Better Buy: Starbucks vs. Dutch Bros Stock

Thanks to a pair of recent earnings reports, investors have fresh data they can use to judge Starbucks (NASDAQ: SBUX) and Dutch Bros (NYSE: BROS) businesses right now. Both stocks rose in the wake of these announcements, but the coffee chains are still trailing the wider market this year. Dutch Bros is in slightly negative territory, in fact, and Starbucks is up just 5% compared to a 14% increase in the S 500 in 2023.

The beverage sellers are in much different places in their growth journeys, and so their stocks will likely appeal to different types of investors. With that in mind, let's look at which one would be a better fit in your portfolio right now.

Both companies reported solid third-quarter growth, but the sales gains are coming from different places. As you might expect, Dutch Bros is expanding revenue mainly through its store expansion. The chain opened 39 locations last quarter and entered two new states, Alabama and Kentucky.

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Source Fool.com