Dutch Bros. Inc. made its public debut Wednesday, after its initial public offering came in well above expectations.
The Oregon-based, West Coast cult-fave drive-through coffee chain priced at an above-range $23 a share, which valued the company at about $3.8 billion. Dutch Bros., which sold 21.05 million shares in the IPO to raise $484.2 million, is now trading on the NYSE under the ticker symbol “BROS.”
Dutch Bros. has expanded aggressively in recent years, and currently operates more than 470 locations in 11 Western states. The company said in its filing that it hopes someday to have 4,000 shops.
Dutch Bros., which serves a variety of energy drinks and other beverages in addition to coffee, was founded in 1992 with a single pushcart by brothers Travis and Dane Boersma. Although it does operate some sit-down cafes, most of its locations are drive-thru and have one or two lanes. Some offer outdoor or patio-seating.
In its filings, Dutch Bros. outlined a stock structure that would give executive chairman Travis Boersma 74% of the company’s voting power. The company’s charter also contains provisions that would make it difficult for an outside firm to mount a hostile takeover.
In 2020, Dutch Bros.’ revenue rose 27% to $327.4 million, with revenues of $245 million from company-owned stores and $83 million from franchised shops
