After launching its IPO, Dutch Bros had its first day of trading Wednesday and enjoyed strong investor interest, closing at $37, 70% above its $23/share listed price. The company, which has 471 units in 11 states with overwhelming concentration in its home state of Oregon along with northern California, is expanding. While more than half of the units are franchisee-owned and operated, the company reverted to a company-owned model in 2017. When it franchised, it did so via existing store personnel only. In an media interviews, co-founder Travis Boersma promised a period of solid, steady growth, while current store level model is very strong with 29% store level margins last year and generates sales all day as only 39% of sales occurring before noon.  The stores are all drive-thru small box while the AUV last year was $1.7M and the average ticket was $7.50.  DDIFO’s financial analyst John Gordon noted that Dutch Bros has much lower drip coffee sales and an established fan base in the Northwest. “It will be competition for both Dunkin and Starbucks for both sites and guests. However, its stated more moderate rate of growth is welcome.”