Why I Believe Dutch Bros Stock Will Double by the End of the Decade

One of the arguably surprising growth stories in recent years has been Dutch Bros (NYSE: BROS). The beverage chain is well into a regional-to-national expansion as it seeks to compete with Starbucks and other coffee shops.

Moreover, as Starbucks is in the process of revamping itself, Dutch Bros is on a full-steam-ahead path to growth. That likely means the coffee stock could double in value by the end of the decade, and here's why.

Image source: Dutch Bros.

The path to a double

One aspect of Dutch Bros' growth is glaringly obvious because its footprint is on track to nearly double by 2029.

The company has outlined a plan to grow to 2,029 locations by 2029. As of the end of the first quarter of 2026, it operated 1,177 shops in 25 states.

That means an approximate 72% increase in the number of shops. Fortunately, that is likely achievable since it operates in tiny, drive-thru locations that it can build relatively quickly.

The remaining growth will come from its rising popularity. Dutch Bros increased same-store sales by 8.3% year over year. Also, transaction growth came to 5.1% during the same period.

Dutch Bros has overcome intense competition in its industry by doing things differently. For one, it designed its drive-thru model for rapid orders, using staff to take orders in the line and accept payments ahead of time, increasing the number of cars that it can serve.

Additionally, its employees emphasize enthusiasm and speed, improving the customer experience. Thus, customers tend to visit for that interaction. Also, the proprietary energy drinks they order and the toppings and syrups they often buy tend to command high margins and premium pricing, which helps Dutch Bros' top line.

Knowing that, it is little wonder the company grew by 31% in Q1. Also, the fact that revenue grew 28% during 2025 shows that the growth is not a one-time event.

Indeed, that resulted in only a profit increase of just 5% in Q1. Nonetheless, Dutch Bros is investing heavily in growing its business, which should accelerate profit growth in the longer term.

The lower profit makes the 101 P/E ratio a misleading valuation measurement. However, if they compare Dutch Bros' price-to-sales (P/S) ratio to that of Starbucks, investors will likely become more comfortable with paying a premium.

BROS PS Ratio data by YCharts

Dutch Bros at the end of the decade

Considering its growing footprint and increased popularity, Dutch Bros stock should double in value over the rest of the decade.

Although expansion costs are high in the near term, the added footprint should cover most of the needed increase in revenue. The remainder should come as Dutch Bros builds a following in its local markets, which should keep same-store sales rising.

Thus, while a doubling of the stock may not be the most surprising development given its rapid expansion, its business model could make it the best investment opportunity in the eyes of many investors.

Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Dutch Bros and Starbucks. The Motley Fool has a disclosure policy.