of shop sales and marketing expenditures include payments to third parties and other costs. We determined our advertising and promotion management services do not represent individually distinct performance obligations and are included in the franchise performance obligation.
Initial and other deferred franchise fees are recorded as a contract liability, and revenue is recognized ratably over the term of the franchise agreement, which is generally ten years.
Other franchising revenue, including coffee bean sales, Dutch Bros Rebel energy drink sales, and other sales, are recognized when shipped.
Other Revenue
Other revenue includes retail coffee and other food and beverage sales, recognized at the date of sale, as well as sales of products through our website, recognized at the point in time of shipment to customers.
Deferred Revenue
Deferred revenue primarily consists of the unredeemed gift card liability and unredeemed points/rewards from our Dutch Rewards loyalty program. Deferred revenue also includes bean and beverage sales to distributors where the performance obligation has not yet been satisfied as control has not transferred to the customer.
Shop Pre-opening Expenses
Pre-opening expenses incurred with the opening of new company-operated shops are expensed as incurred. These costs include rent expense, wages, benefits, travel and lodging for the training and opening management teams, and beverage and other operating expenses incurred prior to a shop opening for business and are included in cost of sales.
Vendor Rebates
We have food and beverage supply agreements with certain major vendors. Per the terms of these arrangements, vendor rebates are provided to us based on the dollar value of purchases for systemwide shops. These rebates are recognized as earned throughout the year and are recorded as accounts receivable and a reduction to cost of sales.
Advertising Expense
Advertising costs are expensed as incurred. Franchise shops contribute to an advertising fund that we manage on behalf of the shops. Under our standard franchise agreement, the contributions received must be spent on specific marketing-related activities. The expenditures are primarily amounts paid to third parties and other costs. If receipts exceed expenditures, the excess is recorded as an accrued liability. As of December 31, 2024 and 2023, no excess marketing fees were accrued in our consolidated financial statements.
Advertising expense is recorded in cost of sales and selling, general and administrative on our consolidated statements of operations, and was as follows for the periods presented:
Year Ended December 31,
(in thousands)202420232022
Cost of sales
$21,897 $18,946 $19,150 
Selling, general and administrative
17,313 10,953 13,177 
Total advertising expense
$39,210 $29,899 $32,327 
Equity-based Compensation
The Company granted time-based RSAs to certain officers and employees in connection with the IPO, and RSUs to directors and certain employees. The RSAs and RSUs are accounted for as equity-classified awards, and are granted at the fair value of the underlying Class A common stock of Dutch Bros Inc. as of the grant date and vest over the requisite service period.
Vesting of all awards granted are subject to the grantee’s continued service at Dutch Bros through the applicable vesting date.
The cost of the RSAs and RSUs is recognized as expense over the grantee’s requisite service period, and forfeitures are accounted for as they occur. To date, the Company has not granted any performance-based awards.
During the year ended December 31, 2024, the RSAs were fully expensed and fully vested.
Tax Receivables Agreements
In connection with the IPO, the Company executed two TRAs which provide for payment by the Company to certain Dutch Bros OpCo owners of 85% of the benefits, if any, that the Company would be deemed to realize (calculated using certain assumptions) as a result of certain tax attributes and benefits covered by the TRAs.
The Company expects to obtain an increase in its share of the tax basis in the net assets of Dutch Bros OpCo when OpCo Units are exchanged by Pre-IPO Dutch Bros OpCo Unitholders. The Company treats any redemptions and exchanges of OpCo Units as direct purchases for U.S. federal income tax purposes. These increases in tax basis may reduce the amounts that it would otherwise pay in the future to various tax authorities. They may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets.
TRA-related liabilities are classified on the Company’s consolidated balance sheets as current or non-current assets based on the expected date of payment under the captions “Current portion of tax receivable agreements liability” and “Tax receivable agreements liability, net of current portion,” respectively.
Income Taxes
The Company is a corporation and sole managing member of Dutch Bros OpCo which is treated as a partnership for tax purposes.

The Company records income tax provision, deferred tax assets, deferred tax liabilities, uncertain tax positions, and valuation allowance, as applicable, only for the items for which the Company is responsible to the relevant tax authority.
Deferred income taxes result from temporary differences between the financial reporting and tax basis of assets and liabilities, and are measured using the enacted tax rates and laws expected to be in effect when such differences are expected to reverse. These temporary differences are reflected as deferred income tax assets, net on the consolidated balance sheets. A deferred tax asset is recognized if it is more likely than not that a tax benefit will be realized.
The Company recognizes tax benefits from entity-level uncertain tax positions if it is more likely than not that the tax position will be sustained on examination by the tax authorities, based on technical merits of the position. The tax benefit is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement.
Income (Loss) Per Share
Basic income (loss) per share of Class A and Class D common stock is computed by dividing net income (loss) attributable to Dutch Bros Inc. by the weighted-average number of shares of Class A and Class D common stock outstanding during the period. Diluted income (loss) per share of Class A and Class D common stock is computed by dividing net income (loss) attributable to Dutch Bros Inc., adjusted for the assumed exchange of all potentially dilutive instruments for Class A common stock, by the weighted-average number of shares of Class A and Class D common stock outstanding, adjusted to give effect to potentially dilutive elements. Share counts used in the diluted income (loss) per share calculations are adjusted for the deemed repurchases provided for in the treasury stock method for RSAs and RSUs, and under the if-converted method for the outstanding convertible Class B and Class C common stock, if dilutive.
As of June 2024, all Class D common shares were converted to Class A common shares.
Shares of the Company’s Class B and Class C common stock do not participate in the earnings or losses of the Company and are therefore not participating securities. As such, separate presentation of basic and diluted income (loss) per share of Class B and Class C common stock under the two-class method has not been presented.
Recently Issued Accounting Standards
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this update are intended to 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 are effective for public business entities' annual periods beginning after December 15, 2024 and interim periods within fiscal years beginning after December 15, 2025, 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 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40). The intent of this ASU is to improve public entity financial footnote disclosures around types of expenses in commonly presented expense categories (i.e. cost of sales, SG&A, and research and development). The amendments in this ASU do not change or remove current expense disclosure requirements, but rather 1) impact where this information appears in the notes to the consolidated financial statements and 2) add additional disclosure requirements for certain expense line items appearing on the face of our consolidated statements of operations. ASU 2024-03, as amended, is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. We will assess potential impacts of this standard on our disclosures in future periods.
Recently Adopted Accounting Standards
In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this update are intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. Effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. Public entities should apply the amendments in this update retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. We have completed our analysis and identified significant segment expenses primarily related to segment cost of sales for disclosure in this 2024 Form 10-K. The new standard has not had a material impact on our consolidated financial statements; however, we have provided additional detail and disclosures under the new guidance in NOTE 19 — Segment Reporting.
v3.25.0.1
Revenue Recognition
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
NOTE 3 — Revenue Recognition
Revenue
The following table disaggregates revenue by major component:
Year Ended December 31,
(in thousands)202420232022
Company-operated shops$1,165,830 $857,939 $639,710 
Franchising109,610 101,907 93,756 
Other5,575 5,930 5,546 
Total revenues$1,281,015 $965,776 $739,012 
Deferred Revenue
Components of our deferred revenue liability are as follows:
Year Ended December 31,
(in thousands)20242023
Gift card and loyalty programs
$48,265 $34,616 
Initial unearned franchise fees
2,618 2,409 
Total deferred revenue
$50,883 $37,025 
Deferred revenue activity was as follows:
Year Ended December 31,
(in thousands)20242023
Beginning balance$37,025 $31,454 
Revenue deferred - gift card activations, loyalty app loads, and loyalty points and rewards earned419,107 362,482 
Revenue recognized - gift card, loyalty app, loyalty rewards redemptions, and breakage
(405,458)(354,770)
Other deferred revenue, net 1
209 (2,141)
Ending balance50,883 37,025 
Less: current portion(42,868)(30,349)
Deferred revenue, net of current portion$8,015 $6,676 
_______________
1     Other deferred revenue, net, includes activity related to initial unearned franchise fees, and in 2023 includes recognition of previously outstanding performance obligations.
Revenue recognized during each of the three years ended December 31, 2024 that was included in the respective deferred revenue liability balances at the beginning of the period are shown below.
Year Ended December 31,
(in thousands)202420232022
Gift card redemptions 1
$6,215 $5,149 $3,965 
Earned franchise fees450 454 507 
_____________________
1    Amounts exclude cash loads and transactions related to the Company’s loyalty rewards program.
Future recognition of initial unearned franchise fees as of December 31, 2024 is as follows:
(in thousands)
2025$430 
2026388 
2027343 
2028294 
2029249 
Thereafter914 
Total$2,618 
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Organization Realignment and Restructuring
 12 Months Ended
Dec. 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 relocated certain of its support center staff from the Grants Pass, Oregon headquarters to the Phoenix office. As of December 31, 2024, approximately 40% of the Company’s total support operations staff were 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 $19 million to $20 million related to this initiative, consisting of (i) approximately $16 million to $17 million in employee-related costs, including relocation, retention and transition costs, termination benefits, and duplicate transition wages and benefits; and (ii) approximately $3 million in other costs, including building donation, consulting fees and costs and duplicate rent. Substantially all of the estimated charges have resulted in current cash expenditures or are expected in future cash expenditures.
We recorded severance related to this initiative as a one-time termination benefit and recognized the expense ratably over the employees’ required future service period.
All other costs, including other employee transition costs, recruitment and relocation costs, and third-party costs, are recognized in the period incurred.
There have been no material lease terminations or lease abandonments related to this initiative.
In December 2024, the Grants Pass, Oregon headquarters building was vacated as a result of the organization realignment and restructuring activities. The building was donated to a local charity for development of a children’s learning center, and we recorded a net donation expense of $1.8 million.
During the year ended December 31, 2024, we recorded restructuring charges for employee-related and other costs in selling, general and administrative expenses on the consolidated statements of operations as follows:
(in thousands)Year Ended December 31, 2024
Relocation and travel costs
$11,403 
One-time termination benefits
4,146 
Total employee-related costs
15,549 
Building donation
1,811 
Duplicate rent
461 
Consulting
55 
Total other costs2,327 
Total restructuring costs incurred$17,876 
As of December 31, 2024, the accruals for corporate restructuring costs are included in accounts payable, accrued compensation and benefits, and accrued expenses on the consolidated balance sheets. The following table summarizes the activity for the restructuring liability during the year ended December 31, 2024:
(in thousands)Liability, December 31, 2023Charges
Cash Payments
Non-Cash
Liability, December 31, 2024
Relocation and travel costs
$— $11,403 $(10,705)$— $698 
One-time termination benefits
— 4,146 (2,118)— 2,028 
Total employee-related costs— 15,549 (12,823)— 2,726 
Duplicate rent
— 461 (461)— — 
Consulting
— 55 — — 55 
Building donation
— 1,811 — (1,811)— 
Total other costs
— 2,327 (461)(1,811)55 
Totals$— $17,876 $(13,284)$(1,811)$2,781 
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Inventories
 12 Months Ended
Dec. 31, 2024
Inventory Disclosure [Abstract]  
Inventories
NOTE 5 — Inventories
Inventories, net consist of the following:
(in thousands)December 31, 2024December 31, 2023
Raw materials$14,594 $28,523 
Finished goods21,894 18,430 
Total inventories$36,488 $46,953 
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Property and Equipment
 12 Months Ended
Dec. 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)
December 31, 2024December 31, 2023
Software3$10,666 $7,212 
Equipment and fixtures3—7229,307 157,352 
Leasehold improvements5—1554,535 42,441 
Buildings10—39487,060 269,186 
LandN/A7,022 7,338 
Aircraft 1
N/A— 9,195 
Construction-in-progress 2
N/A
71,951 166,054 
Property and equipment, gross860,541 658,778 
Less: accumulated depreciation(176,570)(116,338)
Property and equipment, net$683,971 $542,440 
_______________
1     Airplane, and hangar and related equipment, were sold to our Co-Founder in 2024. See NOTE 18 — Related Party Transactions for additional information.
2    Construction-in-progress primarily consists of construction and equipment costs for new and existing shops and, for 2023, our new roasting facility in Texas.
Depreciation expense included in our consolidated statements of operations was as follows:
Year Ended December 31,
(in thousands)202420232022
Cost of sales$63,707 $42,807 $26,261 
Selling, general and administrative expenses1,229 1,634 2,705 
Total depreciation expense$64,936 $44,441 $28,966 
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Intangible Assets
 12 Months Ended
Dec. 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)
December 31, 2024December 31, 2023
Reacquired franchise rights2.94$27,049 $27,049 
Less: accumulated amortization(24,102)(21,634)
Intangibles, net$2,947 $5,415 
Amortization expense included in our consolidated statements of operations was as follows:
Year Ended December 31,
(in thousands)202420232022
Cost of sales$2,468 $3,389 $4,034 
The estimated future amortization expense of the reacquired franchise rights as of December 31, 2024 is as follows:
(in thousands)
2025$1,435 
2026681 
2027383 
2028247 
2029153 
Thereafter48 
Total $2,947 
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Leases
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases
NOTE 8 — Leases
A summary of finance and operating lease right-of-use assets and lease liabilities as of December 31, 2024 and December 31, 2023 is as follows:
(in thousands)Balance Sheet ClassificationDecember 31, 2024December 31, 2023
Right-of-use assets
Finance leasesFinance lease right-of-use assets, net$374,623 $382,734 
Operating leasesOperating lease right-of-use assets, net315,256 199,673 
Total right-of-use assets$689,879 $582,407 
Lease liabilities
Finance leasesCurrent portion of finance lease liabilities$13,256 $9,482 
 Finance lease liabilities, net of current portion369,297 367,775 
Operating leasesCurrent portion of operating lease liabilities13,979 10,239 
 Operating lease liabilities, net of current portion309,311 191,419 
Total lease liabilities $705,843 $578,915 
he components of lease costs, excluding short-term lease costs and sublease income (both immaterial for the periods presented), were as follows:
Statements of Operations Classification
Year Ended December 31,
(in thousands)202420232022
Finance lease costs
Amortization of right-of-use assetsCost of sales$25,551 $21,290 $11,718 
Amortization of right-of-use assets
Selling, general, and administrative
50 15 10 
Interest on lease liabilitiesInterest expense22,053 17,516 9,263 
Total finance lease costs
47,654 38,821 20,991 
Operating lease costs
Lease expenses
Cost of sales28,703 19,385 16,428 
Lease expenses
Selling, general, and administrative
1,646 55 37 
Total operating lease costs
30,349 19,440 16,465 
  
Variable lease costs
Cost of sales6,874 5,216 3,979 
Total lease costs$84,877 $63,477 $41,435 
Future minimum lease payments for finance and operating lease liabilities as of December 31, 2024 are as follows:
(in thousands)FinanceOperating
2025$35,094 $20,644 
202635,201 31,570 
202735,959 31,722 
202837,074 31,357 
202938,000 32,127 
Thereafter413,822 366,879 
Total$595,150 $514,299 
Less: imputed interest(212,597)(191,009)
Present value of minimum lease payments382,553 323,290 
Less: current portion(13,256)(13,979)
Lease liabilities, net of current portion$369,297 $309,311 
A summary of lease terms and discount rates for finance and operating leases is as follows:
 December 31, 2024December 31, 2023
Weighted-average remaining lease term (years) 
Finance leases15.316.3
Operating leases15.514.7
  
Weighted-average discount rate (percentages) 
Finance leases6.0%5.9%
Operating leases5.9%4.9%
Supplemental cash flow information related to leases is as follows for the periods presented:
Year Ended December 31,
(in thousands)202420232022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases$22,053 $17,516 9,264 
Operating cash flows from operating leases22,127 17,167 16,269 
Financing cash flows from finance leases10,541 12,432 5,838 
Right-of-use assets obtained in exchange for lease obligations
Finance leases15,838 144,588 167,687 
Operating leases130,059 40,253 178,138 
Leases
NOTE 8 — Leases
A summary of finance and operating lease right-of-use assets and lease liabilities as of December 31, 2024 and December 31, 2023 is as follows:
(in thousands)Balance Sheet ClassificationDecember 31, 2024December 31, 2023
Right-of-use assets
Finance leasesFinance lease right-of-use assets, net$374,623 $382,734 
Operating leasesOperating lease right-of-use assets, net315,256 199,673 
Total right-of-use assets$689,879 $582,407 
Lease liabilities
Finance leasesCurrent portion of finance lease liabilities$13,256 $9,482 
 Finance lease liabilities, net of current portion369,297 367,775 
Operating leasesCurrent portion of operating lease liabilities13,979 10,239 
 Operating lease liabilities, net of current portion309,311 191,419 
Total lease liabilities $705,843 $578,915 
he components of lease costs, excluding short-term lease costs and sublease income (both immaterial for the periods presented), were as follows:
Statements of Operations Classification
Year Ended December 31,
(in thousands)202420232022
Finance lease costs
Amortization of right-of-use assetsCost of sales$25,551 $21,290 $11,718 
Amortization of right-of-use assets
Selling, general, and administrative
50 15 10 
Interest on lease liabilitiesInterest expense22,053 17,516 9,263 
Total finance lease costs
47,654 38,821 20,991 
Operating lease costs
Lease expenses
Cost of sales28,703 19,385 16,428 
Lease expenses
Selling, general, and administrative
1,646 55 37 
Total operating lease costs
30,349 19,440 16,465 
  
Variable lease costs
Cost of sales6,874 5,216 3,979 
Total lease costs$84,877 $63,477 $41,435 
Future minimum lease payments for finance and operating lease liabilities as of December 31, 2024 are as follows:
(in thousands)FinanceOperating
2025$35,094 $20,644 
202635,201 31,570 
202735,959 31,722 
202837,074 31,357 
202938,000 32,127 
Thereafter413,822 366,879 
Total$595,150 $514,299 
Less: imputed interest(212,597)(191,009)
Present value of minimum lease payments382,553 323,290 
Less: current portion(13,256)(13,979)
Lease liabilities, net of current portion$369,297 $309,311 
A summary of lease terms and discount rates for finance and operating leases is as follows:
 December 31, 2024December 31, 2023
Weighted-average remaining lease term (years) 
Finance leases15.316.3
Operating leases15.514.7
  
Weighted-average discount rate (percentages) 
Finance leases6.0%5.9%
Operating leases5.9%4.9%
Supplemental cash flow information related to leases is as follows for the periods presented:
Year Ended December 31,
(in thousands)202420232022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases$22,053 $17,516 9,264 
Operating cash flows from operating leases22,127 17,167 16,269 
Financing cash flows from finance leases10,541 12,432 5,838 
Right-of-use assets obtained in exchange for lease obligations
Finance leases15,838 144,588 167,687 
Operating leases130,059 40,253 178,138 
v3.25.0.1
Debt
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Debt
NOTE 9 — Debt
Credit Facility
On August 4, 2023, we amended our 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, we drew $150 million on our 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.    
