During the first four months of 2026, investors got a taste of just how unpredictable equities can be. The S&P 500 index, despite its position as the bellwether benchmark, fell 7% from the start of the year to March 30. And since then, it has marched 11% higher (as of April 21).
While the market continues its volatile journey, investors now have the perfect opportunity to buy this growth stock.
Image source: Getty Images.
Management is aggressively opening new stores
It’s time for investors to take a closer look at Dutch Bros (BROS +3.41%). Its stock has been more volatile than the overall market, and shares are trading 37% off their peak from February 2025. However, they have still soared 79% in the past 24 months.
The company’s growth story is impressive. Operating small-format coffee shops, Dutch Bros had 441 locations at the end of 2020. As of Dec. 31, 2025, it had 1,136 stores in 25 states nationwide. By 2029, the leadership team wants to have 2,029 shops open. And executives believe the total addressable market in the U.S. is a whopping 7,000 locations.
Dutch Bros’ financial performance is encouraging. In each of the last three years, the business reported same-store sales growth. The same can’t be said about Starbucks, the dominant player in the industry. It’s clear that Dutch Bros has successfully carved out a niche.
This is also a consistently profitable company now, which is something that isn’t true for many growth stocks. Net income jumped almost 1,100% from $9.9 million in 2023 to $117.3 million in 2025. Dutch Bros is proving to the naysayers that it can scale up in a lucrative manner, even as it deals with uncertain coffee prices and invests in rapid expansion.
Today’s Change
(3.41%) $1.86
Current Price
$56.40
Key Data Points
Market Cap
$9.0B
Day’s Range
$54.84 – $56.40
52wk Range
$44.58 – $77.88
Volume
11K
Avg Vol
5.3M
Gross Margin
25.68%
Investors must balance upside and uncertainty
Companies early on their growth journeys obviously present investors with a lot of upside. If Dutch Bros can open as many new stores as management is planning, the financial rewards will be significant.
Wall Street is bullish on a favorable outcome. According to sell-side analyst estimates, Dutch Bros’ revenue and adjusted diluted earnings per share (EPS) are expected to increase at compound annual rates of 23.3% and 27.1%, respectively, between 2025 and 2028. It’s impossible not to get excited about this forecast. Looking even further out to the end of this decade and beyond, the growth can continue.
There is uncertainty, though, as long-term success isn’t guaranteed. Dutch Bros must continue to execute its strategy well, while picking suitable locations and prioritizing the customer experience. And it has to handle the intensely competitive nature of the industry.
But based on its progress thus far, it’s easy to be optimistic.
