Dutch Bros Inc.

For Immediate Release
Chicago, IL – August 20, 2025 – Zacks Equity Research shares Robinhood Markets HOOD as the Bull of the Day and The Goodyear Tire & Rubber Company GT as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Starbucks Corp. SBUX, McDonald’s MCD and Dutch Bros Coffee BROS.
Here is a synopsis of all five stocks.
Zacks Rank #1 (Strong Buy) stock Robinhood Markets has risen to become the foremost financial services platform for retail investors. Established in 2013 and headquartered in Menlo Park, California, the startup first rose to prominence by being the first mainstream broker to offer commission-free equity trading.
The platform has grown its user base considerably by “democratizing” finance through its commission-free trading and zero account minimum model. During the COVID-19 pandemic, Robinhood’s business exploded amid a red-hot market and many millennials working from home. However, behind its co-founder and CEO, Vlad Tenev, Robinhood has leveraged that success to diversify and grown its business beyond equity markets into credit and crypto markets.
Robinhood Benefits from Active Markets
Robinhood benefits dramatically in active markets. For instance, the trading volumes surged after the COVID-19 crash and subsequent bull market. Now, a similar roadmap is in store for the stock after the tariff-induced crash and robust bull market rebound of 2025.
Increased retail participation over the past few years has led to a compound annual growth rate (CAGR) of 36.7% in the company’s transaction-based revenue segment. Meanwhile, annual revenue doubled from 2022 to 2024. In addition, the company turned profitable in 2024 for the first time and never looked back.
Robinhood also tends to beat Wall Street estimates. For example, the company has beaten Zacks Consensus Analyst Estimates in nine of the past ten quarters and surpassed those estimates by a healthy 19.46% margin in the past four.
HOOD: A Plethora of New Growth Avenues
CEO Vlad Tenev has built a career around democratizing finance, driving innovation, and embracing technology. With the massive success of the company’s core business, Tenev has been able to continuously deliver a plethora of new growth avenues, including:
· Prediction Markets: Users can bet on anything from economics to sports to politics to pop culture.
· Crypto Trading: Robinhood has dove headfirst into the crypto space. The company offers crypto trading and is looking to ‘tokenize’ crypto assets.
· Robinhood Gold: A premium Robinhood subscription with perks like higher interest, larger instant deposits, and research reports.
Wall Street is Becoming More Bullish on HOOD
Wall Street analysts tracked by Zacks Investment Research anticipate that the company’s impressive fundamental performance will continue, with several analysts boosting their rating on the company over the past few months.
Bottom Line
Robinhood’s journey from a startup to a leading financial platform is a testament to its disruptive business model and strategic evolution. By continuously innovating, the company has successfully diversified its revenue streams beyond commission-free trading.
The Goodyear Tire & Rubber Company is one of the largest tire manufacturing companies in the world. In addition to its massive consumer tire business, the Zacks Rank #5 (Strong Sell) company produces other rubber-related chemicals and specialty tires for off-road, aviation, and racing applications.
Goodyear Tire employs nearly 70,000 people and derives the majority of its revenue (~60%) from North America. However, it develops, manufactures, distributes, and sells tires throughout the Americas, the Middle East, Europe, Africa, and the Asia Pacific.
Tariffs to Increase Costs
Though roughly half of Goodyear’s business is in North America, the Trump administration’s tariff policy is hurting the company. The company faces tariffs on consumer tires, imported raw materials, and commercial tariffs. Altogether, Goodyear estimates that these tariffs will result in an annual cost of around $350 million. Raw material costs are expected to rise by approximately $50 million in the third quarter, and they are seen as ballooning to a $180 million headwind in the fourth quarter.
Goodyear Costs Are Rising
Goodyear is in the process of retooling and making necessary technology changes that will lead to 2025 CAPEX spending of ~$900 million. The increased spending, a result of more complex tire designs, is leading to decreasing cash flows.
GT Suffers from Declining Sales Volumes
This year, Goodyear expects to sell fewer tires year-over-year worldwide because US wholesalers already have sufficient tires in stock. Meanwhile, demand is stagnant overseas, with a stagnant Asia-Pacific economic environment. In addition, Goodyear produced fewer tires in the second quarter, meaning that the company will have a more difficult time spreading its fixed costs, leading to an expected extra $50 million in costs.
GT Suffers from Relative Weakness
GT shares are long-term underperformers. Over the past 5 years, the stock has been down 10%, while the S&P 500 Index has nearly doubled!
Bottom Line
While Goodyear remains a global leader in tire manufacturing, the company faces significant headwinds, including rising tariff costs, declining sales, and relative price weakness.
Additional content:
Will New Beverage Innovation Revive Starbucks' U.S. Comps?
Starbucks Corp. continues to face pressure in its core U.S. market, where comparable sales slipped 2% in the third quarter of fiscal 2025. Management is clear that turning around domestic performance will require more than operational fixes, it needs a wave of menu innovation to reenergize customers.
CEO Brian Niccol emphasized that the company is building momentum with its “Back to Starbucks” strategy, laying the groundwork for 2026 as the year of innovation. Starbucks is targeting beverages that align with consumer trends in health, customization and premium experiences.
A key launch is protein cold foam, a no-sugar option that adds 15 grams of protein to any cold beverage. Early testing showed strong demand, tapping into Cold Foam’s 23% year-over-year growth. Beyond that, Starbucks is experimenting with coconut water-based tea and coffee drinks, gluten-free and high-protein foods, and a new artisanal baked case to broaden appeal across dayparts.
The innovation push is carefully designed to avoid operational disruption. Starbucks is embedding barista feedback early in product development, ensuring drinks can be executed consistently within service time goals. By layering new beverages onto the newly rolled out Green Apron Service, a standardized operating model focused on speed and hospitality, the company hopes to pair menu excitement with a stronger in-store experience.
With Gen Z and millennial customers already driving engagement, Starbucks sees beverage innovation as a catalyst to restore positive transaction growth in the United States. While execution risks remain, the strategy signals that Starbucks is betting big on new drinks to reignite its sales momentum.
Competitors Raising the Bar in Beverage Innovation
Starbucks’ innovation drive comes as rivals intensify their beverage strategies. McDonald’s, through its McCafé lineup, has been expanding cold and specialty drink options at accessible price points. MCD’s nationwide footprint and value-driven approach allow it to capture customers seeking convenience and affordability, a direct challenge to Starbucks’ premium positioning.
Meanwhile, Dutch Bros Coffee continues to win younger consumers with its vibrant, customizable drinks and energy-based beverages. Its emphasis on drive-thru speed and community-centric brand appeal has fueled rapid expansion, making it a growing disruptor in the specialty beverage space.
With McDonald’s leveraging scale and value, and Dutch Bros resonating with Gen Z, Starbucks’ upcoming beverage innovations, from protein cold foam to artisanal offerings, will need to strike a balance between differentiation and broad appeal to revive U.S. comparable sales.
SBUX’s Price Performance, Valuation & Estimates
Shares of Starbucks have lost 18.4% in the past six months compared with the industry’s decline of 7.6%.
From a valuation standpoint, Starbucks trades at a forward price-to-sales ratio of 2.7, below the industry’s average of 3.81.
The Zacks Consensus Estimate for SBUX’s fiscal 2025 EPS implies a decline of 32.6% year over year and the same for 2026 indicates a rise of 22.4%. The EPS estimates for fiscal 2025 and 2026 have declined in the past 30 days.
Starbucks currently has a Zacks Rank #4 (Sell).
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
Zacks Investment Research
800-767-3771 ext. 9339
https://www.zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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.
#1 Semiconductor Stock to Buy (Not NVDA)
The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.
One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Robinhood Markets and Goodyear Tire have been highlighted as Zacks Bull and Bear of the Day

