Dutch Bros vs. Starbucks: The Coffee Market Showdown
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 20 2026
0mins
Should l Buy BROS?
Source: Fool
- Dutch Bros Expansion Plan: Dutch Bros aims to open 2,029 locations by 2029, a 78% increase from 1,136 in 2025, while expanding its total addressable market to 7,000 stores, indicating strong growth potential that is expected to significantly boost future revenues.
- Sustained Sales Growth: With 19 consecutive years of positive same-store sales growth, Dutch Bros' CEO emphasizes the company's solid fundamentals, which will lay a strong foundation for future profitability and market competitiveness.
- Starbucks' Turnaround Efforts: After six consecutive quarters of same-store sales declines, Starbucks finally reversed this trend in Q4 2025, with management focusing on renovations and an upgraded rewards program to attract consumers, showcasing the brand's resilience and adaptability in the market.
- Investor Confidence: Despite Starbucks' high stock price with a forward P/E ratio of 40.8, Wall Street remains optimistic, projecting a 67% increase in earnings per share from fiscal 2025 to 2028, which supports its long-term investment value amidst competitive pressures.
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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: 50.560
Low
70.00
Averages
78.80
High
85.00
Current: 50.560
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. Coffee-based beverages include handcraft espresso shots for both hot and cold custom classic and signature coffee beverages. It also sells proprietary coffee-based Freeze blended beverages and cold brew. Its Private Reserve coffee is a 100% Arabica three-bean blend, roasted by the Company in Grants Pass, Oregon or Melissa, Texas facilities. The Company has two segments: Company-operated shops, and Franchising and other. 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 and includes the initial franchise fees, royalties, and marketing fees. It has approximately 1,101 shops, of which over 779 are operated by the Company and 322 are franchised, across 26 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.
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- Massive Market Size: The global coffee market sees annual spending exceeding $400 billion, highlighting the immense potential of this industry and attracting significant attention and investment from various businesses.
- Significant Business Opportunities: With the continuous growth in coffee consumption, companies have the chance to capture market share through innovative products and services, thereby enhancing overall profitability.
- Increased Investment Appeal: The high market demand encourages investors to increase their investments in coffee-related businesses, driving mergers and collaborations within the industry and further accelerating market consolidation.
- Future Growth Expectations: The coffee market is expected to continue expanding, necessitating companies to develop long-term strategies to address intensifying competition and adapt to changing consumer preferences.
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- Dutch Bros Expansion Potential: Dutch Bros has doubled its store count to over 1,000 in the past four years and plans to double it again to 2,029 by 2029; despite inflationary pressures, its Q4 2025 revenue grew 29% year-over-year, with net income rising from $6.4 million to $29.2 million, showcasing its long-term growth potential.
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- Dutch Bros' Sustained Growth: Dutch Bros reported a 29% revenue growth in the latest quarter, with comparable-store sales rising for 19 consecutive years, showcasing its strong appeal among young consumers, even as the overall retail market faces challenges.
- Lululemon's Underperformance: Lululemon not only hit a 52-week low but also a five-year low, with slow revenue growth and analysts expecting slight declines in profitability ahead, reflecting the market pressures it faces.
- Emerging Investment Opportunities: With MercadoLibre, Dutch Bros, and Lululemon all trading over 30% below their recent highs, this market pullback presents investors with opportunities to buy at lower prices, especially considering the long-term growth potential of these companies in their respective sectors.
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- Massive Market Size: The global coffee market sees annual spending exceeding $400 billion, highlighting the immense potential of this industry and attracting significant attention and investment from various businesses.
- Significant Business Opportunities: With the continuous growth in coffee consumption, companies have the chance to capture market share through innovative products and services, thereby enhancing overall profitability.
- Increased Investment Appeal: The high market demand encourages investors to increase their investments in coffee-related businesses, driving mergers and collaborations within the industry and further accelerating market consolidation.
- Future Growth Expectations: The coffee market is expected to continue expanding, necessitating companies to develop long-term strategies to address intensifying competition and adapt to changing consumer preferences.
See More
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- Market Size: The global coffee market exceeds $400 billion annually, indicating substantial growth potential for businesses, particularly in the context of increasing technological innovation and market demand.
- AI Future Outlook: Analysts suggest that AI could create the world's first trillionaire, highlighting the profound economic impact of technological advancements, especially regarding investment returns in high-tech sectors.
