Is Dutch Bros a Buy?
You probably know someone (maybe it's you) who can't function in the morning without their cup of coffee. The need for people to get their morning fix, combined with strong branding, has made Starbucks an all-time great investment -- up more than 30,000% since its initial public offering in the early 1990s.
Another West Coast coffee chain has gone public, Dutch Bros (NYSE: BROS), and it's made a splash with its flashy product lineup and quick, drive-thru service. It's always bold to call anything "the next one," but here are three reasons why Dutch Bros has the long-term potential to be a big winner.
Dutch Bros follows a similar playbook to Starbucks, creating a brand that resonates with its target audience to build customer loyalty. The company targets young consumers, who likely don't have loyalty to incumbent brands yet, enticing them with products like Iced Tiger's Blood Lemonade or Iced Electric Berry Rebel -- drinks with caffeine, colorful names, and equally flashy looks.
Source Fool.com
