Dutch Bros Continues Aggressive Expansion for 4,000 Locations

Estimated read time: 3 minutes and 20 seconds

PASS THE DUTCHIE

Dutch Bros Inc. opened 39 new locations across 11 states, bringing its total count to 794 stores in 16 states. (Read Here)

Continued growth: Dutch Bros is on track to open at least 150 new shops this year, with 37 of the 39 new locations in Q3 being company operated. CEO Joth Ricci expressed confidence in pursuing further high-quality investments towards the company's goal of reaching 4,000 shops in the future.

💰 THE MONEY SHOT

Financial performance: The company's net income for the quarter ended Sept. 30 increased 38% to $13.4 million compared to the previous year. Adjusted earnings per share rose to $0.14 from $0.09 in the same period last year, while total revenues grew 33.2% to $264.5 million. Dutch Bros also achieved a 4% increase in systemwide same-store sales.

OLD TOWN ROAD

Boot Barn Holdings opened 10 stores during Q2, bringing its total count to 371, and plans to open 52 more locations in 2024. (Read Here)

Steady expansion: Boot Barn has opened 10 stores during Q2, bringing the total count to 371. The company plans to open 52 more locations in 2024 and has a long-term potential of approximately 900 stores.

💰 THE MONEY SHOT

Financial performance: The retailer reported net income of $27.7 million, or $0.90 per share, for the quarter ended Sept. 30. Net sales increased by 6.5% to $374.5 million. Same-store sales decreased by 4.8%, with a 3.8% decrease in retail store same-store sales and an 11.7% decrease in e-commerce comparative sales.

SLANGIN’ LEASES

A&G Real Estate Advisors is selling additional store leases in connection with the restructuring of Rite Aid, which declared bankruptcy in October. (Read Here)

Available Leases: The second tranche consists of 92 leases located in California, Maryland, Michigan, New Jersey, New York, Ohio, Pennsylvania, and Washington. All leases have more than 10 years remaining term and offer attractive opportunities for retailers and investors to acquire leases in desirable markets.

💰 THE MONEY SHOT

Demand and Portfolio Optimization: The lack of new construction in this market segment is driving demand for these leases. As part of Rite Aid's financial restructuring process, A&G is helping to reduce rent expenses and optimize Rite Aid's portfolio, providing opportunities for other retailers and investors to acquire leases and properties that were once considered out of reach.

TRIPLE NET TENDIES

🧠 Thought Leader: Jonathan Hipp publishes his Cap Rate Report for Q3

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NET LEASE NUGGIES

• NBA Flagship Opens in Houston: Lids partners with the NBA to open an official NBA Store in Houston, becoming the league's second flagship location in the US. The 7,500-sq.-ft. store features a wide range of NBA and WNBA merchandise, offers customization options, and includes interactive displays.

• Ellianos Coffee opens its latest location in Cumming, Georgia, offering residents specialty coffee drinks, smoothies, and breakfast offerings with unmatched convenience and taste.

• Haven Hot Chicken announced the opening of its fifth location in Storrs, Connecticut, offering Nashville Hot Chicken and vegetarian options. The new spot, conveniently located near UCONN campus, will feature the brand's signature menu along with online ordering and catering services.

• Sip Fresh, a next-gen specialty beverage retail concept, is expanding to Orange County, California with a three-unit agreement.

• Ziggi's Coffee announces the opening of its newest location in Arvada, Colorado, owned by franchise owners Jorge & Jenna Pongo.

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