We are required to pay a commitment fee on a quarterly basis, at a per annum rate of between 0.20% and 0.45% (depending on our 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 our consolidated statements of operations.
The 2022 Credit Facility contains financial covenants that require us 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 our 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 December 31, 2024, no amounts were outstanding on our revolving credit facility, and $343.8 million was available for borrowing, net of $6.2 million in letters of credit, and approximately $234.7 million of principal was outstanding on the term loan facilities. The term loans bear interest at approximately 6.20% as of December 31, 2024, excluding the impact from the Company’s interest rate swap. We were in compliance with our financial covenants as of that date.
Long-Term Debt
Our long-term debt consisted of the following for the periods presented:
(in thousands)December 31, 2024December 31, 2023
Term loans under credit facility
$234,688 $95,625 
Finance obligations1
3,022 3,022 
Unsecured note payable299 415 
Total debt238,009 99,062 
Less: loan origination fees(943)(1,396)
Less: current portion(17,311)(4,491)
Total long-term debt, net of current portion$219,755 $93,175 
_______________
1    Represents failed sale-leaseback arrangements.
Future annual maturities of long-term debt as of December 31, 2024 are as follows:
(in thousands)
2025 $17,311 
2026 32,943 
2027 184,733 
2028 — 
2029— 
Thereafter 3,022 
Total$238,009 
v3.25.0.1
Derivative Financial Instruments
 12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
NOTE 10 — Derivative Financial Instruments
We have a receive-variable (Receive Leg), pay-fixed (Pay Leg) interest rate swap with JPMorgan Chase Bank, N.A. As of December 31, 2024, the interest rate swap had a notional amount of approximately $63.9 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 December 31, 2024, the one-month adjusted term SOFR was 4.36%.
We typically designate all interest rate swaps as cash flow hedges, and accordingly, record 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 December 31, 2024, we expect to reclassify a gain of approximately $1.0 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 our consolidated financial statements was as follows:
(in thousands)
Balance Sheets Classification
December 31, 2024December 31, 2023
Derivative instrument designated as cash flow hedge
Interest rate swap contractPrepaid expenses and other current assets$953 $1,371 
Interest rate swap contractOther long-term assets832 837 
Total derivative instrument designated as cash flow hedge$1,785 $2,208 
Year Ended December 31,
(in thousands)Financial Statements Classification202420232022
Derivative instrument designated as cash flow hedge
Income recognized in other comprehensive income before reclassifications
Statements of Comprehensive Income (Loss)
$1,661 $954 $2,966 
Reclassification from accumulated other comprehensive income to earnings for the effective portion
Statements of Operations - Interest expense, net
(1,745)(1,692)215 
Income tax benefit (expense)
Statements of Operations - Income tax expense
83 (10)(273)
v3.25.0.1
Tax Receivable Agreements
 12 Months Ended
Dec. 31, 2024
Other Liabilities Disclosure [Abstract]  
Tax Receivable Agreements
NOTE 11 — Tax Receivable Agreements
The changes related to our TRAs liability were as follows:
(in thousands)December 31, 2024December 31, 2023
Beginning balance
$290,920 $220,923 
Additions (reductions) to TRAs:
Exchange of Dutch Bros OpCo Class A common units for Class A common stock341,161 72,635 
TRAs remeasurements 1
(4,247)(2,638)
Ending balance
$627,834 $290,920 
Less: current portion(71)— 
TRAs liability, net of current portion
$627,763 $290,920 
_________________
1 Impact primarily related to state tax rates and adjustments from previous estimates upon finalization of the tax attributes subject to the TRA.
v3.25.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes
NOTE 12 — Income Taxes
Our income tax expense consisted of the following:
Year Ended December 31,
(in thousands)202420232022
Current tax provision
Federal$396 $193 $181 
State2,653 844 1,340 
Total current tax provision3,049 1,037 1,521 
Deferred tax expense (benefit)
Federal8,520 1,605 (6,081)
State6,866 4,325 7,159 
Total deferred tax provision15,386 5,930 1,078 
Income tax expense
$18,435 $6,967 $2,599 
Our effective income tax rate differs from the U.S. federal statutory income tax rate as itemized below:
Year Ended December 31,
202420232022
U.S. federal statutory income tax rate21.0 %21.0 %21.0 %
Income allocable to non-controlling interests not subject to tax(8.5)6.3 (32.9)
State and local income taxes, net of federal benefit5.3 10.1 (9.5)
State rate adjustment5.9 17.5 (39.1)
Non-deductible compensation— 0.7 (2.0)
Tax credits(5.2)(12.9)10.1 
TRA adjustments0.4 0.2 4.4 
Return-to-provision adjustments0.6 (5.4)32.4 
Stock-based compensation
0.3 3.8 — 
Other2.1 0.4 — 
Valuation allowance(0.2)(0.5)— 
Effective income tax rate21.7 %41.2 %(15.6)%
The components of our deferred tax assets are as follows:
(in thousands)December 31, 2024December 31, 2023
Deferred tax assets
Investment in Dutch Bros OpCo $638,110 $346,172 
Net operating loss carryforwards50,862 34,988 
Interest expense40,247 14,187 
Credit carryforwards9,399 4,991 
Charitable contribution carryforward1,505 1,546 
Other2,866 2,130 
Total deferred tax assets742,989 404,014 
Less: valuation allowance(863)(1,019)
Net deferred tax assets$742,126 $402,995 
We recognize deferred tax assets to the extent, based on available evidence, that it is more-likely-than-not that they will be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and recent results of operations. For the years ended December 31, 2024 and 2023, we recorded a valuation allowance on our deferred tax assets, primarily related to charitable contributions, of which we do not expect to recognize benefit from in the foreseeable future. We have no deferred tax liabilities.
As of December 31, 2024, we had U.S. federal net operating losses of $208.3 million and tax credit carryforwards of approximately $9.4 million. Our federal net operating losses do not expire and tax credits will begin to expire in 2039, if not utilized. As of December 31, 2024, we had $133.4 million of state tax net operating losses and no state tax credits. Of the state tax net operating losses, $97.0 million will begin to expire in 2033 if not utilized and the remaining $36.4 million do not expire.
Utilization of net operating losses, credit carryforwards, and certain deductions may be subject to a substantial annual limitation due to ownership change limitations provided by the Internal Revenue Code of 1986, as amended, and similar state provisions. The tax benefits related to future utilization of federal and state net operating losses, tax credit carryforwards, and other deferred tax assets may be limited or lost if cumulative changes in ownership exceeds 50% within any three-year period. Additional limitations on the use of these tax attributes could occur in the event of possible disputes arising in examinations from various taxing authorities.
There were no interest and penalties accrued for the three years ended December 31, 2024. We have assessed our tax positions taken and concluded there are no significant uncertain tax positions. We have no unrecognized tax benefits as of December 31, 2024 or 2023, that, if recognized, would affect the amount of income tax expense reported.
We file returns with the Internal Revenue Service and multiple state jurisdictions, which are subject to examination by the taxing authorities for years 2018 and later. The earlier tax years are subject to examination due to the utilization of net operating losses in recent tax years. None of our federal or state income tax returns are currently under examination by federal or state taxing authorities.
v3.25.0.1
Equity-Based Compensation
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Equity-Based Compensation
NOTE 13 — Equity-Based Compensation
Equity Awards
As of December 31, 2024, we had equity-based compensation awards outstanding consisting of time-based RSUs with three years service vesting periods. Awards currently outstanding vest under one of the following schedules:
•Approximately one-third installments on each first, second, and third anniversary of the vesting commencement date;
•50% each of the second and third anniversaries of the vesting commencement date; or
•100% vesting on the third anniversary of the vesting commencement date.
Restricted Stock Awards
RSA activity was as follows:
(in thousands, except per share amounts)Restricted Stock AwardsWeighted-average grant date fair value per share
Balance, December 31, 2023 1,283 $23.00 
Vested (1,283)23.00 
Balance, December 31, 2024 — $— 
Restricted Stock Units
RSU activity was as follows:
(in thousands, except per share amounts)Restricted Stock UnitsWeighted-average grant date fair value per share
Balance, December 31, 2023 648 $35.99 
New grants846 31.21 
Vested (119)42.57 
Forfeitures(164)33.21 
Balance, December 31, 20241,211 $32.38 
Total release date fair value of vested RSAs and RSUs for the three years ended December 31, 2024 are presented below:
Year Ended December 31,
(in thousands, except per share amounts)202420232022
Awards/unitsWA vest date fair valueAwards/unitsWA vest date fair valueAwards/unitsWA vest date fair value
RSAs$39,752 $30.99 $37,373 $27.36 $69,604 $52.22 
RSUs3,825 32.25 6,185 27.16 10,627 51.59 
Equity-Based Compensation
Equity-based compensation expense is recognized on a straight-line basis and is included in our consolidated statements of operations as follows:
Year Ended December 31,
(in thousands)202420232022
Cost of sales$887 $— $— 
Selling, general, and administrative expenses10,595 39,222 41,657 
Total stock-based compensation expense
$11,482 $39,222 $41,657 
As of December 31, 2024, total unrecognized stock-based compensation related to unvested RSUs was $23.2 million, which will be recognized as follows:
(in thousands)
2025 $12,403 
2026 8,751 
2027 2,044 
2028 — 
2029— 
Thereafter — 
Total unrecognized stock-based compensation$23,198 
v3.25.0.1
Employee Benefit Plans
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Employee Benefit Plans
NOTE 14 — Employee Benefit Plans
Our 401(k) plan covers substantially all employees who meet certain requirements. Contributions to the 401(k) plan are determined by each participant by means of an elective compensation deferral, subject to annual limits. We match 100% of employee contributions, up to 4% of eligible compensation. The total employer matching contributions to the 401(k) plan recognized in our consolidated statements of operations were as follows:
Year Ended December 31,
(in thousands)202420232022
Selling, general, and administrative expenses$2,971 $2,341 $1,680 
v3.25.0.1
Non-Controlling Interests
 12 Months Ended
Dec. 31, 2024
Noncontrolling Interest [Abstract]  
Non-Controlling Interests
NOTE 15 — 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. We report a non-controlling interest representing the economic interest in the Dutch Bros OpCo held by the other members of Dutch Bros OpCo. The OpCo LLC Agreement 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 their 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 OpCo¹:
December 31, 2024
(in thousands)OpCo UnitsOwnership %
Dutch Bros OpCo Class A common units held by Dutch Bros Inc.
115,432 65.1 %
Dutch Bros OpCo Class A common units held by non-controlling interest holders61,772 34.9 %
Total Dutch Bros OpCo Class A common units outstanding177,204 100.0 %
_______________
1 Dutch Bros OpCo effected a recapitalization on February 7, 2025. Refer to NOTE 20 — Subsequent Events for additional information.
The following table summarizes the effect of changes in ownership of Dutch Bros OpCo on our equity for the periods presented:
(in thousands)Year Ended December 31,
202420232022
Net income (loss) attributable to Dutch Bros Inc.$35,258 $1,718 $(4,753)
Other comprehensive income (loss):
Unrealized gain (loss) on derivative securities, effective portion, net of income tax impacts
84 (269)813 
Transfers from (to) non-controlling interests:
Decrease in accumulated deficit as a result of the adoption of ASC 842— — 122 
Increase in additional paid-in capital as a result of equity-based compensation6,980 15,177 13,743 
Increase (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
1,743 (661)(1,145)
Increase (decrease) in additional paid-in capital as a result of the acquisition of Dutch Bros OpCo Class A common units
115,989 (158,152)9,410 
Total effect of changes in ownership interest on equity attributable to Dutch Bros Inc.$160,054 $(142,187)$18,190 
The weighted-average ownership percentage for the applicable reporting period is used to attribute net income 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:
Year Ended December 31,
202420232022
Weighted-average ownership percentage of non-controlling interest holders
41.6 %62.8 %67.8%
Under the OpCo LLC Agreement, Dutch Bros OpCo is required to make certain distributions to its members with regard to tax obligations. Such distributions paid to members were as follows for the periods presented, and no amounts were payable as of the periods then ended.
 
Year Ended December 31,
(in thousands)202420232022
Amounts paid to non-controlling interest holders
$1,888 $— $— 
v3.25.0.1
Income (Loss) Per Share
 12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Income (Loss) Per Share
NOTE 16 — 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 common stock for the periods presented:
Year Ended December 31,
(in thousands)202420232022
Numerator:
Net income (loss)$66,450 $9,952 $(19,253)
Less: Net income (loss) attributable to non-controlling interests
31,192 8,234 (14,500)
Net income (loss) attributable to Dutch Bros Inc.
$35,258 $1,718 $(4,753)
Year Ended December 31,
(in thousands, except per share amounts)202420232022
Basic net income (loss) per share attributable to common stockholders
Numerator:
Net income (loss) attributable to Dutch Bros Inc.
$35,258 $1,718 $(4,753)
Denominator:
Weighted-average number of shares of Class A and Class D common stock outstanding - basic ¹
103,504 62,074 51,871 
Basic net income (loss) per share attributable to common stockholders ¹
$0.34 $0.03 $(0.09)
_______________
1 Class D common shares were included in net income per share and weighted-average number of shares calculations in periods prior to June 2024. As of June 2024, all Class D common shares were converted to Class A common shares.
Year Ended December 31,
(in thousands, except per share amounts)202420232022
Diluted net income (loss) per share attributable to common stockholders
Numerator:
Undistributed net income (loss) for basic computation
$35,258 $1,718 $(4,753)
Increase in net income attributable to common stockholders upon conversion of potentially dilutive instruments
110 — — 
Allocation of undistributed net income (loss)
$35,368 $1,718 $(4,753)
Denominator:
Number of shares used in basic computation103,504 62,074 51,871 
Add: weighted-average effect of dilutive securities
RSAs
12 — — 
RSUs
613 — — 
Weighted-average number of shares of Class A and Class D common stock outstanding used to calculate diluted net income (loss) per share ¹
104,129 62,074 51,871 
Diluted net income (loss) per share attributable to common stockholders ¹
$0.34 $0.03 $(0.09)
_______________
1 Class D common shares were included in net income per share and weighted-average number of shares calculations in periods prior to June 2024. As of June 2024, all Class D common shares were converted to Class A common shares.
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:
Year Ended December 31,
(in thousands)
202420232022
RSAs
— 1,283 2,667 
RSUs
90 648 583 
Total anti-dilutive securities90 1,931 3,250 
v3.25.0.1
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
NOTE 17 — Commitments and Contingencies
Purchase Obligations
We enter into fixed-price and price-to-be fixed green coffee purchase commitments. For both fixed-price and price-to-be fixed purchase commitments, we expect 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 for the normal purchases of green coffee and not for speculative purposes. We do not enter into futures contracts or other derivative instruments related to its green coffee purchase commitments.
