Dutch Bros Inc.

Сильный индекс, без изменений. Быки в растерянности.

Strong index, flat. The bulls are confused.

Слабый индекс, значительно вырос. Рынок не поддерживает быков.

Weak index, significantly up. The market does not support the bulls.

Слабый индекс, значительно вырос

Key Points
Dutch Bros continues its aggressive expansion with over 1,130 locations and double-digit revenue growth.
Beyond Meat is diversifying into the beverage market while restructuring its core plant-based meat operations.
Which of these consumer-focused stocks is the better addition to your portfolio in 2026?
As investors look for growth opportunities in 2026, the contrast between a rapidly expanding coffee chain and a plant-based pioneer undergoing a deep restructuring offers a unique choice between Dutch Bros (NYSE:BROS) and Beyond Meat (NASDAQ:BYND).
Dutch Bros is a high-growth beverage company focused on drive-thru convenience and a cult-like culture, while Beyond Meat produces plant-based protein alternatives for global markets. They are compared here as two different paths within the evolving consumer landscape.
The case for Dutch Bros
Dutch Bros operates over 1,136 shops as of Dec. 31, 2025, specializing in hand-crafted hot and cold beverages like its proprietary Rebel energy drinks. It focuses on a high-growth drive-thru model that has quickly gained traction among retail stocks in the competitive quick-service space. Expansion is currently a major priority, highlighted by the 2026 acquisition of the Phoenix East Valley franchise and the purchase of Clutch Coffee for conversion into new locations.
In FY 2025, revenue reached nearly $1.6 billion, representing growth of roughly 28% compared to the previous year. The company reported net income of approximately $117.3 million, which was a significant increase from the $66.5 million reported in 2024. This growth trend reflects the company's ability to scale its shop count while maintaining a net margin of close of 7.2%.
As of its December 2025 balance sheet, the debt-to-equity ratio was roughly 1.6x. This ratio measures total debt against shareholder equity, indicating the company uses a mix of debt and equity to fund its growth. The current ratio, which measures the ability to pay short-term obligations, was nearly 1.5x. Free cash flow, or cash from operations minus capital expenditures, was approximately $54.4 million for the year.
The case for Beyond Meat
Beyond Meat produces plant-based meat products available in more than 80 countries through both retail and foodservice channels. In early 2026, the company partnered with Big Geyser to distribute its new functional beverage line, marking a strategic expansion beyond its traditional protein focus. The company has also streamlined its operations by exiting the Chinese market and consolidating its manufacturing footprint to reduce costs.
In FY 2025, revenue was nearly $275.5 million, representing a decline of roughly 15.6% year-over-year as the plant-based meat category faced headwinds. Despite the lower revenue, the company reported net income of approximately $219.9 million, resulting in a net margin of close to 79.8%. This high net income figure was influenced by a $548.7 million non-cash gain on debt restructuring.
As of December 2025, the company operated with a significant shareholder deficit, meaning total liabilities exceeded total assets. The current ratio, measuring short-term liquidity, was approximately 4.6x, indicating a strong position to meet immediate liabilities. Free cash flow, which is cash from operations minus capital expenditures, was nearly negative $172.8 million as the company continued to invest in its business turnaround.
Risk profile comparison
Dutch Bros faces risks related to commodity volatility, as its profitability depends heavily on the price of coffee, dairy, and syrups. It also faces intense competition from established giants like Starbucks and McDonald's for both customer traffic and prime real estate. Furthermore, with roughly 65% of its shops in the Western U.S., the company is vulnerable to regional economic shifts or extreme weather events.
Beyond Meat deals with a persistent decline in consumer demand for plant-based meat as some shoppers return to animal-based proteins. The business relies on a limited number of suppliers for key ingredients like pea protein and avocado oil, making it sensitive to supply chain disruptions. Additionally, the company faces stiff competition from large food conglomerates such as Tyson Foods and Nestle, which have significant distribution advantages.
Valuation comparison
Dutch Bros carries a higher sales multiple reflecting its rapid growth, while Beyond Meat trades at a lower valuation following several years of declining revenue and restructuring.
Metric
Dutch Bros
Beyond Meat
Forward P/E
70.6x
N/A
P/S ratio
6.8x
1.0x
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
I'd go with Dutch Bros, and this one isn't close. Beyond Meat is fighting for its life right now. Revenue has been shrinking for several quarters and the stock has traded near delisting territory. The company is in the middle of a painful restructuring that includes massive layoffs and a retreat from international markets. The pivot into protein beverages might eventually find an audience, but right now this is a company in survival mode, not growth mode.
This is a really exciting time for Dutch Bros. Revenue is surging and same-store sales are climbing. Management raised its full-year outlook after a strong first quarter. The company is opening new shops at an aggressive pace, rolling out a food program, and expanding into markets across the country that have never had a Dutch Bros location. I love that the brand has a loyal following that keeps driving traffic higher.
Dutch Bros has the brand momentum, the growth trajectory, and the financial footing to be a solid long-term hold. Beyond Meat needs to prove it can survive before it can think about thriving.
Should you buy stock in Dutch Bros right now?
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Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Beyond Meat, Dutch Bros, and Starbucks. The Motley Fool recommends Nestlé and recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. 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.

Dutch Bros vs. Beyond Meat: Which Consumer Stock Is a Better Buy in 2026?

