Best Stock to Buy and Hold Forever: Dutch Bros vs. Starbucks
Key Points
Dutch Bros continues to open new stores at a brisk pace, which should lead to higher profits down the road.
As it undertakes a major turnaround, Starbucks is working on ways to drive customer excitement.
Between these two coffee chains, the better investment opportunity for those seeking big returns is clear.
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The battle over where consumers get their caffeine fix is intense. Dutch Bros (NYSE: BROS) is the fast-growing industry player that's looking to quickly steal market share. There's also Starbucks (NASDAQ: SBUX), which operates a massive physical footprint. Shares in both businesses are trading well off their peaks right now.
Between these two coffee stocks, which is the best one to buy and hold forever?
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Dutch Bros is pushing for major growth
The biggest bull argument for Dutch Bros rests on its growth outlook. The company ended 2025 with 1,136 shops, up 16% from exactly 12 months before. The leadership team has set an explicit target to have 2,029 locations open in 2,029. And it's expanded the total addressable market to 7,000 stores.
Given that Dutch Bros is in only 25 states today, there is a clear opportunity to expand in different parts of the country. And this should provide a powerful tailwind for revenue growth. Profits, which have been soaring, should be much higher in the future.
These locations are performing well, too. "Our fundamentals remain sound, as we have delivered nineteen consecutive years of positive same-shop sales growth," CEO Christine Barone said on the Q4 2025 earnings call.
Starbucks is working on turnaround efforts
Things haven't been going as smoothly at Starbucks, which reported six straight quarters of same-store sales declines before ending the streak in Q4 2025. Management is working on turning the business around, as it looks to drive greater interest among consumers with renovated restaurants and an upgraded rewards program, for instance.
To its credit, Starbucks has built a wide economic moat. Its brand is well known to consumers around the world. And with $9.9 billion in Q1 2026 revenue, the company can invest in its labor, technology, and menu innovation in meaningful ways.
Wall Street is optimistic. The consensus view is that earnings per share will increase by 67% between fiscal 2025 and fiscal 2028. Bullish investors want the gains to continue.
If you want to beat the market, the winner is obvious
Risk-averse investors looking to play it safe might choose Starbucks. After all, it has a much longer operating history, tremendous brand recognition, and an economic moat. But the stock isn't cheap, as it trades at a forward price-to-earnings ratio of 40.8. Shareholders in this business aren't setting themselves up to achieve strong returns over the long term.
That's why I think Dutch Bros is the better stock to buy and hold forever. Nothing is guaranteed, for sure. Provided that the management team can execute its growth playbook, however, and rapidly scale up the profit base, this company is in position to generate robust returns.
Should you buy stock in Dutch Bros right now?
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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.
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