For Immediate Release
Chicago, IL – August 20, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Levi Strauss & Co. LEVI, Walmart, Inc. WMT, Dutch Bros Inc. BROS and Wayfair Inc. W.
Here are highlights from Tuesday’s Analyst Blog:
4 Stocks to Boost Your Portfolio on Solid Jump in Retail Sales
The retail sector has shown immense resilience amid rising prices and inflationary pressures. The sector continued to grow in July, boosting the morale of investors. The impressive jump in July retail sales has eased concerns that economic activity started slowing after three months of sluggish job growth.
Given this situation, it would be ideal to invest in retail stocks. We have selected four stocks, namely, Levi Strauss & Co., Walmart, Inc., Dutch Bros Inc. and Wayfair Inc. for investors.
These stocks have seen positive earnings estimate revisions in the past 60 days, carry a Zacks Rank #1 (Strong Buy) or 2 (Buy), and are set for solid returns. You can see the complete list of today’s Zacks #1 Rank stocks here.
Retail Sales Jump in July
Retail sales jumped 0.5% in July, after an upwardly revised 0.9% rise in June, the Commerce Department reported on Friday. Year over year, retail sales increased 3.9%. The July numbers were driven by a solid jump in motor vehicle sales, with receipts at auto dealerships increasing 1.6%, after climbing 1.4% in the prior month.
Online sales rose 0.8% in July after increasing 0.9% in June. Sales at clothing stores and furniture outlets increased 0.7% and 1.4%, respectively. Households have been spending less and saving more over concerns that a weak labor market is an indication of a softening economy and President Donald Trump’s tariffs would escalate inflation.
Trump’s tariffs are already making an impact, with prices of goods rising in June and July. The tariff-related price hikes have lately contributed to the increase in retail sales, and this surge is likely to give the Federal Reserve justification to keep interest rates steady at 4.25-4.5% for a longer time.
However, investors remain optimistic that the impact of tariffs will not be that severe after the White House reached trade deals with several trading partners. Moreover, despite maintaining a hawkish stance, several Federal Reserve officials have indicated that the central bank still plans to implement two 25-basis-point rate cuts before the year-end. Markets are pricing in an 83.1% chance of a 25-basis-point rate cut in September. Lower borrowing costs would be beneficial for both the retail industry and the overall economy.
4 Retail Stocks with Upside
Levi Strauss & Co.
Levi Strauss & Co. designs and markets jeans, casual wear and related accessories for men, women and children under the Levi's, Dockers, Signature by Levi Strauss & Co. and Denizen brands. LEVI’s products are sold through chain retailers, department stores, online sites and brand-dedicated retail stores, and shop-in-shops. Levi Strauss & Co. is based in San Francisco.
Levi Strauss & Co.’s expected earnings growth rate for the current year is 4%. The Zacks Consensus Estimate for current-year earnings has improved 5.7% over the past 60 days. LEVI carries a Zacks Rank #1.
Walmart
Walmart has evolved from just being a traditional brick-and-mortar retailer to an omnichannel player. WMT’s product offerings include almost everything from grocery to cosmetics, electronics to stationery, home furnishings to health and wellness products, and apparel to entertainment products, to name a few.
Walmart’s expected earnings growth rate for the current year is 4%. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the past 60 days. WMT presently has a Zacks Rank #2.
Dutch Bros.
Dutch Bros Inc. is an operator and franchisor of drive-thru shops that focus on serving high-quality, hand-crafted beverages with unparalleled speed and superior service.
Dutch Bros’ expected earnings growth rate for next year is 34.7%. The Zacks Consensus Estimate for current-year earnings has improved 8.2% over the past 60 days. BROS presently carries a Zacks Rank #2.
Wayfair
Wayfair Inc. is one of the world's leading online sellers of home goods products, consisting of furniture and home decor. W operates worldwide through Wayfair.com and four other branded websites, namely, Joss & Main, AllModern, Birch Lane and Perigold. The company currently offers more than 40 million products from more than 20,000 suppliers.
Wayfair’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the past 60 days. W presently has a Zacks Rank #2.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
Zacks Investment Research
800-767-3771 ext. 9339
https://www.zacks.com
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.
#1 Semiconductor Stock to Buy (Not NVDA)
The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.
One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Zacks Analyst Blog Highlights Levi Strauss, Walmart, Dutch Bros and Wayfair

