When investors think about the retail coffee industry, I'm sure Starbucks immediately comes to mind. Its $38 billion in annualized revenue and more than 40,000 locations across the globe make it a leader in the market.
Dutch Bros Inc (BROS -9.84%) has been an outlier in the food and beverage industry. At a time when many restaurants face challenges to grow, the beverage company delivered 33% revenue growth in 2024.
Dutch Bros (BROS -6.80%) recently issued new long-term growth targets that have Wall Street analysts raising their near-term price targets for the stock. Wells Fargo analyst Anthony Trainor initiated coverage of Dutch Bros with an overweight (buy) rating and a $80 price target, implying 28% over the current $62.50 share price.
Dutch Bros (BROS 2.25%) stock dropped 22% in March according to data provided by S&P Global Market Intelligence. Investors might be concerned about how tariffs could affect the price of coffee beans, and on top of that, younger, riskier stocks are more prone to falling when the market is volatile.
Dutch Bros (BROS) closed the most recent trading day at $61.74, moving -1.25% from the previous trading session.
The S&P 500 has been making its way back up after entering correction territory, but it's still down 3% year to date. Although that gives investors a good glimpse of what's happening in the markets, the S&P 500 is only an average, and it has only 500 stocks.
Investors have been hit with volatility in 2025's first quarter, and the S&P 500 index is now down 5.2% year to date. Meanwhile, the Nasdaq Composite is back in correction territory, trading down approximately 10.3% across the stretch.
With the recent market pullback, technology stocks have gotten a lot of investors' attention lately, but they are not the only growth stocks that suddenly find themselves at much lower prices. Two restaurant stocks with some of the best long-term prospects are also much cheaper than they were in mid-February.
Coffee chain Dutch Bros (BROS -1.63%) is on a roll, and I don't mean with ham and cheese. The stock has more than doubled in six months as Dutch Bros keeps crushing earnings and revenue estimates in every quarterly report.
You can multiply your savings in the stock market, and it's not difficult to achieve. The easiest path to success is to maintain a long-term perspective on businesses and only invest in the ones that are regularly reporting strong revenue growth.
George Tsilis calls Dutch Bros (BROS) the "Starbucks killer." He points to the company's profitable expansions and bullish analyst sentiment as key points driving its stock price higher.