Dutch Bros Stock Launch Exceeds Company Expectations

Dutch Bros stock jumped about 60% during opening day on Wednesday, and jumped another 30% the next day.

Dutch Bros first opened its stock at a price of $23 dollars a share, which was at the higher end of previous forecasts. By the end of the trading day, it had risen to around $37. Beginning Thursday, it stood at $48.

The company achieved a market value of more than $6 billion on its first day. It was initially set to raise up to $484 million.

Were just so happy with today’s performance, President and CEO Joth Ricci said Wednesday. Who knows? There were a lot of people speculating about what it would look like today. I can tell you, it far exceeded the predictions I had heard of.

Dutch Bros’ IPO became the largest in state history, making it the state’s fifth most valuable company, according to The Oregonian/OregonLive.

Ricci says the company plans to use this new capital to further expand its drive-thru coffee stands into other regions.

We do have growth plans to grow somewhere north of a hundred sites per year in the near future, he said. We have made plans to grow to 4,000 locations. Well, opening our 500th location next week.

The company’s co-founder, Travis Boersma of Grants Pass, has a 43% stake in the company, so he’s now worth at least $2.75 billion.

Photo courtesy of Dutch Bros

Dutch Bros has released photos from his day on Wall Street, where Boersma waves the ceremonial first trade bell on the New York Stock Exchange while wearing his signature backwards ball cap and sporty sunglasses.

The company’s public filings outline an unusual share structure that would give Travis Boersma over 74% voting rights; effectively preventing another entity from acquiring Dutch Bros through a hostile takeover. Such arrangements can sometimes give shareholders a break, causing stocks to underperform.

Brothers Travis and Dane Boersma founded the company in 1992 in Grants Pass with a single coffee cart. Dane Boersma died in 2009 of Lou Gehrig’s disease.

Dutch Bros has since built drive-thru coffee stands in 11 western states. Ricci says the company plans to stick with its drive-thru model, preserving Oregon’s few legacy walk-in locations, including one in Grants Pass.