Key Points
Dutch Bros plans to operate 2,029 locations by 2029.
The company has posted strong same-store sales increases.
One of the arguably surprising growth stories in recent years has been Dutch Bros (NYSE: BROS). The beverage chain is well into a regional-to-national expansion as it seeks to compete with Starbucks and other coffee shops.
Moreover, as Starbucks is in the process of revamping itself, Dutch Bros is on a full-steam-ahead path to growth. That likely means the coffee stock could double in value by the end of the decade, and here's why.
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The path to a double
One aspect of Dutch Bros' growth is glaringly obvious because its footprint is on track to nearly double by 2029.
The company has outlined a plan to grow to 2,029 locations by 2029. As of the end of the first quarter of 2026, it operated 1,177 shops in 25 states.
That means an approximate 72% increase in the number of shops. Fortunately, that is likely achievable since it operates in tiny, drive-thru locations that it can build relatively quickly.
The remaining growth will come from its rising popularity. Dutch Bros increased same-store sales by 8.3% year over year. Also, transaction growth came to 5.1% during the same period.
Dutch Bros has overcome intense competition in its industry by doing things differently. For one, it designed its drive-thru model for rapid orders, using staff to take orders in the line and accept payments ahead of time, increasing the number of cars that it can serve.
Additionally, its employees emphasize enthusiasm and speed, improving the customer experience. Thus, customers tend to visit for that interaction. Also, the proprietary energy drinks they order and the toppings and syrups they often buy tend to command high margins and premium pricing, which helps Dutch Bros' top line.
Knowing that, it is little wonder the company grew by 31% in Q1. Also, the fact that revenue grew 28% during 2025 shows that the growth is not a one-time event.
Indeed, that resulted in only a profit increase of just 5% in Q1. Nonetheless, Dutch Bros is investing heavily in growing its business, which should accelerate profit growth in the longer term.
The lower profit makes the 101 P/E ratio a misleading valuation measurement. However, if they compare Dutch Bros' price-to-sales (P/S) ratio to that of Starbucks, investors will likely become more comfortable with paying a premium.
Dutch Bros at the end of the decade
Considering its growing footprint and increased popularity, Dutch Bros stock should double in value over the rest of the decade.
Although expansion costs are high in the near term, the added footprint should cover most of the needed increase in revenue. The remainder should come as Dutch Bros builds a following in its local markets, which should keep same-store sales rising.
Thus, while a doubling of the stock may not be the most surprising development given its rapid expansion, its business model could make it the best investment opportunity in the eyes of many investors.
Should you buy stock in Dutch Bros right now?
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Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Dutch Bros and Starbucks. 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.

Why I Believe Dutch Bros Stock Will Double by the End of the Decade

Starbucks Corporation SBUX is scheduled to release third-quarter fiscal 2026 results on July 29.
The Zacks Consensus Estimate for SBUX’s third-quarter fiscal 2026 earnings per share (EPS) is pegged at 66 cents, indicating a 32% increase from 50 cents reported in the prior-year quarter. The consensus mark for earnings has witnessed upward revisions in the past 30 days.
SBUX earnings missed the Zacks Consensus Estimate in three out of the trailing four quarters and beat on one occasion, with an average miss being 4.6%.
The consensus mark for third-quarter fiscal 2026 revenues is pegged at $9.44 billion, indicating a 0.2% decrease from the year-ago quarter’s reported figure.
Q3 Earnings Whispers for SBUX Stock
Our proven model does not predict an earnings beat for Starbucks this time. 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, which is not the case here.
SBUX’s Earnings ESP: Starbucks has an Earnings ESP of -2.19%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Starbucks Zacks Rank: The company currently carries a Zacks Rank of #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Starbucks Corporation Price and EPS Surprise
Factors Likely to Influence Starbucks’ Q3 Results
Starbucks' third-quarter fiscal 2026 top line is likely to have benefited from sustained growth in customer traffic, reflecting continued execution of its "Back to Starbucks" strategy. Management indicated that positive comparable-sales momentum extended into April, supported by transaction growth across all dayparts, with morning traffic recovering to near-2022 levels.
Investments in Green Apron Service, improved staffing, faster service and enhanced store execution are also expected to have encouraged repeat visits. Meanwhile, continued strength in delivery, which management described as an incremental revenue stream, and the rollout of scheduled mobile-order pickup are likely to have supported higher sales by improving convenience and order efficiency.
Revenues are also likely to have benefited from Starbucks' product innovation, marketing initiatives and stronger customer engagement. The company highlighted robust demand for its new energy Refreshers, mango-flavored beverages and customizable caffeine options, while Cold Foam and premium beverage offerings continued to gain popularity.
Seasonal beverage launches and merchandise for summer, coupled with record Starbucks Rewards membership and rising customer visit frequency, are expected to have further supported comparable sales. In addition, coffeehouse upgrades across key markets and improving sales trends in international markets, including Japan, South Korea and China, are likely to have provided an additional boost to revenue growth.
Despite the positive momentum, Starbucks' top line is likely to have faced headwinds from an uncertain macroeconomic environment, which management said could weigh on consumer spending as higher fuel costs and inflationary pressures persist. Additionally, following the completion of the Starbucks China transaction, the company began recognizing only licensing revenues from China rather than company-operated sales, creating a significant drag on reported consolidated revenues despite healthy underlying demand.
The Zacks Consensus Estimate for Channel Development revenues is pegged at $558 million, compared with $484 million reported in the prior year quarter. On the other hand, the company-operated stores revenues are pegged at $7520 million, down 3.8% year over year.
Starbucks' bottom line is likely to have benefited from improved operating leverage driven by stronger comparable-sales growth and continued progress under its $2 billion cost-savings program. The company also expects coffee and tariff-related cost pressures to moderate during the second half of fiscal 2026, while organizational streamlining should keep general and administrative expenses under control. Furthermore, Starbucks' transition to a China joint-venture licensing structure is expected to have supported profitability through higher-margin licensing income, helping offset ongoing investments in its Green Apron Service initiative.
SBUX Stock’s Price Performance & Valuation
Shares of Starbucks have gained 9.3% in the past year against the industry’s decline of 7.9%. In the same time frame, SBUX has also outperformed the other industry players McDonald's Corporation MCD, Dutch Bros Inc. BROS and Chipotle Mexican Grill, Inc. CMG, respectively.
Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, SBUX trades at a forward price-to-earnings (P/E) multiple of 35.13, above the industry’s average of 22.13. Conversely, industry players, such as McDonald's, Dutch Bros and Chipotle, have P/E multiples of 19.44, 58.5 and 22.13, respectively.
P/E (F12M)
Image Source: Zacks Investment Research
Investment Considerations for SBUX Stock
The company continues to make encouraging progress through its turnaround strategy, with improving customer traffic, stronger product innovation, expanding loyalty engagement and ongoing operational improvements supporting the long-term outlook.
However, near-term uncertainty remains, as the earnings prediction model does not point to a likely earnings beat and reported revenues could be affected by the accounting impact of the China business restructuring despite healthy underlying demand. In addition, the stock continues to trade at a premium valuation relative to much of the restaurant industry, leaving limited room for disappointment if results or guidance fall short of expectations.
Given these factors, existing investors may benefit from staying invested to monitor the company's execution, while prospective investors may find it prudent to wait for the earnings announcement and management's updated outlook before initiating new positions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Starbucks Q3 Earnings Ahead: Buy, Sell or Hold the Stock?

