The Ultimate Growth Stock to Buy With $1,000 Right Now

Key Points

• The popularity of its beverages and its emphasis on community have helped this company stand out.

• It plans to nearly double the number of locations over the next four years.

• 10 stocks we like better than Dutch Bros ›

Investors often find themselves with an extra $1,000 to invest, and they frequently use that capital to purchase shares in established consumer businesses. When it comes to the coffee market, investors tend to gravitate toward Starbucks due to its strong brand and increasingly large global footprint.

Still, given Starbucks is maturing as a company, it has arguably become too large to be considered a growth stock, and consumers have choices when it comes to such stocks. Considering its rapid expansion and growing regional to national footprint, Dutch Bros (NYSE: BROS) may actually be poised to deliver higher returns on a $1,000 investment.

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The state of Dutch Bros

Dutch Bros has operated since 1992, when it opened its first coffee shop in Grants Pass, Oregon. It spent years slowly expanding as a privately held company. However, its expansion has accelerated since its 2021 initial public offering (IPO), and it has roughly doubled in size since that time.

As of the end of the second quarter of 2025, the company claimed 1,043 locations that span from its home base in Oregon to Florida. It also plans to grow to 2,029 shops by 2029, which will nearly double the size of its footprint. In comparison, Starbucks is up to more than 41,000 locations, making it unlikely to double in size anytime soon, if at all.

Also, whereas Starbucks may stand out for featured and seasonal beverages, Dutch Bros has stood out for its breve coffee drinks, which it bases on espresso and half-and-half. It also differs from chains like Starbucks in that they are primarily drive-thru locations. Since they do not have indoor areas for customers, their overhead is presumably less.

Conversely, with the lack of indoor seating, it must underscore beverage quality more than Starbucks. Still, that allows Dutch Bros to stand out for what it emphasizes, namely, a focus on philanthropy, sustainability, and inclusion that can draw customers and employees alike, arguably giving it a competitive edge.

Dutch Bros by the numbers

Such factors likely helped it earn $771 million in revenue in the first half of 2025, a 29% yearly increase. That included a 14% increase in the number of shops and same-shop-sales growth of 5%.

During that time, operating expense growth was 26%. Hence, even with higher expense growth outside of its operations, Dutch Bros' $41 million in net income for the first half of the year grew by 116% yearly.

Amid improving financials, Dutch Bros raised its full-year guidance, with the company projecting between $1.59 billion and $1.6 billion in total revenue, a 25% rise in revenue if the forecast holds. That represents a slight decrease in the growth rate, but it is likely not enough of a pullback to deter investors.

This is likely also true given this year's stock performance. It has barely risen this year as it backs off from recent gains, which took it higher by 60% over the last year, thanks to the stock's surge late last year.

Additionally, Dutch Bros bulls will have to contend with its valuation. Its P/E ratio of 154 is due to its relatively recent turn to profitability, though admittedly, some investors may balk at the 82 forward P/E ratio. However, if you also consider the aforementioned profit growth, you might justify taking a position in Dutch Bros, even at these levels.

Investing $1,000 in Dutch Bros

Amid a regional-to-national expansion, investors can earn significant returns on a $1,000 investment by buying Dutch Bros stock.

Indeed, buying into this stock at a relatively high P/E ratio may deter some investors, particularly when considering the highly competitive nature of the coffee shop business.

Nonetheless, Dutch Bros' drinks and community-oriented approach to its business have won over investors, and its ability to replicate its strategy in markets as diverse as Oregon and Florida bodes well for a successful nationwide expansion.

Thus, the relative lull in the stock's growth could present an excellent opportunity to put $1,000 to work in this stock as it continues on the path to 2,029 shops.

Should you invest $1,000 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 Starbucks. The Motley Fool recommends Dutch Bros. The Motley Fool has a disclosure policy.