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

If you enjoy getting your caffeine fix daily, you probably have heated opinions about who makes the best cup of joe. (NASDAQ: SBUX) has been the king of coffee shops for decades at this point, but newcomer Dutch Bros (NYSE: BROS) is gaining in popularity as it sweeps across the country. They're both beloved brands, but which one is the better stock pick today? Let's see how they stack up against each other.

Starbucks operates more than 38,000 stores as of the end of the 2024 fiscal first quarter (ended Dec. 31). It's a coffee shop juggernaut with no equal anywhere in the world, and it's fast encroaching on McDonald's lead as the largest restaurant chain in the world (McDonald's has over 40,000 locations).

Dutch Bros, on the other hand, has only 831 stores as of the end of 2023, and in some ways this isn't even a contest. However, investing is all about the future, in which case Dutch Bros' small size could be an advantage, because it has the potential to grow that much bigger. In terms of revenue growth, there's no comparison.

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Source Fool.com