Celsius vs. Dutch Bros: Which Growth Stock Wins in This Market?
Key Points
With its notable acquisition of Alani Nu, Celsius is rounding out its portfolio of health-focused energy drinks.
Dutch Bros continues to open new coffee shops around the country, and management has its sights on a big target.
The better growth stock to buy trades at a more expensive valuation relative to 2028 earnings estimates.
- 10 stocks we like better than Celsius Holdings ›
While an extremely volatile stock, Celsius (NASDAQ: CELH) has been a monster winner for investors that timed it correctly. Shares in the energy drink business skyrocketed 7,330% during the five-year period leading up to their peak in March 2024.
Investors interested in the beverage industry can also look at Dutch Bros (NYSE: BROS). The popular coffeehouse chain is rapidly expanding across the country.
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Which of these growth stocks, both trading substantially off their records, wins in this market?
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Celsius benefits from notable industry tailwinds
Celsius has made a splash in the energy drink category. Its product lineup, bolstered by the recent acquisitions of Alani Nu in 2025, benefits from heightened consumer interest in healthy options. The company's wellness-focused and sugar-free beverages give it a strong position in a crowded industry.
Revenue is projected to increase 20% between 2026 (the first full year that includes the financial performance of Alani Nu) and 2028, according to consensus analyst estimates. That's not as impressive as past gains, but diluted earnings per share (EPS) are projected to rise at an even faster 55% clip.
Management's growth playbook relies on consistent product innovation, with a focus recently on new flavor profiles and noncarbonated energy drinks. What's more, Celsius, which gets the vast majority of its sales in North America, is tapping other markets. Its products are sold in multiple European countries, Australia, and New Zealand.
Dutch Bros is targeting significant new store openings
Known for its drive-thru locations, customer service, and highly customizable menu, Dutch Bros is achieving notable growth in the retail coffee market. It had 1,136 stores at the end of 2025, up from 671 just three years before. The leadership team wants to have 2,029 locations open by 2029. And in the long run, Dutch Bros thinks the U.S. can handle 7,000 shops.
This strategic playbook lifts revenue, which increased 27.9% last year compared to 2024. Opportunities for growth come from adding food to the menu across the entire store footprint, for example.
Net income surged 76.4% in 2025, as the business starts to benefit from operating leverage. This trend should continue, provided Dutch Bros can control its expenses.
Dutch Bros' same-store sales have risen in at least the last 11 straight quarters. This is very encouraging at a time of heightened economic uncertainty.
Dutch Bros trades at a more expensive price based on consensus analyst estimates for its 2028 EPS. But I believe it's starting to develop a moat, coming from its brand name and eventually a cost advantage as it scales up. This makes it a less risky opportunity than Celsius, which I think faces stiffer competition.
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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Celsius Holdings and Dutch Bros. The Motley Fool has a disclosure policy.
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