Key Points
These two companies should do well despite restaurant stocks facing an uncertain near-term environment.
Chipotle's sales should rebound.
Dutch Bros continues to draw customers.
Investing in the restaurant industry presents challenges. These include changing consumer tastes and economic pressures that cause people to cut back on discretionary spending.
Right now, there's a lot of economic uncertainty, including from the administration's tariff policy. That presents short-term headwinds, including potentially higher costs and lower customer traffic.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
However, challenging times can also present a buying opportunity for certain cyclical stocks, provided investors are willing to stomach short-term volatility.
Chipotle Mexican Grill (NYSE: CMG) and Dutch Bros (NYSE: BROS) stock prices have moved in opposite directions this year. But both remain solid businesses with strong long-term growth potential.
1. Chipotle Mexican Grill
Chipotle Mexican Grill (NYSE: CMG) has distinguished itself from fast food chains. It serves high-quality food (e.g., without artificial colors, flavors, and preservatives) at reasonable prices. Management has also found ways to enhance the customer experience, particularly via digital ordering and Chipotlanes (drive-through lanes to pick up digital orders).
The concept has proven very successful over the years. Chipotle Mexican Grill opened its first restaurant in 1993, and it has grown to over 3,800 locations. Management continues to see a growth opportunity, opening 61 new restaurants in the second quarter, and it expects a total of 315 to 345 additional locations for the entire year.
However, same-store sales (comps) have been sluggish lately. Q2 comps dropped 4%. Unfortunately, that was driven by lower traffic, which accounted for a 4.9-percentage-point drop. Higher spending was responsible for a 0.9-percentage-point increase.
Management blamed the lower comps on larger economic pressures that impacted overall consumer spending. It noted that there was sales momentum at the end of the quarter with positive transaction volume and comps. The company expects flat comps for the year, which would show an improvement from the first half of the year.
However, the recent sales results have sent the stock price down. Chipotle's shares have dropped 27% this year (through Aug. 15), while the S&P 500 index has gained 9.7%.
It's hard to call the shares cheap, but they have become less expensive over this period. The stock's price-to-earnings (P/E) ratio has fallen from 54 to 39. The S&P 500 sells at a 30 P/E multiple.
Its offerings of fresh ingredients have proven successful. With its long-term growth potential remaining intact, a higher valuation seems warranted.
2. Dutch Bros
Dutch Bros (NYSE: BROS) offers beverages and select food items at its drive-through locations. Starting modestly in 1992, it has expanded by focusing on high-quality, handcrafted beverages, quick service, and strong customer service.
The concept clearly has appealed to customers. Q2 comps increased 6.1%. People continued flocking to its locations, with traffic accounting for 3.7 percentage points of the increase. Management expects comps to increase 4.5% for the year.
A large growth opportunity remains. At the end of 2024, Dutch Bros had 982 shops (about two-thirds were franchises) across 18 states. It had 1,043 locations in 19 states at the end of June, and management plans to open at least another 100 shops this year.
The company's success and growth opportunities haven't been lost on investors. Dutch Bros' share price has gained 20.3% this year, more than twice the S&P 500's appreciation. Investors continue to expect this success to continue, with the shares trading at a P/E multiple of 175.
If this valuation makes you nervous, you can smooth out your purchase price by investing the same amount at regular intervals, a strategy called dollar-cost averaging.
Should you invest $1,000 in Chipotle Mexican Grill right now?
Before you buy stock in Chipotle Mexican Grill, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Chipotle Mexican Grill wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $671,466!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,115,633!*
Now, it’s worth noting Stock Advisor’s total average return is 1,077% — a market-crushing outperformance compared to 185% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of August 18, 2025
Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill. The Motley Fool recommends Dutch Bros and recommends the following options: short September 2025 $60 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

