Investment Comparison: Dutch Bros vs Sweetgreen
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 13 hours ago
0mins
Source: Fool
- Growth Rate Comparison: Dutch Bros aims to increase its locations from 1,200 to 2,029 by 2029, representing an annual growth rate of approximately 19%, showcasing its rapid expansion potential, while Sweetgreen has faced three consecutive quarters of revenue declines with an 11% drop in customer traffic.
- Profitability Differences: Dutch Bros boasts a gross margin of 25.01% and operates 72% of its locations, ensuring profitability, whereas Sweetgreen has incurred losses totaling $884 million over the past three years, indicating a fragile business model.
- Market Valuation Analysis: Although Dutch Bros trades at a high price-to-earnings ratio of 105, reflecting its premium valuation, its consistent growth and profitability make it attractive; in contrast, Sweetgreen's 71 times earnings ratio comes with expected losses in the next two years.
- Investor Sentiment: Analysts rate Dutch Bros as a
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Analyst Views on BROS
Wall Street analysts forecast BROS stock price to rise
10 Analyst Rating
10 Buy
0 Hold
0 Sell
Strong Buy
Current: 66.030
Low
70.00
Averages
78.80
High
85.00
Current: 66.030
Low
70.00
Averages
78.80
High
85.00
About BROS
Dutch Bros Inc. is an operator and franchiser of drive-thru shops, which is focused on serving hand-crafted beverages. The Company sells a range of customizable hot, iced and blended beverages. The Company-operated shops segment includes retail coffee shop sales to end consumers. The Franchising and other segment includes bean and product sales to franchise partners, initial franchise fees, royalties, and marketing fees related to the franchise partners, as well as sales of products through its website. It also sells its proprietary coffee-based Freeze blended beverages and cold brew. Its proprietary Dutch Bros Rebel energy drink, which is customizable with flavors and modifiers and can be served blended or over ice. It also offers a variety of teas, lemonades, smoothies, and sodas offering caffeine-lite and caffeine-free beverages. The Company has approximately 1,177 shops, of which over 844 are operated by the Company and 333 are franchised, across 25 states.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Dutch Bros' Market Potential is Huge
- Market Opportunity: Dutch Bros has a total U.S. addressable market opportunity of 7,000 stores, nearly six times its current footprint, indicating substantial potential for future expansion and revenue growth.
- Rapid Store Expansion: As of March 31, Dutch Bros operates 1,177 locations nationwide, a significant increase from 441 stores at the end of 2020, with plans to reach 2,029 by 2029, solidifying its national presence.
- Food Sales Growth: The new food program was launched in 485 stores in Q1, and although food currently accounts for only 2% of total sales, there is potential for it to become a significant revenue contributor as consumer demand for food with coffee rises.
- Optimistic Earnings Outlook: Analysts forecast Dutch Bros will report adjusted diluted earnings per share of $1.53 in 2028, a 101% increase from $0.76 in 2025, indicating a strong potential for profitability that could attract investor interest.
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Dutch Bros Stock Rises 30%, Showcasing Growth Potential
- Significant Sales Growth: Dutch Bros achieved a 31% year-over-year sales increase in Q1 2026, with comparable sales up 8.3%, marking seven consecutive quarters of transaction growth, demonstrating its strong market adaptability and brand appeal amid inflation.
- Ambitious Expansion Plans: The company aims to operate 2,029 stores by 2029 and targets 7,000 stores in the long term, employing a 'cluster' strategy to quickly establish its brand in new regions, particularly achieving nearly 20% comps growth in Texas.
- Increased Market Recognition: Despite disappointing stock performance over the past year, Dutch Bros has seen a 30% stock price increase in the last month, indicating that the market is beginning to recognize its long-term growth opportunities, reflecting investor confidence in its future.
- Valuation Challenges: While the company shows strong growth potential, its current price-to-earnings ratio stands at 105 times, and despite the recent stock surge, investors should be cautious about entry points to avoid investing at inflated valuations.
See More
Dutch Bros Reports Strong Growth and Expansion Plans Amid Inflation
- Significant Sales Growth: Dutch Bros reported a 31% year-over-year sales increase in Q1 2026, with comparable sales up 8.3%, achieving seven consecutive quarters of transaction growth, demonstrating strong market adaptability and brand appeal amid inflation.
- Ambitious Expansion Plans: The company aims to operate 2,029 stores by 2029 and has set a long-term goal of 7,000 stores, employing a 'cluster' strategy to quickly establish its brand in new regions, particularly evidenced by nearly 20% comps growth in Texas during Q1.
