Just when investors received good noise from the soaring price of Starbucks Corp. shares price. NASDAQ: SBUX and Dutch Bros Inc. NYSE: BrosBoth shares were struck by the increase in coffee prices. Starbucks has decreased by more than 4% over the past 30 days, and the Dutch BROS decreased by 12%.
The threat of tariffs and a possible recession does not help issues and makes investors think about whether these shares of fair value are approaching or they are falling knives. Both companies offer reliable basic foundations, but at a time when investors crave growth, investors should investors pull any of these two retail shares?
Two different stories
Starbucks today
As of 03/14/2025 21:00
- 52-week range
- $ 71.55
▼
$ 117.46
- Dividend yield
- 2.49%
- P/e ratio.
- 31.65
- Value is valuable
- $ 105.75
Both Starbucks and Dutch BROS are in the retail sector, but they also have the characteristics of consumer discretions. That is, consumers can decide to abandon their usual drinking procedure when discretional dollars are tense. However, both companies have a passionate client base that makes them
Starbucks is the leader of the category and is an international phenomenon with almost 17,000 stores in the United States as of February 2025. Although the idea of a local coffee shop existed in front of Starbucks, the company changed how many consumers think about coffee.
The management of the company category appears in its financial indicators. Starbucks brought $ 3.10 to a campaign of $ 36.1 billion. USA in 2024. Both numbers were lower than the annual similar period (YOY). This was one of the reasons why the company is in the middle of the transformation led by the former executive director of Cipotle Mexican Grill (General Director) Brian Nikol.
Dutch brothers today
- 52-week range
- $ 26.85
▼
$ 86.88
- P/e ratio.
- 183.53
- Value is valuable
- $ 75.75
Dutch Bros is a relatively new child in a block, as far as investors.
Despite the fact that the company has been publicly available since 2021, it has a devoted client base that attracts the taste of its drinks and its commitment to a change in the communities in which it works.
Speaking about this, the Dutch Bros have a smaller area than Starbucks. The company opened its 1000th place in Orlando, Florida, in February 2025.
BROS shares were one of the most effective shares of 2024, and this trend continued in 2025. Even when selling, it still increased by 11% in 2025 and 92.6% over the past 12 months.
Your daily correction is becoming more expensive
Coffee prices rise, the trend obvious to permanent visitors to popular coffee places. What may be less known is that the prices for coffee for Arabica increased by more than 70% since November 2024, having reached a record high level in February-1977 become invisible.
The reaction of the knee reflex would be to blame tariffs. And the threat of tariffs (real or imaginary) plays a role. Coffee futures in January grew out of the threat of the Trump administration by 25% of the tariff for the country, which is responsible for 30% of US coffee imports. However, at the time of writing this article, the most concern about tariffs is the uncertainty about when and if they are created.
But there are other problems. One of the most important is what is called “black frost” in Brazil, which affects the productivity of the coffee plant. Frost goes when the country is still in the midst of a strong drought.
This is important because Brazil, Colombia and Salvador are three countries, of which the Dutch Bros acquire 100% Arab beans, which make up the company’s branded mixture of the company.
In contrast, Starbucks brings coffee from more than 30 countries. Although it has a severe impact on Latin America, it also interprets some of its unique Frying from Africa and the Asia -Tikhoocaanian region. Nevertheless, Starbucks buys approximately 3% of the total stock of coffee in the world, so even its geographical diversity does not protect it from price pressure.
If you had to choose one
Both shares are traded on premium grades, it is difficult to give a recommendation for one over another. BROS shares are traded from more than 111x profits, which forces SBUX shares to look relatively cheap with 35 -fold income.
Regardless of how this is considered, investors pay a prize for growth, and both shares are still traded much higher than their 200-day simple sliding funds, despite the recent decline.
For those who are focused on growth, you may need to postpone problems with the assessment. The movement below the 200-day sliding average can provide the possibility of purchasing for BROS shares, which, although it is still highly valued, is used to increase income and expansion, at the same time it will be less to affect the price fluctuations for coffee.
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