In this article, we will look at the 11 Best Coffee Stocks to Buy Now.
Overview of the Coffee Sector
According to the US National Coffee Association, the number of Americans who had coffee the past day rose by 37% between 2004 and 2024, placing past-day coffee consumption at its highest level in over two decades. Americans are thus increasingly consuming coffee, and its popularity is showing no signs of waning. Modern consumers have made coffee an integral part of their lives, as the National Coffee Association reported that around 66% of Americans now consume coffee daily. This number surpassed tap water consumption in 2021.
According to a report by Mordor Intelligence, the US coffee market is valued at $29.10 billion as of 2025. It is expected to grow at a compound annual growth rate (CAGR) of 3.69% between 2025 and 2030, reaching $34.87 billion at the end of the forecast period. Grand View Research shows that the global coffee market has a size of $223.78 billion as of 2023, and is expected to grow at a CAGR of 5.4% between 2024 and 2030.
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Specialty and Instant Coffee Trends In the US
The establishment of specialty coffee cafes and sophisticated coffee houses across urban centers is boosting the demand for coffee. The coffee market is experiencing a strong premiumization trend, as consumers are exhibiting an increasing inclination to invest in high-quality, premium coffee experiences. Statistics from the National Coffee Association show that 43% of American coffee drinkers prefer and choose specialty coffee, which reflects a notable 20% increase compared to January 2021. According to Grand View Research, the US specialty coffee market is valued at $47.8 billion as of 2024. It is expected to grow at a CAGR of 9.5% between 2025 and 2030.
Instant coffee is another significant factor in the coffee industry, as it is one of the primary drivers of the rise of coffee drinkers. According to Fortune Business Insights, the instant coffee market in the US was valued at $5.78 billion as of 2022. It is anticipated to grow at a CAGR of 4.28% between 2023 and 2030, reaching $8.06 billion at the end of the forecast period.
With these trends in view, let’s look at the 11 best coffee stocks to buy now.
A close up of a barista pouring freshly made coffee to a happy customer in a cafe.
Our Methodology
We sifted through stock screeners, financial media reports, and ETFs to compile a list of 20 coffee stocks. We then selected the top 11 with the highest number of hedge fund holders, as of Q4 2024, and ranked them in ascending order. We sourced the hedge fund sentiment data from Insider Monkey’s database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11 Best Coffee Stocks to Buy Now
11. Laird Superfood, Inc. (NYSE:LSF)
Number of Hedge Fund Holders: 6
Laird Superfood, Inc. (NYSE:LSF), along with its subsidiary, Picky Bars, LLC, is a consumer products platform company that manufactures and markets plant-based and functional foods. Its core Laird Superfood platform encompasses functional roasted and instant coffees, Creamer coffee creamers, teas, hot chocolate, and Hydrate hydration products and beverage-enhancing supplements.
2024 was a transformational year for the company as it developed into a high-growth premium brand with strong margins and unlimited potential. Laird Superfood, Inc. (NYSE:LSF) maintained gross margins at nearly 41% for 2024, reflecting a roughly 11-point leap from the 30.1% it reported for 2023. This growth was attributed to strategic sourcing, a shift to a variable-cost manufacturing model, and disciplined trade spend management.
It attained 27% top-line growth in 2024, with net sales reaching $43.3 million, up from $34.2 million in 2023. Net sales in fiscal Q4 2024 grew to $11.6 million, a 26% increase over fiscal Q4 2023. This growth rate significantly surpassed the consumer goods and food industry averages, where top-line growth stands at around 3% to 5% annually.
In a report released on March 20, Alex Fuhrman from Craig-Hallum maintained a Buy rating on the company. Analysts are bullish on the stock, and its median price target of $6.24 implies an upside of 108.33% from current levels.
10. Farmer Bros. Co. (NASDAQ:FARM)
Number of Hedge Fund Holders: 6
Farmer Bros. Co. (NASDAQ:FARM) is a coffee roaster, wholesaler, and service provider specializing in regular and specialty coffee, tea, and culinary products. Its offerings include roasted and liquid coffee, coffee-related products such as coffee filters, sugars, creamers, other beverages such as cappuccino, cocoa, granitas, concentrated and ready-to-drink cold brew, and iced coffee.