Starbucks Corporation SBUX is showing tangible signs that its "Back to Starbucks" turnaround is translating into financial improvement. In the second quarter of fiscal 2026, the company returned to year-over-year EPS growth for the first time in more than two years, while consolidated operating margin expanded for the first time since the first quarter of fiscal 2024. Starbucks also raised its full-year outlook, now expecting global and U.S. comparable sales growth of 5% or better, up from its prior outlook of at least 3%. The company also lifted its non-GAAP EPS guidance to $2.25-$2.45 from $2.15-$2.40, pointing to greater confidence in the recovery.
The improved outlook is being supported by stronger customer demand and transaction-led comp growth. U.S. comparable sales increased 7.1%, fueled by transaction growth of more than 4%, while U.S. company-operated morning transactions were roughly back to fiscal 2022 levels. The comp recovery was supported by Green Apron Service, improved staffing, service-time execution, delivery expansion and menu innovation. Starbucks Rewards membership also reached a record 35.6 million active members, strengthening the company’s digital engagement base.
Higher transaction volumes are becoming increasingly important because they can support operating leverage as sales recover. Starbucks expects sales leverage to build over the next two quarters, while its $2 billion cost-savings program remains on track through fiscal 2028. The company also expects coffee and tariff pressures to begin easing in the back half of fiscal 2026. These factors could help offset ongoing Back to Starbucks investments and support better margin flow-through.
International profitability and the China joint venture add another layer to the earnings recovery setup. Starbucks expects the China JV structure to be margin accretive, with the transaction expected to be relatively EPS neutral in fiscal 2026. The company also expects the transition to support a more capital-efficient model in China while allowing it to continue participating in the market’s long-term growth opportunity.
Starbucks’ ability to deliver sustainable earnings growth will likely depend on whether it can convert improving traffic into consistent operating leverage and margin expansion. Customer demand is recovering, guidance has moved higher and several operating initiatives are beginning to support stronger traffic, sales leverage and margin recovery. Together, these factors likely suggest that the Back to Starbucks turnaround is gaining financial traction.
SBUX’s Price Performance, Valuation & Estimates
Shares of Starbucks have gained 16.1% in the past year against the industry’s of 5.3% fall. In the same time frame, other industry players like Dutch Bros Inc. BROS have gained 5.9%, while McDonald's Corporation MCD has declined 7.3%.
SBUX’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, SBUX trades at a forward price-to-sales (P/S) multiple of 3.01, below the industry’s average of 3.30. Conversely, industry players, such as Dutch Bros and McDonald's, have P/S multiples of 4.95 and 6.51, respectively.
SBUX’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SBUX’s fiscal 2026 earnings per share has increased in the past 30 days.
EPS Trend of SBUX Stock
Image Source: Zacks Investment Research
The company is likely to report strong earnings, with projections indicating an 13.2% rise in fiscal 2026. Conversely, industry players like McDonald's are likely to witness an increase of 5.4%, year over year, in 2026 earnings. Meanwhile, Dutch Bros’ 2026 earnings are likely to witness a rise of 22.4% year over year.
SBUX stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Can Starbucks Turn Traffic Gains Into Sustainable Earnings Growth?

