Recently, I have heard a few people asking if it's too late to buy Dutch Bros (NYSE: BROS) after the stock has staged a 124% rally off of the 52-week low that it hit earlier this summer when growth stocks seemingly bottomed out. Dutch Bros is opening new stores at a prodigious rate, but there are still only 603 Dutch Bros in the United States. Dutch Bros is still in the early stages of its journey of becoming a nationwide brand.
Fast-growing coffee purveyor Dutch Bros (NYSE: BROS) naturally draws comparison to Starbucks (NASDAQ: SBUX) as a fellow coffee chain that started in the Pacific Northwest and harbored nationwide (and worldwide) ambitions. While these comparisons are indeed apt, there's another high-growth consumer stock that Dutch Bros is beginning to remind me of: Domino's Pizza (NYSE: DPZ), one of the great growth stocks of the past decade. With a return of over 1,000% over the past 10 years, Domino's has done well for investors.
Dutch Bros (NYSE: BROS) and Starbucks (NASDAQ: SBUX) have a lot in common -- both started in the Pacific Northwest and Starbucks has spread across the world, while Dutch Bros, which started 21 years later, is beginning to spread across the United States. There are some key differences as well -- Dutch Bros locations are primarily drive-thrus, whereas Starbucks has embraced becoming the '"third place" outside of home and the office where customers can come to drink coffee, work, and socialize. Furthermore, it seems unlikely that we will see a drink with a name like the OG Gummybear or the Vampire Slayer on Starbucks' menu anytime soon.