The Ultimate Growth Stock to Buy With $1,000 Right Now
Key Points
This exciting company has plans to expand its store footprint by 79% before the end of 2029.
Operating income is expected to increase at a compound annual rate of 29.3% between 2025 and 2028.
The valuation doesn’t look cheap, but the potential upside is significant for patient investors.
- 10 stocks we like better than Dutch Bros ›
Warren Buffett certainly popularized the concept of value investing. This involves buying companies for less than their estimated worth and has worked well for the Oracle of Omaha.
However, there are many investors who want to own businesses that are rapidly increasing their revenue and profits, and this group of market participants is in luck. Here's the ultimate growth stock to buy with $1,000 right now.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
Finding success in a competitive market
Investors should get familiar with Dutch Bros (NYSE: BROS). The company operates and franchises small-format coffee shops that generally only serve customers via drive-throughs. Success stems from a highly customizable menu, personalized service, and fast order completion times.
There were 1,136 Dutch Bros locations scattered across the country, mainly in the western and southern parts of the U.S., as of Dec. 31, 2025. Just five years before, there were only 441 stores. That translates to a remarkable 158% growth rate.
The retail coffee market might be one of the most competitive industries, but Dutch Bros is finding notable success. Its same-store sales streak, consisting of positive growth in at least the last three years, is indicative of the durability of its business model. This stands out, particularly against Starbucks, which has struggled.
Dutch Bros' leadership team has high hopes. The clear objective is to have 2,029 shops open by 2029, which represents 79% growth, compared to today. The target market opportunity in the U.S. is now 7,000 stores, up from a previous estimate of 4,000. There's ample opportunity to open new locations in the Midwest and on the East Coast.
Why now?
Shares of Dutch Bros have been extremely volatile, and this can be a distraction for investors. The main focus should rest on the company's fundamentals -- and they look strong.
Dutch Bros increased revenue by 27.9% year over year in 2025 to $1.6 billion. Its operating income surged 51.9%. These are all positive trends.
Wall Street analysts believe that the future will bring more financial success. Over the next three years, the consensus estimate calls for revenue and operating income to rise at compound annual rates of 24.7% and 29.3%, respectively. Dutch Bros' ongoing success, especially at a time of heightened economic uncertainty, should give prospective investors the confidence they need.
It's a smart idea to consider getting in on Dutch Bros now. The valuation doesn't exactly look cheap, with shares trading at a forward price-to-earnings ratio of 64.1. But investors have the chance to buy this exciting coffee stock while it's still in the early stages of its long-term growth trajectory. This is the perfect setup that can reward patient investors willing to hold for five years.
Should you buy stock 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 $514,000!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,029!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 187% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of March 14, 2026.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Dutch Bros and Starbucks. The Motley Fool has a disclosure policy.
Recommended Articles
