Starbucks Stock Is Underperforming the S&P 500 in 2024, but These Other 2 Coffee Stocks Are Soaring.

Core Viewpoint - The article highlights the performance of lesser-known coffee brands, Dutch Bros and Black Rifle Coffee, which are currently outperforming Starbucks in the market, particularly in 2024, as Starbucks faces a decline in stock value and customer transactions [1]. Group 1: Dutch Bros - Dutch Bros operates a drive-thru coffee chain with 831 locations and reported a 10% increase in same-store sales in Q1, indicating strong business health [2][3]. - The company has opened over 150 new locations in the past year and plans to continue this aggressive growth strategy, aiming for a total of 4,000 locations long-term [3]. - In contrast to Starbucks, which experienced a 7% year-over-year drop in transactions in North America, Dutch Bros saw an increase in customer traffic [2]. Group 2: Black Rifle Coffee - Black Rifle Coffee sells coffee through a subscription service and is expanding its retail presence, with a 51% year-over-year increase in wholesale revenue in Q1 2024 [4][5]. - The company has increased its ready-to-drink coffee products distribution to nearly 87,000 locations, up 38%, and is growing sales faster than comparable products [5]. - Despite hitting an all-time low in late 2023, Black Rifle Coffee's stock has gained traction in 2024 due to its successful expansion beyond the subscription model [6].