The Ultimate Growth Stock to Buy With $1,000 Right Now (and I Bet It's Not the One You're Thinking Of)

Top growth stocks are often in the tech area, but not all of them. In fact, you can often find the best opportunities where others aren't looking.

If you have $1,000 to invest, Coffee shop chain Dutch Bros (NYSE:BROS) is the ultimate growth stock to buy now. Here's why.

Image source: Dutch Bros.

A product people want

Successful investors like Warren Buffett and Peter Lynch advise followers to buy stock in companies they know and understand. Instead of chasing hot stock tips, look around at what people are using and liking. If everyone you know is enjoying a certain product, there's a good chance that its stock is going to reward you.

Dutch Bros is a small coffee shop chain that's expanding at a fast pace. It's become popular in the 25 states where it already operates, and it has plans to keep entering new ones.

There are several ways Dutch Bros stands out from other chains. Although it calls itself a coffee shop chain, it's known for its customizable cold beverages that may not even include coffee. It has exclusive drinks and a robust innovation engine. It was the first major chain to popularize the boba concept, and it recently launched a low-calorie energy line called Myst.

Dutch Bros is also opening new stores that meet changing demand. Most of its stores are drive-thru only, but it has walk-up windows and dining areas depending on location.

Solid performance in a challenging environment

The proof is in the performance. The company is still demonstrating high growth like a young tech disruptor, with a 32% year-over year increase in the 2026 second quarter. The most important piece of that is the same-store sales, which were up 5.8%. And even more critical is that it was the eighth consecutive quarter with transaction growth -- that implies that people are coming in more, and growth isn't coming only from new stores or higher prices.

Another reason it's reliable for long-term growth is its market opportunity. It's not a vague or unsubstantial number, as some tech stocks offer, but management sees the potential to operate 7,000 stores over the next several years, nearly sevenfold from its current count of 1,225 locations. That's a long growth runway from new stores alone.

Dutch Bros is also generating positive and increasing net income, indicating that the company is growing efficiently. It was $51.6 million in the quarter, up from $38.4 million the year before.

Finally, while Dutch Bros stock isn't objectively cheap, it's trading at its lowest P/E ratio since it became profitable.

BROS PE Ratio data by YCharts

If you're in search of an overlooked opportunity, or an excellent growth stock outside of tech, Dutch Bros is an excellent candidate.

Jennifer Saibil has positions in Dutch Bros. The Motley Fool has positions in and recommends Dutch Bros. The Motley Fool has a disclosure policy.