For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Dutch Bros (BROS - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.
Dutch Bros is one of 187 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Dutch Bros is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for BROS' full-year earnings has moved 3.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, BROS has moved about 6.1% on a year-to-date basis. At the same time, Retail-Wholesale stocks have lost an average of 0.1%. This means that Dutch Bros is performing better than its sector in terms of year-to-date returns.
Williams-Sonoma (WSM - Free Report) is another Retail-Wholesale stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 24.5%.
Over the past three months, Williams-Sonoma's consensus EPS estimate for the current year has increased 2%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Dutch Bros is a member of the Retail - Restaurants industry, which includes 36 individual companies and currently sits at #209 in the Zacks Industry Rank. On average, stocks in this group have lost 1.5% this year, meaning that BROS is performing better in terms of year-to-date returns.
Williams-Sonoma, however, belongs to the Retail - Home Furnishings industry. Currently, this 10-stock industry is ranked #80. The industry has moved -6.1% so far this year.
Investors interested in the Retail-Wholesale sector may want to keep a close eye on Dutch Bros and Williams-Sonoma as they attempt to continue their solid performance.
TEMPE, Ariz.--(BUSINESS WIRE)--Dutch Bros Inc. (“Dutch Bros”) (NYSE: BROS), one of the fastest-growing brands in the U.S. quick service beverage industry, will host a conference call and webcast to review financial results for the second quarter, which ended on June 30, 2026. The conference call and webcast will take place on Wednesday, August 5, 2026 at 5:00 p.m. Eastern Time (ET). Dutch Bros will report financial results for the second quarter 2026 after the market close that same day. Event:.
Dutch Bros (BROS - Free Report) ended the recent trading session at $66.25, demonstrating a -3.09% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.19%. Meanwhile, the Dow experienced a drop of 0.59%, and the technology-dominated Nasdaq saw a decrease of 0.05%.
Shares of the drive-thru coffee chain operator and franchisor witnessed a loss of 3.34% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 2.41%, and the S&P 500's gain of 0.55%.
The investment community will be closely monitoring the performance of Dutch Bros in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.29, reflecting a 11.54% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $522.89 million, showing a 25.75% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.93 per share and a revenue of $2.08 billion, representing changes of +22.37% and +26.87%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Dutch Bros. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.9% higher. Dutch Bros is currently a Zacks Rank #2 (Buy).
With respect to valuation, Dutch Bros is currently being traded at a Forward P/E ratio of 73.33. This represents a premium compared to its industry average Forward P/E of 20.71.
Investors should also note that BROS has a PEG ratio of 1.99 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 2.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 192, positioning it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow BROS in the coming trading sessions, be sure to utilize Zacks.com.
Whenever I try to picture where the biggest long-term gains might come from, my mind does not land on a flashy artificial intelligence (AI) chip or a rocket company. It lands on a drive-thru coffee stand that much of the country has never visited.
I remember the first time I visited Dutch Bros (NYSE: BROS). Today the company has around 1,200 shops, mostly in the western United States, and I think the next decade could see it become a household name from coast to coast. That is exactly the kind of runway that turns a good stock into a great one.
Image source: Getty Images.
A store count that could grow sixfold The heart of the Dutch Bros story is simple math. The company has about 1,200 locations now, plans to reach more than 2,000 by 2029, and has talked about an eventual footprint of 7,000 shops nationwide. That would be roughly six times its current size.
Because its stores are small drive-thru and walk-up stands rather than sprawling cafes, each one is cheap to build and quick to open, which makes stamping out hundreds a year realistic rather than fanciful. When a company can profitably replicate a small, proven format thousands of times, its growth can compound for a very long time.
More than one lever to pull What makes me more confident is that Dutch Bros is not relying on new stores alone. It's rolling out food, which historically it has barely offered; early results show food locations getting a lift of about 4% in comparable sales, with the rollout nearly complete. That's a meaningful bump layered on top of unit growth.
Mobile ordering, another recent addition, is speeding up the company's famously long drive-thru lines and pulling in more visits. Sales at established shops have been climbing on genuine traffic gains, not just price hikes. Several engines are firing at once, and most are still early.
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The secret sauce is the brand Here is the part that numbers alone miss. Dutch Bros has built something rare: a coffee brand that people are loyal to in the same way they're loyal to a favorite band.
Employees, called "broistas," treat pickup service like a conversation. And a menu of customizable energy drinks and sweet, colorful concoctions has made the company a favorite of younger customers. Those customers are forming habits now that could last decades, and the Dutch Rewards program keeps them coming back while handing the company a direct line to its fans.
Even as competition in coffee and energy drinks intensifies, Dutch Bros keeps winning traffic. It behaves less like a coffee seller and more like a lifestyle brand that happens to serve caffeine.
I would not call this a safe stock. It trades at a rich valuation, so a lot of that growth is already priced in, and any stumble could hit the shares hard. Expanding nationally means entering unfamiliar markets where the brand is unproven, and protecting its beloved culture while opening shops at a breakneck pace will be a genuine challenge. Weaker consumer sentiment could also slow discretionary coffee runs.
This is a growth stock, with all the volatility that label implies.
Dutch Bros (BROS - Free Report) ended the recent trading session at $65.35, demonstrating a +2.33% change from the preceding day's closing price. This change outpaced the S&P 500's 0.51% loss on the day. Meanwhile, the Dow experienced a drop of 0.2%, and the technology-dominated Nasdaq saw a decrease of 1.47%.
The drive-thru coffee chain operator and franchisor's stock has dropped by 2.83% in the past month, falling short of the Retail-Wholesale sector's gain of 0.51% and the S&P 500's gain of 0.53%.
Analysts and investors alike will be keeping a close eye on the performance of Dutch Bros in its upcoming earnings disclosure. On that day, Dutch Bros is projected to report earnings of $0.29 per share, which would represent year-over-year growth of 11.54%. At the same time, our most recent consensus estimate is projecting a revenue of $522.66 million, reflecting a 25.7% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.93 per share and a revenue of $2.08 billion, representing changes of +22.37% and +26.85%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Dutch Bros. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.9% upward. Currently, Dutch Bros is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Dutch Bros is presently being traded at a Forward P/E ratio of 68.58. This signifies a premium in comparison to the average Forward P/E of 20.14 for its industry.
Meanwhile, BROS's PEG ratio is currently 1.86. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BROS's industry had an average PEG ratio of 1.95 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
In the retail coffee market, Starbucks gets a lot of attention. Its brand recognition, gargantuan physical footprint, and more than five-decade operating history support its strong industry position.
However, investors shouldn't overlook Dutch Bros (BROS 0.30%). The up-and-coming chain presents an exciting opportunity to potentially achieve a strong portfolio return.
I believe this coffee stock will double to $130 in five years. The company's impressive growth trajectory is why I think this will happen.
Image source: Getty Images.
Management isn't letting up At the end of 2021, there were 538 Dutch Bros locations in the U.S. This small number, mostly concentrated in the western and southern parts of the country, surged in recent years. As of March 31, there were 1,177 Dutch Bros coffee shops in total. The business opened its first store in the Chicago area in May, for instance, clearly expanding its geographic footprint.
Dutch Bros has huge growth ambitions. During its 2025 investor day, executives revealed that the goal is to reach 2,029 stores by 2029. The management team estimates that the U.S. has a total addressable market of 7,000 locations. This figure is six times larger than the current shop count.
The company's operating playbook focuses on small drive-through retail outlets, averaging 900 square feet in size and with no indoor seating. This strategy not only expands the potential real estate opportunity set, but can also lead to lower upfront capital investment.
These locations are performing well, despite the uncertain macro backdrop. Dutch Bros has reported systemwide same-store sales growth in at least the last nine consecutive quarters. This must definitely be the envy of the retail sector.
What's particularly encouraging is that the company's shops generate almost 75% of their sales after 10 a.m. Compared to the 50% share industry leaders report during this time, Dutch Bros has been able to differentiate itself in a notable way.
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Growth will drive financial performance It's no shock that opening new stores will support revenue and profit gains. This has been the case historically. Between 2022 and 2025, sales climbed 122%. The bottom line went from a $19 million net loss to a $117 million net profit, as advantages developed thanks to greater scale.
From 2025 to 2028, consensus analyst estimates call for Dutch Bros' adjusted diluted earnings per share to rise at a compound annual rate of 27%. Based on recent trends, this outcome isn't out of the question. Even accounting for growth decelerating toward the end of the decade, the stock still has a good chance of doubling in the next five years.
Investors with an interest in Retail - Restaurants stocks have likely encountered both Yum China Holdings (YUMC) and Dutch Bros (BROS). But which of these two stocks is more attractive to value investors?
The Zacks Retail – Restaurants industry continues to face challenges as elevated menu prices and cautious consumer spending weigh on customer traffic. At the same time, higher labor, food and occupancy expenses are putting pressure on profitability. Despite these headwinds, operators are benefiting from sustained demand for convenience, expanding digital ordering platforms, ongoing restaurant openings and increased investment in convenience-focused service formats. Stocks like Dutch Bros Inc., Brinker International, Inc., BJ's Restaurants, Inc. and Arcos Dorados Holdings Inc. are well-poised to benefit from the factors mentioned above.
Industry DescriptionThe Zacks Retail-Restaurants industry comprises several owners and operators of casual, upscale casual, fine dining, full-service and fast-casual restaurants. Some industry participants operate as roasters, marketers and retailers of specialty coffee. Some companies develop, operate and franchise quick-service restaurants worldwide.
A few restaurant operators offer cooked-to-order dishes, including noodles and pasta, soups, salads and appetizers. Some industry players develop, own, operate, manage and license restaurants and lounges worldwide. A few companies also run technology-enabled Japanese restaurants in the United States and provide Japanese cuisine through a revolving sushi service model.
4 Trends Shaping the Future of the Restaurant IndustryChallenging Consumer Environment:The restaurant industry continues to operate in a difficult macroeconomic backdrop. Elevated menu prices and cautious consumer spending have kept guest traffic under pressure as many diners look for better value. At the same time, rising labor, food and occupancy costs, along with increased spending on marketing and store development, are weighing on restaurant profitability. Intense competition is also forcing operators to invest more heavily in promotions and customer engagement.
2026 U.S. Restaurant Industry Outlook:According to the National Restaurant Association, U.S. restaurant and foodservice sales are projected to reach about $1.55 trillion in 2026, with modest real sales growth. While consumers continue to value dining out and convenience, operators are expected to face uneven traffic, persistent cost inflation and cautious household spending. Industry growth is likely to be supported more by pricing, menu mix and operational efficiency than by a broad-based recovery in customer visits.
Convenience and Digital Innovation Fuel Demand:Convenience remains a key driver of growth across the restaurant industry. Consumers continue to favor drive-thru, takeout and delivery options, prompting brands to expand their digital capabilities. Investments in mobile ordering, loyalty programs and AI-enabled technologies are helping restaurants improve operational efficiency, personalize customer engagement and encourage repeat purchases.
Expansion and Menu Strategy Support Revenues:Restaurant companies are pursuing growth through new restaurant openings, smaller-format locations and expansion into underserved markets. Many operators are also refining menu and pricing strategies by introducing premium offerings, value bundles and limited-time promotions to boost average ticket sizes. These initiatives are helping sustain revenue growth despite a slower recovery in overall guest traffic.
The Zacks Industry Rank Indicates Dull ProspectsThe Zacks Restaurant industry is grouped within the broader Retail-Wholesale sector. The industry carries a Zacks Industry Rank of #181, placing it in the bottom 27% of more than 247 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s position in the bottom 50% of the Zacks-ranked industries results from a negative earnings outlook for the constituent companies in aggregate. Before we present a few stocks that you may want to consider for your portfolio, let us take a look at the industry’s recent stock-market performance and valuation picture.
