Coca-Cola or Dutch Bros – Which Stock Will Make You Richer?
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Coca-Cola’s Steady Dividends vs. Dutch Bros’ Explosive Growth – Who’s the Real Money Maker?
Coca-Cola, with a slight increase of 0.33%, is a powerhouse in the beverage industry, managing a diverse range of drink brands and distributing them worldwide through their franchise partners. On the other hand, Dutch Bros, up by 2.97%, operates a lively chain of drive-thru coffee shops, primarily in the western U.S.
Which is your favorite stock to invest Coca-Cola or Dutch Bros?
Both companies have their roots deep in the beverage industry. But that’s where the similarities end. They’re as different as night and day. So, the million-dollar question is – which one is a better investment today?
Let’s put Dutch Bros and Coca-Cola head-to-head from an investor’s viewpoint. It’s time to find out which one will sparkle and which one will lose its fizz.
DATA SOURCES: FINVIZ.COM, MORNINGSTAR.COM, AND FINANCIAL FILINGS FROM EACH COMPANY. DATA WAS COLLECTED AFTER MARKET CLOSE ON JAN. 9, 2024.
As I mentioned earlier, Coca-Cola or Dutch Bros are as different as chalk and cheese.
Coca-Cola is an established titan in the industry. It rakes in billions of dollars in annual sales, turning nearly a quarter of these sales into after-tax profits and free cash flows. Its growth in revenue mirrors its globally mature business model – there’s no easy pickings left to grab.
In contrast, Dutch Bros is a rapidly expanding newcomer with barely any earnings and a significant cash burn. The company is heavily investing in a nationwide expansion, extending its reach as far east as Alabama and Kentucky in the most recent quarter. This isn’t a budget-friendly strategy, and Dutch Bros has been relying on additional stock sales to replenish its cash reserves.
Is Coca Cola value thing for Investors?
If you’re on the hunt for a rock-solid business giant with a globally recognized brand and consistent performance, Coca-Cola might just be your cup of tea. The stock is reasonably priced and generally maintains a steady price. Over the past year, Coca-Cola’s share price has fluctuated between $51.55 and $64.99, a 26% swing from the lowest to the highest point.
The potential for continued growth lies in successful marketing strategies, the introduction of new flavors and types of beverages, and improved business operations. Given Coca-Cola’s international presence, each success story is a patchwork of local markets, and it’s uncommon to see abrupt changes for better or worse on a global scale.
And let’s not forget, the company offers a generous dividend with a current yield of 3.1%. The annual payout has seen an uninterrupted increase over the last 62 years, showing Coca-Cola’s commitment to sharing a significant portion of its profits with its shareholders.
Is Growth Investor prefer Dutch Bros?
In the other corner, we have Dutch Bros, painting a vibrant growth story with broad strokes. Its brand is all about lively customer interactions and an inventive drink menu that includes everything from protein shots and energy drinks to a chocolate-flavored coffee known as the “annihilator.” The staff is trained to engage in friendly banter while taking and delivering orders, all while keeping the bustling car line moving smoothly.
Investing in Dutch Bros requires a mindset that’s quite different from the steady-as-she-goes approach of Coca-Cola investors. You need to be prepared for the market risks associated with Dutch Bros’ bold strategy. The business is primarily funded by shareholders, and a recent stock sale resulted in a 30% dilution of existing Dutch Bros holdings.
And, as with any high-growth stock, Dutch Bros shares can experience significant fluctuations. The stock surged by 40% in January 2023 and 16% in December, but it also took a hit, falling by 21% in September and 13% in February. This stock is definitely not for those with a weak heart.
Who is the Winner Coca-Cola or Dutch Bros
In this face-off, there’s no clear-cut winner. Coca-Cola’s stock might be the perfect match for a certain type of investor, while Dutch Bros could be more enticing to an investor with a completely different approach.
Ultimately, only you can decide which of these stocks aligns best with your investment style. If you’re still unsure, you might want to assess your risk tolerance before making a decision.
And remember, there’s absolutely no harm in owning shares in both Dutch Bros and Coca-Cola, especially if you’re managing a diverse and sophisticated stock portfolio where different types of stocks serve different purposes.
On a personal note, while I generally have no issues with growth stocks, Dutch Bros’ full-throttle approach is a bit too intense for my liking. I’ll definitely be keeping tabs on this intriguing growth story as the coffee shop chain expands nationwide, but if I had to choose right now, Coca-Cola would be my top pick.
Can you invest $1,000 in Dutch Bros today?
Before you decide to invest in Dutch Bros, here’s something to ponder:
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