Key Points
Dutch Bros has an enormous expansion runway, targeting up to 7,000 U.S. locations while adding new growth drivers like food, mobile ordering, and higher customer traffic.
A loyal customer base and differentiated brand could support years of compounding growth, but execution risks and a premium valuation are likely to produce volatility.
Whenever I try to picture where the biggest long-term gains might come from, my mind does not land on a flashy artificial intelligence (AI) chip or a rocket company. It lands on a drive-thru coffee stand that much of the country has never visited.
I remember the first time I visited Dutch Bros (NYSE: BROS). Today the company has around 1,200 shops, mostly in the western United States, and I think the next decade could see it become a household name from coast to coast. That is exactly the kind of runway that turns a good stock into a great one.
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A store count that could grow sixfold
The heart of the Dutch Bros story is simple math. The company has about 1,200 locations now, plans to reach more than 2,000 by 2029, and has talked about an eventual footprint of 7,000 shops nationwide. That would be roughly six times its current size.
Because its stores are small drive-thru and walk-up stands rather than sprawling cafes, each one is cheap to build and quick to open, which makes stamping out hundreds a year realistic rather than fanciful. When a company can profitably replicate a small, proven format thousands of times, its growth can compound for a very long time.
More than one lever to pull
What makes me more confident is that Dutch Bros is not relying on new stores alone. It's rolling out food, which historically it has barely offered; early results show food locations getting a lift of about 4% in comparable sales, with the rollout nearly complete. That's a meaningful bump layered on top of unit growth.
Mobile ordering, another recent addition, is speeding up the company's famously long drive-thru lines and pulling in more visits. Sales at established shops have been climbing on genuine traffic gains, not just price hikes. Several engines are firing at once, and most are still early.
The secret sauce is the brand
Here is the part that numbers alone miss. Dutch Bros has built something rare: a coffee brand that people are loyal to in the same way they're loyal to a favorite band.
Employees, called "broistas," treat pickup service like a conversation. And a menu of customizable energy drinks and sweet, colorful concoctions has made the company a favorite of younger customers. Those customers are forming habits now that could last decades, and the Dutch Rewards program keeps them coming back while handing the company a direct line to its fans.
Even as competition in coffee and energy drinks intensifies, Dutch Bros keeps winning traffic. It behaves less like a coffee seller and more like a lifestyle brand that happens to serve caffeine.
I would not call this a safe stock. It trades at a rich valuation, so a lot of that growth is already priced in, and any stumble could hit the shares hard. Expanding nationally means entering unfamiliar markets where the brand is unproven, and protecting its beloved culture while opening shops at a breakneck pace will be a genuine challenge. Weaker consumer sentiment could also slow discretionary coffee runs.
This is a growth stock, with all the volatility that label implies.
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Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and 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.

When I Try to Imagine the Best Investment Opportunity for the Next 10 Years, I Keep Coming Back to This Stock

Domino's Pizza, Inc. DPZ reported second-quarter fiscal 2026 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top and bottom lines increased on a year-over-year basis.
The company reported meaningful second-quarter order growth across both delivery and carryout channels despite persistent consumer demand pressures in the broader U.S. quick-service restaurant industry. Sustained order expansion remains a central component of Domino’s long-term growth framework, supported by new customer acquisition, greater loyalty program participation, increased supply chain throughput and continued store development. The company also cited its scale and competitive positioning as structural advantages that could support additional market-share gains and long-term shareholder value creation.
DPZ's Q2 Earnings & Revenues
Domino's reported second-quarter 2026 earnings of $4.07 per share, missing the Zacks Consensus Estimate of $4.11 by 1%. However, the bottom line increased 6.8% from $3.81 reported in the year-ago quarter.
Domino's Pizza Inc Price, Consensus and EPS Surprise
Quarterly revenues of $1.19 billion surpassed the consensus estimate of $1.17 billion by 2.1% and rose 4.3% year over year. Higher supply chain revenues, franchise royalties and advertising revenues supported growth, while U.S. same-store sales increased 0.1% year over year.
DPZ's Q2 Supply Chain Business Drives Revenue Growth
Supply chain revenues increased to $731.7 million from $687.1 million reported in the prior-year quarter. The improvement reflected higher-order volumes and a 2.2% increase in food basket pricing. Our estimate for the metric was $749.9 million.
In the second quarter, U.S. franchise royalties and fees rose to $164.2 million compared with $156.3 million reported in the prior-year quarter. Our estimate for the metric was $140.7 million.
International franchise royalties and fees advanced to $81.8 million from $77.2 million, supported by net store growth and a $1.1 million favorable foreign currency impact. Our estimate for the metric was $82.8 million.
U.S. franchise advertising revenues increased to $134.9 million from $132.2 million. Our estimate for the metric was $119.1 million.
Domino's Q2 Comparable Sales Show Uneven Demand
Global retail sales increased 3% year over year, excluding foreign currency movements. U.S. retail sales rose 1.9%, while international retail sales increased 4.1% on a constant-currency basis.
Comparable sales trends were more subdued. U.S. same-store sales edged up 0.1% compared with 3.4% growth a year earlier. Company-owned store comps increased 2.1% year over year, while franchise store comps were flat. International same-store sales declined 0.1% against a 2.4% increase reported in the prior-year quarter.
Domino's Q2 Margin Performance Remains Mixed
In the second quarter, Gross margin dollars came in at $478.2 million compared with $461 million reported in the prior-year quarter. However, gross margin as a percentage of revenues contracted 30 basis points year over year to 40%. Our estimate for the metric was 39%.
Supply chain gross margin expanded 20 basis points year over year to 12%, aided by procurement productivity. The benefit was partly offset by higher food basket costs. General and administrative expenses came in at $115.4 million compared with $107.6 million reported in the prior-year quarter.
DPZ Posts Higher Operating Income and Net Profit
In the second quarter, income from operations increased 3.1% year over year to $232 million. Excluding the favorable currency impact on international franchise royalties, operating income rose 2.6%, driven by franchise royalty growth and higher supply chain gross profit. Our estimate for the metric was $242.1 million.
Net income advanced 3.6% year over year to $135.8 million. Results also benefited from a favorable $3.6 million change in pre-tax unrealized and realized losses tied to the company’s investment in DPC Dash.
DPZ Extends Its Global Store Expansion
Domino’s posted global net store growth of 209 during the quarter. The company added 26 net stores in the United States and 183 internationally, bringing its worldwide store count to 22,531.
The U.S. system ended the period with 7,231 locations, while the international network reached 15,300 stores. Over the trailing four quarters, net store growth totaled 995, including 170 domestic and 825 international additions.
Domino's Cash Flow Moderates in the First Half
Net cash provided by operating activities totaled $352.6 million during the first two quarters of 2026, down from $366.9 million in the comparable 2025 period. Capital expenditures increased to $39 million from $35.2 million reported in the prior-year period.
Free cash flow declined 5.5% year over year to $313.6 million. The decrease reflected changes in operating assets and liabilities, along with the timing and amount of advertising-related payments. Cash and cash equivalents stood at $164.8 million as of June 14, 2026.
DPZ Returns Capital While Lowering Leverage
Domino’s repurchased 443,917 shares for $156.2 million during the quarter. The company had $1.23 billion remaining under its share repurchase authorization at quarter-end.
The leverage ratio improved to 4.3 times from 4.7 times a year earlier. Following the quarter, the board declared a quarterly dividend of $1.99 per share, payable Sept. 30, 2026, to its shareholders of record as of Sept. 15.
DPZ’s Zacks Rank
Domino's currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some better-ranked stocks from the Zacks Retail-Wholesale sector:
Five Below, Inc. FIVE presently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 70.1%, on average. FIVE stock has gained 3.4% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Five Below’s 2026 sales and EPS indicates growth of 14.8% and 35.1%, respectively, from the year-ago period’s levels.
FIGS, Inc. FIGS has a Zacks Rank #2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 212.5%, on average. FIGS stock has declined 11% in the past six months.
The Zacks Consensus Estimate for FIGS’ 2026 sales and EPS indicates growth of 15.5% and 36.8%, respectively, from the prior-year levels.
Dutch Bros Inc. BROS carries a Zacks Rank of 2 at present. The company delivered a trailing four-quarter earnings surprise of 31.6%, on average. BROS stock has increased 11.7% in the past six months.
The Zacks Consensus Estimate for Dutch Bros’ 2026 sales and EPS indicates growth of 26.9% and 22.4%, respectively, from the prior-year levels.
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Domino's Q2 Earnings Miss, Revenues Beat on Supply Chain Growth