2 No-Brainer Restaurant Stocks to Buy Right Now

Starbucks Corporation SBUX continues to face pressure in its core U.S. market, where comparable sales slipped 2% in the third quarter of fiscal 2025. Management is clear that turning around domestic performance will require more than operational fixes, it needs a wave of menu innovation to reenergize customers.
CEO Brian Niccol emphasized that the company is building momentum with its “Back to Starbucks” strategy, laying the groundwork for 2026 as the year of innovation. Starbucks is targeting beverages that align with consumer trends in health, customization and premium experiences.
A key launch is protein cold foam, a no-sugar option that adds 15 grams of protein to any cold beverage. Early testing showed strong demand, tapping into Cold Foam’s 23% year-over-year growth. Beyond that, Starbucks is experimenting with coconut water-based tea and coffee drinks, gluten-free and high-protein foods, and a new artisanal baked case to broaden appeal across dayparts.
The innovation push is carefully designed to avoid operational disruption. Starbucks is embedding barista feedback early in product development, ensuring drinks can be executed consistently within service time goals. By layering new beverages onto the newly rolled out Green Apron Service, a standardized operating model focused on speed and hospitality, the company hopes to pair menu excitement with a stronger in-store experience.
With Gen Z and millennial customers already driving engagement, Starbucks sees beverage innovation as a catalyst to restore positive transaction growth in the United States. While execution risks remain, the strategy signals that Starbucks is betting big on new drinks to reignite its sales momentum.
Competitors Raising the Bar in Beverage Innovation
Starbucks’ innovation drive comes as rivals intensify their beverage strategies. McDonald’s MCD, through its McCafé lineup, has been expanding cold and specialty drink options at accessible price points. MCD’s nationwide footprint and value-driven approach allow it to capture customers seeking convenience and affordability, a direct challenge to Starbucks’ premium positioning.
Meanwhile, Dutch Bros Coffee BROS continues to win younger consumers with its vibrant, customizable drinks and energy-based beverages. Its emphasis on drive-thru speed and community-centric brand appeal has fueled rapid expansion, making it a growing disruptor in the specialty beverage space.
With McDonald’s leveraging scale and value, and Dutch Bros resonating with Gen Z, Starbucks’ upcoming beverage innovations, from protein cold foam to artisanal offerings, will need to strike a balance between differentiation and broad appeal to revive U.S. comparable sales.
SBUX’s Price Performance, Valuation & Estimates
Shares of Starbucks have lost 18.4% in the past six months compared with the industry’s decline of 7.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, Starbucks trades at a forward price-to-sales ratio of 2.7, below the industry’s average of 3.81.
P/S (F12M)
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SBUX’s fiscal 2025 EPS implies a decline of 32.6% year over year and the same for 2026 indicates a rise of 22.4%. The EPS estimates for fiscal 2025 and 2026 have declined in the past 30 days.
Image Source: Zacks Investment Research
Starbucks currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
See our %%CTA_TEXT%% report – free today!
7 Best Stocks for the Next 30 Days
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Will New Beverage Innovation Revive Starbucks' U.S. Comparable Sales?

The retail sector has shown immense resilience amid rising prices and inflationary pressures. The sector continued to grow in July, boosting the morale of investors. The impressive jump in July retail sales has eased concerns that economic activity started slowing after three months of sluggish job growth.
Given this situation, it would be ideal to invest in retail stocks. We have selected four stocks, namely, Levi Strauss & Co. LEVI, Walmart, Inc. WMT, Dutch Bros Inc. BROS and Wayfair Inc. W for investors.
These stocks have seen positive earnings estimate revisions in the past 60 days, carry a Zacks Rank #1 (Strong Buy) or 2 (Buy), and are set for solid returns. You can see the complete list of today’s Zacks #1 Rank stocks here.
Retail Sales Jump in July
Retail sales jumped 0.5% in July, after an upwardly revised 0.9% rise in June, the Commerce Department reported on Friday. Year over year, retail sales increased 3.9%. The July numbers were driven by a solid jump in motor vehicle sales, with receipts at auto dealerships increasing 1.6%, after climbing 1.4% in the prior month.
Online sales rose 0.8% in July after increasing 0.9% in June. Sales at clothing stores and furniture outlets increased 0.7% and 1.4%, respectively. Households have been spending less and saving more over concerns that a weak labor market is an indication of a softening economy and President Donald Trump’s tariffs would escalate inflation.
Trump’s tariffs are already making an impact, with prices of goods rising in June and July. The tariff-related price hikes have lately contributed to the increase in retail sales, and this surge is likely to give the Federal Reserve justification to keep interest rates steady at 4.25-4.5% for a longer time.
However, investors remain optimistic that the impact of tariffs will not be that severe after the White House reached trade deals with several trading partners. Moreover, despite maintaining a hawkish stance, several Federal Reserve officials have indicated that the central bank still plans to implement two 25-basis-point rate cuts before the year-end. Markets are pricing in an 83.1% chance of a 25-basis-point rate cut in September. Lower borrowing costs would be beneficial for both the retail industry and the overall economy.
4 Retail Stocks With Upside
Levi Strauss & Co.
Levi Strauss & Co. designs and markets jeans, casual wear and related accessories for men, women and children under the Levi's, Dockers, Signature by Levi Strauss & Co. and Denizen brands. LEVI’s products are sold through chain retailers, department stores, online sites and brand-dedicated retail stores, and shop-in-shops. Levi Strauss & Co. is based in San Francisco.
Levi Strauss & Co.’s expected earnings growth rate for the current year is 4%. The Zacks Consensus Estimate for current-year earnings has improved 5.7% over the past 60 days. LEVI carries a Zacks Rank #1.
Walmart has evolved from just being a traditional brick-and-mortar retailer to an omnichannel player. WMT’s product offerings include almost everything from grocery to cosmetics, electronics to stationery, home furnishings to health and wellness products, and apparel to entertainment products, to name a few.
Walmart’s expected earnings growth rate for the current year is 4%. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the past 60 days. WMT presently has a Zacks Rank #2.
Dutch Bros Inc.
Dutch Bros Inc. is an operator and franchisor of drive-thru shops that focus on serving high-quality, hand-crafted beverages with unparalleled speed and superior service.
Dutch Bros’ expected earnings growth rate for next year is 34.7%. The Zacks Consensus Estimate for current-year earnings has improved 8.2% over the past 60 days. BROS presently carries a Zacks Rank #2.
Wayfair Inc.
Wayfair Inc. is one of the world's leading online sellers of home goods products, consisting of furniture and home decor. W operates worldwide through Wayfair.com and four other branded websites, namely, Joss & Main, AllModern, Birch Lane and Perigold. The company currently offers more than 40 million products from more than 20,000 suppliers.
Wayfair’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the past 60 days. W presently has a Zacks Rank #2.
See our %%CTA_TEXT%% report – free today!
7 Best Stocks for the Next 30 Days
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

