Dutch Bros Inc.

Сильный индекс, без изменений. Быки в растерянности.

Strong index, flat. The bulls are confused.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Средний индекс, значительно упал. Отток средств из лонгов увеличился и находится на высоком уровне.

Medium index, significantly down. The outflow of funds from longs has increased and is at a high level.

Starbucks Corporation SBUX is increasingly turning to the Refreshers platform to unlock afternoon traffic, a key growth opportunity under its Back to Starbucks strategy. The company’s third-quarter fiscal 2026 results suggest the strategy is gaining traction, although sustaining momentum will depend on continued innovation and execution.
U.S. comparable sales increased 7.9% in third-quarter fiscal 2026, supported by 4.2% transaction growth and 3.6% higher average ticket. While growth was broad-based across dayparts, management acknowledged that morning transactions remain the strongest, leaving significant room to build the afternoon occasion.
Refreshers emerged as an important catalyst. U.S. Refresher revenues grew at a double-digit rate year over year, with customizable Energy Refreshers, Blue Coconut and Mango helping attract customers at different times of day. CFO Cathy Smith highlighted Refreshers as an afternoon beverage occasion, alongside Matcha and new food offerings such as wraps.
Starbucks also sees differentiation through flavor, customization and its beverage craftsmanship. The company plans to test sparkling “Spritzers” and has already introduced blended Refreshers, creating additional avenues for customer engagement.
The opportunity is meaningful, but competition is intensifying as other quick-service restaurants expand their beverage offerings. Still, Starbucks’ improving store execution, stronger afternoon merchandising and expanding menu innovation provide reasons for optimism.
Refreshers Face Growing Competition From BROS and MCD
Starbucks’ push to expand the afternoon daypart comes as competition in cold and customizable beverages intensifies. Dutch Bros Inc. BROS is a particularly relevant rival, with a beverage-focused model built around customizable cold drinks, energy beverages and flavored refreshers. BROS’ strong positioning among younger consumers could make it a formidable competitor as Starbucks seeks to increase afternoon visits. Starbucks itself acknowledged that competitors are becoming more active in the refresher space, making differentiation through flavors, customization and beverage craftsmanship increasingly important.
McDonald’s Corporation MCD also competes for afternoon beverage occasions through its expanding McCafé lineup and cold beverages. Although its core business is broader than Starbucks, the large restaurant footprint and value-oriented positioning give McDonald’s significant reach among consumers seeking convenient drinks and snacks.
For Starbucks, the advantage lies in its established Refreshers platform and continued innovation, including blended and sparkling variants. However, maintaining customer interest will require Starbucks to consistently refresh its offerings while converting beverage experimentation into repeat afternoon traffic.
SBUX’s Price Performance, Valuation & Estimates
Starbucks’ shares have gained 21.2% over the past year, while the industry declined 8.2%.
SBUX’s One-Year Price Performance
From a valuation standpoint, SBUX trades at a forward price-to-earnings (P/E) multiple of 32.04, above the industry’s average of 21.49.
SBUX’s P/E Ratio (Forward 12-Month) vs. Industry
The Zacks Consensus Estimate for SBUX’s fiscal 2026 earnings per share (EPS) implies a year-over-year increase of 21.6%. EPS estimates for fiscal 2026 have increased in the past 60 days.
EPS Trend of SBUX Stock
SBUX’s Zacks Rank
SBUX stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
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

SBUX Bets on Refreshers to Boost Afternoon Traffic: Will it Pay Off?

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Thursday, shares of Dutch Bros Inc (Symbol: BROS) entered into oversold territory, hitting an RSI reading of 29.9, after changing hands as low as $56.17 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 30.4. A bullish investor could look at BROS's 29.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of BROS shares:
Looking at the chart above, BROS's low point in its 52 week range is $26.85 per share, with $86.88 as the 52 week high point — that compares with a last trade of $56.88.
Also see:
BNGE Options Chain
PALM Videos
Funds Holding NANR

Oversold Conditions For Dutch Bros (BROS)

