2024-03-28 06:20:00 ET
It's easy to understand why investors are interested in smaller, growth-focused companies. The belief is that as these businesses rapidly expand, grow sales, and further penetrate their end markets, there is huge potential to generate outsized returns.
These so-called growth investors are certainly taking a closer look at Dutch Bros (NYSE: BROS) . The drive-thru-focused coffeehouse chain has a meaningful presence in the southern and western U.S., but the management team has big ambitions going forward. This naturally draws comparisons to Starbucks (NASDAQ: SBUX) , the leader in the retail coffee industry .
Can Dutch Bros become the next Starbucks? Here are two things investors should watch.
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Can Dutch Bros Become the Next Starbucks? 2 Things Investors Should Watch