Key Points
MercadoLibre's revenue is growing rapidly and should be much higher in four years.
Dutch Bros plans to nearly double its store count over the next four years.
It's not hard to find growth stocks in today's bull market. Artificial intelligence (AI) is transforming the world, and many AI stocks are enjoying fantastic growth.
However, investors should always make sure to keep their portfolios diversified. There will be an end to the AI marathon, and having too much exposure to any trend at any one time is risky.
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If you're looking for some excellent non-AI growth-stock candidates, MercadoLibre (NASDAQ: MELI) and Dutch Bros (NYSE: BROS) are two great options.
1. MercadoLibre
MercadoLibre's management recently noted that the e-commerce giant is growing like a tech upstart, even though it's the leader in its industry and has several decades of experience under its belt. Latin America, where it operates, is behind many other global regions in e-commerce and fintech penetration, and MercadoLibre continues to grow rapidly as it works to make that shift happen.
In the 2026 first quarter, revenue increased 49% year over year, and MercadoLibre consistently reports similar high growth. It also continues to launch new features and products to keep up its growth engine. For example, it's planning to launch what it says will be the largest digital bank in Mexico, opening up an entirely new addressable market with a model that can be replicated in other countries.
It's easy to see how MercadoLibre stock could double over the next four years. For starters, the stock is 30% off its highs, even though it's been reporting fantastic growth. It's even cheaper today, implying that it can get to those levels with positive market sentiment.
If it can grow at a compound annual growth rate (CAGR) of 40% over the next four years, keeping its low price-to-sales ratio of 3 constant, the stock would quadruple. That gives it plenty of room to at least double over the next four years, even if the growth rate slows down.
2. Dutch Bros
Dutch Bros is a coffee shop chain that's known for its cold, customized beverages. It's almost exclusively drive-thru, and its small-store format lends itself to speed and agility, which is critical for today's consumer.
As of the end of the 2026 first quarter, the company operates 1,177 shops, but it plans to have 2,029 shops by 2029. That's nearly doubling. Although it doesn't imply doubling revenue, as younger shops likely have lower revenue than older shops, the company also doesn't include increased comparable sales along the way, and there's a good possibility that revenue will double by then.
Revenue increased 31% year over year in the first quarter, and if the company can achieve a CAGR of 25% over the next four years, revenue would more than double. Dutch Bros stock is fairly expensive, though, trading at a price-to-sales ratio of 4.6. At the same valuation, the stock would more than double, too, and if it maintains that kind of growth, it could keep that high ratio.
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Jennifer Saibil has positions in Dutch Bros and MercadoLibre. The Motley Fool has positions in and recommends Dutch Bros and MercadoLibre. 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 Stocks That Could Double by 2030

