7 Best Coffee Stocks to Buy Now

3. Dutch Bros (NYSE:BROS)

Number of Hedge Fund Holders: 33

Average Upside Potential as of July 31: 11.02%

Dutch Bros (NYSE:BROS) came into being in 1992 as a pushcart when the founders Dane and Travis Boersma decided to sell coffee in downtown Grants Pass, Oregon. The brothers came up with the idea while their family’s dairy business was struggling. The company grew over the years with the first franchise opening in Oregon in 2000. By 2021, the coffee company had extended to Texas and Oklahoma. Currently, Dutch Bros is an operator and franchisor of drive-thru shops that serve beverages. Dutch Bros has coffee classics, seasonal drinks, shakes, smoothies, and snacks among others to offer to its customers.

Although Dutch Bros (NYSE:BROS) doesn’t have a market share as compared to larger coffee chains, what deems the company attractive is its exemplary growth story. The company expanded from a double-head espresso machine and a pushcart to 876 locations across 17 states. The firm ranks among some of the fastest-growing brands in the quick-service American beverage industry by location count. Dutch Bros (NYSE:BROS) recently witnessed the 11th consecutive quarter of 30 or more new shop openings and carried 2023’s momentum to 2024 by recording a 39% year-over-year growth during the first quarter. Highlights of the first quarter performance include two strong new product launches and strong system same shop sales growth. A record 45 new shop openings across 14 states during the quarter are a proof of the consistency in the company’s growth.

The company also believes that they are more than the products they have to serve. The sense of community engagement boasted by the firm fosters loyalty among its customers. The company gives back to the community through fundraisers, grants, and donations. The strong brand image is a reflection of the philanthropic and inclusive attempts made by the firm to achieve its vision of ultimately making a massive difference.

Therefore, Dutch Bros (NYSE:BROS) is a top coffee stock with a rapid expansion pattern to offer to investors which has translated into strong revenue growth for the company. Over the past 3 years, the firm has grown its revenue by 43.83%. The community-driven approach further amplifies the chances for more business and profitability.

Dutch Bros (NYSE:BROS) was held by 33 hedge funds at the close of Q1 2024 and Citadel Investment Group was the largest shareholder in the company with a stake worth $159 million.