4 Stocks to Boost Your Portfolio on Solid Jump in Retail Sales

Starbucks Corporation SBUX is leveraging its digital ecosystem to lift transactions, improve ticket size and enhance the customer experience. The company is focusing on loyalty, mobile ordering, delivery and operational improvements to drive spend growth.
In the third quarter of fiscal 2025, the company reported nearly 34 million 90-day active Rewards members in the United States, with non-discounted transactions growing within this base. U.S. ticket increased 2% as the company reduced discounted transactions by about one-third, reflecting stronger spend without heavy promotions.
Operational enhancements are supporting this shift. Starbucks is rolling out Green Apron Service and SmartQ to improve order speed and accuracy. Stores using these initiatives achieved faster handoffs, with about 80% of in-cafe orders completed in under four minutes, drive-thru times below four minutes, and Mobile Order and Pay transactions delivered more accurately and on time.
Looking ahead, the company plans further digital upgrades in 2026, including a reimagined Rewards program, a new mobile app, and additional Mobile Order and Pay improvements. The pickup-only store format will be phased out in favor of community coffeehouses paired with strong digital convenience. Delivery also remains a fast-growing digital channel, with transactions up more than 25% year over year and proving highly incremental to the business.
With a large and engaged loyalty base, reduced reliance on discounts, improved order execution and expanding delivery capabilities, Starbucks is positioning digital engagement as a key driver of sustained customer spend growth.
SBUX’s Price Performance, Valuation & Estimates
Shares of Starbucks have gained 7.7% in the past three months against the industry’s decline of 3.1%.
Image Source: Zacks Investment Research
Other renowned firms that share the market space with SBUX include Dutch Bros Inc. BROS and Chipotle Mexican Grill, Inc. CMG. In the past three months, shares of Dutch Bros and Chipotle have declined 5.9% and 18.2%, respectively.
From a valuation standpoint, Starbucks trades at a forward price-to-sales ratio of 2.72, below the industry’s average of 3.79.
Notably, Dutch Bros and Chipotle are currently trading at a forward 12-month P/S ratio of 6.22 and 4.39, respectively.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SBUX’s fiscal 2025 EPS implies a decline of 30.5% year over year and the same for 2026 indicates a rise of 18.2%. The EPS estimates for fiscal 2025 and 2026 have declined in the past 30 days. Starbucks currently carries a Zacks Rank #4 (Sell).
Image Source: Zacks Investment Research
See our %%CTA_TEXT%% report – free today!
7 Best Stocks for the Next 30 Days
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Will Digital Engagement Drive Starbucks' Customer Spend Growth?

