Invest in This One Growth Stock Now That It's 56% Off (Part-1)

Do you appreciate buying promising stocks on sale? Then invest in Dutch Bros (NYSE: BROS), a rising coffee chain. It's down 56% from its 2021 peak, but it may be recovering and headed higher. Investors are beginning to believe its recent rapid expansion will continue.

The Dutch Bros tale Dutch Bros runs 830 drive-thru coffee outlets in 16 states and made $254 million in 2023's fourth quarter. It's crowded, with Starbucks (NASDAQ: SBUX) and McDonald's (NYSE: MCD) already open almost anywhere Dutch Bros wants to open.

However, this smaller organization can offer a more personalized service. The staff at Dutch Bros. knows its regular clients by name and supports local, community-minded groups. Workers sometimes fundraise for needy coworkers. It seeks a "people-first culture" that creates a "massive difference in the lives of our employees, customers and communities." Drive-thru barista serving coffee.

This strategy works, according to numbers. Last quarter's top line rose 26% year over year, powered by new store openings and 5% same-store sales growth.

 Only 671 Dutch Bros locations existed a year ago. It has been increasing at this rate for years, and management expects more in 2024. The analyst community expects the company to keep growing until 2028.

Dutch Bros hopes to open 4,000 outlets ultimately. Though aspirational, that ambition isn't ridiculous. Additionally, Dutch Bros is lucrative. Not every company its age, size, and category can say that.

Competitive advantage of this coffee drive-thru chain Starbucks improved coffee drinking experiences, while Dunkin Donuts and McDonald's offer value and convenience. Don't ignore the benefits of being small—although Dutch Bros' benefits may not be visible.

In an era where faceless technology apps simplify purchases and warm customer service is rare, Dutch Bros' personality stands out. Its competitive edge goes beyond that. The evolution of consumers is also essential. Younger generations avoid McDonald's and Starbucks in favor of more real businesses.

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