10 Best Coffee Stocks To Buy According to Hedge Funds

5. Dutch Bros Inc. (NYSE:BROS)

Number of Hedge Fund Holders: 37

Dutch Bros (NYSE:BROS) came into being in 1992 as a pushcart when the founders Dane and Travis Boersma decided to sell Expresso in downtown Grants Pass, Oregon. The company grew over the years with the first franchise opening in Oregon in 2000. Currently, Dutch Bros is a high-growth operator and franchisor of drive-thru shops that serve beverages. Dutch Bros has coffee classics, protein coffee, seasonal drinks, shakes, smoothies, and snacks among others to offer to its customers.

Although Dutch Bros doesn’t have a market share as compared to incumbents such as Starbucks, what deems Dutch Bros attractive is its exemplary growth story. The company expanded from a double-head espresso machine and a pushcart to 950 locations across 18 states. The firm is one of the fastest-growing brands in the quick service American beverage industry by location count.

Dutch Bros’ growth story, hand-crafted and high-quality beverages, and its unique drive-thru experience are complemented by its community-driven, people-first culture. Dutch Bros believes the firm to be more than the products it serves. The sense of community engagement boasted by the firm fosters loyalty among its customers.

The brand continues to resonate with customers as it recently witnessed the highest same shop transaction growth quarter in two years. With a 28% revenue increase and a 2.7% systemwide same shop sales growth, the firm closed the third quarter. The growth story continues for Dutch Bros with the opening of 38 new shops during the quarter.