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Better Stock to Buy Right Now: Dutch Bros vs. Starbucks

newsfeedback@fool.com (Catie Hogan)
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⚡ Quantum Brief
Dutch Bros is aggressively expanding, opening 154 new locations in 2025 while growing revenue by 27.9% year-over-year, positioning itself as a direct competitor to Starbucks. Starbucks’ "Back to Starbucks" strategy aims to revive its "third place" appeal through store remodels and menu simplification, targeting 3%+ same-store sales growth in 2026. The U.S. coffee market exceeds $100 billion, with 66% of Americans drinking coffee daily, fueling intense competition between chains like Dutch Bros and Starbucks. Goldman Sachs upgraded Dutch Bros to "buy" despite its 15% stock decline, while Starbucks shares rose 19% in 2026, reflecting contrasting investor sentiment. Growth investors may prefer Dutch Bros for its rapid expansion, while value investors could favor Starbucks’ dividend stability and global scale.
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By Catie Hogan – Mar 15, 2026 at 2:21PM ESTKey PointsDutch Bros is expanding its footprint and hot food menu to compete with Starbucks.Starbucks anticipates its "Back to Starbucks" strategy will yield greater growth in 2026 and beyond.Approximately 66% of Americans drink coffee daily. Of that percentage, more than 80% drink two or more cups. Coffee is a big business, to say the least. Over the past couple of years, the U.S. coffee market exceeded $100 billion. The coffee industry is fiercely competitive as it clamors for our love of caffeine. Starbucks (SBUX 1.06%) is a global franchise working to return to its status as a beloved "third place" in society -- a distinct social space, separate from home and work. Dutch Bros (BROS 1.81%) is a fast-growing drive-thru chain aggressively expanding its market share. Which stock is the better buy right now? ExpandNYSE: BROSDutch BrosToday's Change(-1.81%) $-0.87Current Price$47.30Key Data PointsMarket Cap$6.0BDay's Range$47.08 - $49.1052wk Range$46.52 - $77.88Volume4.4MAvg Vol4.8MGross Margin25.68% Dutch Bros is expanding its footprint and treats Dutch Bros is a Pacific Northwest-based drive-thru coffee company that is rapidly growing. In fiscal year 2025, Dutch Bros increased its revenue 27.9% year over year. The company opened 154 new shops across 22 states. Lastly, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 31.4% compared to the previous year. Image source: Getty Images. Dutch Bros is now developing a hot food menu to attract and retain even more customers. This addition will allow the chain to directly compete with breakfast and coffee staples such as Starbucks and Dunkin'. The stock hasn't fared well over the past 12 months, though, declining nearly 15%. However, Goldman Sachs just upgraded Dutch Bros from neutral to buy. Starbucks misses you Last year was not easy for Starbucks. For the 2025 fiscal year, global comparable-store sales declined by 1%. Consolidated net revenues increased 3%, but operating margin fell precipitously amid the closing of more than 400 stores in North America. Starbucks CEO Brian Niccol wants his "Back to Starbucks" restructuring plan to reestablish the brand as a pleasant coffee shop where you are welcome to sit and stay. Through menu simplification and in-store remodels, Starbucks has been busy implementing this strategy since late 2024. ExpandNASDAQ: SBUXStarbucksToday's Change(-1.06%) $-1.06Current Price$99.12Key Data PointsMarket Cap$113BDay's Range$98.91 - $101.1952wk Range$75.50 - $104.82Volume277KAvg Vol9.4MGross Margin15.73%Dividend Yield2.48% The strategy's anticipated effectiveness is reflected in the company's 2026 guidance. Starbucks expects comparable-store sales growth of 3% or more, along with a slight improvement in margins. Starbucks is also opening between 600 and 650 new coffeehouses globally this year. The stock rose 19% thus far in 2026. Its forward P/E ratio of 43 means Starbucks could be slightly overvalued. What's the tea? Starbucks or Dutch Bros? Ultimately, both stocks are showing bullish signs, but for different reasons. The winner depends on whether you are primarily a growth investor or a value investor. For the growth investor, Dutch Bros is quickly opening new stores, and its financials are improving. With the stock down over 15% year to date, its price is becoming more attractive to long-term investors. Starbucks is better suited to value investors, as it's already a large global company that pays a dividend. It's also likely to grow only modestly in the coming years. Starbucks' turnaround strategy should keep the company relevant and strong for years to come. Depending on your goals, both stocks are solid choices.Read NextMar 15, 2026 •By John Ballard2 Growth Stocks Down 40% to Buy Right NowMar 14, 2026 •By Neil PatelThe Ultimate Growth Stock to Buy With $1,000 Right NowMar 14, 2026 •By Motley Fool YouTubeIs a 'War on Coffee' Coming for Dutch Bros?

Why Regulatory Fears Likely Won't Stop This Growth StoryMar 12, 2026 •By Geoffrey SeilerThe Best Stocks to Buy Right Now for MarchMar 8, 2026 •By Bryan WhiteDutch Bros Plans to More Than Triple Its Store Count in Existing Markets.

The Growth Story Goes Much Further Than That.Mar 4, 2026 •By Micah Zimmerman2 Stocks That Could Create Lasting Generational WealthAbout the AuthorCatie is a contributing Motley Fool stock market analyst covering technology, consumer goods, transportation, industrials, materials, and energy. She's the founder of the family finances newsletter, Cents of Humor. Catie was formerly the Head of Advice & Coaching at Parthean and an advisor at Element Financial Group. She's the writer and a producer of the hit off-Broadway show, Vape!

The Grease Parody. Catie has a degree in journalism from Emerson College.TMFCatieHoganStocks MentionedDutch BrosNYSE: BROS$47.27(-1.87%)-$0.90StarbucksNASDAQ: SBUX$99.12(-1.06%)-$1.06Goldman Sachs GroupNYSE: GS$781.96(-0.71%)-$5.56*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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