Guarantees
We periodically provide guarantees to franchise partners for lease payments. Annually, we determine if a liability needs to be recorded related to these guarantees. As of December 31, 2024 and December 31, 2023, we had guaranteed approximately $8.2 million and $1.4 million, respectively, in franchise partners’ lease payments and have not established a liability for these guarantees as any liability arising from the guarantees is not material to the 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 November 3, 2023, plaintiff David Briggs filed a putative stockholder derivative lawsuit in the Delaware Court of Chancery (the Briggs Complaint). The Briggs Complaint named Dutch Bros Inc. as a nominal defendant and purported 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 putative class action lawsuit in the U.S. District Court for the Southern District of New York, captioned Douglas Rein, Individually and On Behalf of All Others Similarly Situated v. Dutch Bros, Inc. et al (Rein), which asserted 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. On June 24, 2024, the court in Rein granted the defendants’ motion to dismiss in its entirety, with prejudice, and the time for the lead plaintiff to file a notice of appeal of the court’s dismissal has elapsed.
The Briggs Complaint primarily sought 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 9, 2024, the parties provided the court notice of the motion to dismiss ruling in Rein. On August 20, 2024, the parties filed, and the court entered, a stipulation and proposed order dismissing the case.
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 December 31, 2024, Dutch Bros Inc. recognized $627.8 million of liabilities related to its obligations under the TRAs.
v3.25.0.1
Related Party Transactions
 12 Months Ended
Dec. 31, 2024
Related Party Transactions [Abstract]  
Related Party Transactions
NOTE 18 — Related Party Transactions
During the year ended December 31, 2024, we sold our airplane, hangar, and related equipment to our Co-Founder for approximately $9.5 million. The transactions resulted in total gains of approximately $1.3 million, reflected in the “Other income, net” line item of our consolidated statements of operations.
The Dutch Bros Foundation is a not-for-profit organization founded by our company that provides philanthropy to coffee farmers and local communities. Our Co-Founder, Vice Chair, and Chief Legal Officer serve on the board of directors, and our Vice Chair serves as the President. Donations to the Foundation were as follows:
Year Ended December 31,
(in thousands)202420232022
Donations to Dutch Bros Foundation$4,250 $250 $5,149 
v3.25.0.1
Segment Reporting
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Reporting
NOTE 19 — Segment Reporting
Segment information is prepared on the same basis that our CEO, who is the CODM, manages the segments, evaluates financial results and makes key operating decisions. Our CEO evaluates financial performance based on two operating segments, which offer distinct products and services to different customers: Company-operated shops and Franchising and other. The Company-operated shops segment includes retail coffee shop sales to end consumers. The Franchising and other segment includes bean and product sales to franchise partners, initial franchise fees, royalties, and marketing fees related to the franchise partners, as well as sales of products through our website.
The accounting policies applied to company-operated shops and franchising and other segments are the same as described in the Significant Accounting Policies section of NOTE 2 — Basis of Presentation and Summary of Significant Accounting Policies.
The CODM reviews segment performance and allocates resources based upon segment contribution, which is defined as segment gross profit before depreciation and amortization. Segment contribution is used to monitor and assess segment results compared to prior periods, forecasted results, and our annual operating plan.
All segment revenue is earned in the United States. All intercompany sales amongst the Dutch Bros entities are fully eliminated in consolidation. Further, there are no intersegment revenues. The CODM does not evaluate operating segments using discrete asset information.
Selling, general and administrative expenses primarily consist of 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 our segments during the year ended December 31, 2024. In addition, no customer represented 10% or more of total revenue for the three years ended December 31, 2024, 2023, and 2022.
Financial information for our reportable segments was as follows for the periods presented:
 Year Ended December 31,
(in thousands)20242023 2022
Revenues
Company-operated shops$1,165,830 $857,939 $639,710 
Franchising and other115,185 107,837 99,302 
Total revenues1,281,015 965,776 739,012 
Cost of sales
Company-operated shops
Beverage, food & packaging296,752 230,133 171,864 
Labor costs315,805 230,505 182,861 
Occupancy & other costs191,372 140,895 109,366 
Pre-opening costs15,133 14,083 17,986 
Franchising and other30,100 31,378 34,007 
Segment cost of sales1
849,162 646,994 516,084 
Segment contribution
Company-operated shops346,768 242,323 157,633 
Franchising and other85,085 76,459 65,295 
Total segment contribution$431,853 $318,782 $222,928 
Segment depreciation and amortization
(91,724)(67,486)(42,012)
Selling, general and administrative(234,036)(205,074)(183,528)
Interest expense, net(27,020)(32,321)(18,018)
Other income, net
5,812 3,018 3,976 
Income (loss) before income taxes
$84,885 $16,919 $(16,654)
__________________
1 Segment cost of sales for this presentation excludes impact of depreciation and amortization.
v3.25.0.1
Subsequent Events
 12 Months Ended
Dec. 31, 2024
Subsequent Events [Abstract]  
Subsequent Events
NOTE 20 — Subsequent Events
Credit Facility
On February 4, 2025, we drew the remaining $50 million on our delayed draw term loan facility under the 2022 Credit Facility before this portion was set to expire on February 4, 2025. We expect to use the funds for general corporate purposes, including, but not limited to, building new shops.
Dutch Bros OpCo Recapitalization
From time to time, Dutch Bros Inc. receives cash distributions from Dutch Bros OpCo pursuant to the OpCo LLC Agreement. Dutch Bros Inc. may then loan any cash in excess of its liabilities back to Dutch Bros OpCo for operations, under the open-ended balance Subordinated Intercompany Note, between Dutch Bros OpCo and Dutch Bros Inc., dated February 28, 2022 (the Intercompany Note).
On February 7, 2025, Dutch Bros Inc. entered into a subscription agreement with Dutch Bros OpCo, pursuant to which Dutch Bros OpCo issued 51,942 newly authorized Dutch Bros OpCo Class A common units to Dutch Bros Inc. in exchange for satisfaction of the outstanding balance of the Intercompany Note, which at that time was approximately $3.5 million.
In accordance with the OpCo LLC Agreement, all outstanding Dutch Bros OpCo Class A common units were then recapitalized through a reverse unit split (the Reverse Split) in order to maintain a one-to-one ratio between the number of Dutch Bros OpCo Class A common units owned by Dutch Bros Inc. and the number of outstanding shares of Class A common stock. Consequently, 15,734 outstanding shares of Class B common stock, and 1,220 outstanding shares of Class C common stock, that were paired with Dutch Bros OpCo Class A common units eliminated as a result of the Reverse Split, were cancelled.
The following tables reflect the changes in Dutch Bros OpCo ownership interest and Dutch Bros Inc.’s outstanding classes of common stock as a result of the Reverse Split on a pro forma basis as if they had occurred as of December 31, 2024:
Dutch Bros OpCo
December 31, 2024
Capital Contribution
Pre-Split
Reverse Split
Post Reverse Split
(in thousands)OpCo Units%OpCo UnitsOpCo UnitsOpCo UnitsOpCo Units%
Dutch Bros OpCo Class A common units held by Dutch Bros Inc.115,432 65.1 %52 115,484 (52)115,432 65.2 %
Dutch Bros OpCo Class A common units held by non-controlling interest holders61,772 34.9 %— 61,772 (27)61,745 34.8 %
Total Dutch Bros OpCo Class A common units outstanding177,204 100.0 %52 177,256 (79)177,177 100.0 %
Dutch Bros Inc.
(in thousands)December 31, 2024Reverse Split
Post Reverse Split
Class A common shares115,432 — 115,432 
Class B common shares35,227 (16)35,211 
Class C common shares3,545 (1)3,544 
Total Dutch Bros Inc. common shares outstanding154,204 (17)154,187 
v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Pay vs Performance Disclosure      
Undistributed net income (loss) for basic computation $ 35,258 $ 1,718 $ (4,753)
v3.25.0.1
Insider Trading Arrangements
 3 Months Ended 12 Months Ended
Dec. 31, 2024
shares
Dec. 31, 2024
shares
Trading Arrangements, by Individual    
Non-Rule 10b5-1 Arrangement Adopted false  
Rule 10b5-1 Arrangement Terminated false  
Non-Rule 10b5-1 Arrangement Terminated false  
Entities Controlled by Our Co-Founder [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement  
On November 22, 2024, entities controlled by Travis Boersma, our Co-Founder and Executive Chairman, adopted a Rule 10b5-1 trading arrangement (the Trading Plan), providing for the sale of up to 10,000,000 shares of our Class A common stock upon the exchange of Dutch Bros OpCo Class A common units pursuant to the terms of the OpCo LLC Agreement. The Trading Plan’s expiration date is February 21, 2026. The Trading Plan is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act.
Name entities controlled by Travis Boersma  
Title Co-Founder and Executive Chairman,  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date November 22, 2024  
Expiration Date February 21, 2026  
Arrangement Duration 456 days  
Aggregate Available 10,000,000 10,000,000
v3.25.0.1
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
We rely on information technology networks and systems and data processing to manage a variety of business processes and activities, including, without limitation, to process customer payments and conduct our marketing efforts. We have implemented and maintain various information security processes designed to identify, assess, and manage material risks from cybersecurity threats to our critical computer networks, third party hosted services, communications systems, hardware and software, and our critical data, including intellectual property, confidential information that is proprietary, strategic, or competitive in nature, and customer data.
We utilize certain third-party service providers to perform a variety of functions, such as outsourcing certain business critical functions, augmenting staff for after-hours support, help tracking chain of custody for physical PCI devices for our shops, providing applications, hosting our systems, distributing our products, property management, providing cloud-based infrastructure, data center facilities, encryption and authentication technology, supporting corporate productivity services, and other functions. Depending on the nature of the services provided, the sensitivity and quantity of information processed, and the identity of the service provider, for certain service providers, our vendor management process includes reviewing the cybersecurity practices of certain providers, contractually imposing obligations on certain providers related to the services they provide and/or the information they process, conducting security vulnerability assessments, requiring providers to complete written questionnaires regarding their services and data handling practices, conducting periodic re-assessments during their engagement, using a third party vendor management security company to provide certain ongoing monitoring, or annually collecting certain information security-related compliance documentation and reports.
Risks from cybersecurity threats are among those that we address in the Company’s general risk management program. As part of our overall risk management processes, the Company maintains various policies related to information security, including, for example, an Incident Response Policy and a Cybersecurity Incident Reporting Policy. We identify cybersecurity threats as part of our risk management processes, including (depending on the environment or systems) through internal monitoring, monitoring the threat environment using manual and automated tools, subscribing to reports and services that identify cybersecurity threats, analyzing reports of threats and actors, conducting scans of the threat environments, evaluating our and our industry’s risk profile, evaluating threats reported to us, conducting threat assessments for internal and external threats, and conducting security vulnerability assessments to identify vulnerabilities. Our information technology team is responsible for identifying, assessing, and managing the Company’s cybersecurity threats and risks under the oversight of our Chief Technology and Information Officer. This team works with third parties from time to time to help identify, assess, and manage cybersecurity risks, including professional services firms and other vendors.
Based on our assessment process, we implement and maintain various technical, physical, and organizational measures designed to manage and mitigate cybersecurity risks and potential material impacts. Depending on the environment or systems, we implement measures designed to prevent, detect, respond to, mitigate, and recover from identified and significant cybersecurity threats. The risk management and reduction measures we implement for certain of our environments or systems include: policies and procedures designed to address cybersecurity threats, including an incident response policy, acceptable use policy, and vulnerability management policy; internal and/or external security audit assessments of select environments to assess our exposure to cybersecurity threats, compliance with risk mitigation procedures, and the effectiveness of relevant controls; documented risk assessments; encryption of certain data; network security controls in certain systems; physical and electronic access controls in certain environments; asset management, tracking and disposal; systems monitoring of certain systems; employee security training; penetration testing of certain environments; maintaining cyber insurance; and a dedicated cybersecurity leader.
Our business, results of operations, financial condition, or reputation could be materially affected as a result of certain risks from cybersecurity threats, including for example, due to: the cost of and modification of business activities and implementation of security measures; system failure, data loss, fraud or theft; disruptions, including in operations; delays in remediation of high risk or critical vulnerabilities; costs of notices and other disclosures that may be required by applicable data privacy and security obligations; or our inability to recover such costs under insurance policies or contractual rights. See "Risks Related to Our Business" in Item 1A, Risk Factors for more information and a description of the risks from cybersecurity threats that materially affect the Company.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] We have implemented and maintain various information security processes designed to identify, assess, and manage material risks from cybersecurity threats to our critical computer networks, third party hosted services, communications systems, hardware and software, and our critical data, including intellectual property, confidential information that is proprietary, strategic, or competitive in nature, and customer data.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block] The Audit and Risk Committee of the board of directors is responsible for oversight of the Company’s processes and policies for enterprise risk identification, management, and assessment, including certain risks around data privacy, technology, and information security.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] The Audit and Risk Committee of the board of directors is responsible for oversight of the Company’s processes and policies for enterprise risk identification, management, and assessment, including certain risks around data privacy, technology, and information security.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]
Our cybersecurity incident response processes are designed to escalate certain cybersecurity incidents to members of management depending on the circumstances, including reporting certain incidents to a cross-functional group responsible for making ongoing assessments of reported incidents. This group is led by our Chief Legal Officer and Chief Technology and Information Officer, and includes members of our standing Disclosure Committee. The Chief Legal Officer is responsible for informing the Audit and Risk Committee regarding certain significant cybersecurity threats and risks, and meets with the Audit and Risk Committee periodically or at special meetings to review and discuss issues. Additionally, our Chief Legal Officer oversees an annual enterprise risk assessment that addresses certain applicable cybersecurity risks, the results of which are presented to the Audit and Risk Committee. We also engage a third party consulting firm to assist with our annual enterprise risk assessment. Our Chief Legal Officer works with the Board, senior management, others at various levels of the organization, and our outside advisors to help identify, assess, and validate the Company’s top risks, taking into account past risk mitigation activities and future plans. Under our Cybersecurity Incident Reporting Policy, the Chief Legal Officer is also responsible for communicating to the Audit and Risk Committee the activities of the Company related to the assessments and reporting of potentially significant cybersecurity incidents.
Cybersecurity Risk Role of Management [Text Block]
The Audit and Risk Committee of the board of directors is responsible for oversight of the Company’s processes and policies for enterprise risk identification, management, and assessment, including certain risks around data privacy, technology, and information security. Our cybersecurity risk assessment and management processes are implemented and maintained by certain Company management, including our Chief Technology and Information Officer, Venki Krishnababu, who has over 30 years of experience in the information technology field. Prior to serving the Company, Mr. Krishnababu served in various information technology roles, most recently as Chief Technology Officer, at lululemon athletica inc. (NASDAQ: LULU), and prior to that as Chief Technology Officer at Premera Blue Cross.
Our Chief Technology and Information Officer is responsible for hiring appropriate personnel, helping to integrate cybersecurity risk considerations into the Company’s overall risk management strategy, and communicating key priorities to relevant personnel. Our Chief Technology and Information Officer and his team are responsible for approving budgets, helping prepare for cybersecurity incidents, approving cybersecurity processes, and reviewing security assessments and other security-related reports.
