IPO Updates: Dutch Bros IPO, Toast IPO, Sweetgreen IPO, Allbirds IPO

Despite economic certainty, 2021 witnessed some of the most successful IPOs in the stock market. It was a record-breaking year for the public markets as a strong pipeline of companies went public. Among these companies were Dutch Bros (BROS), Toast (TOST), Sweetgreen (SG), and Allbirds (BIRDS).

This article summarizes the results of the Dutch Bros IPO, Toast IPO, Sweetgreen IPO, and Allbirds IPO, as well as other relevant information such as history and funding rounds.

Dutch Bros IPO: 21.05 Million Shares Sold

Dutch Bros went public on the New York Stock Exchange on Sept. 15, 2021, with Executive Chairman and co-founder Travis Boersma ringing the bell. The drive-through coffee chain priced its IPO at $18 to $23 per share, raising upwards of $484 million after going public.

What Is Dutch Bros?

Founded in 1992 by brothers Travis Boersma and Dane Boersma, Dutch Bros Coffee is one of the largest privately held drive-through coffee chains in the United States. It has over 670 outlets across 14 states and more than 16,000 employees.

Like most bona fide success stories, Dutch Bros Coffee started with humble beginnings. Equipped with a pushcart, a double-head espresso machine, and a dream, the brothers ventured into their southern Oregon town to sell coffee.

With the help of friends, family, and loyal customers, the Boersma brothers' company—which they named "Dutch Bros" in honour of their immigrant grandparents—began to grow. They soon added four more carts, and by 1994, the brothers established their first drive-through location.

Dane Boersma passed away in 2009 at the age of 55. Travis Boersma took sole ownership of the business to new heights.

To say that Dutch Bros is one of the fastest-growing brands in the food service industry is an understatement. As of March 2023, Dutch Bros has over 760 outlets across 15 states. In 2022, revenue increased nearly 60% to $639.7 million from $403.7 million in 2021.

Dutch Bros Funding Rounds

Dutch Bros has raised $1.1 billion in total funding, as follows:

Results of IPO

Travis Boersma rang the ceremonial trade bell on Sept. 15, 2021, at the NYSE. The IPO drew an enthusiastic response from investors across the US, raising company shares by more than 50% within hours.

The IPO was listed at $23 per share, but by the end of the day's trading, the share price increased to 61% higher than the initial price at $37 per share.

Dutch Bros' IPO was the biggest in Oregon history. The IPO raised $484 million after selling 21.05 million shares, far more than the $169 million and $146 million raised by Oregon-based sportswear companies Columbia and Nike in 1998 and 1980 respectively (adjusted for inflation).

Today, Dutch Bros has a valuation of over $8.3 billion. Shares cost nearly $33 per share, but experts predict an increase of $40 to $50 per share by the end of 2023.

Toast IPO: 21 Million Shares Sold

Toast went public on the NYSE on Sept. 21, 2021, with Toast CEO Chris Comparato ringing the famed bell. Toast's IPO was priced at $40 per share—$4 above the expected $34 to $36 market cap. Surprisingly, the stock closed at $62.51, raising Toast's market cap to well over $31 billion.

According to Boston Globe, Toast's IPO was the largest in Boston history. The IPO valued the company from $8 billion to a staggering $20 billion, turning its three cofounders—Aman Narang, Steve Fredette, and Jonathan Grimm—into billionaires.

What Is Toast?

Toast is a cloud-based point-of-sale and management software company based in Boston, Massachusetts. It was founded in 2012 by Steve Fredette, Jonathan Grimm, and Aman Narang after their previous employer Endeca, a software company, was acquired by Oracle.

Initially, Toast was developed as a mobile payment consumer app that worked with existing point-of-sale platforms. Later, it was revamped into a restaurant technology platform that offered analytics, back-of-house functionality, online ordering, and more.

Toast wasn't the first of its kind, but it was the first that made such technology work.

It wasn’t long until Toast became the answer for every restaurant looking to automate operations. By 2014, the company partnered up with over 1,000 food businesses in the US.

Between 2016 and 2020, Toast raised nearly $800 billion in public funds. The most recent funding happened in February 2020, a Series F funding of $400 million led by Bessemer Venture Partners and TPG. The funding raised Toast's valuation from $2.7 billion to $4 billion.

Today, Toast is being used in more than 62,000 restaurant locations. Some of their most notable customers include County Line, JuiceLand, Brooklyn Brewery, Agrusa'S Italian Restaurant, and 21st Amendment Brewery.

Toast has a revenue of $2.4 billion as of 2022. Most of the company's revenue comes from subscription services, professional services, hardware, and financial technology solutions.

Toast Funding Rounds

Toast raised a total of $962 million in eight funding rounds between 2015 to 2020, as follows:

Results of IPO

Toast's debut at the NYSE was a smashing success. Toast listed its shares at $40 and closed at $62.51 per share. The company sold 21.7 million shares, boosting its market cap to nearly $33 billion.

Toast's IPO was the biggest in Boston history and one of the biggest in 2021. Toast raised about $870 million at the IPO, turning all three founders into billionaires.

Toast President Fredette, who has a 6.6% stake in the company, is now worth $2.2 billion. CTO Grimm, who owns 5.3% of Toast, is worth $1.7 billion. COO Narang, with a 4.8% stake, values him at $1.6 billion.

