Looking to Beat the Stock Market? 1 Reason to Set Your Sights on Dutch Bros Stock.

In the coffee market, one of the biggest surprises in recent years is Dutch Bros (BROS -7.57%). Earlier this year, its stock reached an all-time high. Even though it has almost pulled back into bear market territory since then, it appears to have become the most popular coffee stock since Starbucks (SBUX -1.88%).

Given its current state, Dutch Bros could easily outperform the well-established coffee giant over the next few years, and one reason shows why.

Why shareholders should focus on Dutch Bros

Investors should focus on Dutch Bros due to its regional-to-national expansion. Historically, regional-to-national expansions have driven outsized gains for stores like Home Depot and Walmart, but the most relevant example for Dutch Bros is its largest competitor, Starbucks.

When Starbucks began trading in 1992, it only had 165 locations. In subsequent years, the national and then global expansion grew to its current footprint of over 41,000 stores. That growth path has earned Starbucks returns of nearly 26,000% over its 33-year history, but has also exhausted nearly all remaining domestic-growth prospects.

Now, it’s Dutch Bros’ turn. As of the end of the second quarter of 2025, the company has grown to 1,043 shops in 19 states, 14% more shops than 12 months prior.

That increase means that revenue, which came in at $771 million for the first half of the year, rose 29%, compared to the same period last year. Also, same-store sales, which only apply to stores opened for more than 15 months, increased by 5% in the year’s first half.

Investors should expect the growth to continue. The company has outlined a goal of having 2,029 shops by 2029, a target that would nearly double its footprint in four years.

Looking at the stock, it has increased by just over 130% over the last year. Although Dutch Bros can’t guarantee a repeat of that performance, the regional-to-national expansion makes continued stock-price growth highly likely.