Our cybersecurity incident response processes are designed to escalate certain cybersecurity incidents to members of management depending on the circumstances, including reporting certain incidents to a cross-functional group responsible for making ongoing assessments of reported incidents. This group is led by our Chief Legal Officer and Chief Technology and Information Officer, and includes members of our standing Disclosure Committee. The Chief Legal Officer is responsible for informing the Audit and Risk Committee regarding certain significant cybersecurity threats and risks, and meets with the Audit and Risk Committee periodically or at special meetings to review and discuss issues. Additionally, our Chief Legal Officer oversees an annual enterprise risk assessment that addresses certain applicable cybersecurity risks, the results of which are presented to the Audit and Risk Committee. We also engage a third party consulting firm to assist with our annual enterprise risk assessment. Our Chief Legal Officer works with the Board, senior management, others at various levels of the organization, and our outside advisors to help identify, assess, and validate the Company’s top risks, taking into account past risk mitigation activities and future plans. Under our Cybersecurity Incident Reporting Policy, the Chief Legal Officer is also responsible for communicating to the Audit and Risk Committee the activities of the Company related to the assessments and reporting of potentially significant cybersecurity incidents.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Our cybersecurity risk assessment and management processes are implemented and maintained by certain Company management, including our Chief Technology and Information Officer, Venki Krishnababu, who has over 30 years of experience in the information technology field. Prior to serving the Company, Mr. Krishnababu served in various information technology roles, most recently as Chief Technology Officer, at lululemon athletica inc. (NASDAQ: LULU), and prior to that as Chief Technology Officer at Premera Blue Cross.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] who has over 30 years of experience in the information technology field. Prior to serving the Company, Mr. Krishnababu served in various information technology roles, most recently as Chief Technology Officer, at lululemon athletica inc. (NASDAQ: LULU), and prior to that as Chief Technology Officer at Premera Blue Cross.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]
Our cybersecurity incident response processes are designed to escalate certain cybersecurity incidents to members of management depending on the circumstances, including reporting certain incidents to a cross-functional group responsible for making ongoing assessments of reported incidents. This group is led by our Chief Legal Officer and Chief Technology and Information Officer, and includes members of our standing Disclosure Committee. The Chief Legal Officer is responsible for informing the Audit and Risk Committee regarding certain significant cybersecurity threats and risks, and meets with the Audit and Risk Committee periodically or at special meetings to review and discuss issues. Additionally, our Chief Legal Officer oversees an annual enterprise risk assessment that addresses certain applicable cybersecurity risks, the results of which are presented to the Audit and Risk Committee. We also engage a third party consulting firm to assist with our annual enterprise risk assessment. Our Chief Legal Officer works with the Board, senior management, others at various levels of the organization, and our outside advisors to help identify, assess, and validate the Company’s top risks, taking into account past risk mitigation activities and future plans. Under our Cybersecurity Incident Reporting Policy, the Chief Legal Officer is also responsible for communicating to the Audit and Risk Committee the activities of the Company related to the assessments and reporting of potentially significant cybersecurity incidents.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
Basis of Presentation and Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Financial Statements Presentation
Financial Statements Presentation
Our consolidated financial statements as of December 31, 2024 and for the three years then ended have been prepared in accordance with GAAP and pursuant to the rules and regulations of the SEC
Principles of Consolidation
Principles of Consolidation
The consolidated financial statements include the accounts of our Company and subsidiaries that we control due to ownership of a majority voting interest or pursuant to accounting guidance for non-controlling interests. All intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates
Use of Estimates
The presentation of consolidated financial statements in conformity with GAAP requires that we make estimates and assumptions, primarily related to long-lived asset valuation, leases, deferred revenue, tax receivable agreements, income taxes, and equity-based compensation that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Although we base our estimates on historical experience and assumptions that are believed to be reasonable under the circumstances, actual results could differ from those estimates.
Cash and Cash Equivalents
Cash and Cash Equivalents
Cash and cash equivalents include all short-term highly liquid instruments with original maturities of three months or less at the time of purchase, as well as credit card receivables for sales to customers in company-operated shops that generally settle within two to five business days. Our cash accounts are maintained at various high credit quality financial institutions and may exceed federally insured limits. We have not experienced any losses in such accounts.
Fair Value Measurements
Fair Value Measurements
We apply fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in our consolidated financial statements. We categorize assets and liabilities, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy as set forth below. The three levels of the hierarchy are defined as follows:
Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2 – Observable inputs other than quoted prices in active markets for identical assets or liabilities, quoted prices for identical assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 – Inputs that are both unobservable and significant to the overall fair value measurements reflecting an entity's estimates of assumptions that market participants would use in pricing the asset or liability.
Our consolidated balance sheets include cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses and other current liabilities, for which the carrying amounts approximate fair value due to their short-term maturity. The fair value of our variable-rate credit facilities approximate their carrying amounts as the cost of borrowing is variable and approximates current market prices, which is considered Level 2 in the fair value hierarchy.
Derivative Instruments
Derivative Instruments
We manage exposure to fluctuations in interest rates within our consolidated financial statements according to a hedging policy. Under this policy, we may from time to time enter into interest rate swap agreements to fix a portion of interest expense and hedge interest rate risk. A swap agreement is a contract between two parties to exchange cash flows based on specified underlying notional amounts, assets and/or indices. We do not enter into derivative instruments for speculative purposes or for any other purpose other than to manage its risks related to fluctuations in interest rates.
By using swap instruments, we are exposed to potential credit risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. We minimize this credit risk by entering into transactions with carefully selected, credit-worthy counterparties.
Cash Flow Hedges
Cash flow hedges related to anticipated transactions are designated and documented at the inception of each hedge. Cash flows from hedging transactions are classified in the same categories as the cash flows from the respective hedged items.
For derivative instruments that are designated and qualify as a cash flow hedge, the derivative's gain or loss is reported as a component of other comprehensive income and recorded in accumulated other comprehensive income on the Company’s consolidated balance sheets. The gain or loss is subsequently reclassified into net earnings when the hedged exposure affects net earnings, in the same line item as the underlying hedged item on our consolidated statements of operations.
We may discontinue hedge accounting when:
•it is determined that the cash flow derivative is no longer effective in offsetting changes in the cash flows of a hedged item;
•the derivative expires or is sold, terminated or exercised;
•it is no longer probable that the forecasted transaction will occur; or
•management determines that designation of the derivatives as a hedge instrument is no longer appropriate.
Accounts Receivable
Accounts Receivable
Accounts receivable, net of allowance for credit losses, consist primarily of royalty revenues, outstanding balances for sales of roasted coffee beans, Dutch Bros Rebel, other retail-related supplies to franchisees, and vendor rebates. The allowance for credit losses is estimated based on our historical losses adjusted for current, reasonable and supportable forecasts of economic conditions and other pertinent factors affecting our customers, including review of specific accounts, financial stability and credit worthiness. Accounts receivable are charged off against the allowance for credit losses when the financial condition of our customers is adversely affected and they are unable to meet their financial obligations.
Inventories
Inventories
Inventories, net consist primarily of roasted and unroasted coffee beans, Dutch Bros Rebel, and other retail related supplies. Inventories are stated at the lower of cost or net realizable value, with cost being determined on a first-in, first-out basis. We record product returns as they are received, and obsolete and slow-moving inventory when identified, as these types of transactions have generally been immaterial to our historical operations.
Property and Equipment
Property and Equipment
Property and equipment, net are stated at historical cost less accumulated depreciation. Expenditures for maintenance, repairs, and routine replacements are charged to expense as incurred. Expenditures for major repairs and improvements that extend the useful lives of property and equipment are capitalized. When property or equipment is sold or otherwise disposed of, the asset and related accumulated depreciation are removed from the balance sheet and any gain or loss is included in income (loss) from operations in the accompanying consolidated statements of operations. Depreciation is computed on a straight-line basis over the following useful lives:
(in years)
Estimated Useful Life
Software
3
Equipment and fixtures
3 - 7
Leasehold improvements
5 - 15 1
Buildings
10 - 39
_________________
1    Lesser of lease term or useful life
We capitalize costs associated with the acquisition or development of major software for internal use and amortize the assets over the expected life of the software, generally 3 years. We only capitalize subsequent additions, modifications, or upgrades to internal-use software to the extent that such changes allow the software to perform a task it previously did not perform.
Leases
Leases
We lease our company-operated shops, warehouse facilities, headquarters buildings, and certain equipment under non-cancelable lease agreements that expire on various dates through 2048. Our real estate leases consist of build-to-suit and commercial ground leases with typical initial terms of 15 or 20 years, respectively and include one to three renewal periods of five-years each. Renewals are included in the lease term when it is reasonably certain that the renewal period will be exercised. We recognize a right-of-use asset and lease liability for each lease with a contractual term of greater than 12 months at lease inception, and have elected not to recognize leases with terms of 12 months or less.
We calculate right-of-use assets and lease liabilities based on the present value of the fixed minimum lease payments, including any estimated lease incentives, at lease commencement using an estimated incremental borrowing rate corresponding to the lease term and applied on a portfolio basis. We’ve elected not to separate lease and non-lease components on real estate leases.
Lease classification is determined as operating or finance at lease commencement, and expense recognition occurs over the lease term from the date we take possession of the property. For operating leases, expense is recognized on a straight-line basis; for finance leases, expense is recognized on an accelerated basis. We record lease expense in cost of sales on our consolidated statements of operations. Variable lease costs are expensed as incurred and recognized in cost of sales on the consolidated statements of operations.
From time to time we may have sale and leaseback transactions that do not qualify for sale-leaseback accounting because of our deemed continuing involvement, which results in the transaction being recorded under the financing method. These financing obligations are included in long-term debt on our consolidated balance sheets.
Business Combinations
Business Combinations
Historically, our business combination activity has been related to reacquiring franchises. We account for the acquisition of reacquired franchises using the acquisition method of accounting for business combinations. We allocate the purchase price paid for acquired assets and liabilities in connection with an acquisition based on the estimated fair value at the time of acquisition. This allocation involves a number of assumptions, estimates, and judgments in determining the fair value of the following:
•Intangible assets, including valuation methodology, estimations of future cash flows, discount rates, market segment growth rates, assumed market share, and estimated useful life;
•Deferred tax assets and liabilities, uncertain tax positions, and tax-related valuation allowances estimate; and
•Other assets and liabilities, and contingent consideration, as applicable.
Fair value measurements for reacquired franchise rights and property and equipment were determined using the income approach and cost approach, respectively. The fair value measurement of acquired assets and liabilities as of the acquisition date is based on significant inputs not observed in the market, and as such, represents a Level 3 fair value measurement.
Goodwill is measured as the excess of the purchase price paid over the net of the acquisition date fair values of assets acquired and liabilities assumed. Goodwill associated with the acquisition of reacquired franchises is allocated to the company-operated shops reportable segment and is expected to be fully deductible for tax purposes.
Goodwill
Goodwill
Recoverability of goodwill is reviewed by reporting unit at least annually, as of the beginning of our fourth fiscal quarter, and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The annual impairment test includes an option to perform a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying value; the qualitative test may be performed prior to, or as an alternative to, performing a quantitative goodwill impairment test. If, after assessing the totality of events or circumstances, it is determined that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying value, we are required to perform the quantitative goodwill impairment test. Otherwise, no further analysis is required. We performed the annual qualitative impairment assessments for each of the three years in the period ended December 31, 2024, and no impairment charges were recognized, nor were there any accumulated impairment losses.
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets
Long-lived assets are reviewed for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. The assessment of recoverability of property and equipment and finite-lived intangible assets is performed at the component level, which is generally an individual shop, and requires judgment and an estimate of future undiscounted shop-generated cash flows. Estimates of fair values are based on the best information available and require the use of estimates, judgments, and projections. We test for recoverability by comparing the carrying value of the asset to the undiscounted cash flows. If the carrying value is not recoverable, we would recognize an impairment loss if the carrying value of the asset exceeds the fair value. We performed an annual assessment in the fourth quarter of 2024, which indicated no changes in circumstances or triggering events for impairment.
Revenue Recognition
Revenue Recognition
Consolidated revenues are recognized net of any discounts, returns, allowances and sales incentives.
Company-operated Shops Revenue
Retail sales from company-operated shops are recognized at the point in time when the products are sold to the customers. We report revenues net of sales taxes collected from customers and remitted to government taxing authorities.
Loyalty Program
Dutch Pass, our digital loyalty program accessible via mobile app, provides the following key opportunities for customers:
•Collect points based on purchases
•Convert points to rewards
•Redeem rewards for free drinks
•Share free drink rewards with other app users
•Receive birthday and other promotional awards
•Mobile ordering
•Digital gift cards
Points earned and not redeemed for rewards within 180 days automatically expire, and rewards that are not used within 180 days of issuance automatically expire. Separately, birthday and other promotional awards generally automatically expire after 30 days, depending on the specific award.
We defer revenue based on the estimated value of beverages for which the points, rewards, and awards are expected to be redeemed. Based on historical expiration rates, a portion of points, rewards, and awards are not expected to be redeemed and are recognized as breakage.
Gift Card Program
We maintain a contract liability for physical and digital gift cards sold, recognizing revenue when a gift card is redeemed. Gift cards do not have an expiration date or a service fee causing a decrement to the customer balance. Based on historical redemptions rates, a portion of gift cards are not expected to be redeemed and are recognized as breakage. The Company’s breakage income is not material.
Franchising Revenue
Franchise royalty fees are generally computed as a percentage of net franchise sales and are charged for continuing support of franchisees for various services provided by us. These services are highly interrelated, and as such are accounted for as a single performance obligation.
Separately, we receive marketing fees from franchisees for promotion of the Dutch Bros brand. Contributions are based on a percentage of shop sales and marketing expenditures include payments to third parties and other costs. We determined our advertising and promotion management services do not represent individually distinct performance obligations and are included in the franchise performance obligation.
Initial and other deferred franchise fees are recorded as a contract liability, and revenue is recognized ratably over the term of the franchise agreement, which is generally ten years.
Other franchising revenue, including coffee bean sales, Dutch Bros Rebel energy drink sales, and other sales, are recognized when shipped.
Other Revenue
Other revenue includes retail coffee and other food and beverage sales, recognized at the date of sale, as well as sales of products through our website, recognized at the point in time of shipment to customers.
Deferred Revenue
Deferred revenue primarily consists of the unredeemed gift card liability and unredeemed points/rewards from our Dutch Rewards loyalty program. Deferred revenue also includes bean and beverage sales to distributors where the performance obligation has not yet been satisfied as control has not transferred to the customer.
Store Pre-opening Expenses
Shop Pre-opening Expenses
Pre-opening expenses incurred with the opening of new company-operated shops are expensed as incurred. These costs include rent expense, wages, benefits, travel and lodging for the training and opening management teams, and beverage and other operating expenses incurred prior to a shop opening for business and are included in cost of sales.
Vendor Rebates
Vendor Rebates
We have food and beverage supply agreements with certain major vendors. Per the terms of these arrangements, vendor rebates are provided to us based on the dollar value of purchases for systemwide shops. These rebates are recognized as earned throughout the year and are recorded as accounts receivable and a reduction to cost of sales.
Advertising Expense
Advertising Expense
Advertising costs are expensed as incurred. Franchise shops contribute to an advertising fund that we manage on behalf of the shops. Under our standard franchise agreement, the contributions received must be spent on specific marketing-related activities. The expenditures are primarily amounts paid to third parties and other costs. If receipts exceed expenditures, the excess is recorded as an accrued liability.
Equity-based Compensation
Equity-based Compensation
The Company granted time-based RSAs to certain officers and employees in connection with the IPO, and RSUs to directors and certain employees. The RSAs and RSUs are accounted for as equity-classified awards, and are granted at the fair value of the underlying Class A common stock of Dutch Bros Inc. as of the grant date and vest over the requisite service period.
Vesting of all awards granted are subject to the grantee’s continued service at Dutch Bros through the applicable vesting date.
The cost of the RSAs and RSUs is recognized as expense over the grantee’s requisite service period, and forfeitures are accounted for as they occur. To date, the Company has not granted any performance-based awards.
During the year ended December 31, 2024, the RSAs were fully expensed and fully vested.
Tax Receivable Agreements
Tax Receivables Agreements
In connection with the IPO, the Company executed two TRAs which provide for payment by the Company to certain Dutch Bros OpCo owners of 85% of the benefits, if any, that the Company would be deemed to realize (calculated using certain assumptions) as a result of certain tax attributes and benefits covered by the TRAs.
The Company expects to obtain an increase in its share of the tax basis in the net assets of Dutch Bros OpCo when OpCo Units are exchanged by Pre-IPO Dutch Bros OpCo Unitholders. The Company treats any redemptions and exchanges of OpCo Units as direct purchases for U.S. federal income tax purposes. These increases in tax basis may reduce the amounts that it would otherwise pay in the future to various tax authorities. They may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets.
TRA-related liabilities are classified on the Company’s consolidated balance sheets as current or non-current assets based on the expected date of payment under the captions “Current portion of tax receivable agreements liability” and “Tax receivable agreements liability, net of current portion,” respectively.
Income Taxes
Income Taxes
The Company is a corporation and sole managing member of Dutch Bros OpCo which is treated as a partnership for tax purposes.

The Company records income tax provision, deferred tax assets, deferred tax liabilities, uncertain tax positions, and valuation allowance, as applicable, only for the items for which the Company is responsible to the relevant tax authority.
Deferred income taxes result from temporary differences between the financial reporting and tax basis of assets and liabilities, and are measured using the enacted tax rates and laws expected to be in effect when such differences are expected to reverse. These temporary differences are reflected as deferred income tax assets, net on the consolidated balance sheets. A deferred tax asset is recognized if it is more likely than not that a tax benefit will be realized.
The Company recognizes tax benefits from entity-level uncertain tax positions if it is more likely than not that the tax position will be sustained on examination by the tax authorities, based on technical merits of the position. The tax benefit is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement.