- Increased Market Recognition: Despite disappointing stock performance over the past year, Dutch Bros' stock has surged 30% in the past month as the market begins to recognize its long-term growth potential, although it currently trades at a premium P/E ratio of 105 times.
- Unique Brand Positioning: By popularizing innovative beverages and offering convenience through its network of over 1,000 drive-thru locations, Dutch Bros has cultivated a massive following, showcasing its leadership in the beverage market, with the CEO stating the company is poised to continue shaping and commanding this rapidly growing category.
See More
Dutch Bros Rapid Expansion vs. Sweetgreen's Revenue Decline
- Dutch Bros Expansion Plan: Dutch Bros aims to open 2,029 locations by 2029, currently operating less than 1,200, indicating a robust annual growth rate of approximately 19%, positioning itself advantageously in the rapidly growing coffee market.
- Sweetgreen Revenue Decline: Sweetgreen has experienced a revenue drop for three consecutive quarters, with a year-over-year customer count decline of 11% per restaurant in Q1, highlighting increasing competitive pressure in the premium health food sector.
- Profitability Comparison: Dutch Bros boasts $116 million in retained earnings, while Sweetgreen has incurred losses of $884 million, illustrating a significant disparity in profitability, with Dutch Bros demonstrating a more sustainable business model.
- Market Expectation Divergence: Analysts rate Sweetgreen as a “hold,” while Dutch Bros is rated a “strong buy,” indicating a clear divergence in market expectations regarding the future performance of the two companies.
See More
Dutch Bros Coffee Chain Rapid Expansion
- Store Count Surge: As of March 31, Dutch Bros has expanded to 1,177 locations nationwide, a significant increase from 441 at the end of 2020, indicating strong growth potential in the U.S. market, with a target of 2,029 stores by 2029.
- Same-Store Sales Growth: Amid heightened economic uncertainty, Dutch Bros reported an 8.3% increase in system-wide same-store sales in the first quarter, reflecting sustained brand popularity among consumers, which will contribute to future revenue growth.
- Food Sales Strategy: The new food program has been implemented in 485 stores during the first quarter, and although food currently accounts for only 2% of total sales, this percentage is expected to rise significantly as consumer demand for breakfast options increases, thereby boosting overall revenue.
- Profitability Outlook: Analysts project that Dutch Bros will achieve an adjusted diluted earnings per share of $1.53 by 2028, representing a 101% increase from $0.76 in 2025, highlighting the company's substantial future profit potential and attracting investor interest for long-term returns.
See More
Investment Comparison: Dutch Bros vs Sweetgreen
- Growth Rate Comparison: Dutch Bros aims to increase its locations from 1,200 to 2,029 by 2029, representing an annual growth rate of approximately 19%, showcasing its rapid expansion potential, while Sweetgreen has faced three consecutive quarters of revenue declines with an 11% drop in customer traffic.
- Profitability Differences: Dutch Bros boasts a gross margin of 25.01% and operates 72% of its locations, ensuring profitability, whereas Sweetgreen has incurred losses totaling $884 million over the past three years, indicating a fragile business model.
- Market Valuation Analysis: Although Dutch Bros trades at a high price-to-earnings ratio of 105, reflecting its premium valuation, its consistent growth and profitability make it attractive; in contrast, Sweetgreen's 71 times earnings ratio comes with expected losses in the next two years.
- Investor Sentiment: Analysts rate Dutch Bros as a
See More
Dutch Bros' Market Potential is Huge
- Market Opportunity: Dutch Bros has a total U.S. addressable market opportunity of 7,000 stores, nearly six times its current footprint, indicating substantial potential for future expansion and revenue growth.
- Rapid Store Expansion: As of March 31, Dutch Bros operates 1,177 locations nationwide, a significant increase from 441 stores at the end of 2020, with plans to reach 2,029 by 2029, solidifying its national presence.
- Food Sales Growth: The new food program was launched in 485 stores in Q1, and although food currently accounts for only 2% of total sales, there is potential for it to become a significant revenue contributor as consumer demand for food with coffee rises.
- Optimistic Earnings Outlook: Analysts forecast Dutch Bros will report adjusted diluted earnings per share of $1.53 in 2028, a 101% increase from $0.76 in 2025, indicating a strong potential for profitability that could attract investor interest.
See More
Dutch Bros Stock Rises 30%, Showcasing Growth Potential
- Significant Sales Growth: Dutch Bros achieved a 31% year-over-year sales increase in Q1 2026, with comparable sales up 8.3%, marking seven consecutive quarters of transaction growth, demonstrating its strong market adaptability and brand appeal amid inflation.
