The Ultimate Growth Stock to Buy With $500 Right Now
Key Points
Dutch Bros' revenue growth is accelerating, and it's not just coming from new stores.
The company has massive long-term expansion opportunities.
Dutch Bros stock is trading close to an all-time low valuation.
- 10 stocks we like better than Dutch Bros ›
The S&P 500 is up 8% year to date, driven by artificial intelligence (AI). For example, the Global X Artificial Intelligence & Technology ETF is up about 19% this year, outpacing the broader market.
No one knows today whether the trend will boom and then bust, or stick around forever, but smart investors should make sure to diversify into other growth spaces, too. If you're looking for an excellent growth stock outside of AI and you have $500 to invest, consider Dutch Bros (NYSE: BROS). It could be the ultimate growth stock to buy with $500.
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Image source: Dutch Bros.
It's fast-growing
The first thing you want to see in a top growth stock is that it's growing. Dutch Bros has been growing rapidly since it went public five years ago, and growth has been accelerating.
The growth is coming from a combination of new stores and higher comparable sales (comps). The comps piece was looking iffy for a while when inflation started rising, but the company has been able to get past that by keeping its prices low, increasing its brand awareness, and rolling out a new rewards program.
| Metric | Q2 25 | Q3 25 | Q4 25 | Q1 26 |
|---|---|---|---|---|
| Revenue growth | 28% | 25% | 29% | 31% |
| Comps growth | 6.1% | 5.7% | 7.7% | 8.3% |
Data source: Dutch Bros quarterly reports. All growth is year over year.
It has tons of future opportunities
A main component of the company's growth strategy is expansion. Dutch Bros had about 500 stores when it went public in 2021, and it doubled that in four years. It's looking to double again by 2029, reaching 2,029 stores. The company is already in 25 states as of the end of the first quarter, and it plans to enter more states and reach 7,000 stores over time.
It's profitable
A top growth stock should be profitable, since that's the basis of confidence that it can succeed in the long term. Dutch Bros has been reporting higher profits, with a 26% increase in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the first quarter, and net income of $23.7 million, up from $22.5 million last year.
It's gotten a lot cheaper
Finally, a great growth stock is cheap enough that not all the growth is priced in yet. Dutch Bros stock isn't objectively cheap, since the market gives it a premium for its performance and opportunity. But at 83 times trailing-12-month earnings, it's near the cheapest it's ever been, and now could be a good time to take a position.
Should you buy stock in Dutch Bros right now?
Before you buy stock in Dutch Bros, consider this:
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Jennifer Saibil has positions in Dutch Bros. The Motley Fool has positions in and recommends Dutch Bros. The Motley Fool has a disclosure policy.
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