Despite a challenging market environment, fiscal Q2 2025 was a strong quarter for Farmer Bros. Co. (NASDAQ:FARM). Its sales were up slightly year over year and up 6% compared to fiscal Q1 2025 to $90 million. It maintained gross margins above 43%, and its selling and G&A expenses continued declining.
In addition, fiscal Q2 2025 marked the second consecutive quarter of positive adjusted EBITDA performance at $5.9 million. The company also generated positive free cash flow for the first time in many years. These results reflect the positive impact of the company’s changes to optimize its business over the last eighteen months. On February 7, Craig-Hallum analyst Eric Des Lauriers reiterated a Buy rating on Farmer Bros. Co. (NASDAQ:FARM). It ranks tenth on our list of the 11 best coffee stocks to buy now.
9. The J.M. Smucker Company (NYSE:SJM)
Number of Hedge Fund Holders: 7
The J.M. Smucker Company (NYSE:SJM) manufactures and markets branded food and beverage products under a portfolio of brands. Its operations are divided into four segments: US Retail Coffee, US Retail Frozen Handheld and Spreads, US Retail Pet Foods, and Sweet Baked Snacks. The US Retail Coffee segment primarily encompasses the domestic sales of Folgers, Dunkin’, and Cafe Bustelo branded coffee.
Over the past five quarters, The J.M. Smucker Company (NYSE:SJM) has maintained strong trends and attained strong industry standing in the frozen foods and snacks segment. It has driven consistent top-line growth through advertising, trade, and innovation investments.
In addition, its solid financial position is further supported by free cash flow conversion surpassing 100% due to efficient working capital management, particularly in inventory. It currently offers a quarterly dividend of $1.08 per share and has a dividend yield of 3.89% as of February 24.
8. Krispy Kreme, Inc. (NASDAQ:DNUT)
Number of Hedge Fund Holders: 14
Krispy Kreme, Inc. (NASDAQ:DNUT) specializes in donuts, coffee, espresso drinks, chillers, and iced beverages. Its operations are divided into the following segments: US and Canada, International, and Market Development.
The company delivered solid 2024 results, reporting 21% revenue growth. It expanded its US-delivery fresh daily network and surpassed $250 million in sales for the first time through this channel. It now operates in 40 countries worldwide and has an established pipeline of franchise market growth.
On February 26, Analyst Bill Chappell of Truist Financial maintained a Buy rating on Krispy Kreme, Inc. (NASDAQ:DNUT), with a price target of $12.00. He said that the rating is due to various factors that suggest potential growth for the company, despite recent challenges. Its guidance for organic sales growth is positive, around 5% to 7%.
According to the analyst, the expansion of Krispy Kreme, Inc.’s (NASDAQ:DNUT) partnership with McDonald’s is a significant revenue growth driver, as it aims to reach 6,000 by the end of 2025. In addition, the analyst estimates the company’s strategic move to expand its retail operations into major outlets such as Target, Costco, and Walmart to boost sales growth over the coming years.
7. BRC Inc. (NYSE:BRCC)
Number of Hedge Fund Holders: 17
BRC Inc. (NYSE:BRCC), the Black Rifle Coffee Company, is a premium beverage company that sources, processes, manufactures, packages, markets, and sells coffee and other beverage and food items.
In 2024, the company attained distribution growth, financial improvements, and adjacent category expansion. Adjusted EBITDA tripled, and gross margin improved by 9.5 points. BRC Inc. (NYSE:BRCC) also saw notable distribution growth in packaged coffee at grocery stores, with ACV increasing by 28 points to 45% over the year.
