Why Investing $10,000 in Dutch Bros Stock Today Might Just Be a Brilliant Move

Key Points

• Dutch Bros has a distinctive brand that's resonating with its core customers across U.S. regions.

• It's growing quickly and becoming profitable at scale.

• It has huge expansion opportunities.

• 10 stocks we like better than Dutch Bros ›

There are mixed indicators about the economy today. Hiring is down and so are home sales, but retail sales are on the rise. Inflation is still higher than the Federal Reserve wants it to be, but Fed Chairman Jerome Powell still implied that he would cut interest rates again at its September meeting next week.

That's been enough to get the market rolling, and the S&P 500 is up more than 10% year to date.

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Some investors might be enthusiastic about the strong bull market, while others might be wary about an exploding market when inflation is still high. The S&P 500 might also not be telling enough about the market at large, since so much of it is concentrated in its biggest components.

In truth, it's no different than most times. There's always a lot going on and a lot of uncertainty. That's the way the market works. Successful investing requires a long-term outlook and the ability to stay focused on quality fundamentals instead of fly-by-night hype.

If you're looking for an excellent stock to invest in that can weather the ups and downs of whatever the market might go through over the next decade and longer, consider Dutch Bros (NYSE: BROS).

Image source: Dutch Bros.

A different kind of cup

Dutch Bros is a coffee shop chain, and even though its products might appear to be no different than any other coffee shop, it has developed a distinct brand with exclusive beverages that appeal to its large and growing consumer base.

Although the company has been around for a few decades; it only started taking its concept nationally a few years ago. It has refined its image as a fun and friendly place you want to be, and since it was developed with new trends in mind, it's resonating with what coffee drinkers are looking for today. And that means speed and convenience, as well as cold and customized beverages. It's also deliberate about its expansion strategy, with rigorous real estate curation and an intentional program to replicate the precise Dutch Bros model in each location.

While there are various store formats, most of its stores are drive-thru only. It recently launched a mobile ordering app through its membership program that makes it easy to order ahead, and that's boosting engagement and sales as well. It's also experimenting with its food menu to generate higher growth during the morning rush. What brings this all together is a differentiated model that's working to set itself apart from competitors and create loyalty.

Coffee for everyone

Dutch Bros has moved from its original locations in Oregon down the West Coast, and it's successfully transferring its brand across the country to the East Coast. As of the end of the 2025 second quarter, it has more than 1,000 stores in 19 states, about double its store count from when it became a public company in 2021.

It's thriving in these locations. Sales increased 28% year over year in the quarter to nearly $416 million, and same-shop sales increased 6.1%. Same-shop transactions increased 3.7%, which means more people are coming in, or that customers are coming in more frequently. That's a strong indication of loyalty, and it implies that Dutch Bros has a brand that can attract business in new regions. As part of its expansion plan, it's placing an emphasis on marketing and building a brand presence in new areas. That costs money, but over time, as the company establishes itself, that should taper off.

It's already become profitable at scale, and as it continues to scale, that should increase. Adjusted net income increased from $31.2 million last year to $45.5 million this year in the second quarter.

More coffee for more people

Management thinks it's just at the beginning of the company's journey. It has set a goal to have 2,029 stores by 2029, with a long-term goal of 7,000 stores. "If there's one takeaway from today's call, it is this," said CEO Christine Barone on the second-quarter earnings call. "Dutch Bros is in growth mode, and we are just getting started with a long-term addressable market of 7,000 shops nationwide, and just north of 1,000 shops today, the runway ahead is expansive."

The company's current performance, appeal, and careful opening strategy make that easy to believe. If you have $10,000 to invest today, buying Dutch Bros could be a brilliant move.

Should you invest $1,000 in Dutch Bros right now?

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Jennifer Saibil has positions in Dutch Bros. The Motley Fool recommends Dutch Bros. The Motley Fool has a disclosure policy.