Down 30% and Still Dominant: The 1 Growth Stock Worth Buying Right Now

It's been a volatile few months in the market, with stocks bouncing up and down. Just when you think you've figured out the direction the market is heading, it makes a U-turn and starts moving the other way. While many stocks have rebounded, some have still been left behind.

One growth stock still down 30% from its highs that I really like moving forward is Dutch Bros (NYSE: BROS). The coffee shop operator has been caught up in tariff and consumer spending fears, but that hasn't affected its sales momentum or strong, long-term outlook.

Expanding intelligently

One of the biggest trends of the past few years is people indulging in beverages as a sweet treat. While Starbucks (NASDAQ: SBUX) has long played on this phenomenon, it has extended into other areas beyond coffee-based drinks. Dutch Bros has one of the most comprehensive indulgent drink line-ups, offering everything from protein coffee to dirty sodas, energy drinks, smoothies, shakes, and other sweet concoctions. This is resonating with consumers, especially younger demographics, and the company has a loyal customer base that keeps coming back for more.

The company's menu innovation, along with brand-building efforts and the introduction of mobile order ahead, have all helped propel its same-store sales growth. Meanwhile, the introduction of hot food items is set to give its stores a sales boost in the year ahead. The company has already noted that it's seen a 4% lift in the test shops that offer hot food, and that three-quarters of its stores can be configured to offer these items.

Image source: The Motley Fool.

The most exciting thing about Dutch Bros is that the company still has a long runway of growth ahead of it. It has been methodically building out new locations as it moves eastward from its West Coast roots in Oregon. Its stores tend to be small, generally with no indoor seating and two drive-thru lanes. It generates big sales from a small box, giving it strong unit economics and a fast payback period.

Importantly, the company is able to fully fund its expansion through its cash flow generation, leaving it with a strong balance sheet. At the end of 2025, it had 1,136 locations in 25 states, with plans for 2,029 locations by the end of 2029. Overall, it is looking to eventually support around 7,000 locations in the U.S.

BROS PS Ratio (Forward 1y) data by YCharts.

Between gradual same-store growth and yearly expansion, Dutch Bros has a huge growth opportunity in front of it, and it trades at a 1-year forward price-to-sales (P/S) multiple, less than the much more mature Starbucks (2.7x vs 3x). That makes it not only a great growth stock, but also a bargain.

Geoffrey Seiler has positions in Dutch Bros. The Motley Fool has positions in and recommends Dutch Bros and Starbucks. The Motley Fool has a disclosure policy.