We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BROS vs. SBUX: Which Beverage Chain Offers More Upside Right Now?
Read MoreHide Full Article
Key Takeaways
BROS is driving growth through new shop development, digital enhancements and its expanding food program.
Starbucks is working through throughput issues, uneven service and softer U.S. traffic trends.
BROS stock is up 4.7% YTD, while SBUX shares have declined 6.5% over the same period.
Dutch Bros Inc. (BROS - Free Report) and Starbucks Corporation (SBUX - Free Report) are two influential players in the specialty coffee market, each positioned to capture evolving consumer demand across the beverage landscape. After a period of volatility driven by inflation, shifting traffic patterns and cost pressures, the coffee category is beginning to stabilize, with both brands taking distinct strategic paths to drive growth. While Dutch Bros continues to expand rapidly through its high-velocity drive-thru model and digitally engaged customer base, Starbucks is executing a large-scale operational reset aimed at restoring transaction momentum in its U.S. business.
For investors evaluating opportunities in this space, the key question is which coffee stock offers greater upside potential today — Dutch Bros or Starbucks. A closer look at their fundamentals, growth catalysts and risk profiles can provide clearer direction.
The Case for Dutch Bros
Dutch Bros continues to advance its long-term growth agenda, focused on balancing disciplined unit expansion with enhancements to the customer experience. The company is pursuing a thoughtful strategy centered on accelerating shop development, strengthening digital engagement and expanding its product offering to reinforce competitive positioning. Supported by strong unit economics, a robust operator pipeline and increasing visibility into its multiyear development roadmap, Dutch Bros remains committed to scaling its nationwide footprint without compromising the culture-forward service model at the core of the brand.
The rollout of its hot food program is central to this strategy. With approximately 160 shops offering food (as of third-quarter 2025), the initiative is delivering steady ticket and transaction lifts alongside improving customer and Broista feedback. Early results indicate roughly a 4% comp benefit in participating shops, underscoring food’s potential to complement the company’s beverage-first model by strengthening morning daypart relevance and adding incremental sales opportunity. As the program scales through 2026, Dutch Bros expects additional operational learnings and product refinement to support broader adoption and sustained performance.
At the same time, the company is expanding its digital ecosystem through enhancements in Order Ahead functionality, loyalty segmentation and mobile user experience. Order Ahead reached a 13% mix in the third quarter of 2025, functioning as a meaningful driver of loyalty enrollment and engagement. Improvements in pickup-time accuracy, promotional targeting and analytics capabilities are helping to drive higher frequency and improve guest satisfaction. Dutch Bros is also making progress in cost efficiency and capital discipline. Build-to-suit development is lowering average shop CapEx and strengthening return profiles.
However, near-term margin pressures remain a consideration as higher coffee costs, rising occupancy expenses and incremental labor headwinds weigh on shop-level profitability. These factors may limit margin expansion in the short term.
The Case for SBUX
Starbucks continues to face meaningful operational and brand-level challenges that are weighing on its near-term outlook. Despite the launch of its “Back to Starbucks” plan, U.S. traffic has not shown the degree of stabilization management had hoped for, with continued softness across several customer cohorts and weaker afternoon-daypart performance. While the company has introduced new beverage platforms and promotional activity to reignite demand, the early benefits remain limited relative to the scale of traffic pressures.
Execution issues remain a point of concern. Management acknowledged persistent throughput bottlenecks, uneven service consistency and a need for accelerated in-store process redesigns — signaling operational friction. Efforts to modernize equipment and shift labor deployment are underway, but these initiatives require time, capital and training before they can translate into measurable improvements in customer experience or sales conversion.
Internationally, performance remains mixed, with China in particular continuing to experience volatile recovery trends. Competitive intensity, cautious consumer spending and uneven traffic patterns have made it difficult for Starbucks to drive sustained momentum in the region. Although management remains confident in the long-term opportunity, near-term visibility remains limited, and sequential improvements have been inconsistent. Other international markets also reflect variability, adding another layer of uncertainty to consolidated growth.
Cost pressures further complicate the near-term setup. Wage inflation, elevated input costs and continued investments in digital infrastructure and store renovations are constraining margin recovery. Management has reiterated its commitment to expense discipline and long-term brand-building investments, but the combination of soft traffic, rising costs and execution risk leaves limited room for near-term upside.