Key Points
Starbucks' sales show management's turnaround efforts are working.
Dutch Bros continues to expand.
Both have rich valuations compared to the S&P 500.
Venerable Starbucks (NASDAQ: SBUX) and relative upstart Dutch Bros (NYSE: BROS) have seen their stock prices go in different directions this year. The former had a share price gain of more than 24%, while the latter lost about 24%.
Is the market sending a signal about future prospects, or are investors focusing too much on the short term? To make that determination, investors need to take a closer look at each company's business prospects in conjunction with their valuations.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Let's examine Starbucks and Dutch Bros to see which one currently offers the better investment potential.
Starbucks' impressive revitalization
Starbucks' board of directors hired Brian Niccol in 2024 to turn around sales. With a focus on customer service, revamping restaurants, menu changes, and continued expansion, the company has made progress.
That's not easy for a company that's been around for more than half a century. It currently has more than 41,000 company-owned and licensed locations around the world.
Impressively, Starbucks has produced four straight quarterly same-store (comps) increases. That includes its fiscal third-quarter's 7.9% gain. Importantly, higher traffic accounted for 4.2 percentage points, with increased spending responsible for the balance. This covered the period that ended on June 28.
Broken out, North America had an 8.1% increase in comps, and its international locations posted a 5.7% rise. And management expects this momentum to continue for the fourth quarter. It anticipates U.S. comps growth of at least 6.5% and almost 6% growth globally.
Upstart Dutch Bros looks to sustain growth
Founded in 1992, Dutch Bros has grown quickly by operating drive-through locations focused on serving high-quality beverages quickly and with strong attention to customer service.
It has 1,225 franchised and company-operated locations as of June 30. That's up from 1,136 restaurants as of Dec. 31. These are entirely located in the United States, although it has no presence in certain states, particularly in the Northeast and Midwest. Management expects to reach 2,029 restaurants in 2029.
You can see how much its concept has resonated with consumers by looking at its results. Dutch Bros continues to increase comps at a good clip. Its second-quarter comps grew 5.8%, with higher spending responsible for 4.1 percentage points. Management expects a 5% to 6% increase for the year.
The decision
Before making an investment decision, it's important to look at each stock's valuation. Neither one looks like a bargain, but that shouldn't dissuade you from one of them.
Starbucks' shares have a price-to-earnings (P/E) ratio of 60, although that's down from 70 at the start of the year. Dutch Bros' stock trades at a P/E multiple of 66. Still, that's down from 100, which likely played a role in the stock's downfall this year despite still impressive sales growth. Meanwhile, the S&P 500 index has a P/E ratio of 26.
Those individual stock valuations, particularly in comparison to the market, seem like you should steer clear of both. However, I like one in particular despite the rich valuation.
Starbucks has done a good job turning around its business and should be applauded. However, the expansion opportunities just aren't the same.
Dutch Bros stands out for its growth opportunity. It still has a vast opportunity domestically, and it hasn't even tapped the international market.
The company's methodical approach to expansion has been paying off. Notably, management recently walked away from the bidding for Salad and Go's 65 locations in Arizona, Nevada, Oklahoma, and Texas. Some may balk at the decision, but I applaud management sticking to a financially disciplined approach rather than increasing its offer.
With a financially responsible growth plan, I believe long-term investors will find that paying the higher multiple for Dutch Bros is worthwhile.
Should you buy stock in Starbucks right now?
Before you buy stock in Starbucks, 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 Starbucks 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 $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Lawrence Rothman, CFA 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.

Starbucks Is Up 24% This Year While Dutch Bros Is Down 24%. Here's Why Only 1 of These Coffee Stocks Is a Buy in September.