Industry Underperforms the S&P 500 and the SectorThe Zacks Retail-Restaurants industry has underperformed the Zacks S&P 500 composite and its sector over the past year.
Over this period, the industry has declined 8% against the Zacks S&P 500 composite’s rise of 22.8%. The sector has increased 2.2% in the same period.
Restaurant Industry's ValuationBased on the forward 12-month P/E, a commonly used multiple for valuing restaurant stocks, the industry is currently trading at 22.81X compared with the S&P 500’s 21.03X. It is down from the sector’s forward 12-month P/E ratio of 25.05X.
Over the past five years, the industry traded as high as 29.01X and as low as 22.08X, the median being 24.85X.
4 Key Restaurant PicksDutch Bros:The company is benefiting from healthy traffic trends, supported by strong customer loyalty and increasing digital engagement. Dutch Bros continues to expand its store base in a disciplined manner, backed by attractive unit-level economics.
Shares of this Zacks Rank #2 (Buy) company have gained 6.4% in the past six months. BROS’ 2026 sales and earnings are anticipated to rise 27.1% and 22.4%, respectively, year over year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Brinker International:The company is benefiting from strong traffic at Chili’s, marketing initiatives and a value-driven menu strategy. Also, the emphasis on technology initiatives, expansion and store upgrades bodes well.
Shares of this Zacks Rank #2 company have gained 7.7% in the past six months. EAT’s fiscal 2026 sales and earnings are anticipated to rise 7.9% and 20.8%, respectively, year over year.
BJ's Restaurants: The company continues to benefit from sustained traffic growth, menu innovation and operational initiatives. Fiscal first-quarter 2026 comparable sales growth was driven primarily by higher guest traffic, while restaurant-level margins remained stable despite elevated commodity and workers’ compensation costs.
Shares of this Zacks Rank #2 company have gained 33.6% in the past six months. BJRI’s 2026 sales and earnings are anticipated to rise 2.7% and decline 2.2%, respectively, year over year.
Arcos Dorados: The company is benefiting from healthy comparable sales growth, supported by rising digital engagement, a growing loyalty platform and resilient guest traffic. Continued restaurant expansion, operational efficiency initiatives and a focus on value offerings position Arcos Dorados for sustainable long-term growth.
Shares of this Zacks Rank #2 company have gained 5% in the past six months. ARCO’s 2026 sales and earnings are anticipated to rise 10% and 180.8%, respectively, year over year.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Let's take a look at what these Wall Street heavyweights have to say about Dutch Bros (BROS - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Dutch Bros currently has an average brokerage recommendation (ABR) of 1.22, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 25 brokerage firms. An ABR of 1.22 approximates between Strong Buy and Buy.
Of the 25 recommendations that derive the current ABR, 21 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 84% and 8% of all recommendations.
Brokerage Recommendation Trends for BROS
Check price target & stock forecast for Dutch Bros here>>>
While the ABR calls for buying Dutch Bros, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in BROS?Looking at the earnings estimate revisions for Dutch Bros, the Zacks Consensus Estimate for the current year has increased 0.2% over the past month to $0.93.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Dutch Bros. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Dutch Bros may serve as a useful guide for investors.
Dutch Bros (BROS - Free Report) ended the recent trading session at $65.64, demonstrating a +1.09% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.81%. On the other hand, the Dow registered a gain of 0.27%, and the technology-centric Nasdaq increased by 1.3%.
The drive-thru coffee chain operator and franchisor's shares have seen an increase of 7.71% over the last month, surpassing the Retail-Wholesale sector's gain of 0.24% and the S&P 500's gain of 1.13%.
Analysts and investors alike will be keeping a close eye on the performance of Dutch Bros in its upcoming earnings disclosure. In that report, analysts expect Dutch Bros to post earnings of $0.29 per share. This would mark year-over-year growth of 11.54%. Simultaneously, our latest consensus estimate expects the revenue to be $522.66 million, showing a 25.7% escalation compared to the year-ago quarter.
BROS's full-year Zacks Consensus Estimates are calling for earnings of $0.93 per share and revenue of $2.08 billion. These results would represent year-over-year changes of +22.37% and +27.07%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Dutch Bros. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.23% rise in the Zacks Consensus EPS estimate. Currently, Dutch Bros is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Dutch Bros is currently trading at a Forward P/E ratio of 69.73. Its industry sports an average Forward P/E of 19.67, so one might conclude that Dutch Bros is trading at a premium comparatively.
We can additionally observe that BROS currently boasts a PEG ratio of 1.89. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Restaurants industry had an average PEG ratio of 1.92 as trading concluded yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 200, this industry ranks in the bottom 19% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Dutch Bros (BROS - Free Report) Dutch Bros Inc. operates and franchises drive-thru beverage shops focused on hand-crafted drinks served with speed and service. The company was founded in 1992 by brothers Dane and Travis Boersma in Grants Pass, OR. Dutch Bros is incorporated in Delaware and its principal executive offices are in Tempe, AZ. It operates roasting, packing, warehouse and administrative facilities centered in Grants Pass, OR, and a roasting and packing facility in Melissa, TX.
BROS is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Retail-Wholesale stock. BROS has a Momentum Style Score of A, and shares are up 7.7% over the past four weeks.
For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $0.93 per share. BROS boasts an average earnings surprise of +31.6%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, BROS should be on investors' short list.
Dutch Bros (BROS - Free Report) closed at $66.28 in the latest trading session, marking a -2.66% move from the prior day. This change lagged the S&P 500's 0.45% loss on the day. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq decreased by 1.16%.
The stock of drive-thru coffee chain operator and franchisor has risen by 21.05% in the past month, leading the Retail-Wholesale sector's loss of 0.18% and the S&P 500's gain of 2.14%.
The investment community will be paying close attention to the earnings performance of Dutch Bros in its upcoming release. On that day, Dutch Bros is projected to report earnings of $0.29 per share, which would represent year-over-year growth of 11.54%. Our most recent consensus estimate is calling for quarterly revenue of $522.66 million, up 25.7% from the year-ago period.
BROS's full-year Zacks Consensus Estimates are calling for earnings of $0.93 per share and revenue of $2.08 billion. These results would represent year-over-year changes of +22.37% and +27.07%, respectively.
It is also important to note the recent changes to analyst estimates for Dutch Bros. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.23% higher. Dutch Bros is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note Dutch Bros's current valuation metrics, including its Forward P/E ratio of 73.13. This valuation marks a premium compared to its industry average Forward P/E of 20.01.
One should further note that BROS currently holds a PEG ratio of 1.98. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Restaurants was holding an average PEG ratio of 1.98 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 206, putting it in the bottom 17% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Key Takeaways Dutch Bros saw rewards members make up 74% of all transactions in Q1 2026.Dutch Bros' system same-shop transactions rose 5.1%, marking a seventh straight quarter of growth.Dutch Bros plans at least 185 new shops in 2026 and projects revenues of $2.05B-$2.08B. Dutch Bros Inc. (BROS - Free Report) has steadily transformed its digital rewards platform into one of its strongest competitive advantages. During the first quarter of 2026, 74% of all transactions were made by Dutch Rewards members, highlighting how deeply the loyalty program has become embedded in customer behavior. Rather than simply rewarding repeat visits, the platform is increasingly serving as a growth engine that drives frequency, supports new product launches, enhances marketing efficiency and encourages higher customer engagement.
A loyalty program is most valuable when it increases customer visits rather than merely rewarding existing purchases. Dutch Bros appears to be achieving that objective. During the first quarter, system same-shop transactions increased 5.1%, marking the company's seventh consecutive quarter of transaction growth. System same-shop sales rose 8.3%, while company-operated same-shop sales increased 10.6%. Unlike many restaurant companies that continue relying heavily on pricing, Dutch Bros generated healthy transaction growth alongside moderate ticket expansion, indicating that more customers are visiting its shops rather than simply paying higher prices.
Management credited the momentum to stronger customer engagement and rising Dutch Rewards adoption. The app gives Dutch Bros better visibility into purchase frequency, favorite beverages, seasonal demand and regional trends. These insights help the company personalize offers, target limited-time beverages to the right customers and support food promotions more effectively. Higher digital engagement also creates opportunities to launch new beverages more efficiently, promote food offerings and communicate seasonal campaigns without significantly increasing marketing expenses. As the rewards ecosystem expands, customer acquisition costs could decline while repeat visitation continues improving.
The loyalty platform becomes even more valuable as Dutch Bros continues opening new locations. The company finished the first quarter with 1,177 shops after opening 41 new stores during the quarter and now expects to open at least 185 new shops during 2026. Management also raised its full-year outlook, projecting revenues between $2.05 billion and $2.08 billion and same-shop sales growth of approximately 4-6%.
Dutch Bros' 74% rewards penetration represents far more than a loyalty statistic. It reflects an increasingly data-driven customer ecosystem that supports repeat visits, personalized marketing and more efficient expansion into new markets. The company's recent transaction growth suggests the strategy is already delivering tangible benefits. If Dutch Bros continues combining strong rewards engagement with disciplined new-store expansion, menu innovation and effective digital marketing, its loyalty platform could remain an important catalyst for sustaining faster traffic growth over the coming years.
Rewards Programs Become a Key Competitive BattlegroundDutch Bros' success in driving 74% of transactions through its Dutch Rewards program reflects a broader industry trend, with peers like Starbucks Corporation (SBUX - Free Report) and Shake Shack Inc. (SHAK - Free Report) increasingly investing in digital ecosystems to boost customer frequency, personalization and long-term loyalty.
Starbucks continues to strengthen its Rewards platform as part of its "Back to Starbucks" strategy. SBUX reported a record 35.6 million active U.S. Rewards members in the second quarter of fiscal 2026 and introduced new redemption options and personalized benefits to encourage more frequent visits. Management noted that the redesigned program is already increasing customer engagement and visit frequency, positioning Rewards as a key growth engine rather than simply a discount program.
Shake Shack is also expanding its digital engagement strategy. While the company has yet to launch its loyalty program, management plans to introduce it later in 2026 as part of its broader Project Catalyst initiative. The platform is designed to deepen guest engagement, improve retention and increase lifetime value through personalized experiences rather than points-based discounts, while SHAK’s growing digital customer base provides the data needed to support targeted marketing.
Against this backdrop, Dutch Bros appears well positioned with an already mature rewards ecosystem. With nearly three-fourths of transactions flowing through Dutch Rewards, the company has built a sizable base for personalized marketing, product launches and customer retention.
BROS’ Price Performance, Valuation & EstimatesShares of Dutch Bros have gained 22.7% in the past three months against the industry’s decline of 0.4%.
BROS Stock’s Three-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Dutch Bros stock trades at a forward price-to-sales ratio of 5.13, above the industry’s average of 3.41.
BROS’ P/s Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BROS’ 2026 earnings per share (EPS) implies a year-over-year uptick of 22.4%. EPS estimates for 2026 have increased in the past 30 days.
EPS Trend of BROS Stock
Image Source: Zacks Investment Research
Dutch Bros currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Dutch Bros (BROS - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Dutch Bros is one of 187 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #11 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Dutch Bros is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for BROS' full-year earnings has moved 3.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, BROS has returned 11.2% so far this year. At the same time, Retail-Wholesale stocks have lost an average of 0.1%. This shows that Dutch Bros is outperforming its peers so far this year.
Another stock in the Retail-Wholesale sector, Sprouts Farmers (SFM - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 8.7%.
