Best Consumer Growth Stock to Buy Right Now: Dutch Bros or Chipotle?
Key Points
Dutch Bros is delivering high revenue growth and is expanding margins, but it has a dangerously high valuation.
Chipotle's growth days are starting to fade, with the company maintaining moderate revenue gains.
Chipotle may be the better pick due to its valuation, while Dutch Bros runs the risk of a Cava-style correction.
- These 10 stocks could mint the next wave of millionaires ›
Chipotle (NYSE: CMG) has focused on offering fast food that's healthier than the average fast-food joint, while Dutch Bros (NYSE: BROS) is building a coffee chain that's growing faster than Starbucks.
Both consumer growth stocks took breathers in 2025, with Dutch Bros barely up over the past year and Chipotle losing almost 30% of its value during the same stretch.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Here's what investors should know when assessing both stocks.
Image source: Getty Images.
Dutch Bros still looks like a growth stock
If you are just looking at revenue growth, Dutch Bros is the clear winner. The company posted 25% year-over-year revenue growth in the third quarter of 2025, while Chipotle only boosted sales by 7.5% year over year in Q3.
Dutch Bros also won on comparable sales, posting 5.7% year-over-year growth compared to Chipotle's 0.3% year-over-year growth. Low comparable sales growth may be a sign that Chipotle is struggling to retain customers. Although the fast-food chain still posted positive growth, part of those gains can be attributed to inflation.
Dutch Bros posted higher comparable sales growth, but the gap between revenue and comparable sales growth rates suggests that most of Dutch Bros' sales growth depends on opening new stores.
Chipotle has a much better valuation
Although Dutch Bros is growing faster, its valuation is sky-high. The coffee chain's stock trades at a 124 P/E ratio, and Chipotle has a more reasonable 35 P/E ratio. Dutch Bros is expanding its margins and will have a lower valuation in the future, but its current price point gives the company very little room for error.
Chipotle's valuation gives it more room to make mistakes, and if revenue growth reaccelerates, the stock may produce some gains. Dutch Bros, on the other hand, must maintain high revenue growth rates and expand margins for a prolonged stretch to justify its valuation.
While Dutch Bros may look good if revenue growth continues, it can wind up suffering Cava's (NYSE: CAVA) fate. Cava was a leading fast-food restaurant stock that almost tripled in 2024. High growth rates and rising margins were key factors, but the blow-up proceeded in 2025, with the stock dropping by almost 50% during that stretch.
Cava still grows revenue at around 20% each year, but decelerating growth rates and narrower profit margins were key factors that brought the stock down. Cava is still doing well as a business and is opening new locations, but its stock was overvalued and crashed accordingly.
Dutch Bros' valuation puts it at risk of suffering the same fate, even if the company continues to expand operations. Although Chipotle's hyper-growth days seem to be over, it looks more attractive than Dutch Bros due to its valuation.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
- Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $485,156!*
- Apple: if you invested $1,000 when we doubled down in 2008, you’d have $49,122!*
- Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $474,847!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
See the 3 stocks »
*Stock Advisor returns as of January 17, 2026.
Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cava Group, Chipotle Mexican Grill, and Starbucks. The Motley Fool recommends Dutch Bros and recommends the following options: short March 2026 $42.50 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
Recommended Articles
