Key Sentence:
- Biotech and sports companies dominated this week’s public announcements.
- But Oregon-based coffee chain Dutch Bros stood out.
It has now grown to over 470 stores – known for its distribution Oregon’s Billionaire only format in 11 states. Still run by one of his brothers, CEO Travis Boersma, the family business went public on Wednesday with an IPO on the New York Stock Exchange that raised nearly $500 million and made Boesma a billionaire.
“This is a fantastic day for Dutch Bros., a blow to consciousness,” Boersma, 50, told Forbes on Wednesday. Now I’m focused on giving more opportunities to our employees – that’s why we went public.”
Oregon’s Billionaire Nearly 17,000 employees.
The blockbuster IPO makes it the biggest in Oregon history. Dutch Bros. collected in 1980, or Boersma owns about 41% of the new public Company, shares worth 2.5 billion US dollars. Dutch Bros stock closed at $36.92 on the first day of trading, 61% above its opening price of 23.
In July, the co-founder also purchased Dutch Bros aircraft for $900,000. And sold part of its stake in the IPO., which raised about $69 million from tax returns. Capital gains, bringing his estimated net worth to $2.6 billion. Thanks to several “takeover” provisions and a tiered share structure, Boersma will retain 74% of the Company’s voting stock.
Dutch Bros. is relatively squeaky compared to coffee chains like Starbucks and Peet’s. The Company Uploaded a net loss of nearly $62 million on sales of $327 million last year. With sales increasing 60% in 2020 as the chain added 71 new locations, all owned by the Company. Dutch Bros discontinued the franchise in 2017, but 56% of Dutch Bros locations.
Still owned by franchisees – many of whom have long-term relationships with the Company, thanks to the 2008 decision to franchise only to people in the “Dutch System” for sale, bro. “
All 179 new outlets opened in 2018 are run by store managers who are promoted from within.
Publicly traded coffee companies have been mixed since the start of the Covid-19 pandemic. JDE Peet’s, which owns retailer Peet’s Coffee, went public in June 2020, and its shares have fallen 12% since trading. On the other hand, the previously publicly-listed Dunkin’ Brands was bought by restaurant investment firm Inspire Brands in a transaction of 11.3 billion in October 2020.
By comparison, Starbucks, which bought a small regional team from then-billionaire Howard Schultz, was still far ahead of the group: The giant achieved $23.5 billion in sales from more than 32,000 stores in the 2020 fiscal year to September. And their shares have increased 15% since early 2021.