Key Points
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Dutch Bros is expanding rapidly with a target of 2,029 locations by 2029, while Sweetgreen’s revenue has declined for three straight quarters.
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Falling customer traffic and trade-down behavior are hurting Sweetgreen’s revenue growth.
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High-tech automation of salad orders might save Sweetgreen eventually, but it hasn’t yet.
- 10 stocks we like better than Dutch Bros ›
Dutch Bros (NYSE: BROS) and Sweetgreen (NYSE: SG) have basically the same playbook in different food categories: Both are fast-growing chains that have built cult followings by making everyday coffee and salads feel like a lifestyle choice rather than just a snack. Both bet big on loyal superfans, rapid expansion, and making people feel like a part of a club rather than just customers.
Then again, they are far from the same company, especially from an investor’s point of view. Dutch Bros is all about speed, convenience, and pure indulgence, offering a low ticket price, high volume, and quick transactions. Sweetgreen, on the other hand, leans into the premium health-conscious crowd with $15-plus salads and a high-tech ordering experience.
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So Dutch Bros and Sweetgreen play related but distinct roles in today’s food culture. But which stock is the better buy right now?
Sweetgreen’s growth story is wilting
When I dove into this head-to-head matchup, I expected a close call. I’m looking at two fast-growing chains, building out their restaurant networks nationwide with ambitious long-term goals. Right?
I mean, those things are certainly true for Dutch Bros. The coffee chain is expanding at a breakneck pace, with less than 1,200 locations today and a target of 2,029 restaurants in the year 2029. That works out to roughly 19% annual growth for three years, which sounds reasonable for a company that doubled its locations over the past five years. The build-out is easier because Dutch Bros sets up small drive-through boxes with long car lines but no dining areas to build, clean, and maintain.
Sweetgreen can’t quite measure up to Dutch Bros’ growth plans, though. The salad chain’s revenue used to grow more than 20% per year but actually wilted to year-over-year revenue drops in the past three quarterly reports. The number of customers per restaurant fell 11% year over year in Q1 2026, alongside a product mix that was 2% less profitable. The company raised prices, but customers chose lower-priced items instead of paying up for their favorites.
Both stocks trade at premium prices
So far, Dutch Bros looks like a stronger success story. But that doesn’t necessarily make it a buy. After all, even a great company’s stock can get overvalued, making new investors start from a difficult entry point.
Some investors surely feel that way about Dutch Bros today. The stock trades at a lofty 105 times trailing earnings on June 15. It also fetches a 6.3 multiple to trailing sales, a multiple usually reserved for restaurant chains with lots of franchisees and asset-light operations. But Dutch Bros owns and operates 72% of its locations and keeps building more fully owned ones. The franchisor-grade multiples don’t apply here. In short, Dutch Bros’ drinks may be affordable, but the stock trades at a premium price.
What about Sweetgreen? Well, the company insists on owning every location, giving it full control over the operations while pocketing all profit (or accepting losses). In that light, its 1.6 price-to-sales ratio makes sense. But Sweetgreen’s stock also trades at a juicy 71 times earnings, and management expects net losses in 2026 and 2027.
Image source: Getty Images.
Why I’d pick Dutch Bros over Sweetgreen
This one isn’t close. Dutch Bros is serving up consistent growth with a side of profitability, while Sweetgreen is still trying to figure out how to make fancy salads pay the bills. The financial scorecards tell the story: One company has $116 million in retained earnings; the other has torched $884 million more than it ever made. Spoiler alert: The profitable one serves lattes and energy drinks.
With 19% of Sweetgreen’s float sold short, plenty of traders are betting the kale empire has more wilting ahead. And the analyst community agrees, rating Sweetgreen as a “hold” while Dutch Bros sports a “strong buy.”
Sweetgreen may not be uninvestable forever, of course. If management can stabilize customer traffic, prove that its Infinite Kitchen automation reduces costs to a meaningful degree, and get back to positive sales growth, the salad stock would deserve another look.
But that’s a turnaround thesis at this point, not a high-octane growth story. Dutch Bros is the stock I’d buy today.
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Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Dutch Bros. The Motley Fool recommends Sweetgreen. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
