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Dutch Bros (NYSE: BROS) is struggling. At least, that's the way it looks when you're checking out its stock chart. The coffee chain's share price is down 33% year-to-date as of Oct. 16. At the same time, Dutch Bros is doing pretty much everything right.
Is the fast-growing coffee stock a good buy right now?
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I'm not kidding about the company's business performance.
Dutch Bros keeps beating analyst expectations across the board in every earnings report, often by a wide margin.
Trailing sales are up 58% over the last three years. The store count increased by 62% to 1,225 locations over the same period. Diluted earnings per share? Up 142%. Free cash flow tripled.
Same-store sales also tick up in almost every report, including a 3.8% year-over-year jump in Q2 2026.
And the founder-led management team has a very specific growth plan. Dutch Bros should have 2,029 stores in the year 2029. Beyond that punny target, the company could reach 7,000 domestic stores before looking for international growth.
Dutch Bros backs up its strong results and ambitious plans with concrete business advantages.
Customer-friendly baristas are kind of expected at every coffee shop, but an outgoing personality is a written requirement for this company's "broistas." A wide variety of flavoring syrups and toppings lets every customer create their own dream drink. In hot, humid states or seasons, the company sells a ton of energy refreshers and blended freeze coffees -- cold drinks for a warm day.
And the company's focus on the drive-through experience brings another important advantage. The shops don't come with sit-down dining areas that require cleaning and maintenance. Furthermore, the resulting tiny footprint makes the store construction a bit faster and cheaper. The network would expand much more slowly if Dutch Bros insisted on cozy sit-downs in the Starbucks style.
So yes, it's time to buy this stock. Dutch Bros is doing everything right except pleasing the stock market. The business keeps firing on all cylinders, and the market is handing out a 33% discount on a long-term growth story.
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Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Starbucks. The Motley Fool has a disclosure policy.
Dutch Bros Has Lost a Third of Its Value in 2026. Is It Time to Buy? was originally published by The Motley Fool
