Better Buy: Starbucks vs. Dutch Bros
For many coffee drinkers, Starbucks (NASDAQ: SBUX) has become a household name. After decades of growth, it's difficult to travel anywhere and not see a Starbucks location. However, for those who live in the 14 states where Dutch Bros (NYSE: BROS) operates, its rapid store-count growth and unique drive-thru experience may be turning some heads.
Starbucks has been a massive winner for investors over the 30-plus years it's been a publicly traded company. Conversely, Dutch Bros made its initial public offering (IPO) in September of 2021 and is growing rapidly. Investors may be wondering which is the better buy in 2023, so here's the case for each company.
Since its IPO, Starbucks stock has gained almost 39,000%. Put another way, a $10,000 investment on its first day trading as a public company would be worth $3.9 million today. By comparison, the same investment in an S&P 500 index fund would be worth approximately $189,000. However, the last few years have been more difficult for the company, with its total return matching that of the S&P 500 since the beginning of 2020.
Source Fool.com