Income (Loss) Per Share
Income (Loss) Per Share
Basic income (loss) per share of Class A and Class D common stock is computed by dividing net income (loss) attributable to Dutch Bros Inc. by the weighted-average number of shares of Class A and Class D common stock outstanding during the period. Diluted income (loss) per share of Class A and Class D common stock is computed by dividing net income (loss) attributable to Dutch Bros Inc., adjusted for the assumed exchange of all potentially dilutive instruments for Class A common stock, by the weighted-average number of shares of Class A and Class D common stock outstanding, adjusted to give effect to potentially dilutive elements. Share counts used in the diluted income (loss) per share calculations are adjusted for the deemed repurchases provided for in the treasury stock method for RSAs and RSUs, and under the if-converted method for the outstanding convertible Class B and Class C common stock, if dilutive.
As of June 2024, all Class D common shares were converted to Class A common shares.
Shares of the Company’s Class B and Class C common stock do not participate in the earnings or losses of the Company and are therefore not participating securities. As such, separate presentation of basic and diluted income (loss) per share of Class B and Class C common stock under the two-class method has not been presented.
Recently Issued Accounting Standards / Recently Adopted Accounting Standards
Recently Issued Accounting Standards
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this update are intended to 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 are effective for public business entities' annual periods beginning after December 15, 2024 and interim periods within fiscal years beginning after December 15, 2025, 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 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40). The intent of this ASU is to improve public entity financial footnote disclosures around types of expenses in commonly presented expense categories (i.e. cost of sales, SG&A, and research and development). The amendments in this ASU do not change or remove current expense disclosure requirements, but rather 1) impact where this information appears in the notes to the consolidated financial statements and 2) add additional disclosure requirements for certain expense line items appearing on the face of our consolidated statements of operations. ASU 2024-03, as amended, is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. We will assess potential impacts of this standard on our disclosures in future periods.
Recently Adopted Accounting Standards
In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this update are intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. Effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. Public entities should apply the amendments in this update retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. We have completed our analysis and identified significant segment expenses primarily related to segment cost of sales for disclosure in this 2024 Form 10-K. The new standard has not had a material impact on our consolidated financial statements; however, we have provided additional detail and disclosures under the new guidance in NOTE 19 — Segment Reporting.
v3.25.0.1
Basis of Presentation and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Schedule of Property and Equipment, Net
(in years)
Estimated Useful Life
Software
3
Equipment and fixtures
3 - 7
Leasehold improvements
5 - 15 1
Buildings
10 - 39
_________________
1    Lesser of lease term or useful life
Property and equipment, net consists of the following:
(in thousands)
Useful Life (Years)
December 31, 2024December 31, 2023
Software3$10,666 $7,212 
Equipment and fixtures3—7229,307 157,352 
Leasehold improvements5—1554,535 42,441 
Buildings10—39487,060 269,186 
LandN/A7,022 7,338 
Aircraft 1
N/A— 9,195 
Construction-in-progress 2
N/A
71,951 166,054 
Property and equipment, gross860,541 658,778 
Less: accumulated depreciation(176,570)(116,338)
Property and equipment, net$683,971 $542,440 
_______________
1     Airplane, and hangar and related equipment, were sold to our Co-Founder in 2024. See NOTE 18 — Related Party Transactions for additional information.
2    Construction-in-progress primarily consists of construction and equipment costs for new and existing shops and, for 2023, our new roasting facility in Texas.
Depreciation expense included in our consolidated statements of operations was as follows:
Year Ended December 31,
(in thousands)202420232022
Cost of sales$63,707 $42,807 $26,261 
Selling, general and administrative expenses1,229 1,634 2,705 
Total depreciation expense$64,936 $44,441 $28,966 
Schedule of Advertising Expense
Advertising expense is recorded in cost of sales and selling, general and administrative on our consolidated statements of operations, and was as follows for the periods presented:
Year Ended December 31,
(in thousands)202420232022
Cost of sales
$21,897 $18,946 $19,150 
Selling, general and administrative
17,313 10,953 13,177 
Total advertising expense
$39,210 $29,899 $32,327 
v3.25.0.1
Revenue Recognition (Tables)
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregates Revenue by Major Component
The following table disaggregates revenue by major component:
Year Ended December 31,
(in thousands)202420232022
Company-operated shops$1,165,830 $857,939 $639,710 
Franchising109,610 101,907 93,756 
Other5,575 5,930 5,546 
Total revenues$1,281,015 $965,776 $739,012 
Schedule of Deferred Revenue Activity
Deferred Revenue
Components of our deferred revenue liability are as follows:
Year Ended December 31,
(in thousands)20242023
Gift card and loyalty programs
$48,265 $34,616 
Initial unearned franchise fees
2,618 2,409 
Total deferred revenue
$50,883 $37,025 
Deferred revenue activity was as follows:
Year Ended December 31,
(in thousands)20242023
Beginning balance$37,025 $31,454 
Revenue deferred - gift card activations, loyalty app loads, and loyalty points and rewards earned419,107 362,482 
Revenue recognized - gift card, loyalty app, loyalty rewards redemptions, and breakage
(405,458)(354,770)
Other deferred revenue, net 1
209 (2,141)
Ending balance50,883 37,025 
Less: current portion(42,868)(30,349)
Deferred revenue, net of current portion$8,015 $6,676 
_______________
1     Other deferred revenue, net, includes activity related to initial unearned franchise fees, and in 2023 includes recognition of previously outstanding performance obligations.
Revenue recognized during each of the three years ended December 31, 2024 that was included in the respective deferred revenue liability balances at the beginning of the period are shown below.
Year Ended December 31,
(in thousands)202420232022
Gift card redemptions 1
$6,215 $5,149 $3,965 
Earned franchise fees450 454 507 
_____________________
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 December 31, 2024 is as follows:
(in thousands)
2025$430 
2026388 
2027343 
2028294 
2029249 
Thereafter914 
Total$2,618 
v3.25.0.1
Organization Realignment and Restructuring (Tables)
 12 Months Ended
Dec. 31, 2024
Restructuring and Related Activities [Abstract]  
Schedule of Restructuring Related Charges
During the year ended December 31, 2024, we recorded restructuring charges for employee-related and other costs in selling, general and administrative expenses on the consolidated statements of operations as follows:
(in thousands)Year Ended December 31, 2024
Relocation and travel costs
$11,403 
One-time termination benefits
4,146 
Total employee-related costs
15,549 
Building donation
1,811 
Duplicate rent
461 
Consulting
55 
Total other costs2,327 
Total restructuring costs incurred$17,876 
Schedule of Restructuring Liability The following table summarizes the activity for the restructuring liability during the year ended December 31, 2024:
(in thousands)Liability, December 31, 2023Charges
Cash Payments
Non-Cash
Liability, December 31, 2024
Relocation and travel costs
$— $11,403 $(10,705)$— $698 
One-time termination benefits
— 4,146 (2,118)— 2,028 
Total employee-related costs— 15,549 (12,823)— 2,726 
Duplicate rent
— 461 (461)— — 
Consulting
— 55 — — 55 
Building donation
— 1,811 — (1,811)— 
Total other costs
— 2,327 (461)(1,811)55 
Totals$— $17,876 $(13,284)$(1,811)$2,781 
v3.25.0.1
Inventories (Tables)
 12 Months Ended
Dec. 31, 2024
Inventory Disclosure [Abstract]  
Schedule of Inventories, Net
Inventories, net consist of the following:
(in thousands)December 31, 2024December 31, 2023
Raw materials$14,594 $28,523 
Finished goods21,894 18,430 
Total inventories$36,488 $46,953 
v3.25.0.1
Property and Equipment (Tables)
 12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment, Net
(in years)
Estimated Useful Life
Software
3
Equipment and fixtures
3 - 7
Leasehold improvements
5 - 15 1
Buildings
10 - 39
_________________
1    Lesser of lease term or useful life
Property and equipment, net consists of the following:
(in thousands)
Useful Life (Years)
December 31, 2024December 31, 2023
Software3$10,666 $7,212 
Equipment and fixtures3—7229,307 157,352 
Leasehold improvements5—1554,535 42,441 
Buildings10—39487,060 269,186 
LandN/A7,022 7,338 
Aircraft 1
N/A— 9,195 
Construction-in-progress 2
N/A
71,951 166,054 
Property and equipment, gross860,541 658,778 
Less: accumulated depreciation(176,570)(116,338)
Property and equipment, net$683,971 $542,440 
_______________
1     Airplane, and hangar and related equipment, were sold to our Co-Founder in 2024. See NOTE 18 — Related Party Transactions for additional information.
2    Construction-in-progress primarily consists of construction and equipment costs for new and existing shops and, for 2023, our new roasting facility in Texas.
Depreciation expense included in our consolidated statements of operations was as follows:
Year Ended December 31,
(in thousands)202420232022
Cost of sales$63,707 $42,807 $26,261 
Selling, general and administrative expenses1,229 1,634 2,705 
Total depreciation expense$64,936 $44,441 $28,966 
v3.25.0.1
Intangible Assets (Tables)
 12 Months Ended
Dec. 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)
December 31, 2024December 31, 2023
Reacquired franchise rights2.94$27,049 $27,049 
Less: accumulated amortization(24,102)(21,634)
Intangibles, net$2,947 $5,415 
Schedule of Intangible Assets Amortization Expense / Estimated Future Amortization Expense
Amortization expense included in our consolidated statements of operations was as follows:
Year Ended December 31,
(in thousands)202420232022
Cost of sales$2,468 $3,389 $4,034 
The estimated future amortization expense of the reacquired franchise rights as of December 31, 2024 is as follows:
(in thousands)
2025$1,435 
2026681 
2027383 
2028247 
2029153 
Thereafter48 
Total $2,947 
v3.25.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Schedule of Finance and Operation Lease Right-of-Use Assets and Lease Liabilities / Lease Terms and Discount Rates for Finance and Operating Leases
A summary of finance and operating lease right-of-use assets and lease liabilities as of December 31, 2024 and December 31, 2023 is as follows:
(in thousands)Balance Sheet ClassificationDecember 31, 2024December 31, 2023
Right-of-use assets
Finance leasesFinance lease right-of-use assets, net$374,623 $382,734 
Operating leasesOperating lease right-of-use assets, net315,256 199,673 
Total right-of-use assets$689,879 $582,407 
Lease liabilities
Finance leasesCurrent portion of finance lease liabilities$13,256 $9,482 
 Finance lease liabilities, net of current portion369,297 367,775 
Operating leasesCurrent portion of operating lease liabilities13,979 10,239 
 Operating lease liabilities, net of current portion309,311 191,419 
Total lease liabilities $705,843 $578,915 
A summary of lease terms and discount rates for finance and operating leases is as follows:
 December 31, 2024December 31, 2023
Weighted-average remaining lease term (years) 
Finance leases15.316.3
Operating leases15.514.7
  
Weighted-average discount rate (percentages) 
Finance leases6.0%5.9%
Operating leases5.9%4.9%
Schedule of Components of Lease Cost
The components of lease costs, excluding short-term lease costs and sublease income (both immaterial for the periods presented), were as follows:
Statements of Operations Classification
Year Ended December 31,
(in thousands)202420232022
Finance lease costs
Amortization of right-of-use assetsCost of sales$25,551 $21,290 $11,718 
Amortization of right-of-use assets
Selling, general, and administrative
50 15 10 
Interest on lease liabilitiesInterest expense22,053 17,516 9,263 
Total finance lease costs
47,654 38,821 20,991 
Operating lease costs
Lease expenses
Cost of sales28,703 19,385 16,428 
Lease expenses
Selling, general, and administrative
1,646 55 37 
Total operating lease costs
30,349 19,440 16,465 
  
Variable lease costs
Cost of sales6,874 5,216 3,979 
Total lease costs$84,877 $63,477 $41,435 
Schedule of Future Minimum Lease Payments for Financing Lease Liabilities
Future minimum lease payments for finance and operating lease liabilities as of December 31, 2024 are as follows:
(in thousands)FinanceOperating
2025$35,094 $20,644 
202635,201 31,570 
202735,959 31,722 
202837,074 31,357 
202938,000 32,127 
Thereafter413,822 366,879 
Total$595,150 $514,299 
Less: imputed interest(212,597)(191,009)
Present value of minimum lease payments382,553 323,290 
Less: current portion(13,256)(13,979)
Lease liabilities, net of current portion$369,297 $309,311 
Schedule of Future Minimum Lease Payments for Operating Lease Liabilities
Future minimum lease payments for finance and operating lease liabilities as of December 31, 2024 are as follows:
(in thousands)FinanceOperating
2025$35,094 $20,644 
202635,201 31,570 
202735,959 31,722 
202837,074 31,357 
202938,000 32,127 
Thereafter413,822 366,879 
Total$595,150 $514,299 
Less: imputed interest(212,597)(191,009)
Present value of minimum lease payments382,553 323,290 
Less: current portion(13,256)(13,979)
Lease liabilities, net of current portion$369,297 $309,311 
Schedule of Supplemental Cash Flow Information Regarding Leases
Supplemental cash flow information related to leases is as follows for the periods presented:
Year Ended December 31,
(in thousands)202420232022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases$22,053 $17,516 9,264 
Operating cash flows from operating leases22,127 17,167 16,269 
Financing cash flows from finance leases10,541 12,432 5,838 
Right-of-use assets obtained in exchange for lease obligations
Finance leases15,838 144,588 167,687 
Operating leases130,059 40,253 178,138 
v3.25.0.1
Debt (Tables)
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Schedule of Debt Instruments
Our long-term debt consisted of the following for the periods presented:
(in thousands)December 31, 2024December 31, 2023
Term loans under credit facility
$234,688 $95,625 
Finance obligations1
3,022 3,022 
Unsecured note payable299 415 
Total debt238,009 99,062 
Less: loan origination fees(943)(1,396)
Less: current portion(17,311)(4,491)
Total long-term debt, net of current portion$219,755 $93,175 
_______________
1    Represents failed sale-leaseback arrangements.
Schedule of Maturities of Long-Term Debt
Future annual maturities of long-term debt as of December 31, 2024 are as follows:
(in thousands)
2025 $17,311 
2026 32,943 
2027 184,733 
2028 — 
2029— 
Thereafter 3,022 
Total$238,009 
v3.25.0.1
Derivative Financial Instruments (Tables)
 12 Months Ended
Dec. 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 our consolidated financial statements was as follows:
(in thousands)
Balance Sheets Classification
December 31, 2024December 31, 2023
Derivative instrument designated as cash flow hedge
Interest rate swap contractPrepaid expenses and other current assets$953 $1,371 
Interest rate swap contractOther long-term assets832 837 
Total derivative instrument designated as cash flow hedge$1,785 $2,208 
Schedule of Derivatives Instruments Effect on Condensed Consolidated Statement of Operations
Year Ended December 31,
(in thousands)Financial Statements Classification202420232022
Derivative instrument designated as cash flow hedge
Income recognized in other comprehensive income before reclassifications
Statements of Comprehensive Income (Loss)
$1,661 $954 $2,966 
Reclassification from accumulated other comprehensive income to earnings for the effective portion
Statements of Operations - Interest expense, net
(1,745)(1,692)215 
Income tax benefit (expense)
Statements of Operations - Income tax expense
83 (10)(273)
v3.25.0.1
Tax Receivable Agreements (Tables)
 12 Months Ended
Dec. 31, 2024
Other Liabilities Disclosure [Abstract]  
Schedule of Changes related and projected future payments to the TRAs
The changes related to our TRAs liability were as follows:
(in thousands)December 31, 2024December 31, 2023
Beginning balance
$290,920 $220,923 
Additions (reductions) to TRAs:
Exchange of Dutch Bros OpCo Class A common units for Class A common stock341,161 72,635 
TRAs remeasurements 1
(4,247)(2,638)
Ending balance
$627,834 $290,920 
Less: current portion(71)— 
TRAs liability, net of current portion
$627,763 $290,920 
_________________
1 Impact primarily related to state tax rates and adjustments from previous estimates upon finalization of the tax attributes subject to the TRA.