How Does the Zacks Consensus Estimate Compare for BROS & SBUX?
The Zacks Consensus Estimate for Dutch Bros’ 2026 sales and earnings per share (EPS) suggests year-over-year increases of 24.2% and 27.6%, respectively. In the past 60 days, earnings estimates for 2026 have remained unchanged.
BROS Earnings Estimate Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SBUX’s fiscal 2026 sales and EPS suggests year-over-year increases of 3.5% and 13.6%, respectively. In the past 60 days, earnings estimates for fiscal 2026 have declined 10.4% to $2.42.
SBUX Earnings Estimate Trend
Image Source: Zacks Investment Research
Price Performance & Valuation: BROS vs. SBUX
Dutch Bros’ stock has gained 4.7% so far this year against the industry’s fall of 9%, while the S&P 500 witnessed growth of 14.3%. Meanwhile, SBUX shares have declined 6.5% over the same time.
BROS & SBUX Stock YTD Price Performance
Image Source: Zacks Investment Research
Dutch Bros trades at a forward 12-month price-to-sales (P/S) ratio of 4.58, above the industry average of 3.43 over the last year. In contrast, SBUX commands a lower forward P/S of 2.5.
Image Source: Zacks Investment Research
End Notes
At this juncture, Dutch Bros appears better positioned to deliver consistent growth and operational momentum, supported by accelerating shop development, strengthening digital engagement and early traction from its expanding food initiative. The Zacks Consensus Estimate trends also favor BROS, reflecting steadier forward expectations relative to Starbucks, whose performance has softened in recent months amid ongoing traffic weakness, operational friction and slower-than-anticipated international recovery.
Additionally, Dutch Bros has demonstrated comparatively stronger stock performance year to date, underscoring investor confidence in its execution and strategic visibility, even as it trades at a premium multiple. By contrast, Starbucks continues to navigate a more complex turnaround with greater uncertainty around timing and margin recovery. Accordingly, Dutch Bros represents the more compelling pick in the current environment, supported by a clearer growth pathway and more resilient earnings momentum.
Dutch Bros currently carries a Zacks Rank #3 (Hold), while Starbucks has a Zacks Rank #4 (Sell).
Image: Bigstock
BROS vs. SBUX: Which Beverage Chain Offers More Upside Right Now?
Key Takeaways
Dutch Bros Inc. (BROS - Free Report) and Starbucks Corporation (SBUX - Free Report) are two influential players in the specialty coffee market, each positioned to capture evolving consumer demand across the beverage landscape. After a period of volatility driven by inflation, shifting traffic patterns and cost pressures, the coffee category is beginning to stabilize, with both brands taking distinct strategic paths to drive growth. While Dutch Bros continues to expand rapidly through its high-velocity drive-thru model and digitally engaged customer base, Starbucks is executing a large-scale operational reset aimed at restoring transaction momentum in its U.S. business.
For investors evaluating opportunities in this space, the key question is which coffee stock offers greater upside potential today — Dutch Bros or Starbucks. A closer look at their fundamentals, growth catalysts and risk profiles can provide clearer direction.
The Case for Dutch Bros
Dutch Bros continues to advance its long-term growth agenda, focused on balancing disciplined unit expansion with enhancements to the customer experience. The company is pursuing a thoughtful strategy centered on accelerating shop development, strengthening digital engagement and expanding its product offering to reinforce competitive positioning. Supported by strong unit economics, a robust operator pipeline and increasing visibility into its multiyear development roadmap, Dutch Bros remains committed to scaling its nationwide footprint without compromising the culture-forward service model at the core of the brand.
The rollout of its hot food program is central to this strategy. With approximately 160 shops offering food (as of third-quarter 2025), the initiative is delivering steady ticket and transaction lifts alongside improving customer and Broista feedback. Early results indicate roughly a 4% comp benefit in participating shops, underscoring food’s potential to complement the company’s beverage-first model by strengthening morning daypart relevance and adding incremental sales opportunity. As the program scales through 2026, Dutch Bros expects additional operational learnings and product refinement to support broader adoption and sustained performance.