These improvements reflect the strength of the company’s business model. In 2025, BRC Inc. (NYSE:BRCC) is focused on driving brand awareness, expanding distribution, and deploying capital efficiently to maximize returns. Its median price target of $2.21 implies an upside of 35.75% from current levels. Riverwater Partners Small Cap Core Strategy is also bullish on the stock, and stated the following regarding BRC Inc. (NYSE:BRCC) in its Q3 2024 investor letter:
“BRC Inc. (NYSE:BRCC), a coffee company, was the largest detractor in the third quarter, primarily due to delays in product rollouts at new grocery locations, leading to a downward revision in full-year guidance. However, we remain confident in the brand’s potential, supported by its growing presence at Walmart and a promising new distribution partnership with Keurig Dr Pepper.”
6. Restaurant Brands International Inc. (NYSE:QSR)
Number of Hedge Fund Holders: 31
Restaurant Brands International Inc. (NYSE:QSR) is one of the largest quick-service restaurant companies globally. It owns popular coffee chain Tim Hortons, along with Burger King, Popeyes, and Firehouse Subs. The Tim Hortons segment offers coffee, tea, and donuts restaurant services. The Firehouse Subs brand also offers blended coffee, espresso-based hot and cold specialty drinks, teas, and other items.
Restaurant Brands International Inc. (NYSE:QSR) reported strong performance in fiscal Q4 2024, surpassing analyst estimates with adjusted diluted EPS of $0.81 compared to projections of $0.784, reflecting an 8% year-over-year growth. Total revenues also slightly exceeded expectations, reaching $2.296 billion and undergoing a 26.2% increase from the previous year.
On March 19, Argus upgraded Restaurant Brands International Inc. (NYSE:QSR) to Buy from Hold with an $80 price target. The firm said it sees “significant room” for the company to grow its brands globally. The analyst told investors in a research note that Restaurant Brands International Inc. (NYSE:QSR) can meet its target of 40,000 restaurants, and its shares can rise considering the prospects of mid-to-high single-digit revenue growth in international markets.
5. Keurig Dr. Pepper Inc. (NASDAQ:KDP)
Number of Hedge Fund Holders: 39
Keurig Dr. Pepper Inc. (NASDAQ:KDP) manufactures, markets, distributes, and sells non-alcoholic beverages. It operates through the following segments: US Refreshment Beverages, US Coffee, and International. The US Coffee segment covers single-serve brewers, specialty, hot and iced varieties, and ready-to-drink beverages. The company also offers ready-to-brew coffee pods, makers, and accessories.
The company reported adjusted EPS of $0.58 in fiscal Q4 2024, surpassing analyst estimates of $0.57. Net sales grew to $4.07 billion, also ahead of the projected $4.02 billion. Although Keurig Dr. Pepper Inc. (NASDAQ:KDP) faced some headwinds in its US coffee segment, fiscal Q4 2024 marked strong revenue growth, attributed to the US refreshment beverages segment.
On March 20, Citi analyst Filippo Falorni moved Keurig Dr. Pepper Inc. (NASDAQ:KDP) to the firm’s top pick in the beverages, household and personal care group. The firm shifted its choices to names “that are posting better near-term trends, have idiosyncratic opportunities, and have a lower valuation level.” The company takes the fifth spot on our list of the best coffee stocks to buy now.
4. Dutch Bros Inc. (NYSE:BROS)
Number of Hedge Fund Holders: 41
Dutch Bros Inc. (NYSE:BROS) operates and franchises drive-thru shops that offer handcrafted beverages. It operates through the Company-Operated Shops, and Franchising and Other segments. The Company-Operated Shops segment manages coffee shop sales, while the Franchising and Other segment specializes in bean and product sales to franchisees.
On March 14, TD Cowen analyst Andrew Charles maintained a Buy rating on Dutch Bros Inc. (NYSE:BROS) and set a price target of $89.00. The analyst said the company has a strong growth trajectory, primarily due to its potential for expansion based on the positive trends surrounding the total addressable market and new store productivity. He expressed optimism about the company’s potential to maintain a positive sales momentum.
In addition, Dutch Bros Inc. (NYSE:BROS) exhibited projected same-store sales growth in 2024 due to various strategic initiatives, such as innovative beverage offerings, effective paid advertising, and the expansion of the Dutch Rewards loyalty program. The analyst estimates that the company is positioned favorably in the market due to its focus on mobile orders and food offerings in the coming years, along with a potential rise in caffeine consumption in an aging population.