v3.25.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Expense (Benefit)
Our income tax expense consisted of the following:
Year Ended December 31,
(in thousands)202420232022
Current tax provision
Federal$396 $193 $181 
State2,653 844 1,340 
Total current tax provision3,049 1,037 1,521 
Deferred tax expense (benefit)
Federal8,520 1,605 (6,081)
State6,866 4,325 7,159 
Total deferred tax provision15,386 5,930 1,078 
Income tax expense
$18,435 $6,967 $2,599 
Schedule of Effective Income Tax Rate Reconciliation
Our effective income tax rate differs from the U.S. federal statutory income tax rate as itemized below:
Year Ended December 31,
202420232022
U.S. federal statutory income tax rate21.0 %21.0 %21.0 %
Income allocable to non-controlling interests not subject to tax(8.5)6.3 (32.9)
State and local income taxes, net of federal benefit5.3 10.1 (9.5)
State rate adjustment5.9 17.5 (39.1)
Non-deductible compensation— 0.7 (2.0)
Tax credits(5.2)(12.9)10.1 
TRA adjustments0.4 0.2 4.4 
Return-to-provision adjustments0.6 (5.4)32.4 
Stock-based compensation
0.3 3.8 — 
Other2.1 0.4 — 
Valuation allowance(0.2)(0.5)— 
Effective income tax rate21.7 %41.2 %(15.6)%
Schedule of Components of Deferred Tax Assets
The components of our deferred tax assets are as follows:
(in thousands)December 31, 2024December 31, 2023
Deferred tax assets
Investment in Dutch Bros OpCo $638,110 $346,172 
Net operating loss carryforwards50,862 34,988 
Interest expense40,247 14,187 
Credit carryforwards9,399 4,991 
Charitable contribution carryforward1,505 1,546 
Other2,866 2,130 
Total deferred tax assets742,989 404,014 
Less: valuation allowance(863)(1,019)
Net deferred tax assets$742,126 $402,995 
v3.25.0.1
Equity-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of Activity of Company's Restricted Stock
RSA activity was as follows:
(in thousands, except per share amounts)Restricted Stock AwardsWeighted-average grant date fair value per share
Balance, December 31, 2023 1,283 $23.00 
Vested (1,283)23.00 
Balance, December 31, 2024 — $— 
Schedule of Activity of Company's Restricted Stock Units
RSU activity was as follows:
(in thousands, except per share amounts)Restricted Stock UnitsWeighted-average grant date fair value per share
Balance, December 31, 2023 648 $35.99 
New grants846 31.21 
Vested (119)42.57 
Forfeitures(164)33.21 
Balance, December 31, 20241,211 $32.38 
Total release date fair value of vested RSAs and RSUs for the three years ended December 31, 2024 are presented below:
Year Ended December 31,
(in thousands, except per share amounts)202420232022
Awards/unitsWA vest date fair valueAwards/unitsWA vest date fair valueAwards/unitsWA vest date fair value
RSAs$39,752 $30.99 $37,373 $27.36 $69,604 $52.22 
RSUs3,825 32.25 6,185 27.16 10,627 51.59 
Schedule of Equity-Based Compensation
Equity-based compensation expense is recognized on a straight-line basis and is included in our consolidated statements of operations as follows:
Year Ended December 31,
(in thousands)202420232022
Cost of sales$887 $— $— 
Selling, general, and administrative expenses10,595 39,222 41,657 
Total stock-based compensation expense
$11,482 $39,222 $41,657 
Schedule of Total Unrecognized Stock Based Compensation Related to Unvested Stock Awards
As of December 31, 2024, total unrecognized stock-based compensation related to unvested RSUs was $23.2 million, which will be recognized as follows:
(in thousands)
2025 $12,403 
2026 8,751 
2027 2,044 
2028 — 
2029— 
Thereafter — 
Total unrecognized stock-based compensation$23,198 
v3.25.0.1
Employee Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Schedule of Total Employer Contributions The total employer matching contributions to the 401(k) plan recognized in our consolidated statements of operations were as follows:
Year Ended December 31,
(in thousands)202420232022
Selling, general, and administrative expenses$2,971 $2,341 $1,680 
v3.25.0.1
Non-Controlling Interests (Tables)
 12 Months Ended
Dec. 31, 2024
Noncontrolling Interest [Abstract]  
Schedule of Ownership Interest
The following table summarizes the ownership interest in Dutch Bros OpCo¹:
December 31, 2024
(in thousands)OpCo UnitsOwnership %
Dutch Bros OpCo Class A common units held by Dutch Bros Inc.
115,432 65.1 %
Dutch Bros OpCo Class A common units held by non-controlling interest holders61,772 34.9 %
Total Dutch Bros OpCo Class A common units outstanding177,204 100.0 %
_______________
1 Dutch Bros OpCo effected a recapitalization on February 7, 2025. Refer to NOTE 20 — Subsequent Events for additional information.
The following tables reflect the changes in Dutch Bros OpCo ownership interest and Dutch Bros Inc.’s outstanding classes of common stock as a result of the Reverse Split on a pro forma basis as if they had occurred as of December 31, 2024:
Dutch Bros OpCo
December 31, 2024
Capital Contribution
Pre-Split
Reverse Split
Post Reverse Split
(in thousands)OpCo Units%OpCo UnitsOpCo UnitsOpCo UnitsOpCo Units%
Dutch Bros OpCo Class A common units held by Dutch Bros Inc.115,432 65.1 %52 115,484 (52)115,432 65.2 %
Dutch Bros OpCo Class A common units held by non-controlling interest holders61,772 34.9 %— 61,772 (27)61,745 34.8 %
Total Dutch Bros OpCo Class A common units outstanding177,204 100.0 %52 177,256 (79)177,177 100.0 %
Dutch Bros Inc.
(in thousands)December 31, 2024Reverse Split
Post Reverse Split
Class A common shares115,432 — 115,432 
Class B common shares35,227 (16)35,211 
Class C common shares3,545 (1)3,544 
Total Dutch Bros Inc. common shares outstanding154,204 (17)154,187 
Schedule of Changes in Ownership
The following table summarizes the effect of changes in ownership of Dutch Bros OpCo on our equity for the periods presented:
(in thousands)Year Ended December 31,
202420232022
Net income (loss) attributable to Dutch Bros Inc.$35,258 $1,718 $(4,753)
Other comprehensive income (loss):
Unrealized gain (loss) on derivative securities, effective portion, net of income tax impacts
84 (269)813 
Transfers from (to) non-controlling interests:
Decrease in accumulated deficit as a result of the adoption of ASC 842— — 122 
Increase in additional paid-in capital as a result of equity-based compensation6,980 15,177 13,743 
Increase (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
1,743 (661)(1,145)
Increase (decrease) in additional paid-in capital as a result of the acquisition of Dutch Bros OpCo Class A common units
115,989 (158,152)9,410 
Total effect of changes in ownership interest on equity attributable to Dutch Bros Inc.$160,054 $(142,187)$18,190 
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:
Year Ended December 31,
202420232022
Weighted-average ownership percentage of non-controlling interest holders
41.6 %62.8 %67.8%
Schedule of Payments to Noncontrolling Interests Such distributions paid to members were as follows for the periods presented, and no amounts were payable as of the periods then ended.
 
Year Ended December 31,
(in thousands)202420232022
Amounts paid to non-controlling interest holders
$1,888 $— $— 
v3.25.0.1
Income (Loss) Per Share (Tables)
 12 Months Ended
Dec. 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 common stock for the periods presented:
Year Ended December 31,
(in thousands)202420232022
Numerator:
Net income (loss)$66,450 $9,952 $(19,253)
Less: Net income (loss) attributable to non-controlling interests
31,192 8,234 (14,500)
Net income (loss) attributable to Dutch Bros Inc.
$35,258 $1,718 $(4,753)
Year Ended December 31,
(in thousands, except per share amounts)202420232022
Basic net income (loss) per share attributable to common stockholders
Numerator:
Net income (loss) attributable to Dutch Bros Inc.
$35,258 $1,718 $(4,753)
Denominator:
Weighted-average number of shares of Class A and Class D common stock outstanding - basic ¹
103,504 62,074 51,871 
Basic net income (loss) per share attributable to common stockholders ¹
$0.34 $0.03 $(0.09)
_______________
1 Class D common shares were included in net income per share and weighted-average number of shares calculations in periods prior to June 2024. As of June 2024, all Class D common shares were converted to Class A common shares.
Year Ended December 31,
(in thousands, except per share amounts)202420232022
Diluted net income (loss) per share attributable to common stockholders
Numerator:
Undistributed net income (loss) for basic computation
$35,258 $1,718 $(4,753)
Increase in net income attributable to common stockholders upon conversion of potentially dilutive instruments
110 — — 
Allocation of undistributed net income (loss)
$35,368 $1,718 $(4,753)
Denominator:
Number of shares used in basic computation103,504 62,074 51,871 
Add: weighted-average effect of dilutive securities
RSAs
12 — — 
RSUs
613 — — 
Weighted-average number of shares of Class A and Class D common stock outstanding used to calculate diluted net income (loss) per share ¹
104,129 62,074 51,871 
Diluted net income (loss) per share attributable to common stockholders ¹
$0.34 $0.03 $(0.09)
_______________
1 Class D common shares were included in net income per share and weighted-average number of shares calculations in periods prior to June 2024. As of June 2024, all Class D common shares were converted to Class A common shares.
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:
Year Ended December 31,
(in thousands)
202420232022
RSAs
— 1,283 2,667 
RSUs
90 648 583 
Total anti-dilutive securities90 1,931 3,250 
v3.25.0.1
Related Party Transactions (Tables)
 12 Months Ended
Dec. 31, 2024
Related Party Transactions [Abstract]  
Schedule of Related Party Transactions
The Dutch Bros Foundation is a not-for-profit organization founded by our company that provides philanthropy to coffee farmers and local communities. Our Co-Founder, Vice Chair, and Chief Legal Officer serve on the board of directors, and our Vice Chair serves as the President. Donations to the Foundation were as follows:
Year Ended December 31,
(in thousands)202420232022
Donations to Dutch Bros Foundation$4,250 $250 $5,149 
v3.25.0.1
Segment Reporting (Tables)
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Schedule of Financial Information for Reportable Segments
Financial information for our reportable segments was as follows for the periods presented:
 Year Ended December 31,
(in thousands)20242023 2022
Revenues
Company-operated shops$1,165,830 $857,939 $639,710 
Franchising and other115,185 107,837 99,302 
Total revenues1,281,015 965,776 739,012 
Cost of sales
Company-operated shops
Beverage, food & packaging296,752 230,133 171,864 
Labor costs315,805 230,505 182,861 
Occupancy & other costs191,372 140,895 109,366 
Pre-opening costs15,133 14,083 17,986 
Franchising and other30,100 31,378 34,007 
Segment cost of sales1
849,162 646,994 516,084 
Segment contribution
Company-operated shops346,768 242,323 157,633 
Franchising and other85,085 76,459 65,295 
Total segment contribution$431,853 $318,782 $222,928 
Segment depreciation and amortization
(91,724)(67,486)(42,012)
Selling, general and administrative(234,036)(205,074)(183,528)
Interest expense, net(27,020)(32,321)(18,018)
Other income, net
5,812 3,018 3,976 
Income (loss) before income taxes
$84,885 $16,919 $(16,654)
__________________
1 Segment cost of sales for this presentation excludes impact of depreciation and amortization.
v3.25.0.1
Subsequent Events (Tables)
 12 Months Ended
Dec. 31, 2024
Subsequent Events [Abstract]  
Schedule of Ownership Interest
The following table summarizes the ownership interest in Dutch Bros OpCo¹:
December 31, 2024
(in thousands)OpCo UnitsOwnership %
Dutch Bros OpCo Class A common units held by Dutch Bros Inc.
115,432 65.1 %
Dutch Bros OpCo Class A common units held by non-controlling interest holders61,772 34.9 %
Total Dutch Bros OpCo Class A common units outstanding177,204 100.0 %
_______________
1 Dutch Bros OpCo effected a recapitalization on February 7, 2025. Refer to NOTE 20 — Subsequent Events for additional information.
The following tables reflect the changes in Dutch Bros OpCo ownership interest and Dutch Bros Inc.’s outstanding classes of common stock as a result of the Reverse Split on a pro forma basis as if they had occurred as of December 31, 2024:
Dutch Bros OpCo
December 31, 2024
Capital Contribution
Pre-Split
Reverse Split
Post Reverse Split
(in thousands)OpCo Units%OpCo UnitsOpCo UnitsOpCo UnitsOpCo Units%
Dutch Bros OpCo Class A common units held by Dutch Bros Inc.115,432 65.1 %52 115,484 (52)115,432 65.2 %
Dutch Bros OpCo Class A common units held by non-controlling interest holders61,772 34.9 %— 61,772 (27)61,745 34.8 %
Total Dutch Bros OpCo Class A common units outstanding177,204 100.0 %52 177,256 (79)177,177 100.0 %
Dutch Bros Inc.