McDonald’s Corporation MCD has pushed its target of reaching 50,000 restaurants globally to 2028 from the end of 2027, citing higher development costs and a pressured consumer environment. The adjustment follows a review of its restaurant pipeline and signals a more measured approach to expansion.
The decision reinforces McDonald’s established focus on investment returns. The company adjusted its opening pace to support appropriate returns on new locations, emphasizing the quality of development alongside the number of openings. It continues to see significant opportunities to expand its footprint despite the revised schedule.
Despite the adjustment, McDonald’s said it remains in the fastest period of restaurant growth in its history. The company remains on track to open approximately 2,600 gross restaurants in 2026. New openings are contributing to growth, with second-quarter systemwide sales increasing 4% year over year in constant currency.
For McDonald’s, moderating expansion could help preserve the financial appeal of new locations as investment costs rise. The longer timeline provides flexibility to pursue growth at a pace consistent with its return objectives. This supports a disciplined approach to development, with new-restaurant performance remaining the key indicator of success.
Key Competitors Taking Different Paths on Unit Growth
Starbucks Corporation SBUX is taking a more selective approach to coffeehouse development as it works to build a stronger store base. Management said every new coffeehouse must “earn its place,” while net new company-operated unit growth in North America may remain modest through fiscal 2027. Starbucks is also gaining greater visibility into underperforming locations that could be closed while rebuilding its U.S. development pipeline and directing near-term resources toward coffeehouse uplifts, where early results are showing transaction gains. International markets are expected to remain a meaningful contributor to unit growth, supporting the company’s fiscal 2026 target of approximately 600-650 net new coffeehouses.
Dutch Bros Inc. BROS continues to pursue a faster unit expansion strategy, supported by strong new-shop productivity and a growing development pipeline. The company opened 48 system shops in the second quarter and has approximately 90% of the pipeline needed to reach 2,029 shops by 2029. Management said new-shop productivity remained strong alongside rising systemwide AUVs, while several newer markets were annualizing above expectations. Company-operated shop contribution margin reached approximately 31% in the second quarter, although higher coffee and occupancy costs are expected to pressure adjusted EBITDA margin in 2026. With at least 185 system shop openings expected this year, Dutch Bros’ approach contrasts with MCD’s more measured expansion pace, highlighting the importance of new-store productivity and disciplined development as restaurant operators balance growth with attractive returns.
MCD’s Price Performance, Valuation & Estimates
Shares of McDonald’s have declined 18.3% over the past year compared with the industry’s fall of 7.5%.
MCD’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, MCD trades at a forward price-to-sales (P/S) multiple of 6.22, above the industry’s average of 3.23.
MCD’s P/S Ratio (Forward 12-Month) vs. Industry
The Zacks Consensus Estimate for MCD’s 2026 earnings per share (EPS) implies a year-over-year rise of 5.5%. The EPS estimates for 2026 have declined in the past 30 days.
EPS Trend of MCD Stock
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.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
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

Can MCD's Slower Expansion Pace Help Protect New-Restaurant Returns?