Key Points
Wall Street found things to be disappointed about in Amazon's quarterly report despite a phenomenal quarter, but it's already overcorrected.
This growing drive-thru chain has an edge that spells excellent long-term prospects.
This restaurant chain has had a rough year, but a recovery could be around the corner.
Investors should never let market volatility scare them out of a good investment. Stocks of growing companies will usually experience greater volatility than the market average. But investors that ignore those fluctuations and keep regularly buying shares of growing companies will come out ahead over the long run.
Three fool.com contributors see great deals right now for fallen growth stocks like Amazon (NASDAQ: AMZN), Dutch Bros (NYSE: BROS), and Sweetgreen (NYSE: SG). Here's why they believe these stocks are solid investments for a long-term investor.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
Amazon: Down 8.5%
Jennifer Saibil (Amazon): Amazon reported spectacular results for the 2025 second quarter last week, but its stock dropped on the news. While there was a lot to be excited about, the market seemed to home in on certain qualities that didn't fully meet its expectations, and that has created an excellent opportunity for investors who haven't pressed the buy button yet.
Sales growth was strong at 13% year over year, beating expectations. Let's not forget that Amazon is the second-largest company in the U.S. by sales, and to be able to still deliver double-digit sales growth is an impressive feat. It reached $167.7 billion in sales, ahead of Walmart's $165.6 billion in sales in its most recent quarter, and Amazon is on track to become the largest company in the U.S. by sales.
Operating income surged to $19.2 billion, up from $14.7 billion last year, easily topping its guidance. But that wasn't enough for Wall Street.
The market seems to have been spooked by the outlook for operating margin coming in slightly below expectations. Management is shooting for $15.5 billion to $20.5 billion in third-quarter operating income, and Wall Street is expecting $19.5 billion.
It also wasn't thrilled with the performance of Amazon Web Services (AWS), Amazon's cloud business. AWS sales were up 17.5% year over year in the quarter, but that was nowhere near the growth of its two biggest rivals, Microsoft's Azure and Alphabet, which increased 39% and 32%. However, AWS is much bigger than both of them, and in dollar amounts, its increase surpassed them.
CEO Andy Jassy made some remarks about the artificial intelligence (AI) business that may have sounded worse than he expected. He explained that it couldn't meet demand right now, which is why it's investing heavily in the platform. While that could lead clients to find somewhere else to meet their demand, the high demand implied should be great for Amazon down the line, as long as it can build out fast enough to keep it going.
Amazon stock is down 8.5% from its highs, already making its way back up as investors recognize the opportunity to buy on the dip. This was an overcorrection, and now it's a great chance to buy before it reaches new highs.
Dutch Bros: Down 33%
John Ballard (Dutch Bros): Dutch Bros has all the ingredients of a growth stock set up to deliver multi-bagger returns for patient shareholders. It's tapping into growing demand for specialty beverages. The business was founded in 1992, but it's still early in its nationwide U.S. expansion plans.
Analysts expect revenue to grow at a compound annual rate of 23% over the next few years. This is in line with the company's current pace of shop openings and same-shop sales trends, which have hovered around the low to mid-single-digit level over the last few years. It currently has over 1,000 shops in 18 states, but management sees tremendous growth potential supporting as many as 7,000 locations over the long term.
Dutch Bros is outperforming Starbucks, which has experienced problems growing sales recently. One reason for Dutch Bros' success is that it likes to hire shop managers from within the company. Even some of the company's franchise partners started out working for Dutch Bros as "broistas." This can help promote consistency throughout the company's shops, which is an important quality to look for in any restaurant chain.
Another quality that leads me to have high conviction in the future of this brand is that it is very popular among Gen Z. Dutch Bros offers a fun-loving atmosphere and a focus on the drive-thru experience, and it goes out of its way to delight customers with limited time offerings, such as the recent rubber duck giveaway with every purchase. The little things can go a long way in winning loyal customers, and Dutch Bros seems to understand this well.
The stock is currently down about 33% from its 52-week high. I would consider taking advantage of the dip and adding shares, especially for investors who are interested in finding promising new restaurant brands in the early stages of expansion.
Sweetgreen: Down 77%
Jeremy Bowman (Sweetgreen): Restaurant stocks have struggled this year as a combination of fears about tariffs and weak consumer discretionary spending have weighed on both business results and stock performance.
Sweetgreen, the promising fast-casual salad chain, has been one of the worst-performing stocks in the industry. The stock is now down 61% year to date, and is off 77% from its all-time high shortly after the company went public in late 2021.
It's understandable why Sweetgreen is down based on its recent results. In its first quarter, same-store sales declined 3.1%, and revenue rose just 5.4%. Sweetgreen has also been unprofitable throughout its history.
However, the chain is still small with roughly 250 locations, and it is popular as its restaurants generate average sales of $2.9 million. That puts it on par with Chipotle, one of the most successful restaurant stocks in history.
Sweetgreen has also been unprofitable in part because it's invested in its Infinite Kitchen program, an automated system that measures and dispenses ingredients and helps prep its salad bowls. That innovation seems likely to pay off over the long run. Management has said that restaurants with the Infinite Kitchen generate higher sales, as it helps increase throughput and customer service, in addition to saving on labor costs.
Sweetgreen's comparisons are expected to get easier in the second half of the year, which could turn comparable sales positive. The company expects to open at least 1,000 stores over the long term, meaning it has a long growth runway ahead.
Investors who take advantage of the discount are likely to be rewarded.
Should you invest $1,000 in Amazon right now?
Before you buy stock in Amazon, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amazon wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $636,563!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,108,033!*
Now, it’s worth noting Stock Advisor’s total average return is 1,047% — a market-crushing outperformance compared to 181% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of August 4, 2025
Jennifer Saibil has positions in Walmart. Jeremy Bowman has positions in Amazon, Chipotle Mexican Grill, Starbucks, and Sweetgreen. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Chipotle Mexican Grill, Microsoft, Starbucks, and Walmart. The Motley Fool recommends Dutch Bros and Sweetgreen and recommends the following options: long January 2026 $395 calls on Microsoft, short January 2026 $405 calls on Microsoft, and short September 2025 $60 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Growth Stocks Down 8% to 77% to Buy in August