Over the past three months, Sprouts Farmers' consensus EPS estimate for the current year has increased 0.7%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Dutch Bros belongs to the Retail - Restaurants industry, a group that includes 36 individual stocks and currently sits at #206 in the Zacks Industry Rank. On average, this group has gained an average of 1.9% so far this year, meaning that BROS is performing better in terms of year-to-date returns.
On the other hand, Sprouts Farmers belongs to the Food - Natural Foods Products industry. This 3-stock industry is currently ranked #5. The industry has moved +20.4% year to date.
Dutch Bros and Sprouts Farmers could continue their solid performance, so investors interested in Retail-Wholesale stocks should continue to pay close attention to these stocks.
Investing in restaurant stocks at their early stages of expansion can be a simple and rewarding strategy for building wealth in the stock market. Dutch Bros fits the profile of a growth stock that famous investor Peter Lynch loved to find during his career managing Fidelity's Magellan Fund.
After consolidating for over a year, Dutch Bros' (BROS 1.57%) shares recently surged to a 52-week high of $74.65. The company's growth amid inflation and other economic headwinds is a testament to its brand strength. Here are three reasons the stock is a solid buy right now.
Image source: Dutch Bros.
1. Brand resilience The stock's recent surge followed another strong quarter. Revenue grew 31% year over year, driven by new shop openings and a healthy same-shop sales increase of 8.3%. This shows the brand driving balanced growth from existing and new locations.
What's more, management raised full-year guidance for revenue, same-shop sales, profitability, and new shop openings. It expects full-year revenue to be up 25% to 27%, to open at least 185 new locations, and to deliver same-store sales growth of 4% to 6%.
The first quarter marked the company's fifth straight quarter of transaction growth, which is a strong showing. Even iconic consumer brands like Starbucks and Nike have struggled to deliver meaningful growth to push their share prices higher. Dutch Bros' consistency in a challenging macroeconomic environment reflects a strong brand in the making.
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2. Passionate culture These results reflect strength in a highly competitive beverage-chain market. While its menu, which spans energy drinks, sodas, smoothies, and coffee, is certainly a draw for customers, management says the brand's biggest differentiator is its people.
The company emphasizes friendly interactions with customers, and this matters because Dutch Bros promotes new shop operators from within. And some of these operators are so passionate about the company that they have the brand tattooed on them.
These are intangible qualities that Wall Street analysts will overlook, but that can be vital to a company's long-term success. This is especially true in the restaurant industry, where making customers happy is fundamental to driving sales. Clearly, this company is run by incredibly passionate people. That's rare, and it says a lot about why Dutch Bros continues to post strong financial results.
3. Profitable expansion strategy Dutch Bros had 1,177 shops open as of March 31, 2026. That covers 25 states, leaving plenty of room for nationwide expansion. Management is targeting 2,029 shops by 2029. But investors shouldn't think that it is recklessly expanding for the sake of growth.
Management scouts each location carefully. Its strategy is to cluster locations in a market so consumers will build their daily routine around visiting a Dutch Bros shop. This lays the foundation for billions in annual revenue through high daily sales volume over the long term.
This detailed planning is starting to show up in profitability. The company operated at a small loss through 2022, but since mid-2023, net income has been steadily growing. It generated $118 million in net income on $1.75 billion in revenue over the trailing 12 months.
The stock isn't cheap, trading at a forward earnings multiple of 76. But the stock looks expensive on a price-to-earnings basis because it's still in the early stages of scaling the business and leveraging expenses.
The price-to-sales ratio is a more useful valuation metric for valuing this company in the early innings of its long-term expansion. On that measure, Dutch Bros shares trade at 5.3 times trailing revenue. That's more reasonable and consistent with the ranges that Starbucks and Chipotle historically traded.
Overall, Dutch Bros' momentum in a tough environment, its passionate workforce, and its expansion opportunities make it a solid growth stock to buy in July.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill, Dutch Bros, Nike, and Starbucks. The Motley Fool recommends the following options: short September 2026 $35 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
Dutch Bros (BROS +2.09%) shares gained 23.8% last month. The stock surged from approximately $56 to over $65 between June 10 and June 11. Trading volume during those two sessions reached roughly 6 million shares per day, well above the stock's typical average.
According to data from S&P Global Market Intelligence, this marked one of the coffee chain's biggest two-day surges since Dutch Bros went public in 2021. Combined with two high-volume spikes in the second half of the month, Dutch Bros treated shareholders right in June.
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A perfect storm (the good kind) Credit the June 10 Consumer Price Index report for getting things started. Inflation came in cooler than expected, and growth stocks across the board caught a bid. As a consumer-discretionary name amid an ambitious expansion, Dutch Bros fits the profile perfectly.
However, macroeconomic tailwinds only tell part of the story. Dutch Bros entered June with short interest representing roughly 44.5% of its float. When shares began climbing on the inflation news, short sellers rushed to cover their positions, creating a feedback loop that amplified the price gains and drove unusually high trading volume. I've seen more intense short squeezes, but it was still a classic example of that trading pattern.
The company's own story helped too. A Q1 earnings beat in May, raised full-year revenue guidance ($2.05 billion to $2.08 billion), and plans for at least 185 new locations this year gave investors something to point to beyond just a nice inflation report. The company's expansion into Chicagoland and continued mobile ordering rollout added to the sense that Dutch Bros is still in growth mode.
There's one notable wrinkle in Dutch Bros' bullish June story. Insiders were selling into the rally. Executive Chairman Travis Boersma and CEO Christine Barone offloaded about 1.5 million shares over those two days of intense trading volume. Before anyone panics, the sales were executed through pre-arranged Rule 10b5-1 trading plans. In other words, the executives were simply monetizing some of their Dutch Bros holdings according to plan.
The market shrugged it off and kept buying.
Image source: The Motley Fool.
So now what? The June rally dropped Dutch Bros' short interest considerably. The easy gains from squeeze mechanics are probably in the rearview mirror. That's not necessarily bad news; it just means Dutch Bros stock will need to move on fundamentals from here rather than benefiting from an amplified short-squeeze panic.
The underlying investment thesis remains the same: Dutch Bros is a high-growth coffee chain executing an aggressive expansion strategy. Its friendly customer service plus the low cost of building and maintaining small drive-through shops add up to a vibrant growth story. The stock is just a bit more expensive than it was in early June.
For anyone considering Dutch Bros stock from the sidelines, the calculus is simple: if the growth thesis appealed to you before, it should still look tempting now. If it didn't, a temporary short squeeze shouldn't make you an instant bull anyway.
In the latest trading session, Dutch Bros (BROS - Free Report) closed at $73.31, marking a +2.09% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.22% for the day. Meanwhile, the Dow experienced a drop of 0.03%, and the technology-dominated Nasdaq saw a decrease of 0.66%.
The drive-thru coffee chain operator and franchisor's shares have seen an increase of 24.11% over the last month, surpassing the Retail-Wholesale sector's loss of 5.51% and the S&P 500's loss of 1.21%.
Market participants will be closely following the financial results of Dutch Bros in its upcoming release. The company is forecasted to report an EPS of $0.29, showcasing a 11.54% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $522.32 million, indicating a 25.62% growth compared to the corresponding quarter of the prior year.
BROS's full-year Zacks Consensus Estimates are calling for earnings of $0.93 per share and revenue of $2.08 billion. These results would represent year-over-year changes of +22.37% and +27.01%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Dutch Bros. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.23% upward. Currently, Dutch Bros is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Dutch Bros is at present trading with a Forward P/E ratio of 77.12. This expresses a premium compared to the average Forward P/E of 20.37 of its industry.
It's also important to note that BROS currently trades at a PEG ratio of 2.09. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. BROS's industry had an average PEG ratio of 2.03 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 191, finds itself in the bottom 23% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Dutch Bros (BROS +0.17%) stock is up 54% in three months as of June 29. The drive-through coffee chain keeps opening new shops, customers keep coming back, and investors keep bidding up the shares. The stock's momentum raises an obvious question: Could this be a life-changing investment?
The short answer is yes, Dutch Bros belongs in a diversified portfolio. I think Dutch Bros is a great buy right now, even if it trades on the pricey side.
I also think you shouldn't bet the farm, the tractor, and the dog on it.
Image source: The Motley Fool.
The growth story is percolating nicely Dutch Bros has doubled its store count in five years, from 503 locations to 1,081 across 24 states. Management wants 2,029 shops by 2029 (yes, management enjoys wordplay), and the company opened 41 new locations in Q1 2026 alone.
Same-shop sales grew 8.3% in Q1, marking seven consecutive quarters of transaction growth. The Dutch Rewards loyalty program now accounts for 74% of transactions. Texas is posting nearly 20% same-shop growth. The current food rollout has reached roughly 500 locations and is lifting sales at participating shops.
In other words, Dutch Bros' thesis is working.
But "set you up for life" is a high bar Dutch Bros stock is priced for continued excellence. Coffee costs are elevated. Starbucks (SBUX 1.73%) and other coffee giants are pushing harder into cold beverages and drive-through convenience, challenging Dutch Bros' advantages head-on. And scaling a culture-driven brand across 185-plus new locations per year is the kind of challenge that sounds easy until you try it.
Every company can stumble. Dutch Bros could stumble. That's not pessimism; it's just how business works. There's no such thing as a risk-free investment.
The real secret to building wealth Here's something that sounds boring but is true: Diversification is more important than finding the perfect stock.
The best investors in the world are wrong on individual picks all the time. Their wins just tend to be larger than their losses. That math works only if you own enough positions to capture those winners. Dutch Bros looks like a promising growth story, more likely to deliver market-beating returns than most stocks -- especially in the notoriously low-margin food service industry.
A well-diversified portfolio includes at least 50 stocks spread across different sectors. It includes some bonds or other fixed-income assets to smooth out the volatility. It might include real estate investment trusts for additional stability. It doesn't stop at the only stock you're counting on to fund your retirement, your kids' college, and a beach house.
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So could buying Dutch Bros today set you up for life? Yes, but not all by itself. Dutch Bros can be one of the winners that compound your wealth over decades.
It just needs some company. As a single concentrated bet, you're rolling the dice. That's gambling, not investing.
Build a diversified portfolio, give Dutch Bros a seat at the table, and let time do the rest.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Dutch Bros (BROS - Free Report) Dutch Bros Inc. operates and franchises drive-thru beverage shops focused on hand-crafted drinks served with speed and service. The company was founded in 1992 by brothers Dane and Travis Boersma in Grants Pass, OR. Dutch Bros is incorporated in Delaware and its principal executive offices are in Tempe, AZ. It operates roasting, packing, warehouse and administrative facilities centered in Grants Pass, OR, and a roasting and packing facility in Melissa, TX.
BROS is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. BROS has a Growth Style Score of A, forecasting year-over-year earnings growth of 22.4% for the current fiscal year.
Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.03 to $0.93 per share. BROS boasts an average earnings surprise of +31.6%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, BROS should be on investors' short list.
Dutch Bros (BROS +1.27%) may be new to you if you don't live in one of the 25 states where it has stores, but if you're an investor, you may want to get to know it better. It's an incredible growth stock, and since it's not a tech stock, it offers diversification for the growth investor.
The stock has more than doubled over the past three years, but it still has a huge opportunity. Can it triple by 2030?
The king of cold beverages Dutch Bros is a growing coffee shop chain, but that simple description is deceiving. Unlike many popular chains that have a similar model, it has carved out a niche, offering a distinct brand identity and innovation in several categories.
It was the first major chain to offer protein coffee, which has since become a standard offering across major chains, and it has developed an exclusive line of mixable flavors centered on cold beverages, which account for about 90% of its sales. It's not a carbon-copy coffee chain; rather, it's leading through innovation, offering something truly unique.