Key Points
Starbucks' turnaround is gaining traction, making it the stronger near-term investment heading into the second half of 2026.
Dutch Bros continues to deliver strong and fast revenue and store growth despite its recent stock pullback.
While Starbucks offers stability and income, Dutch Bros could reward patient investors with greater long-term upside if its aggressive expansion succeeds.
For the past few years, the assessment of coffee stocks on Wall Street has been simple: The upstart was winning. Dutch Bros (NYSE: BROS) ran circles around the incumbent, while Starbucks (NASDAQ: SBUX) stumbled through slumping sales and a leadership shake-up.
In 2026, the script flipped hard. Starbucks shares climbed sharply this year, while Dutch Bros slid somewhat. The question now is whether the elephant can keep stepping on the challenger through the back half of the year.
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Why Starbucks is suddenly winning
The turnaround is real, and it has a name: "Back to Starbucks," the plan led by CEO Brian Niccol. After a long stretch of falling traffic, Starbucks coaxed customers back into its cafes, posting positive comparable sales after several quarters of declines and, crucially, seeing morning visits recover across the U.S.
The company credits simple, unglamorous fixes. These include better staffing, faster service, and a renewed focus on the in-store experience. They have helped bring some of the regulars back. When a business this size gets its foot traffic moving in the right direction again, the momentum tends to feed on itself. And management has grown confident enough to raise its outlook for the year.
Dutch Bros hasn't actually stumbled
Here's the twist worth appreciating: Dutch Bros' business is still humming. Revenue jumped more than 30% in its most recent quarter, and the company is opening well over 180 new shops this year as it marches toward more than 2,000 locations by the end of the decade.
Its stock fell not because sales cratered, but because the shares had run up so far that any cooling in enthusiasm, plus a jittery market for high-growth names, was enough to knock them down. In other words, this is a valuation reset for Dutch Bros.
Which is the better buy for the second half?
For the next six months, I lean toward Starbucks being a better buy. Its turnaround has visible momentum and clear near-term catalysts; its huge scale and dividend offer some ballast; and its international runway, especially in China, gives it room to grow. That combination makes it the steadier bet for the second half.
But steadier isn't the same as having higher upside. Dutch Bros, after its pullback, is the more interesting long-term growth story, with a store count that could multiply over the coming years. The risks cut both ways: Starbucks may have already priced in much of the good news after this year's run, while Dutch Bros still trades at a premium and must execute a rapid, unproven national expansion.
Dutch Bros stands out to me also because it barely resembles a traditional coffee chain. Most of its shops are small drive-thru and walk-up stands with little or no indoor seating, which keeps real estate costs low and lines moving fast.
Its culture is strong, too. Its employees, called "broistas," are trained to treat service at the window as a conversation, not a transaction. That upbeat, personal hospitality has built a genuinely devoted following -- especially among younger customers who favor Dutch Bros' customizable energy drinks and sweet, colorful concoctions over plain drip coffee.
The takeaway for investors
Can Starbucks keep obliterating Dutch Bros in the second half? Probably, on momentum alone, but I'd expect the gap to narrow over the next two to five years as Dutch Bros' growth reasserts itself.
My honest read is that Starbucks is the better buy for investors who want a proven turnaround with less drama, while Dutch Bros suits those willing to trade near-term volatility for a longer growth runway. I think Dutch Bros is riskier but has a much higher upside for a multiyear investor.
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Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Dutch Bros and Starbucks. 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.

Can Starbucks Continue Obliterating Dutch Bros in the Second Half?