It has been about a month since the last earnings report for Dutch Bros (BROS). Shares have lost about 13.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Dutch Bros due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Dutch Bros Inc. before we dive into how investors and analysts have reacted as of late.
Dutch Bros Q2 Earnings Beat Estimates
Dutch Bros reported second-quarter 2026 results, with earnings and revenues beating the Zacks Consensus Estimate. Both metrics increased on a year-over-year basis.
The quarter benefited from new shop growth, sustained comparable-shop momentum and transaction-driving initiatives. Systemwide same-shop sales rose 5.8% year over year, supported by a 1.7% increase in transactions.
BROS’ Q2 Earnings & Revenue Discussion
In the second quarter of 2026, Dutch Bros reported adjusted earnings per share of 33 cents, topping the Zacks Consensus Estimate of 29 cents by 13.8%. The figure increased 26.9% from 26 cents in the prior-year quarter.
Quarterly revenues of $550.9 million surpassed the consensus mark of $524 million by 5.1%. The top line increased 32.5% year over year from $415.81 million, reflecting contributions from new shops and higher comparable sales.
Dutch Bros’ Revenue Growth Broadens Across the Model
Company-operated shop revenues climbed 34% year over year to $510 million from $380.5 million. The increase reflected contributions from new locations and continued growth across comparable company-operated shops.
Franchising and other revenues advanced to $40.8 million from $35.3 million in the prior-year quarter. Dutch Bros opened 48 system shops during the period, comprising 44 company-operated shops and four franchised locations, and ended the quarter with 1,225 system shops.
BROS’ Q2 Comps Reflect Traffic and Ticket Gains
Company-operated same-shop sales increased 8.3% year over year. The result included 3.4% transaction growth and a 4.9% rise in ticket, showing that higher customer visits and spending supported the sales increase.
Systemwide same-shop sales advanced 5.8%, with ticket up 4.1%. Management cited the food rollout, maturation of newer shop vintages, brand marketing initiatives and customer segmentation within Dutch Rewards as key contributors to performance.
Dutch Bros’ Margins Reflect Cost Pressure and Leverage
Company-operated shop contribution increased 31.9% year over year to $155.97 million. The contribution margin was 30.6%, down from 31.1%, as higher coffee, food and occupancy costs offset part of the benefit from sales growth.
Beverage, food and packaging costs increased 80 basis points to 26.1% of company-operated shop revenues. Labor costs improved 120 basis points to 25.4% on sales leverage, while occupancy and other costs increased 50 basis points to 16.3%. Adjusted EBITDA rose 27.8% to $113.71 million.
BROS’ Q2 Balance Sheet and Liquidity
Dutch Bros ended the quarter with $268.6 million in cash and cash equivalents, compared with $269.4 million at the end of 2025. Total liquidity was approximately $699 million, including $430.6 million of available borrowing capacity under its revolving credit facility. At June 30, 2026, $50.0 million was outstanding under the facility, with remaining borrowing capacity net of $19.4 million in letters of credit.
Average capital expenditures per new shop were approximately $1.4 million. The company continued shifting toward build-to-suit leases and maintained its long-term target of deriving 60% of its shop portfolio from that development structure.
BROS’ Strategic Site Deal Supports Expansion
Dutch Bros agreed to acquire the real estate and related site assets of up to 65 Salad and Go locations across Arizona, Nevada, Oklahoma and Texas. The transaction is expected to close in the third quarter of 2026, subject to approvals and customary conditions.
The company expects to convert the acquired drive-thru locations into Dutch Bros shops in 2027. Management believes the sites will deepen density in markets where the brand already has awareness and support continued footprint growth. BROS’ 2026 outlook excludes any impact from the transaction.
Dutch Bros Raises 2026 Outlook
Following the second-quarter performance and the Phoenix franchise acquisition, management raised its 2026 revenue outlook to $2.10-$2.13 billion from $2.05-$2.08 billion. Systemwide same-shop sales growth is now expected between 5% and 6%, compared with the prior 4%-6% range.
Adjusted EBITDA is projected between $385 million and $390 million, up from $370-$380 million. Capital expenditures are expected to be $350-$370 million, while Dutch Bros continues to forecast at least 185 system shop openings in 2026.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
At this time, Dutch Bros has a great Growth Score of A, a grade with the same score on the momentum front. However, the stock has a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Dutch Bros has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Dutch Bros belongs to the Zacks Retail - Restaurants industry. Another stock from the same industry, Chipotle Mexican Grill (CMG), has gained 11.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Chipotle reported revenues of $3.35 billion in the last reported quarter, representing a year-over-year change of +9.3%. EPS of $0.33 for the same period compares with $0.33 a year ago.
For the current quarter, Chipotle is expected to post earnings of $0.29 per share, indicating no change from the year-ago quarter. The Zacks Consensus Estimate has changed -0.3% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Chipotle. Also, the stock has a VGM Score of D.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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
This article originally published on Zacks Investment Research (zacks.com).

Why Is Dutch Bros (BROS) Down 13.3% Since Last Earnings Report?

