We recently published a list of the 11 Best Coffee Stocks to Buy Now. In this article, we are going to take a look at where Dutch Bros Inc. (NYSE:BROS) stands against the other 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.
READ ALSO: 10 Best Department Store Stocks to Invest in and 12 Best Household Stocks to Buy According to Hedge Funds.
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.
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).
A closeup of a customer tasting a freshly-made cold brew coffee product from the company’s shop.
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.
Overall, BROS ranks 4th on our list of the best coffee stocks to buy now. While we acknowledge the potential of BROS as an investment, 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 BROS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
