This Lesser-Known Stock Might Be a Better Buy Than Its Famous Rival

Core Insights - Starbucks has transformed the coffee shop experience into an upscale offering, operating 40,990 stores globally, with over 18,000 in the U.S. [1] - Dutch Bros, a smaller coffee chain with 1,081 stores, is rapidly expanding and plans to double its store count over the next four years [4][8] Company Overview - Dutch Bros focuses on fast, friendly customer service, differentiating itself from competitors like Starbucks [5] - The company is based in Arizona and has a presence in 24 states, with plans to open at least 170 new stores this year [5] Growth Metrics - Dutch Bros reported a 25% year-over-year sales increase in the third quarter, with adjusted earnings per share rising from $0.16 to $0.19 [7] - The company is generating positive free cash flow while maintaining steady capital expenditures, indicating strong management and a viable long-term business [7] Investment Potential - Investors may find Dutch Bros more appealing than Starbucks due to Starbucks' recent struggles and limited growth potential [8] - Dutch Bros has a vision for expanding to 7,000 stores, presenting a significant opportunity for long-term shareholders [8]