Dutch Bros Inc. BROS maintains its 2026 systemwide same-shop sales growth outlook of 5-6%, with performance expected to trend toward the midpoint of the range. The outlook incorporates an anticipated moderation to approximately 4-5% in the third quarter. Second-quarter systemwide comps increased 5.8%, including transaction growth of 1.7%, while company-operated comps advanced 8.3% on a 3.4% increase in transactions.
The second quarter of 2026 extended BROS’ streak to 13 consecutive quarters of positive comparable sales and eight straight quarters of transaction growth. Performance benefited from the continued food rollout, maturation of newer shop vintages, brand-marketing initiatives and customer segmentation within Dutch Rewards. Comparable sales remained positive across all dayparts, with particular strength during the morning.
The second-half outlook reflects a more demanding comparison profile. Approximately one percentage point of pricing rolled off in early July, reducing the expected effective pricing contribution to less than one percentage point during the period. Transaction comparisons are also expected to become progressively more difficult through the remainder of the year.
The anniversary of the food rollout creates an additional comparison. BROS began introducing the program in the third quarter of 2025 and expanded it more meaningfully during the fourth quarter. Consequently, second-half 2026 results will be measured against periods that already included food sales. The company expects this comparison to affect primarily net ticket.
Despite the anticipated moderation in third-quarter comparable-sales growth, BROS has not changed its full-year systemwide comparable-sales outlook. Continued maturation of newer shops and strength in the morning daypart are likely to support comparable-sales performance during the remainder of 2026.
How MCD and SBUX Compare on Comparable-Sales Momentum
McDonald’s Corporation MCD is pursuing a more measured comparable-sales recovery. McDonald’s reported second-quarter global comp growth of 1.3%, with the United States increasing 0.8%. U.S. comps turned slightly negative in July as execution challenges carried into the third quarter. McDonald’s is focused on placing its U.S. baseline momentum in a stronger position by the end of 2026. International markets present a firmer outlook, with third-quarter comp growth in IOM and IDL expected to accelerate sequentially from second-quarter rates of 1.5% and 1.9%, respectively.
Starbucks Corporation SBUX enters its fiscal fourth quarter with stronger comparable-sales momentum. The company generated fiscal third-quarter global and U.S. comp growth of 7.9%, while U.S. transactions increased 4.2%. Starbucks expects fiscal fourth-quarter U.S. comps to rise 6.5% or better, implying full-year U.S. growth of slightly more than 6% and global growth approaching 6%. Starbucks acknowledged the tougher year-over-year traffic comparisons and continued variability in the broader consumer environment.
BROS’ Price Performance, Valuation & Estimates
Shares of Dutch Bros have declined 12.7% in the past six months compared with the industry’s fall of 10.9%.
BROS’ Stock’s Six-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Dutch Bros stock trades at a forward price-to-sales ratio of 3.25, below the industry’s average of 3.27.
BROS’ P/s Ratio (Forward 12-Month) vs. Industry
The Zacks Consensus Estimate for BROS’ 2026 earnings per share (EPS) implies a year-over-year uptick of 27.6%. The EPS estimates for 2026 have increased in the past 30 days.
EPS Trend of BROS Stock
Dutch Bros stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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

Can BROS Meet Its 5-6% Comp Target in 2026 Amid Tougher Comparisons?

Key Points
Dutch Bros stock fell nearly 19% after a Q2 2026 earnings report that actually beat Wall Street's estimates.
The company walked away from a deal to acquire roughly 65 Salad and Go locations, a move that signals financial discipline.
At $49, Dutch Bros looks like a reasonable entry point for investors willing to bet on its long-term expansion.
Like its energy drinks and custom lattes, Dutch Bros (NYSE: BROS) stock isn't for the faint of heart. The volatile stock has bounced between $44.58 and $74.02 per share over the last year. On the morning of Sept. 1, the share price sits near the bottom of that range at $48.73.
Is this the beginning of a long drawdown or an opportunity to buy a quality stock on the cheap?
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Beat and raise, then fall
Let's take a look at the latest price drop. Dutch Bros reported Q2 2026 earnings on the evening of Aug. 5, and the stock closed 18.8% lower the next day.
That sounds like a disaster, but the report was actually strong. Earnings rose 27% year over year while sales jumped 32%, beating Wall Street's consensus estimates. Dutch Bros also raised its full-year revenue guidance from roughly $2.07 billion to approximately $2.12 billion. The targets for same-shop sales and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also increased. So it's a classic beat-and-raise report, but the Street still wasn't impressed.
I see two sensible reasons for the sell-off:
On the same day as the earnings report, Dutch Bros also announced the acquisition of about 65 Salad and Go drive-through locations across the Southwest. Financial details weren't disclosed, but analysts on the earnings call questioned the buyout's overlap with established Dutch Bros markets.
The stock wasn't cheap heading into this report, boasting a price-to-earnings ratio of 90 and a price-to-free-cash-flow ratio in the triple digits. Even now, after the brutal price cut and rising profits, investors still need to focus on the company's ambitious growth plans.
Discipline over deals
I can't complain about Dutch Bros' expansion plans. The company still aims to have at least 2,029 shops in 2029, with 1,225 locations in operation as of the end of June. That's up from 1,043 shops in the summer of 2025 and 912 the year before. The annual expansion rate accelerated from 14% to 17% year over year.
And the Salad and Go acquisition isn't happening. The chain's current owners wanted a bigger price tag. Dutch Bros decided to back out on Aug. 31. I call it fiscal discipline, which is a valuable skill when you're running a nationwide expansion program. The company will find other growth opportunities, perhaps in unexplored markets such as Arkansas or New England. Boosting the Southwest can wait, as Dutch Bros already has hundreds of locations close to home. The company was founded in Oregon with headquarters in Tempe, Arizona.
Is Dutch Bros worth the premium?
Classic value investors will take one look at Dutch Bros' multiples and back away. You need a high-growth mindset to justify the stock's lofty valuation ratios.
Why should growth investors focus on yet another coffee chain, then? Well, Dutch Bros is more about the experience than the drinks, and its proprietary energy drinks also set the company apart from most rivals. You're not here for a deep dive into the company's real estate strategy or loyalty programs, but there's plenty to like there.
In short, Dutch Bros is in the early innings of an ambitious expansion push. Investors are paying a premium for getting in early, and I think it's a good idea. A stock that drops 19% on good news tends to bounce back when the dust settles. Dutch Bros looks like exactly that kind of situation.
Should you buy stock in Dutch Bros right now?
Before you buy stock in Dutch Bros, 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 Dutch Bros 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 $435,803!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,577!*
Now, it’s worth noting Stock Advisor’s total average return is 966% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 2, 2026.
Anders Bylund 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.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Dutch Bros Is at $49. Should Investors Take Pause or Buy the Dip?