- Investment Recommendations: While Dutch Bros is not recommended, analysts have identified 10 stocks as the best investment choices, which could yield significant returns in the coming years, urging investors to consider high-return opportunities.
- Historical Return Comparison: Stock Advisor boasts an average return of 884%, significantly outperforming the S&P 500's 179%, underscoring the importance of selecting quality stocks and providing a reference for successful investing.
See More
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- Oil Price Impact: Carnival's stock is under pressure due to soaring oil prices, which are a major expense for cruise companies; despite reporting record operating income, concerns about prolonged high oil prices could lead to further declines, highlighting the market's sensitivity to shipping costs.
- Apple Sales Growth: Apple reported a 23% year-over-year increase in iPhone sales in its latest quarter, and despite concerns about lagging in AI development, investors are starting to reassess its value, indicating strong power within its tech ecosystem, even as its stock has fallen 7% year-to-date.
- MercadoLibre Investment Opportunity: Despite achieving a 47% year-over-year revenue increase in Q4 2025, MercadoLibre's stock has dropped 14% due to compressed profits and margins, currently trading at a P/E ratio of 42, near a five-year low, indicating potential investment opportunities in the Latin American e-commerce market.
- Dutch Bros Expansion Potential: Dutch Bros has doubled its store count to over 1,000 in the past four years and plans to double it again to 2,029 by 2029; despite inflationary pressures, its Q4 2025 revenue grew 29% year-over-year, with net income rising from $6.4 million to $29.2 million, showcasing its long-term growth potential.
See More
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- Market Trend Analysis: The S&P 500 has been on a downward trend since oil prices surged last week, with concerns over the Iran conflict affecting oil shipments from the Middle East, potentially leading to long-term volatility, prompting investors to proceed with caution.
- Carnival Performance: Carnival reported record operating income, yet rising oil prices have heightened market concerns regarding its future financial management, with a current P/E ratio of only 12, indicating significant investment value in its stock.
- Apple Sales Growth: Apple saw a 23% year-over-year increase in iPhone sales in its latest quarter, and despite market pressures from lagging AI development, its $1 billion partnership with Alphabet may support future growth, maintaining its long-term value.
- Dutch Bros Expansion Plans: Dutch Bros has doubled its store count over the past four years and plans to double it again by 2029; despite inflationary pressures, its revenue grew 29% year-over-year in Q4 2025, showcasing strong market potential.
See More
Quality Stocks on Sale: Investment Opportunities Emerge
- MercadoLibre Performance: MercadoLibre, the leading player in Latin America's e-commerce and fintech, has seen its stock drop 36%, despite achieving at least 37% revenue growth for seven consecutive years, with a remarkable 45% year-over-year increase in the fourth quarter, indicating strong market potential.
- Operating Cost Challenges: Although MercadoLibre's operating expenses surged by 50% in the latest quarter, leading to erratic profitability, historically, such short-term fluctuations have been temporary, and the long-term growth trend remains robust.
- Dutch Bros Growth Momentum: Dutch Bros' stock has fallen by 39%, yet its latest quarterly report shows a 29% revenue increase, alongside 19 consecutive years of same-store sales growth, demonstrating its strong performance in the retail beverage market and consumer loyalty.
- Lululemon Market Slump: Lululemon's stock has plummeted 55%, hitting not only a 52-week low but also a five-year low; despite sluggish revenue growth, its stock remains relatively cheap, suggesting potential for a future profit turnaround.
See More
Quality Stock Opportunities Amid Market Pullback
- MercadoLibre's Performance Fluctuations: Despite hitting a 52-week low, MercadoLibre has achieved at least 37% revenue growth for seven consecutive years, with a remarkable 45% year-over-year increase in the fourth quarter, indicating strong market potential, although profitability was impacted by a 50% spike in operating expenses in the latest quarter.
- Dutch Bros' Sustained Growth: Dutch Bros reported a 29% revenue growth in the latest quarter, with comparable-store sales rising for 19 consecutive years, showcasing its strong appeal among young consumers, even as the overall retail market faces challenges.
- Lululemon's Underperformance: Lululemon not only hit a 52-week low but also a five-year low, with slow revenue growth and analysts expecting slight declines in profitability ahead, reflecting the market pressures it faces.
- Emerging Investment Opportunities: With MercadoLibre, Dutch Bros, and Lululemon all trading over 30% below their recent highs, this market pullback presents investors with opportunities to buy at lower prices, especially considering the long-term growth potential of these companies in their respective sectors.
See More
