Workflow
2 Unstoppable Growth Stocks to Buy and Hold for 20 Years
BROSDutch Bros(BROS) The Motley Fool·2025-02-15 09:25

Group 1: Dutch Bros - Dutch Bros has grown to 982 locations with trailing revenue of 1.3billionandcontinuestoreportsolidfinancialperformanceasitexpandsacrosstheU.S.[2][4]−Thecompanyreporteda351.3 billion and continues to report solid financial performance as it expands across the U.S. [2][4] - The company reported a 35% year-over-year revenue growth in the fourth quarter, driven by 32 new shop openings and a 6.9% increase in same-shop sales [4]. - Dutch Bros closed 2024 with adjusted net income of 88 million, up from 50millionin2023,indicatingimprovingmargins[5].−Thecompanypromotesnewshopmanagersfromwithin,fosteringconsistentserviceandbrandpassion,andhaspotentialtoopenthousandsoflocationsasitcurrentlyoperatesinonly18states[6].Group2:LululemonAthletica−Lululemonhasestablishedapowerfulbrand,startingfromaretailspaceinayogastudioin1998to749company−operatedstoresworldwideasofOctober27,2024,with3950 million in 2023, indicating improving margins [5]. - The company promotes new shop managers from within, fostering consistent service and brand passion, and has potential to open thousands of locations as it currently operates in only 18 states [6]. Group 2: Lululemon Athletica - Lululemon has established a powerful brand, starting from a retail space in a yoga studio in 1998 to 749 company-operated stores worldwide as of October 27, 2024, with 39% of revenue from online sales [8]. - The company has experienced close to 20% annual revenue growth over the last decade, with earnings growing slightly faster, and has significant room for global expansion [8]. - Revenue from the Americas accounted for 74% of the business in the fiscal third quarter, indicating growth potential in Europe and China [9]. - Comparable sales in China increased by 27% in the fiscal third quarter, highlighting the opportunity presented by the growing middle class [10]. - Women's products generated over 1.5 billion in revenue in fiscal Q3, making up 65% of total revenue, while high customer satisfaction scores suggest potential for increased male customer engagement [11]. - The stock trades at a reasonable valuation of around 26 times this year's earnings estimate, with a 500% increase over the last decade, indicating continued growth potential [12].