Dutch Bros Inc. was incorporated in June 2021 for the purpose of facilitating an initial public offering in order to carry on the Company's business. On September 17, 2021, we completed our IPO in which we issued and sold approximately 24.2 million shares of Class A common stock (including approximately 3.2 million shares sold pursuant to the full exercise of the underwriters' option to purchase additional shares) at an offering price of $23.00 per share, resulting in net proceeds of approximately $520.8 million after deducting underwriting discounts, commissions and offering costs.

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The following tables provide our operating results and explanation of changes for the periods presented.

Less: Net income (loss) attributable to Dutch Bros OpCo prior to the Reorganization Transactions

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The key performance indicators (KPIs) that we use to effectively manage and evaluate our business are as follows:

$ 101,474 $ 70,105 $ 33,795 Company-operated shop gross profit as a % of company-operated shop revenue

$ 82,086 $ 69,764 $ 48,715 Net income (loss) as % of revenue

1 Represents a temporary shop closure in 2021 and a permanent shop closure in 2020.

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T a b l e o f C o n t e n t s

4 Reconciliation of GAAP to non-GAAP results is provided in the section "Non-GAAP Financial Measures" in Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations".

The results for our company-operated shops segment were as follows:

1 Reconciliation of GAAP to non-GAAP results is provided in the section "Non-GAAP Financial Measures" in Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations".

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Beverage, Food and Packaging Costs

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T a b l e o f C o n t e n t s

In 2021, pre-opening costs increased 37.2% to $12.8 million, compared to $9.3 million in 2020. This growth was primarily driven by the opening of 82 new company-operated shops during 2021 compared to the opening of 59 company-operated shops during 2020.

In 2021, depreciation and amortization increased 67.3% to $16.3 million, compared to $9.7 million in 2020. This growth was primarily driven by the opening of 82 new company-operated shops during 2021. As a percentage of company-operated shop revenue, depreciation and amortization was 4.0% for 2021 and remained unchanged compared to 2020.

Franchising and Other Segment Performance

1 Reconciliation of GAAP to non-GAAP results is provided in the section "Non-GAAP Financial Measures" in Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations".

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T a b l e o f C o n t e n t s

We had cash and cash equivalents of $18.5 million and $31.6 million as of December 31, 2021 and December 31, 2020, respectively.

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The following table summarizes our cash flows for the periods presented:

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T a b l e o f C o n t e n t s

Operating lease obligations 1 $ 184,590 $ 12,398 $ 23,701 $ 22,717 $ 125,774 Capital lease obligations 1 5 130,379

1 Amounts include future minimum lease payments, excluding any taxes, insurance, and other related expenses.

2 Amounts include principal and interest under our Senior Secured Credit Facility, revolving line of credit due May 2026.

3 Purchase obligations include all legally binding contracts, including firm minimum commitments for inventory purchases, commitments for the purchase, construction or remodeling of real estate facilities, buybacks of franchise shops, equipment purchases, marketing-related contracts, software acquisition/license commitments and service contracts.

5 As of December 31, 2021, capital lease obligations, debt obligations, and liabilities under tax receivable agreement are all included in our balance sheet. All other material cash requirements listed are not included on our balance sheet.

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T a b l e o f C o n t e n t s

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T a b l e o f C o n t e n t s

Property & Equipment, Intangible Assets, and Goodwill

The valuation methods and assumptions used in assessing the potential impairment of property and equipment, intangible assets, and goodwill, including the determination of asset groupings and the identification and allocation of goodwill to reporting units.

Our expense/(benefit) for income taxes, deferred tax assets and liabilities including valuation allowance requires the use of estimates based on our management's interpretation and application of complex tax laws and accounting guidance.

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T a b l e o f C o n t e n t s

Company-operated shop contribution (in dollars and as a percentage of revenue)

EBITDA, Adjusted EBITDA (in dollars and as a percentage of revenue)

Below are the definitions of the non-GAAP adjustments that are used in the calculation of our non-GAAP measures, as described above.

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T a b l e o f C o n t e n t s

COVID-19: royalty abatement In April 2020, we permitted franchise partners to skip one month of royalty payments to support their cash flow needs. We discontinued this support one month later in May 2020.

Following are the reconciliations of the most comparable GAAP metric to non-GAAP metrics presented:

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