Nicholas Daddario
About Nicholas Daddario
Nicholas Daddario, age 56, is Chief Accounting Officer and was designated Principal Accounting Officer of Dutch Bros Inc. effective May 13, 2025; he joined BROS on January 27, 2025 and holds a B.A. in Accounting and Finance from the University of Arizona . During his tenure year-to-date, BROS delivered strong operating performance: Q3 2025 revenue grew 25.2% year over year to $423.6 million, adjusted EBITDA rose 22.3% year over year to $78.0 million, and net income was $27.3 million . Same-shop sales increased 5.7% systemwide and 7.4% for company-operated shops in Q3 2025, underlining execution momentum .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Dutch Bros Inc. | Chief Accounting Officer (designated Principal Accounting Officer) | Jan 2025–present; PAA designated May 13, 2025 | — |
| GoDaddy Inc. | Chief Accounting Officer | Oct 2019–Dec 2024 | — |
| Harvest Health & Recreation, Inc. | Vice President, Controller | Mar 2019–Oct 2019 | — |
| Starwood Hotels & Resorts Worldwide, Inc. | Various roles; most recently VP, Corporate Controller and Site Leader | Apr 1998–Mar 2019 | — |
| Arthur Andersen LLP | Assurance practice manager | ~6 years | — |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| — | — | — | None disclosed in BROS filings searched |
Fixed Compensation
| Component | Terms |
|---|---|
| Base salary | $350,000 annually per offer letter |
| Target annual bonus | 45% of base salary; metrics to be determined by the Company; first eligible in 2025 |
| One-time RSU award | $150,000 grant upon hire under 2021 Equity Incentive Plan; vests per Board-approved terms |
| Annual RSU eligibility | $300,000 annual RSU award under 2021 Equity Incentive Plan; subject to Board approval and vesting terms |
Stock awards received (Section 16 disclosure):
| Grant type | Grant date | Shares | Vesting schedule |
|---|---|---|---|
| RSU | Feb 20, 2025 | 2,743 | 33.33% vesting on each of Feb 20, 2026, Feb 20, 2027, and Feb 20, 2028; each RSU settles into one Class A share |
| RSU | Feb 20, 2025 | 1,828 | 33.33% vesting on each of Feb 20, 2026, Feb 20, 2027, and Feb 20, 2028; each RSU settles into one Class A share |
Performance Compensation
Company executive bonus scorecard for 2024 (NEOs) — indicative of BROS’ pay-for-performance framework:
| Performance Metric | Weighting | Threshold ($mm) | Target ($mm) | Maximum ($mm) | Actual Result ($mm) | Payout |
|---|---|---|---|---|---|---|
| Total Revenue | 50% | 1,149.6 | 1,197.5 | 1,245.4 | 1,281.0 | 200% |
| Adjusted EBITDA | 50% | 171.0 | 190.0 | 209.0 | 230.3 | 200% |
Notes specific to Daddario:
- Bonus metrics and weighting for the Chief Accounting Officer are “to be determined by the Company”; no explicit metric detail disclosed in his offer letter .
- Long-term incentives are RSUs (no options), aligning with BROS practice since 2022 to favor RSUs for executives .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership (Section 16 initial statement) | Reported derivative holdings: 2,743 RSUs and 1,828 RSUs granted Feb 20, 2025; each RSU equals one Class A share |
| Vested vs unvested | All tranches scheduled to vest equally over three years on Feb 20, 2026/2027/2028; unvested prior to first vest date |
| Pledging / hedging | Company policy prohibits pledging, margin accounts, hedging or monetization (e.g., collars, swaps) for officers/directors |
| Stock ownership guidelines | Covered officers must hold stock equal to 3.0x base pay; effective Jan 16, 2025; compliance expected within 5 years of hire/promotion |
| Compliance status | Not disclosed; guidelines permit the Compensation Committee to limit sales and pay future comp in stock if not on track |
Employment Terms
| Term | Detail |
|---|---|
| Start date | January 27, 2025 |
| Work location | Company headquarters office in Scottsdale, Arizona |
| Principal Accounting Officer designation | Effective May 13, 2025 |
| Reporting line | Reports to the Chief Financial Officer |
| Indemnification agreement | Standard D&O indemnification agreement executed (form filed with S-1, Sept 13, 2021) |
| Severance / change in control | Severance Plan details disclosed for named executive officers; no specific disclosure of Daddario’s eligibility |
| Non-compete / non-solicit | Not disclosed for Daddario; company has non-compete agreements filed for CEO/CFO in 2025, but not for CAO |
Performance & Track Record
- Q3 2025: Revenue grew 25.2% year over year to $423.6 million; adjusted EBITDA increased 22.3% year over year to $78.0 million; net income was $27.3 million; same-shop sales growth was 5.7% systemwide and 7.4% company-operated .
- 2025 guidance raised: total revenues projected $1.61–$1.615 billion; same-shop sales growth ~5%; adjusted EBITDA $285–$290 million; capex $240–$260 million; targeted 160 system shop openings in 2025 and ~175 in 2026 .
Compensation Structure Analysis
- Equity-heavy incentives via RSUs with 3-year equal vesting (no options), reducing risk of option repricing and aligning with long-term retention .
- Annual cash bonus metrics for CAO not disclosed; for NEOs, revenue and adjusted EBITDA carried 50/50 weight in 2024 and paid at 200% based on overachievement, signaling strong pay-for-performance calibration at the enterprise level .
- Ownership guidelines at 3x salary and prohibition on pledging/hedging strengthen alignment and limit leverage-induced selling pressure .
Risk Indicators & Red Flags
- Pledging/hedging explicitly prohibited for officers/directors, mitigating misalignment risk .
- No related party transactions involving Daddario disclosed; standard indemnification agreement in place .
- Company-level related party events (e.g., sale of airplane to Co-Founder) disclosed separately; no link to Daddario .
Investment Implications
- Near-term insider selling pressure appears limited: first RSU vest tranche is scheduled for Feb 20, 2026, with company policy restricting pledging/hedging and stock ownership guidelines requiring 3x salary, implying accumulation and retention rather than monetization .
- Alignment is solid: equity awards vest over 3 years; bonus metrics for NEOs tie to revenue and adjusted EBITDA, consistent with current performance momentum; while CAO-specific bonus metrics are unspecified, senior finance roles typically align to controllable financial KPIs .
- Retention risk looks manageable: equity cadence plus ownership guidelines encourage staying through 2028; absence of disclosed severance/CoC economics for CAO reduces parachute risk but also reduces potential change-in-control windfalls; standard indemnification supports role stability .
- Execution oversight: as Principal Accounting Officer signing 10-Qs/10-Ks, Daddario is central to financial reporting quality; recent performance and tightened governance policies (clawbacks; ownership/hedging restrictions) support confidence in financial controls .