At the time of writing, Toast's share price is valued between $18 to $20. Experts predict it to reach $24 by Feb 17, 2024.

Sweetgreen IPO: 13 Million Shares Sold

Sweetgreen went public on Nov. 17, 2021 at $28 a share, above its expected range of $23 to $25 per share. The stock opened at $52 a share and sold 13 million shares, raising $364 million. Following the IPO, the company's market value rose to $5.5 billion.

What Is Sweetgreen?

Sweetgreen is an American restaurant chain that primarily serves salads.

Founded in 2006 by Georgetown University graduates Nathaniel Ru, Nicolas Jammet, and Jonathan Nerman, Sweetgreen was somewhat of a passion project.

The trio disliked the campus food options—which were either slow and expensive or fast, cheap, and unhealthy—so they decided to launch a restaurant that served affordable healthy food without sacrificing convenience or quality.

With that in mind, the friends raised over $300,000 from 50 investors, which were mainly friends and family. Three months after graduation, they opened the first Sweetgreen restaurant near their alma mater.

Unsurprisingly, Sweetgreen was a near-instant success. Though small, it had a varied menu and amazing prices. If you wanted to eat healthy without burning a hole in your wallet, Sweetgreen was the place to go.

Within a year and a half, the trio opened two other locations in Maryland and DC. By 2013, store number 20 had made an appearance in New York.

In that same year, Sweetgreen received funding of $22 million from Revolution Growth and another $18.5 million in the following year. The funding gave Sweetgreen the opportunity to grow even bigger—and grew it did.

Customers kept coming, and revenues were flowing. As of March 2023, Sweetgreen has over 980 locations across 129 US cities. It has raised a funding of $478.6 million, with the most recent in the fall of 2019 of $150 million. The funding round was led by D1 Capital Partners and Lone Pine Capital.

Sweetgreen Funding Rounds

Sweetgreen raised $478.6 million in funding over 14 rounds between 2013 to 2019.

Results at IPO

Upon going public on November 17, 2021, Sweetgreen's stock surged by as much as 80%.

Sweetgreen listed the IPO at $28 a share, $4 above the market range of $23 per share. Due to high demand, the stock increased to $52 a share, raising the company's market value from $1.8 billion to more than $6 billion.

Trading under the symbol "SG," Sweetgreen's debut at the NYSE was one of the most successful that year.

Sweetgreen plans to use the funds raised by the IPO for working capital and general corporate purposes. It also plans to develop the robotic technology it acquired from Spyce Food Co. in hopes of automating the majority of its production line.

Allbirds IPO: 19.2 Million Shares Sold

Allbirds went public on the Nasdaq exchange on November 3, 2021, under the ticker symbol BIRD. After pricing 20.2 million shares a day earlier at $15 per share, the company opened its first trade at $21.21 and raised roughly $303 million. Shares closed at $28.64 per share.

What Is Allbirds?

Allbirds is an American footwear and apparel company founded in 2014 by Tim Brown and Joey Zwillinger. The company sells eco-friendly products made with natural materials like eucalyptus fibre and merino wool.

Allbirds was born out of the desire to create comfortable and nature-friendly footwear. Tim Brown used to make leather shoes in his youth for his friends but was fully aware of how uncomfortable they were. After years of tinkering and researching, Tim Brown discovered the magical qualities of merino wool.

In 2014, Brown received a research grant to engineer footwear made of merino wool from the New Zealand wool industry. He launched the idea on his Kickstarter and, within five days, raised an impressive $119,000.

With the funds secured, Brown teamed up with bioengineer and renewable materials expert Joey Zwillinger to craft wood fabric made specifically for footwear.

After perfecting the footwear, the duo launched Allbirds in March 2016.

The launch was a near-instant success. Customers loved how comfortable, simple, and sustainable Allbirds' shoes were. They were affordable, too, costing between $95 to $200.

Only two years after its official launch, Allbirds earned a revenue of $100 million. By September 2020, the company was valued at $1.7 billion and became one of the most popular eco-friendly footwear brands in the market.

Allbirds Funding Rounds

Allbirds raised over $250 million in five funding rounds between 2016 to 2020.

Results at IPO

Allbirds' IPO wasn't quite as successful as the other IPOs on this list, but Allbirds still made a decent amount of profit from it.

Allbirds' stock closed 90% above the IPO price on the first day, valuing the company at $2.1 billion. The company raised around $303 million at $15 per share, totalling 19.2 million shares sold. The stock opened at $21.21, 41% above its initial IPO price.

Allbirds raised more than $202 million in funding prior to the IPO, with the most recent being $100 million in September 2020.

Conclusion

The 2021 IPOs of Dutch Bros, Toast, Sweetgreen, and Allbirds were wildly successful. With robust employee support, community involvement, and a focus on philanthropy, the future of all four companies seems bright. We’re excited to see how they’ll use their IPO funding for the betterment of their companies.

The information in this article is well-researched and factual. Still, it contains opinions also, and IT IS NOT FINANCIAL ADVICE and should not be interpreted as such, do not make any financial decisions based on the information in this article; we are not financial advisors. We are journalists. You should always consult with a professional before making any investment decisions. We hold no stock or interests in any of the Companies discussed on this website/app.