At the same time, the company is expanding its digital ecosystem through enhancements in Order Ahead functionality, loyalty segmentation and mobile user experience. Order Ahead reached a 13% mix in the third quarter of 2025, functioning as a meaningful driver of loyalty enrollment and engagement. Improvements in pickup-time accuracy, promotional targeting and analytics capabilities are helping to drive higher frequency and improve guest satisfaction. Dutch Bros is also making progress in cost efficiency and capital discipline. Build-to-suit development is lowering average shop CapEx and strengthening return profiles.
However, near-term margin pressures remain a consideration as higher coffee costs, rising occupancy expenses and incremental labor headwinds weigh on shop-level profitability. These factors may limit margin expansion in the short term.
The Case for SBUX
Starbucks continues to face meaningful operational and brand-level challenges that are weighing on its near-term outlook. Despite the launch of its “Back to Starbucks” plan, U.S. traffic has not shown the degree of stabilization management had hoped for, with continued softness across several customer cohorts and weaker afternoon-daypart performance. While the company has introduced new beverage platforms and promotional activity to reignite demand, the early benefits remain limited relative to the scale of traffic pressures.
Execution issues remain a point of concern. Management acknowledged persistent throughput bottlenecks, uneven service consistency and a need for accelerated in-store process redesigns — signaling operational friction. Efforts to modernize equipment and shift labor deployment are underway, but these initiatives require time, capital and training before they can translate into measurable improvements in customer experience or sales conversion.
Internationally, performance remains mixed, with China in particular continuing to experience volatile recovery trends. Competitive intensity, cautious consumer spending and uneven traffic patterns have made it difficult for Starbucks to drive sustained momentum in the region. Although management remains confident in the long-term opportunity, near-term visibility remains limited, and sequential improvements have been inconsistent. Other international markets also reflect variability, adding another layer of uncertainty to consolidated growth.
Cost pressures further complicate the near-term setup. Wage inflation, elevated input costs and continued investments in digital infrastructure and store renovations are constraining margin recovery. Management has reiterated its commitment to expense discipline and long-term brand-building investments, but the combination of soft traffic, rising costs and execution risk leaves limited room for near-term upside.
How Does the Zacks Consensus Estimate Compare for BROS & SBUX?
The Zacks Consensus Estimate for Dutch Bros’ 2026 sales and earnings per share (EPS) suggests year-over-year increases of 24.2% and 27.6%, respectively. In the past 60 days, earnings estimates for 2026 have remained unchanged.
BROS Earnings Estimate Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SBUX’s fiscal 2026 sales and EPS suggests year-over-year increases of 3.5% and 13.6%, respectively. In the past 60 days, earnings estimates for fiscal 2026 have declined 10.4% to $2.42.
SBUX Earnings Estimate Trend
Image Source: Zacks Investment Research
Price Performance & Valuation: BROS vs. SBUX
Dutch Bros’ stock has gained 4.7% so far this year against the industry’s fall of 9%, while the S&P 500 witnessed growth of 14.3%. Meanwhile, SBUX shares have declined 6.5% over the same time.
BROS & SBUX Stock YTD Price Performance
Image Source: Zacks Investment Research
Dutch Bros trades at a forward 12-month price-to-sales (P/S) ratio of 4.58, above the industry average of 3.43 over the last year. In contrast, SBUX commands a lower forward P/S of 2.5.
Image Source: Zacks Investment Research
End Notes
At this juncture, Dutch Bros appears better positioned to deliver consistent growth and operational momentum, supported by accelerating shop development, strengthening digital engagement and early traction from its expanding food initiative. The Zacks Consensus Estimate trends also favor BROS, reflecting steadier forward expectations relative to Starbucks, whose performance has softened in recent months amid ongoing traffic weakness, operational friction and slower-than-anticipated international recovery.
Additionally, Dutch Bros has demonstrated comparatively stronger stock performance year to date, underscoring investor confidence in its execution and strategic visibility, even as it trades at a premium multiple. By contrast, Starbucks continues to navigate a more complex turnaround with greater uncertainty around timing and margin recovery. Accordingly, Dutch Bros represents the more compelling pick in the current environment, supported by a clearer growth pathway and more resilient earnings momentum.
Dutch Bros currently carries a Zacks Rank #3 (Hold), while Starbucks has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.