(in thousands)December 31, 2024Reverse Split
Post Reverse Split
Class A common shares115,432 — 115,432 
Class B common shares35,227 (16)35,211 
Class C common shares3,545 (1)3,544 
Total Dutch Bros Inc. common shares outstanding154,204 (17)154,187 
v3.25.0.1
Organization and Background (Details)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2024
store
state
shares
Dec. 31, 2023
USD ($)
$ / shares
shares
May 31, 2024
shares
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]      
Number of stores | store 982    
Number of states in which entity operates | state 18    
Percentage of voting interest held 100.00%    
Follow On Offering      
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]      
Proceeds received from sale of stock, net of offering costs | $   $ 331.2  
Class B common stock      
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]      
Number of common stock surrendered (in shares)     23,000,000
Class A common stock      
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]      
Stock issued during period, shares, new issues (in shares) 45,400,000    
Stock converted during period (in shares) 34,700,000    
Class A common stock | Follow On Offering      
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]      
Shares issued in follow-on offering (in shares)   13,300,000  
Public offering price (in dollars per share) | $ / shares   $ 26.00  
Class D common stock      
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]      
Stock cancelled during period (in shares) 10,700,000    
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. 65.10% 45.50%  
Class A common units held by Dutch Bros Inc. | Class A common stock      
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]      
Number of shares issued in reorganization transaction 1    
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 0.00%    
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 34.90%    
Company-operated shops      
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]      
Number of stores | store 670    
Franchising      
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]      
Number of stores | store 312    
v3.25.0.1
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Advertising Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Advertising Expense [Line Items]      
Total advertising expense $ 39,210 $ 29,899 $ 32,327
Cost of sales      
Advertising Expense [Line Items]      
Total advertising expense 21,897 18,946 19,150
Selling, general and administrative expenses      
Advertising Expense [Line Items]      
Total advertising expense $ 17,313 $ 10,953 $ 13,177
v3.25.0.1
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Property and Equipment (Details)
Dec. 31, 2024
Software  
Property, Plant and Equipment [Line Items]  
Useful life (in years) 3 years
Equipment and fixtures | Minimum  
Property, Plant and Equipment [Line Items]  
Useful life (in years) 3 years
Equipment and fixtures | Maximum  
Property, Plant and Equipment [Line Items]  
Useful life (in years) 7 years
Leasehold improvements | Minimum  
Property, Plant and Equipment [Line Items]  
Useful life (in years) 5 years
Leasehold improvements | Maximum  
Property, Plant and Equipment [Line Items]  
Useful life (in years) 15 years
Buildings | Minimum  
Property, Plant and Equipment [Line Items]  
Useful life (in years) 10 years
Buildings | Maximum  
Property, Plant and Equipment [Line Items]  
Useful life (in years) 39 years
v3.25.0.1
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details)
 12 Months Ended
Dec. 31, 2024
USD ($)
renewal
taxReceivableAgreement
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Property, Plant and Equipment [Line Items]      
Allowance for doubtful accounts | $ $ 0 $ 0  
Goodwill, impairment charges | $ $ 0 $ 0 $ 0
Contract with customer, loyalty rewards, term 180 days    
Contract with customer, redeemed loyalty rewards expiration term 180 days    
Contract with customer, birthday and other promotional awards expiration term 30 days    
Franchise agreement terms 10 years    
Number of tax receivable agreements | taxReceivableAgreement 2    
Tax benefits owed to pre-IPO unitholders (as a percentage) 85.00%    
Software      
Property, Plant and Equipment [Line Items]      
Useful life (in years) 3 years    
Real Estate | Real Estate Lease, Five Year Renewal Option      
Property, Plant and Equipment [Line Items]      
Term of lease renewals 5 years    
Real Estate | Minimum      
Property, Plant and Equipment [Line Items]      
Initial terms of real estate leases 15 years    
Real Estate | Minimum | Real Estate Lease, Five Year Renewal Option      
Property, Plant and Equipment [Line Items]      
Number of renewal options | renewal 1    
Real Estate | Maximum      
Property, Plant and Equipment [Line Items]      
Initial terms of real estate leases 20 years    
Real Estate | Maximum | Real Estate Lease, Five Year Renewal Option      
Property, Plant and Equipment [Line Items]      
Number of renewal options | renewal 3    
v3.25.0.1
Revenue Recognition - Schedule of Disaggregates Revenue by Major Component (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Disaggregation of Revenue [Line Items]      
Total revenues $ 1,281,015 $ 965,776 $ 739,012
Company-operated shops      
Disaggregation of Revenue [Line Items]      
Total revenues 1,165,830 857,939 639,710
Franchising      
Disaggregation of Revenue [Line Items]      
Total revenues 109,610 101,907 93,756
Other      
Disaggregation of Revenue [Line Items]      
Total revenues $ 5,575 $ 5,930 $ 5,546
v3.25.0.1
Revenue Recognition - Schedule of Deferred Revenue (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Disaggregation of Revenue [Line Items]      
Total deferred revenue $ 50,883 $ 37,025 $ 31,454
Card, reward redemptions and breakage      
Disaggregation of Revenue [Line Items]      
Total deferred revenue 48,265 34,616  
Franchising      
Disaggregation of Revenue [Line Items]      
Total deferred revenue $ 2,618 $ 2,409  
v3.25.0.1
Revenue Recognition - Schedule of Deferred Revenue Activity Related to the Company’s Gift Card and Loyalty Programs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Change In Contract With Customer, Liability [Roll Forward]    
Beginning balance $ 37,025 $ 31,454
Revenue deferred - gift card activations, loyalty app loads, and loyalty points and rewards earned 419,107 362,482
Revenue recognized - gift card, loyalty app, loyalty rewards redemptions, and breakage (405,458) (354,770)
Other deferred revenue, net 209 (2,141)
Ending balance 50,883 37,025
Less: current portion (42,868) (30,349)
Deferred revenue, net of current portion $ 8,015 $ 6,676
v3.25.0.1
Revenue Recognition - Schedule of Deferred Revenue Liability (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Gift card redemptions      
Disaggregation of Revenue [Line Items]      
Deferred revenue recognized $ 6,215 $ 5,149 $ 3,965
Earned franchise fees      
Disaggregation of Revenue [Line Items]      
Deferred revenue recognized $ 450 $ 454 $ 507
v3.25.0.1
Revenue Recognition - Schedule of Future Recognition of Unearned Franchise Fees (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Unearned franchise fees, future recognition $ 2,618
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 $ 430
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 $ 388
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 $ 343
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 $ 294
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 1 year
Unearned franchise fees, future recognition $ 249
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2030-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, expected timing of satisfaction, period
Unearned franchise fees, future recognition $ 914
v3.25.0.1
Organization Realignment and Restructuring - Narrative (Details) - Organization Realignment and Restructuring - USD ($)
$ in Millions
Dec. 31, 2024
Jan. 29, 2024
Restructuring Cost and Reserve [Line Items]    
Percentage of support center staff to be relocated 40.00%  
Total other costs    
Restructuring Cost and Reserve [Line Items]    
Restructuring and related cost, expected cost   $ 3.0
Charitable Donation    
Restructuring Cost and Reserve [Line Items]    
Donation expense $ 1.8  
Minimum    
Restructuring Cost and Reserve [Line Items]    
Restructuring and related cost, expected cost   19.0
Minimum | Total employee-related costs    
Restructuring Cost and Reserve [Line Items]    
Restructuring and related cost, expected cost   16.0
Maximum    
Restructuring Cost and Reserve [Line Items]    
Restructuring and related cost, expected cost   20.0
Maximum | Total employee-related costs    
Restructuring Cost and Reserve [Line Items]    
Restructuring and related cost, expected cost   $ 17.0
v3.25.0.1
Organization Realignment and Restructuring - Schedule of Restructuring Related Charges (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
Restructuring Cost and Reserve [Line Items]  
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Selling, General and Administrative Expense
Organization Realignment and Restructuring  
Restructuring Cost and Reserve [Line Items]  
Total other costs $ 2,327
Total restructuring costs incurred 17,876
Organization Realignment and Restructuring | Relocation and travel costs  
Restructuring Cost and Reserve [Line Items]  
Total employee-related costs 11,403
Total restructuring costs incurred 11,403
Organization Realignment and Restructuring | One-time termination benefits  
Restructuring Cost and Reserve [Line Items]  
Total employee-related costs 4,146
Total restructuring costs incurred 4,146
Organization Realignment and Restructuring | Total employee-related costs  
Restructuring Cost and Reserve [Line Items]  
Total employee-related costs 15,549
Total restructuring costs incurred 15,549
Organization Realignment and Restructuring | Building donation  
Restructuring Cost and Reserve [Line Items]  
Total other costs 1,811
Total restructuring costs incurred 1,811
Organization Realignment and Restructuring | Duplicate rent  
Restructuring Cost and Reserve [Line Items]  
Total other costs 461
Total restructuring costs incurred 461
Organization Realignment and Restructuring | Consulting  
Restructuring Cost and Reserve [Line Items]  
Total other costs 55
Total restructuring costs incurred $ 55
v3.25.0.1
Organization Realignment and Restructuring -Schedule of Restructuring Liability (Details) - Organization Realignment and Restructuring
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
Restructuring Reserve [Roll Forward]  
Beginning balance $ 0
Charges 17,876
Cash Payments (13,284)
Non-Cash (1,811)
Ending balance 2,781
Relocation and travel costs  
Restructuring Reserve [Roll Forward]  
Beginning balance 0
Charges 11,403
Cash Payments (10,705)
Non-Cash 0
Ending balance 698
One-time termination benefits  
Restructuring Reserve [Roll Forward]  
Beginning balance 0
Charges 4,146
Cash Payments (2,118)
Non-Cash 0
Ending balance 2,028
Total employee-related costs  
Restructuring Reserve [Roll Forward]  
Beginning balance 0
Charges 15,549
Cash Payments (12,823)
Non-Cash 0
Ending balance 2,726
Duplicate rent  
Restructuring Reserve [Roll Forward]  
Beginning balance 0
Charges 461
Cash Payments (461)
Non-Cash 0
Ending balance 0
Consulting  
Restructuring Reserve [Roll Forward]  
Beginning balance 0
Charges 55
Cash Payments 0
Non-Cash 0
Ending balance 55
Building donation  
Restructuring Reserve [Roll Forward]  
Beginning balance 0
Charges 1,811
Cash Payments 0
Non-Cash (1,811)
Ending balance 0
Total other costs  
Restructuring Reserve [Roll Forward]  
Beginning balance 0
Charges 2,327
Cash Payments (461)
Non-Cash (1,811)
Ending balance $ 55
v3.25.0.1
Inventories -Schedule of Inventories, Net (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Inventory Disclosure [Abstract]    
Raw materials $ 14,594 $ 28,523
Finished goods 21,894 18,430
Total inventories $ 36,488 $ 46,953
v3.25.0.1
Property and Equipment - Schedule of Property and Equipment, Net (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 860,541 $ 658,778
Less: accumulated depreciation (176,570) (116,338)
Property and equipment, net $ 683,971 542,440
Software    
Property, Plant and Equipment [Line Items]    
Useful Life (Years) 3 years  
Property and equipment, gross $ 10,666 7,212
Equipment and fixtures    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 229,307 157,352
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 $ 54,535 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 $ 487,060 269,186
Buildings | Minimum    
Property, Plant and Equipment [Line Items]    
Useful Life (Years) 10 years  
Buildings | Maximum    
Property, Plant and Equipment [Line Items]    
Useful Life (Years) 39 years  
Land    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 7,022 7,338
Aircraft    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 0 9,195
Construction-in-progress    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 71,951 $ 166,054
v3.25.0.1
Property and Equipment - Schedule of Property and Equipment Depreciation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]      
Total depreciation expense $ 64,936 $ 44,441 $ 28,966
Cost of sales      
Property, Plant and Equipment [Line Items]      
Total depreciation expense 63,707 42,807 26,261
Selling, general and administrative expenses      
Property, Plant and Equipment [Line Items]      
Total depreciation expense $ 1,229 $ 1,634 $ 2,705
v3.25.0.1
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Acquired Finite-Lived Intangible Assets [Line Items]    
Less: accumulated amortization $ (24,102) $ (21,634)
Intangibles, net $ 2,947 5,415
Franchise rights    
Acquired Finite-Lived Intangible Assets [Line Items]    
Weighted-average amortization period (in years) 2 years 11 months 8 days  
Reacquired franchise rights $ 27,049 $ 27,049
v3.25.0.1
Intangible Assets - Schedule of Intangible Assets Amortization Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cost of sales      
Finite-Lived Intangible Assets [Line Items]      
Cost of sales $ 2,468 $ 3,389 $ 4,034
v3.25.0.1
Intangible Assets - Schedule of Estimated Future Amortization Expense (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]    
Intangibles, net $ 2,947 $ 5,415
Reacquired franchise rights    
Finite-Lived Intangible Assets [Line Items]    
2025 1,435  
2026 681  
2027 383  
2028 247  
2029 153  
Thereafter 48  
Intangibles, net $ 2,947  
v3.25.0.1
Leases - Schedule of Finance and Operating Lease Right-of-Use Assets and Lease Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Assets [Abstract]    
Finance lease right-of-use assets, net $ 374,623 $ 382,734
Operating lease right-of-use assets, net 315,256 199,673
Total right-of-use assets 689,879 582,407
Lessee, Finance Lease, Description [Abstract]    
Current portion of finance lease liabilities 13,256 9,482
Finance lease liabilities, net of current portion 369,297 367,775
Lessee, Operating Lease, Description [Abstract]    
Current portion of operating lease liabilities 13,979 10,239
Operating lease liabilities, net of current portion 309,311 191,419
Total lease liabilities $ 705,843 $ 578,915
v3.25.0.1
Leases - Schedule of Components of Lease Cost (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Finance lease costs      
Interest on lease liabilities $ 22,053 $ 17,516 $ 9,263
Total finance lease costs 47,654 38,821 20,991
Operating lease costs      
Total operating lease costs 30,349 19,440 16,465
Variable lease costs 6,874 5,216 3,979
Total lease costs 84,877 63,477 41,435
Cost of sales      
Finance lease costs      
Amortization of right-of-use assets 25,551 21,290 11,718
Operating lease costs      
Total operating lease costs 28,703 19,385 16,428
Selling, general and administrative expenses      
Finance lease costs      
Amortization of right-of-use assets 50 15 10
Operating lease costs      
Total operating lease costs $ 1,646 $ 55 $ 37
v3.25.0.1
Leases - Schedule of Future Minimum Lease Payments (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Finance    
2025 $ 35,094  
2026 35,201  
2027 35,959  
2028 37,074  
2029 38,000  
Thereafter 413,822  
Total 595,150  
Less: imputed interest (212,597)  
Present value of minimum lease payments 382,553  
Less: current portion (13,256) $ (9,482)
Finance lease liabilities, net of current portion 369,297 367,775
Operating    
2025 20,644  
2026 31,570  
2027 31,722  
2028 31,357  
2029 32,127  
Thereafter 366,879  
Total 514,299  
Less: imputed interest (191,009)  
Present value of minimum lease payments 323,290  
Less: current portion (13,979) (10,239)
Operating lease liabilities, net of current portion $ 309,311 $ 191,419
v3.25.0.1
Leases - Schedule of Lease Terms and Discount Rates for Finance and Operating Leases (Details)
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]    
Weighted-average remaining lease term (years), Finance leases 15 years 3 months 18 days 16 years 3 months 18 days
Weighted-average remaining lease term (years), Operating leases 15 years 6 months 14 years 8 months 12 days
Weighted-average discount rate (percentages), Finance leases 6.00% 5.90%
Weighted-average discount rate (percentages), Operating leases 5.90% 4.90%
v3.25.0.1
Leases - Schedule of Supplemental Cash Flow Information Regarding Leases (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash paid for amounts included in the measurement of lease liabilities      
Operating cash flows from finance leases $ 22,053 $ 17,516 $ 9,264
Operating cash flows from operating leases 22,127 17,167 16,269
Financing cash flows from finance leases 10,541 12,432 5,838
Right-of-use assets obtained in exchange for lease obligations      
Finance leases 15,838 144,588 167,687
Operating leases $ 130,059 $ 40,253 $ 178,138
v3.25.0.1
Debt - Narrative (Details) - USD ($)
 12 Months Ended
Feb. 20, 2024
Aug. 04, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Aug. 03, 2023
Line of Credit Facility [Line Items]            
Proceeds from line of credit     $ 2,449,000 $ 90,000,000 $ 157,705,000  
Total debt     238,009,000      
The 2022 Credit Facility | Secured Debt            
Line of Credit Facility [Line Items]            
Increase in borrowing capacity   $ 150,000,000        
Borrowing capacity   650,000,000        
Total debt     234,700,000      
Term loan under credit facility     234,688,000 $ 95,625,000    
The 2022 Credit Facility | Secured Debt | Term Loan Facility            
Line of Credit Facility [Line Items]            
Borrowing capacity   100,000,000        
The 2022 Credit Facility | Line of Credit | Revolving Credit Facility            
Line of Credit Facility [Line Items]            
Borrowing capacity   $ 350,000,000        
Remaining borrowing capacity     343,800,000      
Total debt     $ 0      
Interest rate on term loan     6.20%      
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   $ 200,000,000        
Proceeds from line of credit $ 150,000,000          
Remaining borrowing capacity $ 50,000,000          
The 2022 Credit Facility | Line of Credit | Letter of Credit            
Line of Credit Facility [Line Items]            
Borrowing capacity           $ 50,000,000
Term loan under credit facility     $ 6,200,000      
The 2022 Credit Facility | Line of Credit | Bridge Loan            
Line of Credit Facility [Line Items]            
Borrowing capacity           $ 15,000,000
v3.25.0.1
Debt - Schedule of Debt Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Line of Credit Facility [Line Items]    
Finance obligations $ 3,022 $ 3,022
Total debt 238,009 99,062
Less: loan origination fees (943) (1,396)
Less: current portion (17,311) (4,491)
Total long-term debt, net of current portion 219,755 93,175
Secured Debt | The 2022 Credit Facility    
Line of Credit Facility [Line Items]    
Term loans under credit facility 234,688 95,625
Unsecured Debt    
Line of Credit Facility [Line Items]    
Unsecured note payable $ 299 $ 415
v3.25.0.1
Debt - Schedule of Maturities of Long-Term Debt (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Debt Disclosure [Abstract]  
2025 $ 17,311
2026 32,943
2027 184,733
2028 0
2029 0
Thereafter 3,022
Total debt $ 238,009
v3.25.0.1
Derivative Financial Instruments - Narrative (Details) - Designated as Hedging Instrument - Cash Flow Hedging - Interest rate swap contract
