These two chains have far surpassed the S&P 500 this year.Dutch Bros (BROS -0.62%) and Cava (CAVA 2.20%) are two up-and-coming chains in the restaurant arena. Both of these companies' share prices have crushed the S&P 500 this year, which can easily draw the attention of the investment community.Which of these two restaurant stocks is the better buy right now?Rising up the coffee ranksDutch Bros operates 950 stores that sell coffee and other beverages, with speed and customer service being a top focus. The ...

The stock may offer better value than it appears at first glance.Investors saw a lot to like in the latest earnings report from Dutch Bros (BROS -0.62%). The company reported better-than-expected results in the third quarter, and management raised guidance for the full year. At the time of writing, the stock is up 39% since the report was released on Nov. 6. On the surface, Dutch Bros stock might appear expensive, recently trading at a price-to-earnings ratio of 169, but that valuation metric is misleading ...

The S&P 500 is up 25% this year and continues to hit new highs. It's a time of confidence in the economy and excitement in the future. However, it means that it's getting harder to find great deals in the market. As the market goes higher, valuations are starting to look inflated.Warren Buffett recently reiterated his approach to investing as saying that he buys wonderful businesses at fair prices instead of fair businesses at wonderful prices. Investors should take heed and find those excellent businesses ...

Cold coffee is booming in the U.S.In 2023, Americans spent about $17.7 billion on out-of-home cold coffee including iced coffee, cold brew and frozen coffee drinks. That is more than double the $8.5 billion consumers spent in 2016, according to food service research firm Technomic. Giants like Starbucks have played a major role in iced drinks taking share from more traditional hot coffee."The way it usually works in the U.S. is that coffee trends start at the coffee shop and above all, at the big chains lik ...

Dutch Bros (BROS) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this drive-thru coffee chain operator and franchisor, should get reflected in its stock price. After all, empirical research shows a strong correlation between t ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for moment ...

Is Dutch Bros the next great coffee chain?One of the more exciting stocks in the restaurant industry these days is Dutch Bros (BROS -2.73%). The company has emerged as the No. 2 pure-play coffee chain on the stock market behind Starbucks (SBUX 1.01%), and it seems to be seizing the opportunity that the leader has created with its own errors and underperformance.Dutch Bros is fresh off a stellar performance in the third quarter that led the stock to jump 28% last Thursday, Nov. 7. The company reported compar ...

The coffee chain still has a long runway of growth ahead.Dutch Bros (BROS 2.67%) shares skyrocketed higher after the coffee shop operator reported better-than-expected Q3 results and increased its guidance. The stock is now up more than 40% on the year as of this writing.The question on investors' minds is, can this momentum continue, or is it too late to buy the stock? Let's take a closer look at the company's most recent earnings and long-term prospects to help answer this question.Another beat-and-raise ...

Patiently holding these stocks could pay off massively down the road.The bull market continued to drive the S&P 500 to new highs this year. It's still a great time to invest because once a bull market gets going, it tends to go on for several years.Three Motley Fool contributors believe Dutch Bros (BROS 5.38%), MercadoLibre (MELI 5.52%), and Sweetgreen (SG -5.95%) could outperform the S&P 500. The index delivered an average return of 10% over the last several decades, but these companies are growing much fa ...

Core Insights - Dutch Bros. CEO Christine Barone outlined the company's strategy for cross-country expansion, indicating that entry into the Northeast will take time as the focus remains on contiguous growth in neighboring states [1] - The company recently entered the Florida market and continues to see significant growth opportunities ahead [1] - Dutch Bros. operates in 18 states primarily on the West Coast and in the South, including major markets like California, Arizona, and Texas [1] - Since its market debut in 2021, Dutch Bros. stock has increased by 48.97% year-to-date, reflecting strong investor confidence [1] - Following a solid quarterly report, the company's shares surged over 28% in one day and continued to rise, closing up more than 5% the following day [1]