Key Points
Nvidia and Alphabet are two tech titans benefiting from AI.
GitLab has a strong growth opportunity in front of it as AI accelerates software development.
Dutch Bros and e.l.f. are two of the most exciting growth stories in the consumer space.
Growth stocks have been leading the market higher for several years, and right now there are no signs of this trend slowing down. While growth stocks can be found in any sector, two of the most common places to find them are in technology and the consumer spaces.
Let's look at five no-brainer growth stocks to buy now.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
Nvidia
Nvidia (NASDAQ: NVDA) is the clear-cut artificial intelligence (AI) leader, and it's not even close. The company captured an absurd 92% share of the graphics processing unit (GPU) market in the first quarter, and yet it's still in full-on growth mode. Despite topping a $4 trillion market cap, Nvidia continues to expand rapidly, driven by demand for its data center chips.
Its real moat, though, is its CUDA software platform. Nvidia got CUDA into the hands of researchers and academics way before AI went mainstream, and now it has a dominant developer ecosystem built on its tools and libraries.
If you listen to any of the commentary from cloud computing companies, AI infrastructure spending is only increasing. Meanwhile, the company just got the green light to resume H20 chip sales in China. While the Chinese government wants Nvidia to provide security proofs, demand is already reported to be robust. At the same time, its automotive segment is well positioned for a robotaxi future.
Given the growth opportunities still in front of Nvidia, it looks like a no-brainer long-term winner.
Alphabet
Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) continues to be wildly underappreciated. With Alphabet trading at just 19 times forward earnings with a forward price/earnings-to-growth ratio (PEG) of 0.8, the market is treating it like its best days are behind it. However, nothing could be further from the truth.
Google Search isn't going anywhere -- it's evolving -- and Alphabet is steering that evolution with AI Overviews, its Gemini model, and multimodal search tools like Circle to Search and Google Lens. In Q2, its search revenue accelerated to 12% growth, and over 2 billion people are already using AI Overviews.
Its cloud computing unit, Google Cloud, is also firing on all cylinders, with revenue up 32% and segment profit more than doubling last quarter. AI is the big driver, as customers create AI models and tools through its Vertex platform and then deploy them on its infrastructure. Its custom-built Tensor Processing Units (TPUs), meanwhile, have been designed specifically to optimize AI workloads within Google Cloud's TensorFlow framework, leading to increased efficiency and a cost advantage.
At the same time, YouTube is holding its own with ad revenue up 13% in Q2, and its Waymo robotaxi is expanding into more cities. All in all, Alphabet is a great mix of leading and emerging businesses.
GitLab
GitLab (NASDAQ: GTLB) is no longer just a code repository -- it's turning into the software development backbone for the AI era. With GitLab 18, the company introduced more than 30 new features, including its Duo Agent, which enables AI-driven testing, deployment, security, and monitoring. That's important, since only about 20% of a developer's time is spent writing code. GitLab is now helping with the drudgery of the other 80%, helping developers become more efficient.
The company has already been a strong revenue grower, consistently growing its revenue by 25% or more since its stock debuted in 2021. AI, meanwhile, has only accelerated software development. While some fear that AI will lead to fewer coders, given the value of its platform, there is a good chance the company could eventually shift from a seat-based model to consumption-based pricing, giving the increasing value proposition of its platform
In a world where AI is changing how software gets built, GitLab's end-to-end platform is becoming vitally important. That puts it in a very strong spot going forward.
Dutch Bros
Dutch Bros (NYSE: BROS) might not be a household name outside the western U.S., but it's one of the most promising restaurant growth stories out there. The company just passed 1,000 locations and has a clear path to achieve its goal of 2,029 locations by 2029. Its model is capital-light, with a small drive-thru-only footprint that makes expansion quick and cost effective. Its long-term goal, meanwhile, is to have around 7,000 locations nationwide.
But there's more to the Dutch Bros story than just expansion. Its same-store sales have been strong, and the company is still in the early stages of rolling out mobile ordering, which should speed up throughput and help drive peak-hour volumes. It's also testing hot breakfast items, which could unlock a major new revenue stream. Dutch Bros has been getting less than 2% of its sales from food items, compared to nearly 20% for Starbucks, so this is a huge opportunity.
Meanwhile, the brand resonates with younger consumers; it doesn't spend heavily on marketing, its prices are generally cheaper than rival Starbucks', and its overhead is pretty low given its drive-thru model. All in all, Dutch Bros is one of the best growth stories in the restaurant space.
e.l.f. Beauty
e.l.f. Beauty (NYSE: ELF) already disrupted the mass cosmetics market, and now it's looking to do the same in prestige beauty with its Rhode acquisition. Rhode is already generating over $200 million in sales with no retail footprint, but that's about to change. Rhode is rolling out at Sephora in the fall, and it will benefit from e.l.f.'s strong retail relationships in the future.
Rhode founder Hailey Bieber will stay on to help run the creative side and brings a lot of clout to the brand. Meanwhile, e.l.f.'s influencer strategy has helped it take a huge share in the mass cosmetics market over the past few years, so expect this marketing network to help drive growth at Rhode as well. In addition, with Rhode having only a modest product lineup, an increased product assortment is also likely in the cards.
e.l.f. has a huge runway to grow the already viral Rhode brand -- from increasing distribution, to adding marketing, to expanding the number of Rhode SKUs it sells. After e.l.f. hit a recent bump in the road in terms of growth, expect Rhode to become a huge growth driver for the company in the coming years.
Should you invest $1,000 in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,064,820!*
Now, it’s worth noting Stock Advisor’s total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of August 4, 2025
Geoffrey Seiler has positions in Alphabet, GitLab, and e.l.f. Beauty. The Motley Fool has positions in and recommends Alphabet, GitLab, Nvidia, Starbucks, and e.l.f. Beauty. The Motley Fool recommends Dutch Bros. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