$ in Millions
 12 Months Ended
Dec. 31, 2024
USD ($)
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Interest rate swap outstanding $ 63.9
Fixed interest rate 2.67%
Variable interest rate 4.36%
Expected reclassification of gain within the next twelve months $ 1.0
v3.25.0.1
Derivative Financial Instruments - Schedule of Fair Value Derivative Instruments Included in Condensed Consolidated Balance Sheets (Details) - Designated as Hedging Instrument - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Total derivative instrument designated as cash flow hedge $ 1,785 $ 2,208
Interest rate swap contract    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Prepaid expenses and other current assets 953 1,371
Other long-term assets $ 832 $ 837
v3.25.0.1
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
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Derivative Instruments, Gain (Loss) [Line Items]      
Income recognized in other comprehensive income before reclassifications $ 1,661 $ 954 $ 2,966
Interest Expense      
Derivative Instruments, Gain (Loss) [Line Items]      
Reclassification from accumulated other comprehensive income to earnings for the effective portion (1,745) (1,692) 215
Income Tax Expense      
Derivative Instruments, Gain (Loss) [Line Items]      
Income tax benefit (expense) $ 83 $ (10) $ (273)
v3.25.0.1
Tax Receivable Agreements - Schedule of Changes related to the TRAs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Tax Receivable Agreement, Liability [Roll Forward]    
Beginning balance $ 290,920 $ 220,923
Exchange of Dutch Bros OpCo Class A common units for Class A common stock 341,161 72,635
TRAs remeasurements (4,247) (2,638)
Ending balance 627,834 290,920
Less: current portion (71) 0
Tax receivable agreements liability, net of current portion $ 627,763 $ 290,920
v3.25.0.1
Income Taxes - Schedule of Income Tax Expense (Benefit) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Current tax provision      
Federal $ 396 $ 193 $ 181
State 2,653 844 1,340
Total current tax provision 3,049 1,037 1,521
Deferred tax expense (benefit)      
Federal 8,520 1,605 (6,081)
State 6,866 4,325 7,159
Total deferred tax provision 15,386 5,930 1,078
Income tax expense $ 18,435 $ 6,967 $ 2,599
v3.25.0.1
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
U.S. federal statutory income tax rate 21.00% 21.00% 21.00%
Income allocable to non-controlling interests not subject to tax (8.50%) 6.30% (32.90%)
State and local income taxes, net of federal benefit 5.30% 10.10% (9.50%)
State rate adjustment 5.90% 17.50% (39.10%)
Non-deductible compensation 0.00% 0.70% (2.00%)
Tax credits (5.20%) (12.90%) 10.10%
TRA adjustments 0.40% 0.20% 4.40%
Return-to-provision adjustments 0.60% (5.40%) 32.40%
Stock-based compensation 0.30% 3.80% 0.00%
Other 2.10% 0.40% 0.00%
Valuation allowance (0.20%) (0.50%) 0.00%
Effective income tax rate 21.70% 41.20% (15.60%)
v3.25.0.1
Income Taxes - Schedule of Components of Deferred Tax Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]    
Investment in Dutch Bros OpCo $ 638,110 $ 346,172
Net operating loss carryforwards 50,862 34,988
Interest expense 40,247 14,187
Credit carryforwards 9,399 4,991
Charitable contribution carryforward 1,505 1,546
Other 2,866 2,130
Total deferred tax assets 742,989 404,014
Less: valuation allowance (863) (1,019)
Net deferred tax assets $ 742,126 $ 402,995
v3.25.0.1
Income Taxes - Narrative (Details) - USD ($)
Dec. 31, 2024
Dec. 31, 2023
Valuation Allowance [Line Items]    
Deferred tax liabilities $ 0 $ 0
Income tax interest and penalties accrued 0  
Unrecognized tax benefits 0 $ 0
Domestic Tax Authority    
Valuation Allowance [Line Items]    
Operating loss carryforward 208,300,000  
Tax credit carryforward 9,400,000  
State and Local Jurisdiction    
Valuation Allowance [Line Items]    
Operating loss carryforward 133,400,000  
Tax credit carryforward 0  
Operating loss carryforward subject to expiration 97,000,000.0  
Operating loss carryforward not subject to expiration $ 36,400,000  
v3.25.0.1
Equity-Based Compensation-Narrative (Details)
 12 Months Ended
Dec. 31, 2024
Class of Stock [Line Items]  
Vesting period (in years) 3 years
50% Vesting on 2nd Anniversary of Commencement Date  
Class of Stock [Line Items]  
Vesting percentage 50.00%
50% Vesting on 3rd Anniversary of Commencement Date  
Class of Stock [Line Items]  
Vesting percentage 50.00%
100% Vesting on 3rd Anniversary of Commencement Date  
Class of Stock [Line Items]  
Vesting percentage 100.00%
1/3 Vesting on 1st Anniversary of Commencement Date  
Class of Stock [Line Items]  
Vesting percentage 33.33%
1/3 Vesting on 2nd Anniversary of Commencement Date  
Class of Stock [Line Items]  
Vesting percentage 33.33%
1/3 Vesting on 3rd Anniversary of Commencement Date  
Class of Stock [Line Items]  
Vesting percentage 33.33%
v3.25.0.1
Equity-Based Compensation - Schedule of Activity of Company's Restricted Stock and Restricted Stock Units (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
$ / shares
shares
Dec. 31, 2023
USD ($)
$ / shares
shares
Dec. 31, 2022
USD ($)
$ / shares
RSAs      
Shares      
Beginning balance (in shares) | shares 1,283,000    
Vested (in shares) | shares (1,283,000)    
Ending balance (in shares) | shares 0 1,283,000  
Weighted-average grant date fair value per share      
Beginning balance (in dollars per share) $ 23.00    
Vested (in dollars per share) 23.00    
Ending balance (in dollars per share) $ 0 $ 23.00  
Fair value of vested share-based payment awards | $ $ 39,752 $ 37,373 $ 69,604
Weighted-average vest date fair value per share (in dollars per share) 30.99 27.36 52.22
RSUs      
Shares      
Beginning balance (in shares) | shares 648,000    
New grants (in shares) | shares 846,000    
Vested (in shares) | shares (119,000)    
Forfeitures (in shares) | shares (164,000)    
Ending balance (in shares) | shares 1,211,000 648,000  
Weighted-average grant date fair value per share      
Beginning balance (in dollars per share) $ 35.99    
New grants (in dollars per share) 31.21    
Vested (in dollars per share) 42.57    
Forfeitures (in dollars per share) 33.21    
Ending balance (in dollars per share) $ 32.38 $ 35.99  
Fair value of vested share-based payment awards | $ $ 3,825 $ 6,185 $ 10,627
Weighted-average vest date fair value per share (in dollars per share) 32.25 27.16 51.59
v3.25.0.1
Equity-Based Compensation - Schedule of Equity-Based Compensation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Class of Stock [Line Items]      
Total stock-based compensation expense $ 11,482 $ 39,222 $ 41,657
Cost of sales      
Class of Stock [Line Items]      
Total stock-based compensation expense 887 0 0
Selling, general and administrative expenses      
Class of Stock [Line Items]      
Total stock-based compensation expense $ 10,595 $ 39,222 $ 41,657
v3.25.0.1
Equity-Based Compensation - Schedule of Total Unrecognized Stock Based Compensation Related to Unvested Stock Awards (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
2028 $ 0
2029 0
Thereafter 0
RSUs  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
2025 12,403
2026 8,751
2027 2,044
Total unrecognized stock-based compensation $ 23,198
v3.25.0.1
Employee Benefit Plans - Narrative (Details)
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Company percentage match of employee contributions 100.00%
Percent of employee's gross pay matched 4.00%
v3.25.0.1
Employee Benefit Plans - Schedule of Total Employer Contributions (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Retirement Benefits [Abstract]      
Selling, general, and administrative expenses $ 2,971 $ 2,341 $ 1,680
v3.25.0.1
Non-Controlling Interests - Narrative (Details)
Dec. 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
v3.25.0.1
Non-Controlling Interests - Schedule of Ownership Interest (Details) - shares
shares in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dutch Bros OpCo Class A common units held by Dutch Bros Inc.    
Noncontrolling Interest [Line Items]    
Common units outstanding (in units) 115,432  
Percentage of class A common units held by Dutch Bros. 65.10% 45.50%
Dutch Bros OpCo Class A common units held by non-controlling interest holders    
Noncontrolling Interest [Line Items]    
Common units outstanding (in units) 61,772  
Dutch Bros OpCo Class A common units held by non-controlling interest holders 34.90%  
Total Dutch Bros OpCo Class A common units outstanding    
Noncontrolling Interest [Line Items]    
Common units outstanding (in units) 177,204  
Ownership % 100.00%  
v3.25.0.1
Non-Controlling Interests - Schedule of Changes in Ownership (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Noncontrolling Interest [Line Items]      
Net income (loss) attributable to Dutch Bros Inc. $ 35,258 $ 1,718 $ (4,753)
Other comprehensive income (loss):      
Unrealized gain (loss) on derivative securities, effective portion, net of income tax impacts (339) (965) 2,891
Transfers from (to) non-controlling interests:      
Decrease in accumulated deficit as a result of the adoption of ASC 842 0 0 122
Increase in additional paid-in capital as a result of equity-based compensation 6,980 15,177 13,743
Increase (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 1,743 (661) (1,145)
Increase (decrease) in additional paid-in capital as a result of the acquisition of Dutch Bros OpCo Class A common units 115,989 (158,152) 9,410
Total effect of changes in ownership interest on equity attributable to Dutch Bros Inc. 160,054 (142,187) 18,190
Accumulated Other Comprehensive Income      
Other comprehensive income (loss):      
Unrealized gain (loss) on derivative securities, effective portion, net of income tax impacts $ 84 $ (269) $ 813
v3.25.0.1
Non-Controlling Interests - Schedule of Non-Controlling Interest Holders' Weighted-Average Ownership percentage (Details)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Noncontrolling Interest [Abstract]      
Weighted-average ownership percentage of non-controlling interest holders 41.60% 62.80% 67.80%
v3.25.0.1
Non-Controlling Interests - Schedule of Distributions to Noncontrolling Interests (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Noncontrolling Interest [Abstract]      
Amounts paid to non-controlling interest holders $ 1,888 $ 0 $ 0
v3.25.0.1
Income (Loss) Per Share - Schedule of Reconciliation of Numerator for Income (Loss) Per Share (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Earnings Per Share [Abstract]      
Net income (loss) $ 66,450 $ 9,952 $ (19,253)
Less: Net income (loss) attributable to non-controlling interests 31,192 8,234 (14,500)
Net income (loss) attributable to Dutch Bros Inc. $ 35,258 $ 1,718 $ (4,753)
v3.25.0.1
Income (Loss) Per Share - Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Numerator:      
Undistributed net income (loss) for basic computation $ 35,258 $ 1,718 $ (4,753)
Increase in net income attributable to common stockholders upon conversion of potentially dilutive instruments 110 0 0
Allocation of undistributed net income (loss) $ 35,368 $ 1,718 $ (4,753)
Denominator:      
Number of shares used in basic computation (in shares) 103,504 62,074 51,871
Weighted-average number of shares of Class A and Class D common stock outstanding used to calculate diluted net income (loss) per share (in shares) 104,129 62,074 51,871
Basic net income (loss) per share attributable to common stockholders (in dollars per share) $ 0.34 $ 0.03 $ (0.09)
Diluted net income (loss) per share attributable to common stockholders (in dollars per share) $ 0.34 $ 0.03 $ (0.09)
RSAs      
Denominator:      
Weighted-average effect of dilutive securities, restricted stock (in shares) 12 0 0
RSUs      
Denominator:      
Weighted-average effect of dilutive securities, restricted stock (in shares) 613 0 0
v3.25.0.1
Income (Loss) Per Share - Schedule of Common Stock Equivalents were Excluded from Diluted Net Income (Loss) Per Share (Details) - shares
shares in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]      
Total anti-dilutive securities (in shares) 90 1,931 3,250
RSAs      
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]      
Total anti-dilutive securities (in shares) 0 1,283 2,667
RSUs      
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]      
Total anti-dilutive securities (in shares) 90 648 583
v3.25.0.1
Commitments and Contingencies (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Other Commitments [Line Items]    
Tax receivable agreement, contractually committed amount, percentage 85.00%  
Tax receivable agreements liability, net of current portion $ 627,763 $ 290,920
Property Lease Guarantee    
Other Commitments [Line Items]    
Guarantor obligation in franchise lease payment $ 8,200 $ 1,400
v3.25.0.1
Related Party Transactions - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Related Party Transaction [Line Items]      
Proceeds from disposal of fixed assets $ 9,666 $ 1,177 $ 1,359
Related Party      
Related Party Transaction [Line Items]      
Proceeds from disposal of fixed assets 9,500    
Gain (loss) on disposition of assets $ 1,300    
v3.25.0.1
Related Party Transactions- Schedule of Tax Distribution (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Related Party Transaction [Line Items]      
Donations to Dutch Bros Foundation     $ 5,149
Related Party      
Related Party Transaction [Line Items]      
Donations to Dutch Bros Foundation $ 4,250 $ 250  
v3.25.0.1
Segment Reporting (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
segment
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Number of operating segments | segment 2    
Revenues $ 1,281,015 $ 965,776 $ 739,012
Cost of sales 940,886 714,480 558,096
Segment depreciation and amortization (93,005) (69,135) (44,728)
Selling, general and administrative (234,036) (205,074) (183,528)
Interest expense, net (27,020) (32,321) (18,018)
Other income, net 5,812 3,018 3,976
Income (loss) before income taxes 84,885 16,919 (16,654)
Operating Segments      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Revenues 1,281,015 965,776 739,012
Cost of sales 849,162 646,994 516,084
Segment contribution 431,853 318,782 222,928
Segment depreciation and amortization (91,724) (67,486) (42,012)
Company-operated shops      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Revenues 1,165,830 857,939 639,710
Company-operated shops | Operating Segments      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Revenues 1,165,830 857,939 639,710
Segment contribution 346,768 242,323 157,633
Company-operated shops | Operating Segments | Beverage, food & packaging      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Cost of sales 296,752 230,133 171,864
Company-operated shops | Operating Segments | Labor costs      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Cost of sales 315,805 230,505 182,861
Company-operated shops | Operating Segments | Occupancy & other costs      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Cost of sales 191,372 140,895 109,366
Company-operated shops | Operating Segments | Pre-opening costs      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Cost of sales 15,133 14,083 17,986
Franchising and other      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Revenues 115,185 107,837 99,302
Franchising and other | Operating Segments      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Revenues 115,185 107,837 99,302
Cost of sales 30,100 31,378 34,007
Segment contribution $ 85,085 $ 76,459 $ 65,295
v3.25.0.1
Subsequent Events - Narrative (Details) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended
Feb. 07, 2025
Feb. 04, 2025
Feb. 20, 2024
Feb. 07, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Subsequent Event [Line Items]              
Proceeds from line of credit         $ 2,449 $ 90,000 $ 157,705
Class A common units held by Dutch Bros Inc.              
Subsequent Event [Line Items]              
Capital contribution (in units)         51,942    
Delayed Draw Term Loan Facility | The 2022 Credit Facility | Line of Credit              
Subsequent Event [Line Items]              
Proceeds from line of credit     $ 150,000        
Subsequent event              
Subsequent Event [Line Items]              
Consolidation, less than wholly owned subsidiary, parent ownership interest, changes, additional interest issued to parent $ 3,500            
Number of shares issued in reorganization transaction 1,000     1,000      
Reverse split (in shares)       (17,000)      
Subsequent event | Class B common stock              
Subsequent Event [Line Items]              
Reverse split (in shares)       (15,734)      
Subsequent event | Class C common stock              
Subsequent Event [Line Items]              
Reverse split (in shares)       (1,220)      
Subsequent event | Delayed Draw Term Loan Facility | The 2022 Credit Facility | Line of Credit              
Subsequent Event [Line Items]              
Proceeds from line of credit   $ 50,000          
v3.25.0.1
Subsequent Events - Schedule of Ownership Interest (Details) - shares
Feb. 08, 2025
Feb. 07, 2025
Feb. 06, 2025
Dec. 31, 2024
Dec. 31, 2023
Class A common units held by Dutch Bros Inc.          
Subsequent Event [Line Items]          
Common units outstanding (in units)       115,432,000  
Percentage of class A common units held by Dutch Bros.       65.10% 45.50%
Capital contribution (in units)       51,942  
Class A common units held by Dutch Bros Inc. | Subsequent event          
Subsequent Event [Line Items]          
Common units outstanding (in units) 115,432,000   115,484,000    
Percentage of class A common units held by Dutch Bros. 65.20%        
Common unit, reverse split (in units)   (52,000)      
Dutch Bros OpCo Class A common units held by non-controlling interest holders          
Subsequent Event [Line Items]          
Common units outstanding (in units)       61,772,000  
Dutch Bros OpCo Class A common units held by non-controlling interest holders       34.90%  
Capital contribution (in units)       0  
Dutch Bros OpCo Class A common units held by non-controlling interest holders | Subsequent event          
Subsequent Event [Line Items]          
Common units outstanding (in units) 61,745,000   61,772,000    
Dutch Bros OpCo Class A common units held by non-controlling interest holders 34.80%        
Common unit, reverse split (in units)   (27,000)      
Total Dutch Bros OpCo Class A common units outstanding          
Subsequent Event [Line Items]          
Common units outstanding (in units)       177,204,000  
Ownership %       100.00%  
Capital contribution (in units)       52,000  
Total Dutch Bros OpCo Class A common units outstanding | Subsequent event          
Subsequent Event [Line Items]          
Common units outstanding (in units) 177,177,000   177,256,000    
Ownership % 100.00%        
Common unit, reverse split (in units)   (79,000)      
v3.25.0.1
Subsequent Events - Schedule of Common Stock Outstanding (Details) - shares
 1 Months Ended
Feb. 07, 2025
Feb. 08, 2025
Dec. 31, 2024
Dec. 31, 2023
Subsequent Event [Line Items]        
Common stock, outstanding (in shares)     154,204,000  
Subsequent event        
Subsequent Event [Line Items]        
Common stock, outstanding (in shares)   154,187,000    
Reverse split (in shares) (17,000)      
Class A common shares        
Subsequent Event [Line Items]        
Common stock, outstanding (in shares)     115,432,000 69,958,000
Class A common shares | Subsequent event        
Subsequent Event [Line Items]        
Common stock, outstanding (in shares)   115,432,000    
Reverse split (in shares) 0      
Class B common shares        
Subsequent Event [Line Items]        
Common stock, outstanding (in shares)     35,227,000 60,629,000
Class B common shares | Subsequent event        
Subsequent Event [Line Items]        
Common stock, outstanding (in shares)   35,211,000    
Reverse split (in shares) (15,734)      
Class C common shares        
Subsequent Event [Line Items]        
Common stock, outstanding (in shares)     3,545,000 35,864,000
Class C common shares | Subsequent event        
Subsequent Event [Line Items]        
Common stock, outstanding (in shares)   3,544,000    
Reverse split (in shares) (1,220)