Starbucks Is Bouncing Back. Here's Why Dutch Bros Is Still the Better Long-Term Buy.
A revitalized industry leader is borrowing a page from the Dutch Bros playbook to capture share of a growing category.
Overview
Starbucks (NASDAQ: SBUX) is starting to look like its former self as U.S. same-store sales grew 7.9% in the third quarter, fueled by a 4.2% increase in transactions. CEO Brian Niccol's "back to Starbucks" plan is working faster than expected, and the sales growth is a welcomed improvement for investors.
The coffee chain raised its full-year guidance, with earnings per share (EPS) now expected to be around $2.60, representing year-over-year growth of 22%. The company's priority is sales growth, with global same-store sales growth expected to approach 6% for the full year.
Details
Starbucks' strong quarter provides the backdrop for Dutch Bros (NYSE: BROS), which reports second-quarter results on Aug. 5. Both companies benefit from the growing demand for cold, caffeinated drinks. Starbucks is just beginning to scale its made-to-order energy drink lineup, while Dutch Bros has been riding that wave since its early days as a Pacific Northwest drive-thru chain.
Source
Originally published at www.fool.com.