Dutch Bros(NYSE: BROS) again The green of the grass(NYSE: SG) they basically have the same playbook in different food categories: Both fast-growing chains have built cult followings by making daily coffee and salads feel like a lifestyle choice rather than just a snack. Both are betting heavily on large loyal fans, rapid expansion, and making people feel part of the club rather than just customers.
Then again, they are far from the same company, especially from an investor’s perspective. Dutch Bros is all about speed, convenience, and indulgence, offering low ticket prices, high volume, and fast shopping. Sweetgreen, on the other hand, leans toward a more health-conscious crowd with $15 salads and a high-tech ordering experience.
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Thus Dutch Bros and Sweetgreen play related but distinct roles in today’s food culture. But which is the best stock to buy right now?
Sweetgreen’s growth story fades
Going into this head-to-head matchup, I expect a close call. I look at two fast-growing chains, which are building their restaurant networks across the country with ambitious long-term goals. OK?
I mean, those things are true of Dutch Bros. The coffee chain is growing rapidly, with less than 1,200 locations today and a target of 2,029 restaurants by 2029. That works out to about 19% annual growth for three years, which sounds reasonable for a company that has doubled its locations in the past five years. Construction is easy because Dutch Bros. sets up small drive-thru boxes with long lines of cars but no restaurants to build, clean, and maintain.
Sweetgreen can’t match Dutch Bros’ growth plans, though. The salad chain’s revenue had grown more than 20% year-over-year but actually shrunk to annual revenue declines in the past three quarterly reports. The number of customers in the restaurant fell by 11% year-on-year in Q1 2026, alongside a product mix that was less profitable by 2%. The company raised prices, but customers chose lower-priced items instead of paying for their favorites.
Both stocks are trading at premium prices
So far, Dutch Bros looks like a strong success story. But that doesn’t make you buy. After all, even a large company’s stock can be overvalued, making new investors start at a difficult entry point.
Some investors feel that way about Dutch Bros today. The stock trades at 105 times trailing earnings on June 15. It also fetches 6.3 times sales, a multiple usually reserved for multi-business restaurant chains and light-weight operations. But Dutch Bros owns and operates 72% of its properties and continues to build on its full holdings. The franchisor grade multiplier does not apply here. In short, Dutch Bros drinks can be bought, but the stock trades at a premium.
What about Sweetgreen? However, the company insists on owning the entire property, giving it full control of operations while pocketing all the profits (or accepting the losses). With that, its price-to-sale ratio of 1.6 is reasonable. But Sweetgreen’s stock also trades at 71 times earnings, and management expects net losses in 2026 and 2027.
Image source: Getty Images.
Why I choose Dutch Bros over Sweetgreen
This one is not close. Dutch Bros is providing consistent growth on the profit side, while Sweetgreen is still trying to figure out how to make premium salads pay the bills. Financial scorecards tell the story: One company has $116 million in cash; the other burned $884 million more than ever. Spoiler alert: The one with the benefit offers lattes and energy drinks.
With 19% of Sweetgreen’s float sold short, many traders are betting that the kale kingdom has a much darker future. And the analyst community agrees, rating Sweetgreen as a “hold” while Dutch Bros plays as a “strong buy.”
Sweetgreen may not be planted forever, of course. If management can sustain customer traffic, prove that Infinite Kitchen automation is reducing costs at a reasonable rate, and return to positive sales growth, the salad stock may be worth another look.
But that’s a transformative thesis at this point, not a high-octane growth story. Dutch Bros is the stock I will buy today.
Should you buy stock in Dutch Bros right now?
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Anders Bylund has no position in any of the stocks mentioned. The Motley Fool ranks and recommends Dutch Bros. The Motley Fool recommends Sweetgreen. The Motley Fool has a policy of disclosure.
The Best Stock to Buy Right Now: Dutch Bros vs. Sweetgreen was first published by The Motley Fool