A Dutch Bros "broista." Image source: Dutch Bros.
Dutch Bros is also breaking the mold in store formats, building locations as quick and agile responders to each location's specific needs. While most of its fleet is drive-thru only, it is experiencing success with walk-up windows, and it has some dining rooms. The company is rigorous, though, about translating its winning formula into new stores, since its model is what makes it stand out from the competition.
This is leading to results. In the 2026 first quarter, sales growth accelerated to 31% year over year, while comparable store sales were up 8.3%. While that's strong performance at any time, it's an impressive feat when inflation makes luxury purchases like specialty coffee that much harder. Dutch Bros also has an edge in some ways because its drinks are cheaper than some competing shops, like Starbucks.
Triple-shot stock? Like most great stocks in the making, Dutch Bros has gone through ups and downs, but the long-term arc has been positive. It wasn't profitable for a while, and now that it is, the stock has become expensive. It fell last year, but now it's up 29% over the past month.
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Shares gained 135% over the past three years, and today the stock trades at a price-to-earnings ratio (P/E) of 104. That's quite expensive, and it reduces the chance of tripling by 2030.
For example, net income increased by nearly 1,000% over the past three years, but it started in the negative, so that's not likely to be repeated. But let's say it can reach a compound annual growth rate of 50%; net income would increase from $118 million today to $597 million over the next four years, or grow fivefold. Keeping the P/E ratio constant, the stock would gain the same amount.
That's unlikely to happen, though. Net income growth is decelerating, and as it does, it can't support such a high valuation.
Pulling out another potential scenario, if net income increases at a compound annual rate of 30%, it will nearly triple in four years. However, at a lower valuation, the stock won't triple with it.
The chance of the stock tripling is low in my opinion, but it could double by 2030, and it has excellent long-term opportunities.
In the latest trading session, Dutch Bros (BROS - Free Report) closed at $67.03, marking a -5.22% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.37%. Meanwhile, the Dow experienced a rise of 0.29%, and the technology-dominated Nasdaq saw a decrease of 1.33%.
The drive-thru coffee chain operator and franchisor's stock has climbed by 35.69% in the past month, exceeding the Retail-Wholesale sector's loss of 4.65% and the S&P 500's gain of 2.02%.
The investment community will be paying close attention to the earnings performance of Dutch Bros in its upcoming release. The company is expected to report EPS of $0.29, up 11.54% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $522.5 million, showing a 25.66% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.93 per share and a revenue of $2.08 billion, representing changes of +22.37% and +26.94%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Dutch Bros. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.43% higher within the past month. Dutch Bros is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Dutch Bros is currently trading at a Forward P/E ratio of 76.13. This expresses a premium compared to the average Forward P/E of 19.16 of its industry.
Meanwhile, BROS's PEG ratio is currently 2.06. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Restaurants industry currently had an average PEG ratio of 1.91 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 205, which puts it in the bottom 16% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
When it comes to the retail coffee industry, investors probably think of Starbucks first. While this business has a strong position in the market on a global level, there is a popular smaller rival finding success domestically.
Enter Dutch Bros (BROS +7.63%). It's rapidly expanding, making it an exciting story in the competitive industry. If you buy this growth stock today, here's where it could be in five years.
Image source: Getty Images.
Leaning on an obvious growth engine As of March 31, there were 1,177 Dutch Bros locations nationwide. That figure has expanded dramatically from 441 stores at the end of 2020. The business is clearly seeing an opportunity to keep growing, as it evolves from only having a stronghold in the western U.S. to a national footprint.
The company's biggest growth engine is, unsurprisingly, opening new stores. The leadership team believes it can reach 2,029 coffee shops by 2029. And over the very long term, Dutch Bros believes the U.S. has room for 7,000 locations.
That should support higher revenue. This is especially true, given that systemwide same-store sales were up 8.3% in the first quarter, during a period of high economic uncertainty.
Meanwhile, the business is shifting its strategy to capture greater sales. For example, Dutch Bros' new food program was in 485 stores in the first quarter. This effort "continues to perform exceptionally well," according to CEO Christine Barone.
Given estimates that just 2% of sales come from food, there is potential for this to become a more meaningful contributor to the top line. This is the case for the morning, when consumers want to grab food with their coffee on the way to work.
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Earnings power should drive stock returns The consensus view among sell-side analysts is that Dutch Bros will report adjusted diluted earnings per share of $1.53 in 2028. This estimate would be 101% higher than the $0.76 it posted in 2025, translating to a superb compound annual growth rate of 26.3%.
A potentially higher profit pool in the future is key to the investment thesis with this business. The bottom line is a powerful fundamental driver for any company. But given that Dutch Bros is earlier in its lifecycle, the upside is significant.
And that's why the current valuation, which is expensive, matters less. Shares trade at a forward price-to-earnings ratio of 74.6. The stock price is trading at 43.5 times the 2028 forecast, however.
Investors looking to buy this stock with a five-year time horizon are staring at an attractive opportunity to achieve market-beating returns. There's a chance this stock doubles between now and June 2031.
It all depends on Dutch Bros' ability to continue executing well. Because the business is reporting strong financial results right now, there's little reason to think it won't be able to keep up the momentum.
Dutch Bros (BROS +7.63%) stock has been a disappointment over the past year, but the market has finally started to recognize the opportunity, and it has soared 30% over the past month.
The coffee shop chain is in high-growth mode, and it has a compelling long-term opportunity. Is it still a strong buy right now?
Popular beverages attract customers Dutch Bros has cultivated a mass following by popularizing its innovative beverages and offering speed and convenience throughout its 1,000-plus store network, most of which are mostly drive-thru only stores. It's far from "another coffee chain," with exclusive drinks that make it borderline a coffee shop and a distinct brand identity.
Image source: Dutch Bros.
The concept has taken off, and with a brand new C-suite and headquarters, it's in start-up mode. Sales increased 31% year over year in the 2026 first quarter, and comparable sales were up 8.3%. It has reported seven consecutive quarters of transaction growth, an impressive feat given the broader inflationary environment. CEO Christine Barone said, "It is clear we are poised to continue shaping and commanding a leadership position in the large and growing beverage category."
It has a massive expansion plan The model has proved to work in different regions across the country, and while Dutch Bros started as a West Coast phenomenon, it has spread to 25 states with plans for a lot more. Its short-term goal is to operate 2,029 stores by 2029, and it's aiming to reach 7,000 stores over an undefined "long term."
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For now, the company plans to open 185 stores in total for 2026, and it uses a "cluster" strategy of opening several stores in one area to build its brand and hit the new region quickly. That's what it's been doing in Texas, for example, and combined with intense marketing efforts, it resulted in almost 20% comps growth in the state in the first quarter.
Is it priced to buy? All that said, Dutch Bros is an expensive stock. Even with its recent surge, it's nominally down over the past year and still trades at 105 times trailing-12-month earnings. That's quite a premium, even considering the company's many wonderful qualities.
It's likely to live up to its premium over the next few years, and if you can handle volatility, it's a great stock to add to your portfolio. But it's less appetizing at this price, and you might want to wait for a better entry point.
Dutch Bros (BROS) demonstrates accelerating comp sales near 10%, outpacing peers despite macro headwinds and consumer sector skepticism. I reiterate a buy rating as BROS raises guidance, driven by robust traffic, average check growth, and aggressive expansion plans. BROS targets at least 185 net new locations in 2025, combining 16% footprint growth with strong comps for a compelling growth formula.
Dutch Bros Inc (NYSE:BROS) shares traded up 8%, bringing its gains over the last month to 35%, amid positive commentary from market watchers this week about...
First Phosphate Corp. (CSE:PHOS, OTCQX:FRSPF, FRA:KD0, OTC:FPHOY) has gained strategic and financial validation through its participation in G7-linked critical minerals initiatives and related investment interest, according to Noble Capital Markets analysts.
The company this week announced that it has obtained international investment support and finalized offtake agreements through the Critical Minerals Resilience and Production Alliance during the 2026 G7 Summit in Evian, France.
“The developments underscore the company’s strategic importance in the effort by G7 nations and allied partners to develop secure and diversified critical mineral supply chains, particularly for lithium iron phosphate (LFP) battery production,” Noble’s analysts wrote.
They wrote that recent letters of interest from multiple export credit agencies and state-backed institutions, including Denmark’s EIFO, Italy’s SACE, Cassa Depositi e Prestiti (CDP), and SIMEST, are viewed as early indications of potential large-scale financial backing for the company’s mine development and processing infrastructure.
Noble Capital analysts also wrote that support from Italian engineering group MAIRE for First Phosphate’s planned phosphoric acid facility at Port Saguenay adds technical credibility to the project, particularly regarding the potential use of established European processing technology.
On commercial arrangements, the analysts wrote that the company’s offtake agreements for 200,000 tonnes of phosphate concentrate annually from the Bégin-Lamarche mine and 60,000 tonnes of phosphoric acid from Port Saguenay are seen as improving visibility into future demand and strengthening the overall development profile of the integrated project.
The analysts maintained an ‘Outperform’ rating and a $2.00 price target on First Phosphate, writing that the combination of government-aligned financial interest, technical partnerships, and secured offtake agreements supports their constructive view on First Phosphate’s role in emerging North American and European LFP supply chains.
This price target implies upside from the company’s share price at the time of writing of $1.28.
Dutch Bros Inc (NYSE:BROS) shares traded up 8%, bringing its gains over the last month to 35%, amid positive commentary from market watchers this week about the company’s long-term growth outlook.
The coffee chain, known for its drive-thru focused model and beverage lineup, has drawn increased attention from market participants in recent weeks as coverage around its unit expansion strategy and same-store sales trends circulated across financial media.
A key focus is Dutch Bros’ ongoing expansion strategy. The company recently announced it would add 29 locations in the Phoenix East Valley through the acquisition of a regional franchise operation.
The transaction, which is expected to transition those stores into company-operated locations, was framed by management as part of its broader effort to deepen density in existing and emerging markets.
The Phoenix expansion has been cited in recent commentary as an example of the company’s “cluster” development model, which emphasizes rapid store buildouts within targeted regions to accelerate brand awareness and operational efficiency.
This approach is seen as potential driver of sustained unit growth, particularly as the company continues expanding beyond its core Western US footprint.
There is never a quiet moment in consumer stocks. A tariff headline drops, and restaurant shares fall 10% before lunch. A perfectly healthy brand reports a single quarter of soft traffic and gets written off as broken. A newer competitor enters a category, and suddenly the incumbent is called a dinosaur. This is the rhythm of the market, and it punishes investors who take the noise too seriously.
The three companies below are all sitting inside that noise right now. Each one has a real, long-term case that hasn't changed -- and, in some ways, has gotten stronger -- while the headlines have done their damage.
These are popular household names that I would invest in right now and forget about.
Image source: Getty Images.
1. Chipotle Mexican Grill Chipotle Mexican Grill (CMG +1.77%) went from Wall Street darling to punching bag in about 12 months. After cutting its sales forecast three times in 2025 and watching shares fall more than 34% from their highs, the stock entered 2026 in a very different position than investors had grown used to. Consumer spending pressure from lower-income households -- which represent about 40% of Chipotle's sales base -- was the primary culprit.
The noise says Chipotle is broken. The company's own actions say something different. CEO Scott Boatwright committed publicly to absorbing tariff-related cost increases last year rather than passing them to customers. This was a direct acknowledgment that the brand's relationship with its customers matters more than short-term margin protection. The company opened between 315 and 345 new restaurants in 2025 and is planning 350 to 370 more in 2026, with international expansion into South Korea, Singapore, and Mexico this year.
