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Up 47% This Year, Is Dutch Bros Stock the Next Starbucks?
Starbucks has been going through a rough patch. Comparable-store sales growth -- an important metric for restaurants that measures revenue growth from existing locations -- has been negative for four straight quarters. It recently ousted its CEO and brought in ex-Chipotle CEO Brian Niccol to fix the mess.Competitor Dutch Bros (NYSE: BROS) is having none of these issues. In fact, the coffee stand brand is likely stealing customers from Starbucks as it goes through a rapid expansion around the United States. Investors are eating up this growth, sending Dutch Bros stock up 47% so far in 2025.Dutch Bros reported its earnings earlier in February, and showed an acceleration in growth. Same-store sales growth was 6.9% in Q4, on top of 5% growth in 2023. Perhaps more importantly, Dutch Bros had transaction growth of 2.3% in the quarter, its highest quarterly growth in the last two years. This is the opposite of Starbucks, which is posting negative same-store sales growth and negative traffic growth to its stores.Continue reading
Starbucks has been going through a rough patch. Comparable-store sales growth -- an important metric for restaurants that measures revenue growth from existing locations -- has been negative for four straight quarters. It recently ousted its CEO and brought in ex-Chipotle CEO Brian Niccol to fix the mess.
Competitor Dutch Bros (NYSE: BROS) is having none of these issues. In fact, the coffee stand brand is likely stealing customers from Starbucks as it goes through a rapid expansion around the United States. Investors are eating up this growth, sending Dutch Bros stock up 47% so far in 2025.
Dutch Bros reported its earnings earlier in February, and showed an acceleration in growth. Same-store sales growth was 6.9% in Q4, on top of 5% growth in 2023. Perhaps more importantly, Dutch Bros had transaction growth of 2.3% in the quarter, its highest quarterly growth in the last two years. This is the opposite of Starbucks, which is posting negative same-store sales growth and negative traffic growth to its stores.