- Ambitious Expansion Plans: The company aims to operate 2,029 stores by 2029 and targets 7,000 stores in the long term, employing a 'cluster' strategy to quickly establish its brand in new regions, particularly achieving nearly 20% comps growth in Texas.
- Increased Market Recognition: Despite disappointing stock performance over the past year, Dutch Bros has seen a 30% stock price increase in the last month, indicating that the market is beginning to recognize its long-term growth opportunities, reflecting investor confidence in its future.
- Valuation Challenges: While the company shows strong growth potential, its current price-to-earnings ratio stands at 105 times, and despite the recent stock surge, investors should be cautious about entry points to avoid investing at inflated valuations.
See More
Dutch Bros Reports Strong Growth and Expansion Plans Amid Inflation
- Significant Sales Growth: Dutch Bros reported a 31% year-over-year sales increase in Q1 2026, with comparable sales up 8.3%, achieving seven consecutive quarters of transaction growth, demonstrating strong market adaptability and brand appeal amid inflation.
- Ambitious Expansion Plans: The company aims to operate 2,029 stores by 2029 and has set a long-term goal of 7,000 stores, employing a 'cluster' strategy to quickly establish its brand in new regions, particularly evidenced by nearly 20% comps growth in Texas during Q1.
- Increased Market Recognition: Despite disappointing stock performance over the past year, Dutch Bros' stock has surged 30% in the past month as the market begins to recognize its long-term growth potential, although it currently trades at a premium P/E ratio of 105 times.
- Unique Brand Positioning: By popularizing innovative beverages and offering convenience through its network of over 1,000 drive-thru locations, Dutch Bros has cultivated a massive following, showcasing its leadership in the beverage market, with the CEO stating the company is poised to continue shaping and commanding this rapidly growing category.
See More
Dutch Bros Rapid Expansion vs. Sweetgreen's Revenue Decline
- Dutch Bros Expansion Plan: Dutch Bros aims to open 2,029 locations by 2029, currently operating less than 1,200, indicating a robust annual growth rate of approximately 19%, positioning itself advantageously in the rapidly growing coffee market.
- Sweetgreen Revenue Decline: Sweetgreen has experienced a revenue drop for three consecutive quarters, with a year-over-year customer count decline of 11% per restaurant in Q1, highlighting increasing competitive pressure in the premium health food sector.
- Profitability Comparison: Dutch Bros boasts $116 million in retained earnings, while Sweetgreen has incurred losses of $884 million, illustrating a significant disparity in profitability, with Dutch Bros demonstrating a more sustainable business model.
- Market Expectation Divergence: Analysts rate Sweetgreen as a “hold,” while Dutch Bros is rated a “strong buy,” indicating a clear divergence in market expectations regarding the future performance of the two companies.
See More
Dutch Bros Coffee Chain Rapid Expansion
- Store Count Surge: As of March 31, Dutch Bros has expanded to 1,177 locations nationwide, a significant increase from 441 at the end of 2020, indicating strong growth potential in the U.S. market, with a target of 2,029 stores by 2029.
- Same-Store Sales Growth: Amid heightened economic uncertainty, Dutch Bros reported an 8.3% increase in system-wide same-store sales in the first quarter, reflecting sustained brand popularity among consumers, which will contribute to future revenue growth.
- Food Sales Strategy: The new food program has been implemented in 485 stores during the first quarter, and although food currently accounts for only 2% of total sales, this percentage is expected to rise significantly as consumer demand for breakfast options increases, thereby boosting overall revenue.
- Profitability Outlook: Analysts project that Dutch Bros will achieve an adjusted diluted earnings per share of $1.53 by 2028, representing a 101% increase from $0.76 in 2025, highlighting the company's substantial future profit potential and attracting investor interest for long-term returns.
See More
Investment Comparison: Dutch Bros vs Sweetgreen
- Growth Rate Comparison: Dutch Bros aims to increase its locations from 1,200 to 2,029 by 2029, representing an annual growth rate of approximately 19%, showcasing its rapid expansion potential, while Sweetgreen has faced three consecutive quarters of revenue declines with an 11% drop in customer traffic.
- Profitability Differences: Dutch Bros boasts a gross margin of 25.01% and operates 72% of its locations, ensuring profitability, whereas Sweetgreen has incurred losses totaling $884 million over the past three years, indicating a fragile business model.
- Market Valuation Analysis: Although Dutch Bros trades at a high price-to-earnings ratio of 105, reflecting its premium valuation, its consistent growth and profitability make it attractive; in contrast, Sweetgreen's 71 times earnings ratio comes with expected losses in the next two years.
- Investor Sentiment: Analysts rate Dutch Bros as a
See More