That expansion pace is the real story. Unit growth is what drives Chipotle's long-term revenue trajectory, and the company hasn't slowed. By 2029, Chipotle is projecting revenue of $16.1 billion, roughly double current levels. The question isn't whether a bad spending quarter matters -- it does. The question is whether one year of soft traffic changes the arc of a brand that has 4,000 locations and a total addressable market nowhere near saturated. I don't think it does.
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2. Ulta Beauty Ulta Beauty (ULTA +1.19%) is down nearly 25% in 2026 while the broader market has risen. The concern driving that disconnect is real: Investors are worried that a cautious consumer will pull back on discretionary beauty purchases, and that new competitors are chipping away at Ulta's position.
What happened in the first quarter of 2026 tells a different story. Ulta's net sales grew 11.1% to $3.16 billion and comparable sales rose 5.3%, beating analyst expectations of 4.5%. The company raised its annual profit forecast afterward. The growth was led by prestige beauty -- the higher-margin tier -- driven by celebrity brand launches including Rihanna's Fenty Beauty, Selena Gomez's Rare Beauty, and Beyoncé's Cécred. These aren't promotional gimmicks. They are the exact kind of cultural collaborations that drive Gen Z and millennial shoppers into stores and keep them coming back.
In April, Ulta held its first-ever consumer event, Ulta Beauty World, in Orlando; tickets sold out almost instantly. That kind of demand doesn't come from a brand in decline. The stock's weakness right now is a valuation story, not a business story. Ulta guided for 6% to 7% net sales growth and low-double-digit earnings-per-share (EPS) growth in fiscal 2026. For a consumer brand with that kind of execution in a year when most discretionary retailers are struggling, the current price looks like a gift.
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3. Dutch Bros Dutch Bros (BROS +7.63%) is the consumer growth stock most investors know exists but can't quite bring themselves to buy, because it always seems to be priced for perfection. The noise around Dutch Bros is that it's just another coffee chain in a world that already has Starbucks, and that its valuation doesn't leave room for error.
That framing misses what's actually happening. Dutch Bros raised prices only about 30% since 2019, compared to Starbucks' 50%-plus increases. In a market where consumers are acutely price-conscious, that gap is a genuine competitive advantage -- and it's showing up in market share. Mizuho's senior beverage analyst has publicly identified Dutch Bros as the top contender in the coffee sector specifically because of this pricing positioning.
The company reported a record financial year in 2025 and plans to open at least 181 new system shops in 2026 alone. Its long-term target is more than 7,000 potential locations -- it currently has just over 1,000. For context, Starbucks has more than 17,000 U.S. locations. Dutch Bros is a brand in the early chapters of its national footprint.
What sealed this as a long-term story for me is the consumer packaged goods expansion. In February 2026, Dutch Bros launched at-home coffee products -- iced lattes, coffee pods, creamers, and ground coffee -- available through Amazon and Walmart. That move takes Dutch Bros from a regional drive-thru experience to a national consumer brand that lives in your fridge and pantry. That's a different business than the one most investors are pricing.
Starbucks SBUX and Dutch Bros BROS have another fast-growing coffee rival to watch as 7 Brew hits its 777th U.S. location.
The Arkansas-born drive-thru chain is marking the milestone Monday with nationwide promotions, showing how quickly it has moved from a single stand in 2017 to a national growth story. President Chris Dawson said reaching 777 stands reflects the “incredible momentum” behind the brand, helped by its upbeat service model, customizable drinks and focus on community.
That growth is starting to matter in the coffee wars. 7 Brew now has major development agreements for more than 200 new stands across Texas, Florida, Oklahoma and New Mexico, with about 200 additional stores planned in Florida alone. It is also pushing into Minnesota, New York, New Jersey, Connecticut and Pennsylvania.
For investors, 7 Brew is not public, but its expansion still matters for Starbucks and Dutch Bros. The brand is chasing younger customers with 20K possible drink combinations, fast drive-thru service and a high-energy “Brew Crew” culture. The next thing to watch is whether Blackstone-backed 7 Brew can keep scaling without losing the local feel that made it work.
Stock NewsGlobal markets rally on Iran peace deal: Equities surged worldwide and oil prices dropped after the U.S. and Iran reached a tentative agreement to end hostilities and reopen the Strait of Hormuz, with the Dow Jones futures jumping over 1% and Asian, European markets also posting strong gains. Source: CNBC.SpaceX rallies after historic IPO debut: SpaceX SPCX shares rose 6% in premarket trading Monday after jumping 19% on Friday in the largest IPO ever, sending its market capitalization above $2 trillion and sparking debate over valuation among analysts. Source: CNBC.Fox acquires Roku in $22B deal: Fox Corporation agreed to acquire Roku ROKU for $160 per share in cash and FOX stock, creating one of the largest U.S. streaming platforms and targeting $400 million in cost synergies. Source: CNBC.Zhipu surges on China AI optimism: Shares of Zhipu 2513-HK soared up to 48% before closing 33% higher as Wall Street raised forecasts, following U.S. curbs on Anthropic and a new open-source AI release, while domestic rival MiniMax 100-HK lagged. Source: CNBC.Nara Organics recalls infant formula after botulism cases: Nara Organics recalled all Whole Milk Organic Infant Formula sold in the U.S. after three infants were hospitalized with botulism in California, Pennsylvania, and Washington; authorities advise consumers to stop use immediately. Source: FDA.Starbucks Korea announces mandatory staff training: Starbucks Korea will close all stores early on June 22 for nationwide history and social sensitivity training after a marketing campaign controversy tied to the 1980 Gwangju uprising anniversary. Source: AP News.Gwynne Shotwell’s leadership highlighted at SpaceX: SpaceX President and COO Gwynne Shotwell, now worth over $2B, is recognized for expanding SpaceX, navigating its IPO, and managing major technological and financial milestones alongside CEO Elon Musk. Source: Fortune.Charlie Javice seeks Trump pardon after JPMorgan fraud conviction: Former Frank founder Charlie Javice, convicted of defrauding JPMorgan JPM , is reportedly seeking a presidential pardon from the Trump administration while serving a seven-year prison sentence. Source: CNBC.U.K. scam losses surge as criminals use AI: Financial fraud losses in the U.K. rose to £1.3 billion in 2025, with criminals increasingly leveraging AI for sophisticated investment, purchase, and romance scams, according to a new UK Finance report. Source: BBC.Investment fraud losses hit £220 million in the U.K.: U.K. investment scams soared 40% to £221.5 million last year, fueled by AI-enabled schemes targeting investors in gold, cryptocurrency, and wine. Source: The Guardian.Authorised payment scams grow sharply in Britain: Authorised push payment (APP) fraud losses rose 19% to £576.4 million in 2025 as AI-made scams more sophisticated, with banks reimbursing 61% of losses to victims. Source: Yahoo Finance UK.Bank of Japan rate decision eyed by global markets and crypto: Speculators are closely watching Tuesday’s Bank of Japan meeting, where a widely expected rate hike could prompt a sharp unwinding of yen carry trades and spur volatility in risk assets and cryptocurrencies. Source: CoinDesk.Dollar remains firm ahead of U.S. inflation data: The U.S. dollar stays supported as investors await key CPI data, with higher real rates pressuring alternative assets and reinforcing expectations of Fed policy tightening. Source: ING Think.Business leaders accelerate electrification amid energy volatility: A global poll finds over 90% of businesses expect to be largely electrified by 2035, driven by energy price swings and clean transition priorities. Source: BusinessGreen.SpaceX IPO sets new valuation benchmarks and debate: SpaceX (SPCX) set a $2T valuation in its debut, the highest ever for an IPO, with analysts divided on long-term prospects due to ambitious growth plans and near-term unprofitability. Source: Yahoo Finance.Analysis: SpaceX’s IPO and index inclusion strategy: The structure of the SpaceX float and listing timing is expected to drive future index buying and may increase market volatility, with significant attention on float percentage and future insider sales. Source: Asia Times.Oil markets react to U.S.-Iran deal and supply challenges: U.S. gasoline inventories are falling at a record pace ahead of the summer season, with strong exports and refinery utilization adding to fuel market tightness despite the decline in global oil prices. Source: OilPrice.com.Musk’s government support under scrutiny: Analysis shows federal grants and contracts played a crucial role in the early success of Tesla TSLA , SpaceX (SPCX), and Elon Musk’s wealth creation, sparking debate about public-private partnership outcomes. Source: Action News Now.Investor caution on SpaceX after IPO surge: Several analysts urge caution following SpaceX’s IPO rally, citing historical underperformance of large IPOs in subsequent months and recommending investors wait for more financial data and clarity. Source: InvestorPlace.Spotlight: U.K. authorized payment scams rise with AI: The sophistication and scale of AI-assisted scams led to a sharp increase in authorized push payment fraud and overall fraud losses in 2025, with calls for stronger online platform regulation. Source: BBC.Upcoming EarningsPowerFleet Inc AIOT will report today. Analysts estimate EPS 0 and revenue 113.06 million.Dave & Buster's Entertainment Inc PLAY will report today after close. Analysts estimate EPS 0.61 and revenue 580.46 million.RF Industries Ltd RFIL will report today after close. Analysts estimate EPS 0.02 and revenue 19.67 million.Quantum Corp QMCO will report today after close. Analysts estimate EPS -0.48 and revenue 72.75 million.Comtech Telecommunications Corp CMTL will report today. Analysts estimate EPS -0.54 and revenue 110.20 million.Upcoming DividendsPublic Storage PSA goes ex-dividend today for $3.00 (yield 3.68%).NewMarket Corp NEU goes ex-dividend today for $3.00 (yield 1.38%).UnitedHealth Group Inc UNH goes ex-dividend today for $2.32 (yield 2.16%).Domino's Pizza Inc DPZ goes ex-dividend today for $1.99 (yield 2.23%).Extra Space Storage Inc EXR goes ex-dividend today for $1.62 (yield 4.30%).Notable Insider TransactionsSummit Therapeutics Inc SMMT — Maky Zanganeh, a Co-CEO, 10% Owner, reported buying 3,810,000 shares at $13.12 ($49.99M total) Jun 12.Summit Therapeutics Inc (SMMT) — Robert W Duggan, a Co-CEO, 10% Owner, reported buying 3,810,000 shares at $13.12 ($49.99M total) Jun 12.Dutch Bros Inc BROS — Travis Boersma, a Executive Chairman of Board, 10% Owner, reported selling 1,499,999 shares at $61.71 ($92.56M total) Jun 12.APi Group Corp APG — Martin E Franklin, a Director, 10% Owner, reported selling 2,000,000 shares at $42.08 ($84.16M total) Jun 12.Dutch Bros Inc (BROS) — Dm Trust Aggregator, Llc, a 10% Owner, reported selling 977,890 shares at $61.71 ($60.35M total) Jun 12.Stock RatingsBroadcom (AVGO) was upgraded by Wall Street Zen from "buy" to "strong-buy".Wells Fargo & Company (WFC) was upgraded by Wall Street Zen from "sell" to "hold".Advanced Micro Devices (AMD) was upgraded by The Goldman Sachs Group, Inc. from "buy" to "buy".This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Dutch Bros (BROS - Free Report) ended the recent trading session at $65.89, demonstrating a +1.32% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.5%. At the same time, the Dow added 0.7%, and the tech-heavy Nasdaq gained 0.31%.
Heading into today, shares of the drive-thru coffee chain operator and franchisor had gained 30.06% over the past month, outpacing the Retail-Wholesale sector's loss of 4.78% and the S&P 500's loss of 0.23%.
