Dutch Bros (NYSE: BROS) has a ton of potential as a growth stock. The company is expanding its sales footprint at a pace that makes it one of the fastest-expanding brands in the fast-food industry. Management plans to launch as many as 165 new locations in 2024, boosting the store base by 20%.

There are major trade-offs to investing in a company that's this early in its growth story, though. It's an especially risky proposition in the restaurant industry, which is known for weak profit margins and high rates of failure as consumers' tastes shift from one year to the next.

Most investors are better off focusing on established and profitable businesses. Let's take a look at why you might like McDonald's (NYSE: MCD) and (NASDAQ: SBUX) more than the fast-expanding Dutch Bros business right now.

Continue reading

Source Fool.com