itstargetnews
With a market cap of $110 billion, revenue of $9.9 billion in the first quarter of fiscal year 2026 (ending December 28, 2025), and more than 41,000 stores worldwide, starbucks (NASDAQ: SBUX) is the king of the coffee retail market. But the consumer favorite hasn’t been operating at full strength. And CEO Brian Niccol is trying to turn things around, with the stock trading 23% below its peak (as of Feb. 4).
Investors may find a more exciting opportunity elsewhere in the industry. There is a little known one coffee broth that’s running laps around Starbucks.
Where to invest $1000 right now? Our team of analysts just revealed what they think they are 10 best stocks buy now, when you join Stock Advisor. View stocks »
Here are three things to know.
Dutch brothers (NYSE: BROS) generates almost 75% of its revenue after 10am This contrasts with the leading chains, which get half of their sales after 10am
The advantage for Dutch Bros is that their demand is more spread throughout the day. This can make it easier for store management teams to customize their locations and manage customer traffic. And its steady sales support the company’s goal of $1.8 billion in average annual unit volumes. Also, Dutch Bros probably attracts a different type of customer than the morning commuter.
Meanwhile, Dutch Bros sees an opportunity and is using food to target a larger audience.
“As we expand the food program throughout 2026, we aim to be a one-stop shop during the morning session,” CEO Christine Barone said on the 2025 third quarter earnings call.
Before reporting same-store sales growth in the fourth quarter of 2025, Starbucks posted six consecutive quarters of declines. This metric indicates the year-over-year performance of existing locations, and growth indicates operational health.
At the same time, Dutch Bros posted 12 consecutive quarters of same-store sales increases, a streak that is still active. It stands out in the sector.
Starbucks’ guidance calls for same-store sales to rise 3% in fiscal 2026, an encouraging trend. This perspective also holds good for Dutch Bros.
Investors may not be too familiar with Dutch Bros given its relatively small market cap of $9 billion and the fact that it only had 1,081 locations as of September 30, 2025. It’s small compared to its larger peer.
This setup just means there’s a lot more room for expansion. The Dutch Bros leadership team believes there is room for 7,000 stores in the US. There is a significant space in the east and north of the country. If the company begins to realize its potential, revenues and profits will soar.