Key Points
Dutch Bros is growing fast, driven by new stores and high same-shop sales growth.
It plans to reach 2,029 stores by 2029.
Dutch Bros' stock is expensive and priced for perfection.
Dutch Bros (NYSE: BROS) stock fell 26% in August, according to data provided by S&P Global Market Intelligence. Although it released a stellar earnings report, it wasn't enough to please the market.
Conquering with coffee
Dutch Bros operates a coffee shop chain that's expanding quickly across the country. It has 1,225 stores as of the end of the second quarter, and management says that it has secured 90% of the stores it needs to reach its goal of having 2,029 stores by 2029. It also has a longer-term goal of 7,000 stores.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
It's growing rapidly, both with new store count and repeat sales, both of which are driving increased sales. Total revenue increased 32% year over year in the second quarter, and same-shop sales were up 5.8%. Company-owned same-shop sales have been increasing at a faster rate than franchised-store sales, including an 8.3% increase in the second quarter, and the company is transitioning to opening only company-owned stores.
Dutch Bros is live in 26 states as of the end of the quarter, and it entered its 26th, Mississippi, in July. The company has become a popular destination in its live states, and its first Chicago-area store recently reached a record $7 million in volume.
The chain is known for its drive-thrus, which are fast and cost-efficient, although it has varied store concepts to fit demand. It's also launching a food menu, which it has piloted successfully and has now expanded to 750 locations. The goal of the food rollout is to make stores a more important morning destination, and management says that so far, the results have exceeded expecations.
Priced for perfection
So why did Dutch Bros stock fall? It mostly boils down to valuation. Even at the lower price, Dutch Bros stock trades at a P/E ratio of 66, which is rich. Management raised guidance for full-year sales after the second quarter report, but same-shop sales growth is trending slightly down for the remainder of the year. At decelerating rates, the stock can't carry the same valuation.
Another blow is that costs have increased recently, and management is expecting coffee costs to keep rising in the coming quarters.
Finally, on the last day of the month, it announced that it would not increase its offer for 65 Salad And Go stores that it had planned to acquire, and the implication was that the deal might be off. That could put a dent in its expansion strategy and ability to reach its 2029 goals.
Dutch Bros is growing fast and impressing customers. It has a massive long-term opportunity, and if you can stomach some risk, now could be a good time to buy.
Should you buy stock in Dutch Bros right now?
Before you buy stock in Dutch Bros, 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 Dutch Bros 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 $435,803!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,577!*
Now, it’s worth noting Stock Advisor’s total average return is 966% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Jennifer Saibil has positions in Dutch Bros. The Motley Fool has positions in and recommends Dutch Bros. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Why Dutch Bros Stock Fell 26% in August

