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Investors looking to tap into the growing demand for coffee have two very different options in Dutch Bros Inc. (BROS) and Keurig Dr Pepper Inc. (KDP). Dutch Bros is a fast-expanding drive-thru coffee chain appealing to younger consumers with its energetic brand and ambitious store growth plans. Keurig Dr Pepper, meanwhile, dominates the at-home coffee market through its Keurig single-serve brewers while also benefiting from a broad beverage portfolio.

The question for investors is whether Dutch Bros’ high-growth trajectory or Keurig’s scale and stability makes for the stronger brew in today’s market.

The Case For BROS

Dutch Bros is emerging as one of the fastest-growing players in the U.S. coffee market, with its expansion strategy showing tangible results. In second-quarter 2025, revenues increased nearly 28% year over year, same-shop sales increased 6.1%, and adjusted EBITDA jumped 37%. These gains were fueled not just by pricing, but by consistent transaction growth and an aggressive store-opening plan.

Management reaffirmed its goal of adding at least 160 shops this year, positioning the company on track toward its ambitious target of 2,029 locations by 2029. Strong new-unit productivity and consumer enthusiasm at grand openings demonstrate that the brand continues to resonate in both established and newer markets.

Beyond rapid expansion, Dutch Bros is strengthening customer loyalty and engagement. Its Dutch Rewards program now drives about 72% of transactions, giving the company powerful data to personalize offers and deepen relationships. Mobile ordering, which accounts for a growing share of sales in newer markets, is expanding throughput and attracting repeat customers, especially during the morning daypart.

Meanwhile, food pilots are showing encouraging signs of incremental ticket growth, offering another lever for higher average unit volumes. Together, these initiatives highlight a business model that goes beyond coffee to capture more wallet share from its customer base.

Looking ahead, Dutch Bros is positioning itself to diversify revenue streams further, with plans to launch consumer packaged goods in 2026. This move may extend brand awareness and tap into at-home consumption while reinforcing its retail footprint.

Backed by strong unit-level economics, disciplined real estate planning and a people-first culture that fuels execution, Dutch Bros has a long runway of growth ahead. For investors seeking a high-growth coffee stock with national expansion potential, BROS presents a compelling case.

The Case For KDP

Keurig Dr Pepper brings scale and diversification that few beverage companies can match. In second-quarter 2025, revenues climbed more than 6% year over year to $4.16 billion, supported by broad-based gains across soft drinks, energy, hydration and coffee.

While not growing as fast as niche players like Dutch Bros, KDP’s strength lies in its balanced portfolio. Flagship Dr Pepper continues to gain market share, while the company is aggressively expanding into high-growth categories like energy drinks through GHOST, C4, Bloom and Black Rifle Coffee. Together, these brands generate more than $1 billion in annual run-rate sales, and management sees a clear path to double-digit market share in the $26-billion energy segment.

KDP’s coffee business remains a key strategic pillar, even as it faces near-term challenges from tariffs and green coffee inflation. The company is taking steps to reignite growth by expanding into premium and cold categories, rolling out innovations like Lavazza dessert-inspired K-Cups, and driving strong momentum in ready-to-drink offerings through its La Colombe brand.

New brewers such as the entry-level K-Mini Mate and premium K-Crema aim to widen household penetration, while the next-generation Keurig Alta system, with plastic-free pods, targets a late-2026 launch. These initiatives show how KDP is leveraging its massive installed base to extend its reach in both at-home and away-from-home coffee consumption.

Beyond product innovation, KDP’s competitive edge lies in its distribution muscle. The company continues to expand its direct-store-delivery network, recently taking back Dr Pepper distribution in parts of California, Nevada and the Midwest. This not only strengthens its control over key brands but also enhances efficiency across its growing energy, hydration and coffee portfolios.

Backed by a consistent free cash flow, a disciplined capital allocation strategy and a steadily rising dividend, KDP offers investors a blend of stability and growth. While its trajectory may be steadier than Dutch Bros’ rapid expansion, its diversified platform and scale give it a long-term runway across multiple beverage categories.

How Does Zacks Consensus Estimate Compare for BROS & KDP?

The Zacks Consensus Estimate for Dutch Bros’ 2025 sales and EPS suggests year-over-year increases of 25% and 38.8%, respectively. In the past 60 days, earnings estimates for 2025 have risen 15.3%.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Keurig Dr Pepper’s 2025 sales suggests a year-over-year rally of 6.1%, while that for earnings per share (EPS) indicates a gain of 6.8%. In the past 60 days, earnings estimates for 2025 have increased 0.5%.

Image Source: Zacks Investment Research

Price Performance & Valuation of BROS & KDP

Dutch Bros’ shares have surged 79% in the past year. Meanwhile, the KDP stock has declined 28.7%.

BROS & KDP Stock 1-Year Price Performance

Image Source: Zacks Investment Research

BROS’ forward 12-month price-to-sales (P/S) multiple sits at 5.47X over the past year. KDP is trading at a forward 12-month P/S ratio of 2.17X.

P/S (F12M)

Image Source: Zacks Investment Research

Wrapping Up

Dutch Bros offers investors a compelling high-growth story, fueled by rapid store expansion, strong customer engagement through loyalty and mobile initiatives, and plans to extend into consumer packaged goods, making it an attractive buy for those seeking exposure to the next wave of coffee growth.

In contrast, Keurig Dr Pepper provides scale, stability and steady cash flow through its diversified beverage portfolio and strong distribution network, making it a solid hold for existing investors.

However, with its slower growth profile and lack of near-term catalysts, fresh buys in KDP should be restricted until clearer signs of momentum emerge.

BROS carries a Zacks Rank #2 (Buy), whereas KDP has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.