Market participants will be closely following the financial results of Dutch Bros in its upcoming release. The company is forecasted to report an EPS of $0.29, showcasing a 11.54% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $522.5 million, showing a 25.66% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.93 per share and revenue of $2.08 billion. These totals would mark changes of +22.37% and +26.94%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Dutch Bros. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.43% increase. Dutch Bros is currently a Zacks Rank #3 (Hold).
Digging into valuation, Dutch Bros currently has a Forward P/E ratio of 70. This signifies a premium in comparison to the average Forward P/E of 20.07 for its industry.
It's also important to note that BROS currently trades at a PEG ratio of 1.9. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Restaurants was holding an average PEG ratio of 1.84 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 211, positioning it in the bottom 14% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
This growth stock is capturing an opening in the market.
*Stock prices used were the afternoon prices of May 11, 2026. The video was published on May 13, 2026.
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Dutch Bros. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The stock market has warmed along with the temperature this year, racing back to hit all-time highs. However, that doesn't mean there aren't still attractively valued growth stocks out there. This is especially true in the consumer space, where investors have been a bit worried about the state of the consumer, given higher gasoline prices and the impact of tariffs.
Still, consumers tend to be resilient over the long term, and high gasoline prices should be temporary and turn lower once the war in Iran is over. Against that backdrop, let's look at three great growth stocks to buy in May.
Image source: Getty Images.
Dutch Bros While it may not look like it at first glance, Dutch Bros (BROS +1.45%) may be one of the best bargain growth stocks in the market today. Why? Because the stock trades at the same forward price-to-sales (P/S) multiple (3.3 times) as rival Starbucks (SBUX +0.48%) based on 2026 analyst estimates, despite having a much longer growth runway.
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The two companies also have similar average unit volumes at present, while Dutch Bros stores have better restaurant-level contribution margins of around 30% versus around 16% last quarter (based on rough calculations) for Starbucks in North America. This means that each individual Dutch Bros shop is actually much more profitable than a Starbucks' North America location, and as Dutch Bros expands and spreads corporate costs over a much larger store base, the company is going to be strongly profitable in the future.
With Dutch Bros hitting on all cylinders with its same-store sales and its huge expansion opportunity, this stock is a buy.
E.l.f. Beauty Another bargain growth stock in the consumer space is e.l.f. Beauty (ELF +1.28%). One of the biggest growth drivers in the consumer space for brands is increasing product distribution, which is simply getting your products into more retail locations and in front of more consumers. E.l.f. did a great job of gaining market, increasing distribution, and taking shelf space with its namesake brand in the mass-market cosmetics space.
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Now, the company is looking to take that formula and apply it to Rhode, its recently acquired premium skincare brand. Founded by celebrity Hailey Bieber, Rhode quickly grew its sales to $200 million in less than three years selling only about 10 products through its website. E.l.f. will now have the opportunity to increase Rhode's distribution in the coming years to really grow the already hot brand. It is already in LVMH's Sephora stores, and e.l.f. will undoubtedly move it into other retail outlets in the coming years. E.l.f. will also get the added benefit of being able to expand Rhode's small product assortment, which should result in strong growth in the coming years.
With the stock trading at a forward P/E of 15.5 times the 2027 consensus (ending March 2027), this is a cheap growth stock to buy.
MercadoLibre Another beaten-up growth stock to buy while it is on sale is MercadoLibre (MELI 1.22%), which is the leading e-commerce and fintech platform in Latin America. The stock trades at a forward P/E of just 24.5 times 2027 estimates, while recently growing its revenue by 49% in Q1.
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The company is currently in investment mode, looking to capture more share in the fragmented Latin American e-commerce market. It's done this by building out its logistics network, lowering the price threshold on free shipping, and reducing take-rates for third-party merchants selling goods at reasonable prices. While the market hasn't liked this approach, it is similar to what Amazon has done to become so successful in the U.S.
At the same time, MercadoLibre is building one of the largest fintech businesses in Latin America. The company is essentially looking to become the main financial institution for the unbanked population in South America. This is another huge market, and the company has no plans of slowing, trying to capture these two huge long-term opportunities.
If you're a long-term investor, this is a great stock to buy while it is on sale.
Geoffrey Seiler has positions in Amazon, Dutch Bros, LVMH Moët Hennessy-Louis Vuitton, MercadoLibre, and e.l.f. Beauty. The Motley Fool has positions in and recommends Amazon, Dutch Bros, MercadoLibre, Starbucks, and e.l.f. Beauty. The Motley Fool recommends Lvmh Moët Hennessy-Louis Vuitton, Société Européenne. The Motley Fool has a disclosure policy.
The stock market has surged to new highs, yet some growth stocks remain well below their peaks and look increasingly attractive. As Wall Street's attention has centered on megacap tech, several consumer-facing companies have been left behind despite strong financial results to start the year.
For investors looking for long-term compounders that could outperform over the next five years, here's why Shopify (SHOP +0.38%) and Dutch Bros (BROS +1.45%) stand out.
Image source: Getty Images.
Shopify Shopify is putting up strong results. Revenue grew 34% year over year in the first quarter, marking the second straight quarter in which Shopify merchants topped $100 billion in total sales.
That's a clear sign of a business with a major advantage. Shopify generates revenue through subscription fees and merchant solutions (shipping, lending, payments, etc.), with merchant solutions making up about three-quarters of the business. This has made Shopify a highly profitable business, generating $2.2 billion in annual free cash flow -- a healthy 17% margin on revenue.
The stock is down 40% this year amid concerns about competitive threats from potential artificial intelligence (AI)-driven disruptors. But that concern overlooks the company's entrenched position at the center of e-commerce.
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A crucial detail Wall Street is overlooking is that Shopify's merchant catalog is searchable through ChatGPT and other top AI models. In Q1, AI-driven traffic rose 8 times year over year, and Shopify says AI-powered searches are converting new buy orders at twice the rate of traditional search channels. In other words, AI is helping people find what they are looking for, ultimately benefiting the many online stores that use Shopify to power their e-commerce businesses.
I think Shopify is just getting started. The emergence of autonomous shopping through AI agents could drive a surge in transaction volume. Shopify's integrations with leading AI models position it well to benefit from that shift. Bain & Company estimates that agentic commerce could be worth at least $300 billion by 2030, growing 15% to 25% annually.
The stock still trades at a high multiple of earnings and free cash flow, but it's easier to justify given Shopify's competitive position and the AI tailwinds that could benefit the company. Analysts expect earnings to rise about 25% annually in the coming years, which could translate into market-beating returns through 2030.
Dutch Bros For decades, investing in emerging restaurant brands expanding nationwide has been a rewarding strategy. Dutch Bros appears to be following the growth path of several successful brands before it, particularly Starbucks. Dutch Bros. stock is down 18% year to date, as a temporary spike in coffee costs could weigh on earnings. But the company continues to resonate with customers, providing a timely buying opportunity for long-term investors.
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With 1,177 locations across just 25 states, many investors may not be familiar with the brand. But it's gaining traction, especially with younger customers. While Starbucks has cycled through CEOs and is working through a turnaround, Dutch Bros has continued to post positive same-store sales in a challenging consumer-spending environment.
In the recent quarter, revenue grew 31% year over year, driven by 41 new shop openings and strong same-store sales growth of 8.3%. The business is building loyal, repeat customers, with 74% of transactions coming through the Dutch Rewards program.
Management sees a path to 2,029 shops by 2029. As it opens more locations, brand awareness should continue to rise, and analysts expect earnings to grow at an annualized rate of 33% in the coming years.
A forward price-to-earnings multiple of 54 looks expensive, but Dutch Bros is still early in its expansion and margin-building phase. Its price-to-sales ratio of about 3.5 is in line with where Starbucks and Chipotle Mexican Grill traded during their early growth years. This coffee stock has the ingredients to beat the market over the next five years.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill, Dutch Bros, Shopify, and Starbucks. The Motley Fool recommends the following options: short June 2026 $36 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
In one of the more head-scratching moves this earnings season, Dutch Bros (BROS +1.45%) shares sank despite the coffee shop operator turning in another stellar quarter. As of this writing, the stock is down about 13% year to date.
Let's take a closer look at its results and prospects, and at why I think Dutch Bros could be a great long-term stock buy.
Image source: The Motley Fool.
Same-store sales shine again In what has been a very uneven consumer environment, Dutch Bros once again found a way to shine. Its same-store sales surged by 8.3% in the quarter, as transactions climbed 5.1%. Company-owned stores once again outperformed, with comparable-shop sales climbing 10.6% on a 6.9% increase in transactions.
The company credited drink innovation, as well as limited-time offerings (LTOs) and merchandise drops, for its strong results. It said it saw a 30% increase in LTO unit sales and 50% higher merchandise sales versus last year.
Use of the Order Ahead option (available via mobile app and the website) continues to rise, now accounting for 15% of all Dutch Bros orders, up from 14% at the end of last year. Meanwhile, 74% of all transactions now come through the Dutch Rewards program. Food continues to deliver a 4% lift in comparables, and it is now being offered at 485 shops.
Dutch Bros also continues to aggressively grow its store base. It opened 41 new shops in the quarter, including 33 company-owned locations. It now expects to add at least 185 new shops in 2026, up from prior guidance for at least 181 stores.
Overall revenue climbed 31% to $464.4 million, while earnings per share (EPS) were flat at $0.13. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 26% to $79.4 million.
Looking ahead, the company raised its full-year revenue guidance to $2.05 billion to $2.08 billion, up from a prior outlook of $2 billion to $2.03 billion. It also raised its adjusted EBITDA forecast to $370 million to $380 million, up from $355 million to $365 million. It projected same-store sales growth of 4% to 6% for the year and near 5% for the second quarter.
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Dutch Bros is seeing some of the best same-store growth in the restaurant space and has one of the largest expansion opportunities in the industry as well. The only real knocks on the company are rising rent costs as it shifts to built-to-suit leases and higher coffee bean prices.
However, this is still an efficient model. While rent costs as a percentage of revenue are higher than for Starbucks, this is largely due to its rival having a more mature store base. Meanwhile, Dutch Bros has lower labor expenses, and it hasn't understaffed its stores as Starbucks has done in the past.
Dutch Bros is still in the early phases of its growth, yet it trades at a forward price-to-sales (P/S) multiple of 3.2, versus 3.1 for the much more mature Starbucks. That makes it one of the most intriguing growth stocks in the consumer space to own long-term.
One of my favorite beaten-down growth stocks to buy right now is Dutch Bros (BROS +1.45%). The coffee shop operator has been hitting on all cylinders, but its stock is now about 35% off its highs. I own shares at a cost basis just below where the stock is currently trading and think this is a great entry point for new investors.
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Long runway ahead Dutch Bros is a classic regional-to-national expansion story. Its roots are in the Northwest U.S., but it's been gradually expanding eastward. It recently went further east when it acquired the North and South Carolina chain Clutch Coffee Bar and converted its shops into Dutch Bros locations. The initial response has been positive, with the first seven converted shops seeing average unit volumes (AUVs) triple their pre-conversion volumes and score higher than the company's systemwide AUVs. This is a good indication of the brand momentum that Dutch Bros has, even in markets further away from its base.
Despite a tough consumer environment, Dutch Bros has consistently been seeing strong same-store sales growth. This continued in the first quarter, when the company reported an impressive 8.3% increase in comparable-store sales with a 5.1% increase in transactions. Company-owned stores performed even better, with same-store sales up 10.6% on a 6.9% rise in transactions. The growth was driven by drink innovations, including limited-time offerings (LTOs), and by mobile order-ahead.
The company is also getting a lift from the introduction of hot food items, with the 485 stores offering the new menu items seeing about a 4% same-store sales boost. Dutch Bros thinks that three-quarters of its shops can physically support its hot food offerings, which would be about 880 locations based on its current store count. However, newer stores will be built with food in mind, so this percentage should rise over time.