Key Points
MercadoLibre is generating strong user engagement and is investing in its platform to sustain that.
Dutch Bros is gaining loyal fans, and its same-store sales are increasing at a strong pace.
Global-E Online has a large pipeline of new business for its cross-border e-commerce services.
There are various methods for successful investing, but even if you're risk-averse, given a long-term horizon, it's a good idea to own excellent growth stocks. Not all growth stocks are high-risk, and over many years, if you choose the right ones, they can generate life-changing wealth. You don't have to invest in artificial intelligence (AI); if you already do, you should make sure to diversify to other categories as well.
If you're looking for some candidates, MercadoLibre (NASDAQ: MELI), Dutch Bros (NYSE: BROS), and Global-E Online (NASDAQ: GLBE) are great picks.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
1. MercadoLibre
MercadoLibre is the Latin American answer to Amazon, though with a twist. It's the leading e-commerce provider in its region and is still growing rapidly, with a 50% year-over-year sales increase in the second quarter. Gross merchandise volume increased 36%.
Management highlighted several metrics that demonstrate consumer engagement and point to the long-term opportunity. Items per buyer increased 14% over last year, even though active users increased 26%, which could dilute the number of items per buyer. In Brazil, where the company lowered its free shipping threshold, items per buyer were up 19%.
It also has a major advertising business, and sales increased 62% over last year in the quarter. MercadoLibre now has more than 10% of the digital advertising market. It recently launched an AI advisor that can be used in WhatsApp to analyze campaigns and make suggestions. And it added HBO Max (a service from Warner Bros. Discovery) to its platform, which increases its addressable video audience by about 50%.
In addition to its e-commerce business, MercadoLibre also has a robust financial technology business with an equally compelling opportunity. Total payment volume increased 56% year over year in the second quarter, and monthly active users were up 30%. Assets under management rose 68%, and the total credit portfolio was up 75%.
MercadoLibre's stock dropped earlier this year after the company reported decreasing operating income and lower overall profitability. Still, it says that it continues "to set the dial in a way that prioritizes long-term value creation over short-term profitability." The lower price looks like an excellent chance to buy on the dip.
2. Dutch Bros
Dutch Bros is a young and growing coffee-shop chain with tons of long-term potential. It had 1,225 stores as of the end of the second quarter, but management sees the opportunity for 7,000 stores over the next several years.
That would be an enormous sales driver, but just as importantly, it's driving higher same-store sales. Total comparable sales increased 5.8% year over year in the second quarter, with company-owned comps up 8.3%. Dutch Bros also operates a franchise business, which is why there are two numbers, and it's taking over more franchise locations and incorporating them into company-owned locations.
The founder-leaders recently handed over the reins to new CEO Christine Barone, a seasoned food executive who has been improving the company's real estate structure and, overall, positioning it better for complete domestic expansion. Dutch Bros is now in 25 states. Most stores are drive-thru-only, but it tailors each location to fit demand. They're all set up to be quick, agile, and customer-friendly, and the company's exclusive customized beverages and models are gaining popularity.
Total revenue increased 32% year over year in the second quarter, an impressive showing in the high-inflation environment, and earnings per share (EPS) were up from $0.20 last year to $0.28 this year. Dutch Bros stock could be a multibagger for investors who hold it long-term.
3. Global-E
Global-E is one of the most exciting e-commerce companies in the world, but you could be forgiven for never having heard of it -- it doesn't sell any products to end consumers. Instead, it provides cross-border services for e-commerce retailers. Clients who sign up can start selling globally simply by integrating Global-E's platform into their digital channels, increasing their addressable markets manifold.
It's known for working with A-list clients like LVMH Moët Hennessy Louis Vuitton and Walt Disney, and it has a constant pipeline of new business and expanded partnerships. In the second quarter, it signed on many new brands, including Ferrari and J.M. Weston, and it added French brand Officine Universelle Buly to the LVMH deal, in addition to other expanded relationships.
After several years of rapid growth, Global-E has become fully profitable while continuing to generate higher sales. Revenue increased 39% year over year in the second quarter, while adjusted net income rose from $37.9 million to $64.9 million. It also generated $73.2 million in free cash flow, up from $63.5 million last year.
The company also has a working relationship with Shopify, which offers services to its millions of merchants under the white-label name of Shopify Managed Markets. Global-E is in an excellent position to keep growing and rewarding investors for many years.
Should you buy stock in MercadoLibre right now?
Before you buy stock in MercadoLibre, 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 MercadoLibre 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 $437,097!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,355,077!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 1, 2026.
Jennifer Saibil has positions in Dutch Bros, Global-E Online, and MercadoLibre. The Motley Fool has positions in and recommends Amazon, Dutch Bros, Ferrari, Global-E Online, MercadoLibre, Shopify, Walt Disney, and Warner Bros. Discovery. The Motley Fool recommends Lvmh Moët Hennessy - Louis Vuitton, Société Européenne. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