For Immediate Release
Chicago, IL – July 17, 2026 – Zacks Equity Research shares MasTec, Inc. MTZ as the Bull of the Day and Papa John's International, Inc. PZZA as the Bear of the Day. In addition, Zacks Equity Research provides analysis on McDonald's Corp. MCD, Starbucks Corp. SBUX and Dutch Bros Inc. BROS.
Here is a synopsis of all five stocks:
MasTec, Inc. is an infrastructure, engineering, and construction stock set to more than double its earnings between 2025 and 2027.
MTZ already doubled its revenue from 2020 to 2025 as it capitalizes on compounding megatrends across the AI-data center boom, energy demand growth, electrification, grid expansion, and beyond.
The picks-and-shovels infrastructure giant is physically building and upgrading critical energy, utility, and communications infrastructure across North America. MasTec's surging earnings revisions earn it a Zacks Rank #1 (Strong Buy), and it's part of a highly ranked Zacks industry, which is important since a rising tide is lifting the pure-play infrastructure companies.
MTZ stock has climbed 230% in the past two years as part of a much larger industry and S&P 500-beating run over the past decade. Yet, investors have a chance to buy the stock down ~22% from its May peaks, as MasTec attempts to find support at some vital technical ranges.
The AI hyperscalers, big tech, Wall Street, and the U.S. government are fully committed to winning the AI arms race and reshoring key manufacturing (semiconductors, rare earths, etc.) to dominate the rest of the century and beyond from an economic and technological standpoint.
MasTec is helping build this future that requires the massive expansion of U.S. energy generation, the grid, communication infrastructure, and more of the physical economy.
Best Stocks to Buy for the AI and Capex Spending Spree: MasTec
MasTec specializes in engineering, construction, installation, maintenance, and upgrades across communications, energy, utility, and other infrastructure.
The Florida-based firm operates across four core areas: Communications (wireless, fiber, and wireline infrastructure), Power Delivery (electrical transmission and distribution for utilities), Pipeline Infrastructure (primarily natural gas pipelines and distribution systems), and Clean Energy and Infrastructure (renewable energy such as solar/wind, plus heavy civil and industrial projects).
It more than doubled its revenue between 2020 and 2025, driven by impressive spending across its portfolio. MTZ's post-Covid expansion came after it doubled its sales between 2011 and 2019. Most recently, MasTec grew its Q1 2026 revenue by 34%, led by a 91% increase in Pipeline Infrastructure and a 45% increase in Clean Energy and Infrastructure.
MasTec also critically grew its GAAP earnings 516% and its adjusted earnings 174% in Q1, extending its huge bottom-line comeback after a rough patch in 2023 and 2022. The firm closed the first quarter with a record 18-month backlog of $20.3 billion, up $4.4 billion from the year-ago period.
The company announced on July 7 its plans to buy Electrical Specialists, Inc., d/b/a The Superior Group to help "enhance MasTec's position with leading hyperscalers, data center developers, general contractors and technology customers." MTZ expects the deal to boost its strategy of "building a scaled infrastructure capacity platform positioned to serve accelerating demand for data center, power and other mission-critical infrastructure."
For instance, U.S. electricity demand is projected to grow ~25% by 2030 and ~75% to ~100% by 2050. This growth is driven by power-hungry AI data centers, electrification, reshoring for semiconductor manufacturing, and other long-term trends that are only just beginning.
MasTec is building up its portfolio to position itself as a long-term winner in the broader AI-boosted infrastructure spending spree in the U.S. and North America that will be measured in decades and cost trillions of dollars.
MTZ's Growth Outlook is Driven By AI and Much More
MasTec's entire portfolio is growing directly alongside the converging infrastructure spending megatrends. The company is projected to expand its sales by 27% in 2026 (after 16% growth last year) and another 23% next year to $22.39 billion—more than tripling 2020's $6.32 billion.
More importantly, Zacks estimates showcase that MTZ is expected to boost its adjusted earnings by 46% in FY26 and 53% in 2027 to $14.63 a share, easily doubling 2025's $6.55.
MTZ's earnings outlook has jumped again recently (+12% for FY27 in the last 30 days), extending its strong trend over the last few years. MasTec's recent upward earnings revisions earn it a Zacks Rank #1 (Strong Buy).
The pick-and-shovels stock boasts a strong history of earnings beats, and the chart above showcases its robust longer-term earnings outlook.
Buy the AI Infrastructure Stock Now on the Dip and Hold Forever?
MasTec stock has skyrocketed ~2,500% over the past 20 years, blowing away the S&P 500's 550% and the highly ranked Building Products - Heavy Construction industry's 945%. This run includes a 230% charge in the past two years. Yet investors who missed out can buy MTZ down around 22% from its early May peaks.
Plus, its average Zacks price target ($496.63) implies ~40% upside from Thursday's price. MTZ is holding its ground at its early April highs before breaking out. Some traders might want to wait for a possible pullback to its 200-day (red line below).
However, playing the market timing game is no easy task. This is why investors with long-term mindsets might want to buy MTZ now and then add to their positions at the next meaningful downturn.
MasTec's earnings drop has also helped recalibrate its valuation, with the stock trading 33% below its high. Plus, 20 of the 21 brokerage recommendations Zacks has are "Strong Buys."
Pizza giant, Papa John's International, Inc., has seen its earnings estimates steadily fall off a cliff over the last several years, driven by declining comparable sales, cost pressures, and heavy competition from its rivals such as Domino's.
PZZA's most recent wave of downward earnings revisions earn it a Zacks Rank #5 (Strong Sell).
PZZA Stock is Down 70%: It's Not Time to Buy the Dip Yet
Papa John's boasts that it is the third-largest pizza delivery company on the planet, with more than 6,000 restaurants in approximately 50 countries and territories. The firm operates across four main segments: Domestic Company-Owned Restaurants, North America Franchised Restaurants, North America Restaurants, and International Restaurants.
PZZA revenue dropped 3.6% in FY24 and slipped slightly in 2025. Its North America comparable sales fell 2% in FY25, with Domestic Company-owned restaurants down 3% and North America franchised restaurants down 2%. Worst still, its GAAP earnings tanked 64% YoY and its adjusted EPS fell 39%.
Most recently, its first-quarter 2026 revenue fell 7.7% YoY, with North America comparable sales down 6.4%. "In North America, results were in line with our expectations as we navigate the cautious consumer environment and promotional QSR marketplace," CEO and President Todd Penegor said in prepared remarks.
Its adjusted EPS also slipped 11% YoY, falling 20% short of our estimate. Papa John's earnings outlook has dropped significantly over the last 90 days, and its most accurate estimate for FY27 came in 9% below the already beaten-down consensus.
This backdrop earns PZZA a Zacks Rank #5 (Strong Sell) and has prolonged its string of negative EPS revisions over the last several years.
Papa John's faces intense competition from Domino's DPZ, Pizza Hut, and other chains, forcing discounting and promotions. The company is also struggling, alongside many others, with slower consumer spending as consumers around the U.S. pull back on non-essentials as inflation continues.
Some investors might consider taking a bite out of Papa John's stock since it is already down 70% over the past five years. But it could be best for investors to stay away from Papa John's shares, at least for now.
Additional content:
Can McDonald's Global Marketing Strategy Drive Customer Traffic?
McDonald's Corp. has been reinforcing customer engagement through a global marketing strategy built around cultural relevance, entertainment partnerships and localized campaigns. While value and menu innovation remain central to the company's growth strategy, marketing has become an important tool for attracting new customers, strengthening brand engagement and supporting restaurant traffic across key markets.
During the first quarter of 2026, McDonald's combined globally recognized entertainment brands with locally relevant campaigns to reach customers across different age groups and occasions. Initiatives included the Friends collectibles campaign in several international markets, a Super Mario Happy Meal promotion and a Netflix KPop Demon Hunters partnership that integrated digital activation through the McDonald's app.
The company also expanded successful campaigns across multiple countries, allowing local ideas to reach a broader audience while maintaining brand consistency. In the first quarter of 2026, this marketing approach supported global comparable sales growth of 3.8%, 6% rise in constant-currency systemwide sales and market share gains in nearly all of the company's top 10 markets.
The strategy extends beyond short-term promotional activity. Marketing is designed to complement value offerings and menu innovation, creating multiple reasons for customers to visit restaurants. Australia demonstrated this approach by pairing value menus, marketing activations, menu innovation and beverage initiatives, contributing to mid to high-single-digit comparable sales growth and a third consecutive quarter of market share gains.
As consumer spending remains uneven across many markets, McDonald's broad marketing platform, supported by global scale and local execution, could remain an important factor in sustaining customer traffic and reinforcing its competitive position.
MCD's Price Performance, Valuation & Estimates
Shares of McDonald's have dropped 11.7% in the past year compared with the industry's decline of 8.3%. In the same time frame, other industry players like, Starbucks Corp. has gained 12.8% and Dutch Bros Inc. has increased 0.6%.
From a valuation standpoint, MCD trades at a forward price-to-sales (P/S) multiple of 6.43, above the industry's average of 3.29. Then again, other industry players, such as Starbucks and Dutch Bros, have P/S ratios of 3.02 and 4.78, respectively.
The Zacks Consensus Estimate for MCD's 2026 earnings per share has declined from $12.93 to $12.90 in the past seven days.
The company is likely to report strong earnings, with projections indicating a 5.7% year-over-year increase in 2026. Conversely, industry players like Dutch Bros are likely to rise 22.4% in 2026 earnings. Starbucks is likely to witness growth of 12.7% year over year in fiscal 2026 earnings.
MCD's Zacks Rank
MCD stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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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/performancefor information about the performance numbers displayed in this press release.
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MasTec and Papa John's International have been highlighted as Zacks Bull and Bear of the Day