5 No-Brainer Growth Stocks to Buy Right Now

Yum China Holdings, Inc. YUMC is scheduled to report second-quarter 2025 results on Aug. 5, before the opening bell.
In the last reported quarter, the company’s adjusted earnings missed the Zacks Consensus Estimate by 1.3% and fell 8.5% year over year. Total revenues marginally missed the consensus mark by 4.2% but grew 0.7% from the year-ago quarter.
YUMC’s earnings surpassed the consensus mark in three of the trailing four quarters and missed on one occasion, the average surprise being 8.1%.
Trend in YUMC’s Estimate Revision
The Zacks Consensus Estimate for adjusted earnings per share (EPS) has been consistent at 57 cents over the past 30 days. The estimated figure indicates a 3.6% rise from the year-ago earnings of 55 cents per share.
The consensus mark for revenues is pegged at $2.78 billion, implying 3.9% year-over-year growth.
Factors Likely to Shape Yum China’s Q2 Results
The company’s top line in the second quarter of 2025 is likely to have benefited from a combination of steady same-store transaction growth and new unit expansion. This, alongside the company's diligent efforts, effective new strategies, and improved value-for-money proposition and mass market placement, is likely to have aided traffic growth. The business ideas include Pizza Hut WOW and the adjacent KCOFFEE Cafes, both of which have demonstrated significant promise since their debuts.
Our model expects total revenues from KFC and Pizza Hut to grow year over year by 4.8% to $2.11 billion and 0.4% to $542 million, respectively.
Moreover, the bottom line of YUMC is expected to have improved on the back of disciplined cost management and margin expansion, despite some pressure from wage inflation and a higher delivery mix.
On to labor expenses, the huge expansion in delivery is still putting pressure on overall rider costs. Their goal for non-rider costs is to keep them stable by offsetting the wage inflation of frontline staff through more automation, simplification, and centralization.
We expect the adjusted operating profit margin to increase 30 basis points (bps) year over year to 10.2%, with adjusted operating profit increasing 7.1% to $284.9 million. Adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) and adjusted EBITDA margin are also expected to grow year over year by 5.7% to $421.9 million and 20 bps to 15.1%, respectively.
Yum China Price and EPS Surprise
What Our Model Unveils for Yum China
Our proven model does not conclusively predict an earnings beat for Yum China this time around. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as elaborated below.
Earnings ESP: YUMC has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank of 2.
Stocks With the Favorable Combination
Here are some companies in the Zacks restaurants sector that, according to our model, have the right combination of elements to post an earnings beat in the quarter to be reported.
Dutch Bros BROS currently has an Earnings ESP of +1.62 and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 92.37%. BROS earnings for the second quarter of 2025 are expected to decrease 5.3% year over year.
Brinker International EAT currently has an Earnings ESP of +0.93 and a Zacks Rank of 3.
The company’s earnings beat estimates in three of the trailing four quarters, the average surprise being 24.52%. Brinker International’s earnings for the second quarter of 2025 are expected to increase 51% year over year.
McDonald's MCD currently has an Earnings ESP of +0.43 and a Zacks Rank of 3.
The company’s earnings beat estimates in three of the trailing four quarters, the average surprise being negative 0.22%. McDonald's earnings for the second quarter of 2025 are expected to increase 6.1% year over year.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Yum China Gears Up for Q2 Earnings: Key Factors to Note

Dutch Bros Inc. BROS is scheduled to report second-quarter 2025 results on Aug. 6, after market close. In the last reported quarter, the company delivered an earnings surprise of 40%.
BROS’ earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 92.4%.
Trend in Estimate Revision of BROS
The consensus estimate for second-quarter earnings is pegged at 18 cents per share, implying a 5.3% decrease from the year-ago quarter’s actual. The consensus mark has been unchanged in the past 60 days.
Dutch Bros Inc. Price and EPS Surprise
The Zacks Consensus Estimate for revenues is pegged at $401.9 million, indicating a rise of 23.7% from the year-ago reported figure.
Factors Likely to Shape Dutch Bros’ Quarterly Results
Dutch Bros' second-quarter revenues are expected to have increased year over year, driven by strong system same shop sales and transactions growth. The company is likely to have benefited from enhanced new shop productivity, menu innovation and continued investment in real estate capability and paid media. Furthermore, loyalty program usage is expected to have remained high, supporting overall traffic and engagement in the to-be-reported quarter.
The company expects system same shop sales growth of 3% to 4% in the second quarter. It expects to open around 30 shops in the to-be-reported quarter.
The Zacks Consensus Estimate for second-quarter revenues from company-operated shops (which accounted for 92% of total first-quarter revenues) is pegged at $368 million, up from $295 million reported in the prior-year quarter. The Zacks Consensus Estimate for second-quarter revenues from franchising and other segment (accounted for 8% of total first-quarter revenues) is pegged at $32.5 million, up from $29.7 million reported in the prior-year quarter.
However, a tough macro landscape, including inflationary pressures, remains a concern. The company is prone to economic conditions, including commodity inflation, elevated labor costs and supply-chain disruptions. Dutch Bros has been making higher investments in shop labor and toward business-building activities. These limitations are likely to have weighed on the company’s profitability in the quarter under review.
What the Zacks Model Unveils
Our proven model conclusively predicts an earnings beat for Dutch Bros this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case here.
BROS’ Earnings ESP: Dutch Bros has an Earnings ESP of +1.62%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
BROS’ Rank: The company currently has a Zacks Rank #3.
Other Stocks With the Favorable Combination
Here are some other stocks from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these, too, have the right combination of elements to deliver an earnings beat this time around.
Yum! Brands, Inc. YUM currently has an Earnings ESP of +1.34 and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Yum! Brands’ earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 0.53%. For the second quarter of 2025, Yum! Brands’ earnings are expected to increase 7.4%.
Brinker International EAT presently has an Earnings ESP of +0.93 and a Zacks Rank of 3.
With the average surprise of 24.52%, Brinker’s earnings beat estimates in three of the trailing four quarters and missed once. Brinker’s earnings for the second quarter of 2025 are expected to increase 51%
McDonald's MCD currently has an Earnings ESP of +0.43 and a Zacks Rank of 3.
With the average negative surprise of 0.22%, McDonald's earnings beat estimates in three of the trailing four quarters and missed once. McDonald's earnings for the second quarter of 2025 are expected to increase 6.1%.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Index	Bulls	Bears
Confidence		—
Support		—
Cash flows		—

Dutch Bros Inc.

Market sentiment

Overall assessment

Share of longs and shorts

Long

Short