My 3 Favorite Growth Stocks to Buy Right Now

Starbucks Corporation SBUX is strengthening its balance sheet as it advances the Back to Starbucks strategy. In the third quarter of fiscal 2026, the company used a portion of the proceeds from its China transaction to repay approximately $1.8 billion of debt. This repayment reduced Starbucks’ leverage to 2.9 times, supporting its investment-grade profile.
In May 2026, Starbucks repurchased approximately $1.3 billion in aggregate principal amount of senior notes through cash tender offers. The repurchases covered five note series carrying stated interest rates ranging from 4.5% to 5.4% and maturities between 2028 and 2048. A separate $500 million note due in June 2026 was also no longer outstanding at quarter-end. Consequently, total long-term debt, including the current portion, declined to approximately $13.28 billion as of June 28, 2026, from $16.07 billion at the end of fiscal 2025.
Starbucks’ lower debt balance has begun to reduce quarterly financing costs. Fiscal third-quarter interest expense declined $8 million year over year, primarily driven by reduced debt balances. However, interest expense for the first nine months increased $14 million, mainly because of lower cross-currency interest-rate hedging savings, partly offset by the reduced debt balance. Upcoming long-term debt maturities total $1.5 billion in fiscal 2027, approximately $1.08 billion in fiscal 2028 and $1.75 billion in fiscal 2029.
The company ended the fiscal third quarter with $3.9 billion in cash and investments and $3 billion of available contractual borrowing capacity. Starbucks had no outstanding borrowings under its unsecured revolving credit facility or commercial paper program and remained in compliance with all applicable debt covenants.
Overall, lower leverage, substantial liquidity and unused borrowing capacity reinforce Starbucks’ financial flexibility. The company expects operating cash flows, existing cash and investments, and access to debt markets to fund its core operations and shareholder distributions for at least the next 12 months. These resources likely support continued business investment, debt repayment and cash returns to shareholders.
Peers Preserve Financial Flexibility Through Different Models
Dutch Bros Inc. BROS is maintaining liquidity while funding its shop-development program. The company ended the second quarter of 2026 with approximately $699 million in total liquidity, comprising $268.6 million in cash and $430.6 million available under its revolving credit facility. BROS’ operating cash flow increased 55.3% year over year to $196.9 million during the first six months, while 2026 capital expenditures are projected at $350-$370 million. Total debt stood at $200.5 million, of which $170 million is scheduled to mature in 2030. Dutch Bros expects operating cash flow and access to its credit facility to cover debt service, lease obligations, working capital and required distributions for at least the next 12 months.
McDonald’s Corporation MCD maintains financial flexibility supported by substantial cash generation and access to credit markets. The company generated $5.22 billion in operating cash flow during the first six months of 2026, exceeding capital expenditures by $3.7 billion. During the same period, McDonald’s made $581 million in long-term financing repayments, paid $2.64 billion in dividends and spent $1.25 billion on share repurchases. Long-term debt remained broadly stable at $39.86 billion compared with $39.97 billion at the end of 2025. Interest expense increased 6% year over year to $809 million during the first six months of 2026, primarily due to higher average interest rates and foreign-currency translation. For full-year 2026, McDonald’s expects interest expense to rise 4-6% year over year, mainly because of higher average interest rates.
SBUX’s Price Performance, Valuation & Estimates
Shares of Starbucks have gained 20.5% in the past year against the industry’s 7.5% decline.
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 3.07, below the industry’s average of 3.29.
SBUX’s P/S Ratio (Forward 12-Month) vs. Industry
The Zacks Consensus Estimate for SBUX’s fiscal 2026 earnings per share (EPS) implies a year-over-year increase of 21.1%. The EPS estimates for fiscal 2026 have increased in the past 60 days.
EPS Trend of SBUX Stock
SBUX’s Zacks Rank
SBUX stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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

Dutch Bros Inc.

Options Strategies