Key Points
Dutch Bros executives believe the U.S. market can support 7,000 locations, a figure six times larger than its current store base.
The company’s same-store sales trend is extremely encouraging.
A bigger footprint will increase ongoing scale advantages, which should result in higher profits.
In the retail coffee market, Starbucks gets a lot of attention. Its brand recognition, gargantuan physical footprint, and more than five-decade operating history support its strong industry position.
However, investors shouldn't overlook Dutch Bros (NYSE: BROS). The up-and-coming chain presents an exciting opportunity to potentially achieve a strong portfolio return.
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I believe this coffee stock will double to $130 in five years. The company's impressive growth trajectory is why I think this will happen.
Management isn't letting up
At the end of 2021, there were 538 Dutch Bros locations in the U.S. This small number, mostly concentrated in the western and southern parts of the country, surged in recent years. As of March 31, there were 1,177 Dutch Bros coffee shops in total. The business opened its first store in the Chicago area in May, for instance, clearly expanding its geographic footprint.
Dutch Bros has huge growth ambitions. During its 2025 investor day, executives revealed that the goal is to reach 2,029 stores by 2029. The management team estimates that the U.S. has a total addressable market of 7,000 locations. This figure is six times larger than the current shop count.
The company's operating playbook focuses on small drive-through retail outlets, averaging 900 square feet in size and with no indoor seating. This strategy not only expands the potential real estate opportunity set, but can also lead to lower upfront capital investment.
These locations are performing well, despite the uncertain macro backdrop. Dutch Bros has reported systemwide same-store sales growth in at least the last nine consecutive quarters. This must definitely be the envy of the retail sector.
What's particularly encouraging is that the company's shops generate almost 75% of their sales after 10 a.m. Compared to the 50% share industry leaders report during this time, Dutch Bros has been able to differentiate itself in a notable way.
Growth will drive financial performance
It's no shock that opening new stores will support revenue and profit gains. This has been the case historically. Between 2022 and 2025, sales climbed 122%. The bottom line went from a $19 million net loss to a $117 million net profit, as advantages developed thanks to greater scale.
From 2025 to 2028, consensus analyst estimates call for Dutch Bros' adjusted diluted earnings per share to rise at a compound annual rate of 27%. Based on recent trends, this outcome isn't out of the question. Even accounting for growth decelerating toward the end of the decade, the stock still has a good chance of doubling in the next five years.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	112.20 19.50
Price/Sales	4.69 0.68
P/B	11.79 1.79
P/FCF	99.47 14.32

Indicator	TTM Median
ROE	9.10 14.96
ROA	2.75 4.87
ROI	6.31 8.60
Net Worth	6.74 0.87
Quick Ratio	1.19 0.86
Current Ratio	1.49 1.40

Indicator	TTM Median
Net Profit Margin	4.58 5.77
Operating Margin	9.82 8.17
Gross Margin	25.23 39.42
Return on tangible equity	9.22 21.16

Indicator	TTM Median
EPS	0.23 0.49
EPS Forecast	0.08 0.46
Revenue	464.00M 192.50M
Gross Profit	107.00M —
EBITDA	73.00M —

Dutch Bros Inc.

Recent quarterly and TTM performance

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