Can Starbucks Continue Obliterating Dutch Bros in the Second Half?
2026-07-18 10:15
•Micah Zimmerman •The Motley Fool
••••• •• Axe Capital view
Starbucks Steady, Dutch Bros Volatile: What SA Investors Should Know
Starbucks' turnaround offers stability and dividends, while Dutch Bros' sharp pullback signals risk and opportunity for patient investors.
Starbucks has successfully reversed a downturn through a clear focus on improving service and store experience, which boosted morning foot traffic and comparable sales. Its large scale, dividend payments, and presence in markets like China make it a relatively stable pick, even for South Africans seeking some international exposure. Dutch Bros, in contrast, pushes rapid expansion with 30% revenue growth but its stock has pulled back, reflecting a valuation reset rather than any real business trouble. For JSE investors, the takeaway is that Starbucks aligns more with safety and steadiness, especially as rand volatility (USD/ZAR) can add uncertainty. Dutch Bros might reward patience but comes with more risk and no local dividend buffer. If the rand weakens on global jitters, expect some pressure on both. The view could be wrong if Starbucks' China growth stalls or Dutch Bros drastically slows expansion. this is just my opinion and not financial advice
I’d favor Starbucks exposure through global ETFs or ADRs for stable growth and dividend income, while watching Dutch Bros as a high-risk growth play for the long term. Consider USD/ZAR trends when timing entries.
- USD/ZAR
- SBUX
- slowing Chinese consumer demand impacting Starbucks
- Dutch Bros overexpansion leading to profitability issues
6/10
Starbucks has reversed its fortunes in 2026 through CEO Brian Niccol's 'Back to Starbucks' turnaround plan, featuring improved staffing, faster service, and renewed focus on in-store experience, resulting in positive comparable sales and recovered morning traffic. Dutch Bros' stock has pulled back despite strong 30%+ revenue growth and aggressive expansion plans, representing a valuation reset rather than business deterioration. For the second half of 2026, Starbucks appears the steadier near-term investment with dividend income and international growth potential, while Dutch Bros offers higher long-term upside for patient investors willing to accept volatility.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Micah Zimmerman
Categories: Rates, Equities, Earnings, Capital Returns, Geopolitics
Tickers: SBUX, BROS
Sentiment: Positive - Strong turnaround momentum with positive comparable sales, recovered morning traffic, raised guidance, and clear near-term catalysts. Large scale, dividend income, and international growth runway in China provide stability and growth potential. Despite recent stock pullback, fundamentals remain strong with 30%+ revenue growth, 180+ new store openings planned, and unique low-cost business model with devoted customer base. Pullback represents valuation reset rather than business deterioration, offering compelling long-term growth opportunity for patient investors.
Keywords: coffee chains, turnaround strategy, comparable sales, store expansion, valuation reset, customer traffic, dividend yield, growth stocks
Insights:
- SBUX: Positive: Strong turnaround momentum with positive comparable sales, recovered morning traffic, raised guidance, and clear near-term catalysts. Large scale, dividend income, and international growth runway in China provide stability and growth potential.
- BROS: Positive: Despite recent stock pullback, fundamentals remain strong with 30%+ revenue growth, 180+ new store openings planned, and unique low-cost business model with devoted customer base. Pullback represents valuation reset rather than business deterioration, offering compelling long-term growth opportunity for patient investors.
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