3. McDonald’s Corporation (NYSE:MCD)
Number of Hedge Fund Holders: 67
McDonald’s Corporation (NYSE:MCD) is a food service retailer with over 40,000 locations in over 100 countries. The company operates and franchises restaurants, and its operations are divided into the following segments: United States, International Operated Markets, and International Developmental Licensed Markets & Corporate. Its McCafé segment offers a range of coffee options, including lattes, cappuccinos, mochas, blended ice frappés, smoothies, triple-thick shakes, and even limited-time seasonal offerings.
The company holds a competitive advantage due to its market standing, as McDonald’s has become a household name worldwide. It has paid a dividend since 1976 and has raised its annual per-share dividend every year for the past 48 years. Given its sheer size and market standing, McDonald’s Corporation (NYSE:MCD) is in a position to continue this trend.
On March 20, J.P. Morgan analyst John Ivankoe maintained a Buy rating on McDonald’s Corporation (NYSE:MCD) and set a price target of $300.00. Erste Group analyst Stephan Lingnau also upgraded the company to Buy from Hold on March 17, saying it has “a very high and stable operating margin that is well above that of its competitors.” The analyst expects McDonald’s Corporation (NYSE:MCD) to continue a stable performance over the coming few quarters, with its stock price expected to “continue to rise.”
2. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 81
The Coca-Cola Company (NYSE:KO) manufactures and markets non-alcoholic beverages. It has a range of water, sports, coffee, and tea brands, including Costa Coffee, Georgia Coffee, Gold Peak Tea, Fuze Tea, and more.
The company holds 28% of the global market value in its non-alcoholic, ready-to-drink beverages categories, lending it a significant market position. It has a global presence and yet holds a considerable opportunity to capture market share, especially in the non-developed global regions. The Coca-Cola Company (NYSE:KO) recently announced its 63rd consecutive annual quarterly dividend increase of 5.2%, from $0.49 to $0.52.
In a report released on March 19, Robert Moskow from TD Cowen maintained a Buy rating on The Coca-Cola Company (NYSE:KO), with a price target of $78.00. He said the company holds a competitive edge due to its robust relationships with bottlers and effective marketing and procurement strategies. In addition, The Coca-Cola Company’s (NYSE:KO) focus on digitalization and enhancing bottler communication has bolstered its operational efficiency, further supporting the analysts’ bullish outlook on the stock.
1. Starbucks Corporation (NASDAQ:SBUX)
Number of Hedge Fund Holders: 84
Starbucks Corporation (NASDAQ:SBUX) produces, markets, and retails specialty coffee. It operates through the following segments: North America, International, and Channel Development. The company recently experienced a growth slowdown amidst worsening global economic conditions, but the stock is showing resilience.
On March 18, Investment firm Argus upgraded Starbucks Corporation (NASDAQ:SBUX) to a Buy from Hold with a $115 price target, categorizing its recent stock decline as a buying opportunity. The firm believes investor fears surrounding slowing same-store sales in the restaurant industry due to economic concerns are overblown. The analyst told investors in a research note that he expects Starbucks Corporation (NASDAQ:SBUX) to benefit from its focus on brand marketing, digital improvements, and a reduction in its sales promotions. Argus also believes that store remodeling and menu simplification are likely to raise same-store sales and boost company customer traffic.
Invesco Growth and Income Fund also expressed bullish sentiments for Starbucks Corporation (NASDAQ:SBUX) in its Q3 2024 investor letter, stating the following:
“Starbucks Corporation (NASDAQ:SBUX): The coffee retailer has struggled with China’s economic softness, declining sales and weaker US store traffic that have hampered revenues and profit margins. However, we believe the company has several positive, long-term catalysts, including strong growth in store count, better labor relations, improving productivity from labor, technology and innovation, and easier future earnings comparisons. We believed a management change was imminent, and shortly after we purchased the stock, Starbucks named a new CEO, which was seemingly greeted enthusiastically by investors.”
Overall, SBUX ranks first among the 11 best coffee stocks to buy now. While we acknowledge the potential of coffee stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SBUX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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