Image source: Getty Images.
Backed by strong sales momentum, Dutch Bros has a big expansion opportunity in front of it. It thinks it can reach 2,029 locations by 2029, up from 1,177 at the end of Q1, and eventually support 7,000 shops across the U.S. That number seems more than reasonable, considering that rival Starbucks has nearly 17,000 stores in just the U.S. and nearly 18,400 in North America.
Dutch Bros stores have a small footprint, typically with two drive-through lanes and no indoor seating. This makes them cheap to build and operate compared to Starbucks. Despite the small physical size, they have AUVs on par with Starbucks and have higher store-level margins. This sets the company up to be highly profitable down the road, when it can spread corporate costs across a wider store base.
Meanwhile, the stock is reasonably valued, trading at a similar price-to-sales (P/S) multiple as Starbucks despite its much larger growth runway. With the stock trading at a reasonable value and a huge growth runway ahead, I'd be buying this growth stock at these levels.
You might think that Starbucks (SBUX +0.48%) and Dutch Bros (BROS +1.45%) are similar companies, since both operate coffee shop chains. But they differ in important ways, such as the kinds of beverages they serve, and they're at vastly different points on their journeys.
Starbucks is already a global powerhouse, while Dutch Bros is just getting started. Which one is the better buy today?
Image source: Getty Images.
The case for Starbucks: Stability and passive income Starbucks is the largest coffee shop chain in the world and one of the largest restaurant chains in the world, with more than 41,000 stores. It has more than $38 billion in trailing 12-month sales and $1.5 billion in trailing 12-month net income.
Although Starbucks has struggled over the past few years, its turnaround plan is starting to demonstrate results. In the 2026 fiscal second quarter (ended March 29), sales were up 9% year over year, and comparable sales (comps) were up 6.2%. Those numbers tell investors (at least) two important things: The company is still successfully opening new stores, hence the total sales outpacing the comps, and that revenue growth isn't coming only from new stores, but from loyal and frequent customers.
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Even the bottom line is growing again. There had been progress growth in the first quarter, and CEO Brian Niccol explained that after righting the business and getting sales back up, profitability would follow. That's already happening, and earnings per share were up 32% over last year in the quarter.
On top of a chance for a rebound, Starbucks stock pays a growing dividend that yields 2.3% at the current price. However, it trades at a P/E ratio of 81, which prices much of the recovery already into the stock.
The case for Dutch Bros: High growth potential Dutch Bros is a tiny business compared to Starbucks. It has just over 1,000 stores, with $1.8 billion in trailing 12-month sales and $118 million in trailing 12-month income. It's easy to tell right away that Dutch Bros makes much more net income per store than Starbucks right now.
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Dutch Bros is in high-growth mode, opening stores at a fast clip and generating high revenue increases. Revenue was up 31% year over year in the 2026 first quarter, and it makes sense that a smaller company would have an easier time growing its smaller base.
But revenue growth is not a given for any company, and it indicates that Dutch Bros has found a formula that works for its target consumer. It's highly innovative in its beverage creation, and its stores, which are mostly drive-thru-only, are small and fast. Comps were up 8.2% in the quarter.
Dutch Bros management sees an opportunity to reach 7,000 stores over time, which gives the company a long growth runway from where it is today, even though it will remain a much smaller outfit than Starbucks.
Dutch Bros stock trades at a P/E ratio of 80.
Which stock is the better buy? This contest mostly boils down to which kind of stock you're looking for. Starbucks is the value pick, and Dutch Bros is the growth pick. However, because they trade at similar valuations, I see Dutch Bros having an overall edge.
Dutch Bros has delivered impressive growth since its 2021 IPO but remains underappreciated compared to the S&P 500's performance. BROS experienced significant volatility post-IPO, with early excitement followed by periods of investor caution. The company prioritized aggressive expansion, opening 133 new shops in 2022 and growing revenue to $739 million, despite reporting a net loss.
Dutch Bros (BROS) remains a Buy after another strong quarter, with robust revenue growth and improved 2026 guidance. BROS delivered 30.7% YoY revenue growth, 8.3% same-shop sales increase, and raised 2026 targets across revenue, EBITDA, and shop openings. The company's asset-light model and strong balance sheet support aggressive expansion despite macro risks and competitive pressures.
With the S&P 500 reaching all-time highs, you want to make sure you're investing in well-priced stocks that still have room to run. It can be easy to get swept up in bull run mania, especially with the attraction of artificial intelligence (AI) stocks.
Some of the best opportunities are stocks that are down due to short-term headwinds but have solid long-term potential. You should also be sure to have some reliable anchor stocks to balance out high-growth stocks.
If you have $5,000 to invest today (or any other amount, really), I recommend MercadoLibre (MELI 1.22%), Dutch Bros (BROS +1.45%), and Walmart (WMT 0.57%).
Image source: Getty Images.
1. MercadoLibre MercadoLibre is an e-commerce and fintech powerhouse serving 18 Latin American countries and growing by leaps and bounds. It consistently reports high revenue increases, and it has a massive long-term opportunity.
Latin America as a region lags behind other developed regions in both e-commerce and digital financial services, which is why this opportunity looks so compelling. MercadoLibre has identified many ways to improve its value proposition and attract more people to its platforms, and it's working.
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In e-commerce, it recently lowered its shipping threshold in Brazil, leading to multiple positive effects, including a 38% year-over-year increase in gross merchandise volume in the first quarter and a 56% increase in items sold, double the rate before the change. The company is looking to replicate this success in other countries. However, it's coming at a cost, and it's negatively impacting the bottom line.
Similarly, the credit business continues to expand, with assets under management increasing 77% while the total credit portfolio rose 87%. New cohorts typically have lower margins, which is also negatively impacting the bottom line.
The market wasn't thrilled with the profit declines over the past two quarters, and MercadoLibre stock is down 38% over the past year. Management is confident that the investments it's making today to expand the business will set it up for future success, which is why MercadoLibre's stock looks like a bargain today.
2. Dutch Bros Dutch Bros is a small but growing coffee shop chain that has developed a distinctive model and culture, and it's resonating with customers as it expands across the country.
As of the end of the 2026 first quarter, Dutch Bros has 1,177 stores in 25 states. That's up from about 500 stores in 11 states when it went public five years ago.
Dutch Bros has plans to reach 2,029 stores by 2029 and 7,000 long term, and it looks like it can get there. Its stores are being built to meet today's consumer, with most of them offering drive-thru only. It's focused on speed and friendly customer service, and "broistas" go out to take orders from customers in cars to be ready when they get to the window. The company recently rolled out mobile ordering across the enterprise, which accounted for 15% of total sales in the first quarter.
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Dutch Bros is also rolling out a new, expanded menu to boost beverage sales and create its own revenue stream, and it's constantly launching innovative beverages to entice its consumer base, such as the new Myst energy refresher line.
Revenue growth accelerated to 31% year over year in the first quarter, and profits are growing as well. However, the stock is down 27% over the past year. The market is worried about continued consumer spending in the high-inflation environment, but those are short-term concerns, not actualities, which makes Dutch Bros look like a great stock to buy now.
3. Walmart Walmart is the anchor stock here, a solid company that continues to grow and engage its audience, shifting with the times to stay relevant in a changing retail landscape. In fact, its e-commerce business has been thriving, growing from a 6.7% market share in 2024 to 9.2% today, according to Statista. Walmart is now the second-largest e-commerce business behind Amazon. E-commerce sales increased 24% year over year in the 2026 fiscal fourth quarter globally.
The e-commerce business has opened the company up to a much larger market, including an affluent contingent that might not frequent its stores, and these customers have driven much of the company's recent growth. Walmart is also featuring more in-store merchandise to appeal to these customers.
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Walmart is also becoming more Amazon-like with advertising, streaming, and healthcare businesses. All of these create more revenue streams and deepen its moat.
Walmart is a Dividend King, having raised its dividend for more than 50 years straight. This year marked the 53rd consecutive year of increases, and Walmart is a reliable source of passive income. It's also beating the market.
With the S&P 500 already up a blistering 9% this year despite all kinds of economic warnings, it could be time for investors to start becoming fearful.
However, there's no way to know how long the bull market can keep running, and you shouldn't miss out on excellent growth stocks out of fear. Instead, focus on top growth stocks that can withstand short-term pressure and that you could hold forever. I recommend Amazon (AMZN 1.33%), Dutch Bros (BROS +1.45%), and MercadoLibre (MELI 1.22%).
Image source: Amazon.
1. Amazon Amazon has become the largest company in the world by sales, and it's still a growth stock. That's a powerful combination that gives shareholders security and growth opportunities.
The security comes from the company's unparalleled global e-commerce business, which is so far ahead of any competition that it couldn't be replaced in the foreseeable future. It's not counting on that alone, though, and it continues to up its game and provide greater value to its millions of shoppers. It now services 2,300 U.S. metro areas with same-day delivery, and it's piloting global areas with deliveries within hours that it plans to replicate in other regions. In other words, it has many levers to press to maintain its dominant position, generating even greater loyalty and higher volume from Prime members.
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Although the e-commerce business was strong in the first quarter, with a 12% year-over-year sales increase in online store sales and a 14% increase in third-party sales, artificial intelligence (AI) is providing the major growth right now. It's simply exploding left and right, from the Bedrock AI platform spending increasing 170% consecutively in the first quarter, to the number of developers using the Kiro agent platform doubling from the previous quarter, to its chips business alone growing by triple digits and becoming one of the largest chips businesses in the world on a stand-alone basis.
Amazon Web Services (AWS), where the AI business lives, is accelerating as a result, and sales increased 28% over last year in the quarter. Amazon remains the largest cloud company in the world, with 28% of the market, according to Statista.
Yesterday, it was e-commerce, and today it is AI. I don't know what tomorrow will bring, but Amazon should keep creating shareholder value.
2. Dutch Bros Dutch Bros is an up-and-coming coffee shop chain that's already leaving an indelible mark on the coffee scene. It has been at the forefront of beverage innovation, including being the first major chain to offer protein coffee and recently developing its Myst refresher energy drinks. It leaned into the cold beverage trend early, and cold drinks represent 90% of its sales.
It continues to expand in multiple ways, starting with its beverages and food menu. It's rolling out food across its franchise, boosting overall engagement and increasing beverage spend. Management is tracking a 4% comparable sales (comps) lift at stores that are offering food. It also recently launched a mobile ordering program, and advance orders increased to 15% of the total in the first quarter.
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The results are telling. Revenue growth accelerated to 31% year over year in the first quarter, with an 8.3% increase in comps.
Finally, the most exciting way Dutch Bros is expanding is in its footprint. It has 1,177 stores as of the end of the first quarter, but it's aiming for 2,029 stores by 2029 and 7,000 long-term.
Although it's only in 25 states today, it's well on its way toward becoming a national chain that's imprinting its brand on the American landscape.
3. MercadoLibre MercadoLibre is an e-commerce and fintech powerhouse in Latin America, and it has incredible long-term potential. It hasn't stopped growing at a rapid pace, with a 46% year-over-year sales increase (currency neutral) in the first quarter, and its region continues to move toward digital adoption, providing it with years of growth opportunities.
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It's reporting high increases across metrics and across segments. In e-commerce, gross merchandise volume (GMV) increased 35% over last year in the first quarter, with a 47% increase in items sold and a 26% increase in unique active buyers. Same-day and next-day shipments increased by 39%, and this is a positive cycle that leads to more engagement, higher frequency, purchases across more categories, and increased volume. Since Latin America lags behind other global regions in e-commerce, MercadoLibre is leveraging its powerful platform to effect a shift online and boost its business.
