Motley Fool contributor Rick Munarriz recommends Dutch Bros as a growth investment despite the stock's 49% drop over three months. He says a $500 purchase could start a position; the chain has 1,225 stores, operates in half of U.S. states and targets 7,000 locations.
Dutch Bros' latest quarter saw revenue rise at least 33%, the article says, and the company raised its guidance this summer. Comparable sales have remained positive for 19 consecutive years; it has also been profitable and grown earnings for four straight years. The piece cites investor concerns about higher interest rates and inflation.
Munarriz says the stock trades at 28 times next year's projected earnings, a discount he considers reasonable relative to its growth. The article also notes Dutch Bros was not among the 10 stocks The Motley Fool's Stock Advisor team identified as its best buys.
