Dutch Bros Stock Emerges as Potential Outperformer in Coffee Sector

Dutch Bros (BROS) has defied expectations in the coffee market, with its stock reaching an all-time high earlier this year before pulling back NEAR bear market territory. Despite the retreat, it now rivals Starbucks (SBUX) as the most compelling growth story in the sector.

The company's regional-to-national expansion strategy mirrors Starbucks' historic growth trajectory. Starting with just 165 locations in 1992, Starbucks now operates over 41,000 stores globally—a blueprint Dutch Bros appears to be following with 1,043 shops across 19 states as of Q2 2025, representing 14% year-over-year growth.

This expansion fuels financial performance. Dutch Bros reported $771 million in revenue for the first half of 2025, a 29% increase compared to the same period last year. The growth trajectory suggests potential to outperform its established competitor in coming years.