It's a similar story in fintech. Monthly active users increased 29% year over year in the first quarter, and total payment was up 55%. The credit portfolio was up 87%, while assets under management were up 77%.
MercadoLibre has a first-mover's edge in all kinds of digital technology in its markets, and it should be able to report strong performance and create shareholder value for years.
Dutch Bros Inc. BROS is accelerating its store expansion efforts, a move that could further strengthen the long-term growth outlook. The company opened 41 system shops in the first quarter of 2026, ahead of schedule, reflecting progress in site selection, market planning and development execution.
Coffee consumption remains a staple of daily life, and to gain exposure to this market, investors can decide between the global dominance of Starbucks (SBUX +0.48%) and the aggressive expansion of Dutch Bros (BROS +1.34%).
Starbucks serves millions of customers across dozens of international markets, relying on its premium brand and massive scale. Dutch Bros focuses on a high-speed, drive-thru experience with a younger, culture-driven vibe. While both operate in the same beverage space, their financial profiles and growth trajectories offer very different opportunities for retail investors.
The case for StarbucksStarbucks operates a global network of company-owned and licensed stores, selling premium coffee and food. Its strategy centers on the "Third Place" experience, though it is increasingly leaning into digital ordering and delivery. The company manages a massive loyalty program that drives repeat business across its 78 international markets, which include a major presence in China.
In its 2025 fiscal year (FY), revenue reached $37.2 billion, representing growth of approximately 2.8% compared to the previous year. Net income for the period was $1.9 billion, yielding a net margin of 5%. This net margin was lower than the nearly 10.4% net margin recorded in its 2024 fiscal year, as the company navigated shifting consumer habits and rising operational costs across its global segments.
As of its September 2025 balance sheet, the debt-to-equity ratio was -3.3x, which indicates that total liabilities exceed shareholder equity. This ratio is often used to assess a company's financial leverage. The current ratio, which measures the ability to cover short-term debts with short-term assets, was approximately 0.7x. For FY 2025, free cash flow was close to $2.4 billion, providing significant capital to reinvest in the business after accounting for capital expenditures.
The case for Dutch BrosDutch Bros operates and franchises drive-thru beverage shops known for speed and a friendly culture among retail stocks. The company relies heavily on its proprietary Rebel energy drinks and hand-crafted cold brews. By focusing on smaller footprints and high-volume drive-thrus, it avoids the high overhead costs associated with large sit-down cafes and expensive urban real estate.
During the 2025 fiscal year, revenue climbed to $1.6 billion, a substantial increase of approximately 28% over the prior year. The company reported net income attributable to Dutch Bros of $79.8 million, resulting in a net margin of 4.9%. This reflects a significant improvement from the 0.2% net margin seen in FY 2023, as the business scales its store count and reaches more customers.
According to its December 2025 balance sheet, the debt-to-equity ratio was nearly 1.6x. This ratio compares a company's total debt to its shareholder equity to assess financial leverage. The current ratio was approximately 1.5x, suggesting a comfortable cushion for meeting near-term obligations by comparing short-term assets to liabilities. Free cash flow for FY 2025 reached close to $54.4 million, representing the cash remaining after paying for operating costs and equipment.
Risk profile comparisonStarbucks faces significant geographic risk, as its North America segment accounted for 74% of total revenue in FY 2025. The company also deals with volatile commodity prices for arabica coffee beans and dairy, which can fluctuate based on weather or climate change. Additionally, rising labor costs and new minimum wage regulations in key markets like California pose a threat to the net margin.
Dutch Bros is highly dependent on a single product line, with Rebel energy drinks making up 22% of systemwide sales in 2025. It also carries geographic risk, as close to 65% of its shops are concentrated in the Western United States. This makes it vulnerable to regional economic downturns or competition from larger rivals like McDonald's, which can leverage greater resources and marketing spend.
Valuation comparisonThe P/S ratio compares market value to revenue, while the Forward P/E tracks future earnings estimates. Starbucks currently looks cheaper on both metrics.
MetricStarbucksDutch BrosSector BenchmarkForward P/E42.7x65.8x31.2xP/S ratio3.0x4.2xSector benchmark uses the SPDR XLY sector ETF. Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Starbucks may be the giant of the consumer coffee industry, but Dutch Bros is giving it a run for its money. Choosing between these two stocks to invest in depends ultimately on individual investor goals.
As the veteran, Starbucks is no longer growing as fast as its younger rival. Yet its stock shot up to a 52-week high of $108.88 after the company released earnings for its fiscal second quarter ended March 29. Revenue rose 9% year over year to $9.5 billion as global comparable store sales increased 6%. This growth was due to more customer transactions as well as increased spending per transaction, indicating customers continue to frequent the coffee chain.
Dutch Bros is the fast-growing up-and-comer. Its Q1 revenue jumped up a whopping 31% year over year to $464.4 million. Sales should see continued growth in 2026 as the company plans to open at least 185 new locations.
If you’re a growth-oriented investor, Dutch Bros is the best stock to buy. Its business is expanding at a far faster pace than its larger competitor. If you’re an income-focused investor, Starbucks is the better choice since it offers a robust dividend yield of 2.5% as of June 1. Dutch Bros does not pay a dividend. Personally, I invested in both because I think each is an excellent company.
Dutch Bros (BROS +1.34%) continued to shrug off a soft economy in the first quarter as drive-thru demand held up remarkably well. Same-shop sales grew by 8.3% across the system, fueled by a 5% rise in the number of transactions. Texas was its busiest market, with the largest number of locations and comps growth of nearly 20%.
While its organic growth is impressive, it's the coffee chain's massive market opportunity that's the real draw for investors. It ended Q1 with 1,177 locations, up 16% year over year, but that leaves Dutch Bros an attractive runway for further growth in the medium term, as management has set a target of having 2,029 stores operating in 2029.
The investment story is fairly simple. Dutch Bros is a scalable concept with compelling unit economics, and it can almost triple its store count before crossing the halfway point toward its long-term target of 7,000 shops.
Image source: Getty Images.
The growth story remains intact The company's customizable energy and coffee drinks continue to win over customers even as broader consumer spending remains weak. Its company-operated shops grew transactions by roughly 7% for the third consecutive quarter. This led to double-digit percentage growth in same-shop sales for the first time since Q1 2024.
Its Dutch Rewards loyalty program now sports a total of 15 million members, and those customers account for 74% of all transactions. The brand continues to strategically push into the eastern U.S.
In January, the company announced the acquisition of 20 Clutch Coffee locations in the Carolinas for $20 million. Dutch Bros converted seven stores during the quarter, and management indicated that their sales volumes were up threefold compared to pre-conversion levels.
The company opened 41 new locations in the quarter, and management is guiding for at least 185 store openings this year.
Rising costs weigh on the stock In the first quarter, higher coffee and occupancy costs, along with the rollout of its hot food offerings, took a bite out of Dutch Bros' profitability. Company-operated gross margin declined by nearly 2 percentage points, and its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin shrank by 60 basis points.
While margin pressure is a near-term concern, new entrants into the fast-growing customized beverage market are a constant threat. Larger rival Starbucks recently entered the fray with its Energy Refreshers, which aim to replicate Dutch Bros' success.
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Trading at 62 times forward earnings, Dutch Bros stock is not cheap. For the company to grow into its current market cap, it will need to continue expanding its store base while preserving its attractive unit economics. The company's drive-thru model is designed for efficiency, with average unit volumes now exceeding $2.1 million, and a build cost of around $1.3 million per shop.
Maintaining that attractive return on investment will be critical as the company pushes into new regions. However, I think the tailwinds are here to stay for Dutch Bros, making it a compelling stock to own.
May was a pretty good month for investors. I still felt that last month offered good entry points for stocks trading well below their highs.
What did I buy? I purchased shares of MercadoLibre (MELI 1.22%), Upbound (UPBD +2.58%), and Dutch Bros (BROS +1.34%) in May.
What attracted me to these three stocks? Let's go over the catalysts of each one. No stock is perfect, so let's also look at some risks.
Image source: Getty Images.
1. MercadoLibre It was bound to happen. I've been following MercadoLibre since it went public 19 summers ago. I naturally wish I could have bought in sooner, but with shares of the Latin American e-commerce and fintech leader trading roughly 40% below last year's all-time highs, it felt like a good opportunity to make up for lost time.
MercadoLibre's stock is going through some near-term margin challenges. With its credit portfolio rising 87% in the latest quarter, there's a short-term pop in initial loan-loss provisions. As competitors try to eat into MercadoLibre's market dominance in Brazil by emphasizing free shipping, MercadoLibre has had to lower its minimum order for free delivery.
The result is that MercadoLibre's net income margin contracted 360 basis points to 4.7%. It's the company's worst net margin since late 2023.
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The good news is that the business itself is booming. Revenue rose 49% -- or 46% on a foreign-exchange neutral basis -- in its latest quarter. This is MercadoLibre's strongest top-line growth since the spring of 2022. Growth is accelerating on the strength of its emerging credit and advertising offerings, but even its two core businesses are picking up the pace.
MercadoLibre's 84.1 million active buyers -- a 26% increase over the past year -- spent 42% more on the platform than they did through the first three months of last year. Its 82.9 million monthly fintech users 29%, but the total payment volume rose 52%. Audience growth is increasing, and so is engagement.
The near-term drags on the bottom line aren't a good look, but MercadoLibre is faring a lot better than its stock chart over the past year suggests. MercadoLibre is now trading at a rich 43 times trailing earnings. This may seem high, but it's surprisingly near a 10-year low for that valuation multiple.
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2. Upbound This company might not seem familiar, but you probably know its flagship retail concept. Upbound's Rent-A-Center is a leader in lease-to-own furniture, consumer electronics, and appliances.
It's not the only thing that Upbound does. It also operates Acima, a software platform that helps other merchants offer Upbound's lease-to-own purchase option. There's also Brigit, a popular, well-rated budgeting smartphone app that has become its fastest-growing business.
Upbound is an old-school retailer with a pair of high-tech growth vehicles. Critics will argue that lease-to-own businesses are predatory, but what is the savory alternative for lower-income renters who can't afford to outfit their homes with furniture, appliances, and computers to help them work or find work?
In the meantime, you have a company with growing revenue, a sustainable 8.6% yield, and a low earnings multiple. Upbound's full-year guidance calls for revenue of $4.7 billion to $4.95 billion and adjusted earnings per share of $4.00 to $4.35. At the midpoint of both ranges, you're talking about 1% to 2% growth on both ends of the income statement.
The stock is trading for just 4 times forward adjusted earnings. It does have a leveraged balance sheet, so there are risks there along with a potential spike in its lease charge-off rate if the economy sours.
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3. Dutch Bros Finally, we have Dutch Bros, a fast-growing player in the retail beverage market resonating with young consumers. Its small-box havens of mixed and blended specialty drinks are popular, even in the current climate where many popular food and beverage chains are struggling.
Revenue rose 31% in its latest quarter, fueled by brisk expansion and an 8.3% uptick in comps. This isn't a fluke. Comps have been positive for 19 years. Dutch Bros has 1,177 locations, and it expects to open at least 185 new units in 2026. The trend is undeniable, and even as fast-food chains and coffee shops embrace handcrafted beverages and dirty sodas, Dutch Bros remains the niche leader.
Dutch Bros is profitable, but with much of the money it's making going toward building out its empire and buying out early franchisees, this isn't a bottom-line story at this point in its growth cycle. It did boost its full-year guidance for revenue, comps, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Approaching two decades of store-level growth, it's hard to bet against this ascending concept.
