With a market capitalization of $110 billion, revenue of $9.9 billion in the first quarter of fiscal 2026 (ending December 28, 2025), and more than 41,000 stores worldwide, starbucks (NASDAQ:SBUX) is the king of the coffee retail market. But the consumer favorite hasn’t been firing on all cylinders. And CEO Brian Niccol is trying to turn things around, with the stock trading 23% below its high (as of February 4).
Investors may find a more interesting opportunity elsewhere in the industry. There is a little known coffee broth That’s running around Starbucks.
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Here are three things you should know.
dutch brothers (NYSE: BROS) It generates almost 75% of its income after 10 hours. This contrasts with major chains, which make half their sales after 10 a.m.
The advantage for Dutch Bros is that its demand is more spread throughout the day. This can make it easier for store management teams to staff their locations and handle customer traffic. And its steady sales support the company’s goal of $1.8 million in average annual unit volumes. What’s more, Dutch Bros is probably attracting a different type of customer than the morning commuter.
Meanwhile, Dutch Bros sees an opportunity and is using food to target a broader audience.
“As we expand the food program throughout 2026, our goal is to be a one-stop shop during the morning hours,” CEO Christine Barone said on the third quarter 2025 earnings conference call.
Before reporting same-store sales growth in the fourth quarter of 2025, Starbucks posted six consecutive quarters of declines. This metric indicates the performance of existing locations year over year, and growth indicates operational health.
At the same time, Dutch Bros posted same-store sales increases in 12 consecutive quarters, a streak that is still active. Stands out in the industry.
Starbucks guidance calls for same-store sales to increase 3% in fiscal 2026, an encouraging trend. This prospect also bodes well for the Dutch Bros.
Investors may not be very familiar with Dutch Bros given its comparatively small market capitalization of $9 billion and the fact that it only had 1,081 locations as of September 30, 2025. It is small compared to its larger peer.
This configuration simply means that there is much more room for expansion. Dutch Bros’ management team believes there is room for 7,000 stores in the U.S. There is significant space in the eastern and northern parts of the country. If the business begins to realize its potential, revenue and profits will skyrocket.