Dutch Bros' Growth Story in 1 Clear Chart

Key Points

• Specialty beverages chain Dutch Bros is growing its store count by double digits annually.

• Now, the company is funding these expansion plans in-house, from its own positive cash flows.

• This should help it avoid diluting shareholder value, making it an intriguing growth stock to buy.

• 10 stocks we like better than Dutch Bros ›

There hardly ever seems to be a shortage of up-and-coming stocks offering blistering sales growth rates. However, the list of these growth stocks with positive cash generation and minimal shareholder dilution is much, much shorter.

One promising young company that offers investors this blend of high growth and cash creation is handcrafted beverages chain Dutch Bros (NYSE: BROS). With its stock down 30% in just the last month, here's why now is the perfect time to consider buying Dutch Bros shares.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Dutch Bros' growth potential in one chart

Dutch Bros primarily sells iced and blended drinks, whether they're coffee and energy drinks or smoothies and shakes. Its drive-thru focus with escape lanes offers customers a differentiated, to-go option.

The company has quickly built a cult-like following among its loyal members and has doubled its store count to over 1,000 locations between 2021 and today. However, Dutch Bros' shares outstanding have nearly tripled over this same time, as management leaned on new share offerings to raise money for new store growth.

Image source: Dutch Bros.

This ballooning share count diluted shareholders' value heavily and made the company nearly uninvestable in my eyes at the time. Dutch Bros changed my opinion on this matter late in 2024 when it reached a massive tipping point: earning more in cash from operations (CFO) than it spent on capital expenditures for new stores.

Data by YCharts

The inflection point in the top chart is critical because the company is now funding its store count expansion ambitions in-house, rather than relying upon new share offerings.

Despite spending $200 million on capex to open 131 new stores over the last year, Dutch Bros generated $272 million in cash from operations, netting $73 million in free cash flow after these two are combined.

Planning to double its store count to 2,029 locations by 2029, with a total addressable market of 7,000-plus stores nationwide over the long haul, Dutch Bros offers immense potential at just 35 times CFO.

Should you invest $1,000 in Dutch Bros right now?

Before you buy stock in Dutch Bros, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Dutch Bros wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $646,567!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,143,710!*

Now, it’s worth noting Stock Advisor’s total average return is 1,072% — a market-crushing outperformance compared to 191% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of September 29, 2025

Josh Kohn-Lindquist has positions in Dutch Bros. The Motley Fool recommends Dutch Bros. The Motley Fool has a disclosure policy.