Some of us might not be able to start the day off right without a nice cup of coffee, but could your java habit be making you money instead?
Nov. 22, 2021
With this Tuesday marking National Espresso Day in the United States, we thought there was no better time to discuss some of our favourite coffee-related stocks with you.
With coffee being such a staple part of so many people's lives, it's fair to say that it represents a very lucrative market. The global coffee market is currently valued at over $102 billion, so investors are naturally eager to get involved in one of the world's favourite indulgences.
Here, we take a look at 3 coffee stocks that could give a boost to any investment portfolio.
Starbucks
It wouldn't really be an article about coffee stocks without mentioning the Seattle megachain, would it? Starbucks (NASDAQ: SBUX) remains the world's largest coffeehouse chain and doesn't look set to relinquish its crown anytime soon. The company navigated the COVID-19 pandemic through a shift to drive-thru and mobile ordering and has managed to retain a lot of the volume it grew during that period.
Starbucks is also continuing to grow, posting a 17% year-over-year (YoY) increase in global sales in its Q3 earnings report. As far as coffee companies go, they don't come much bigger than Starbucks and investors can hope to reap the benefits of its dominance for years to come.
Black Rifle Coffee Company
Boasting an evangelistic customer base and a strong social media presence, Black Rifle Coffee Company is a rapidly growing disruptor in the coffee industry. The company is set to go public very soon via a merger with a special purpose acquisition company (SPAC) in a deal that will value the firm at $1.7 billion. This will allow Black Rifle to continue to expand its growth efforts and to scale at a much faster rate.
The company has very much been "digital-first," with the majority of its revenue coming from online sales and subscriptions. However, efforts to open new brick-and-mortar stores and to sell its branded coffee in large chains such as Walmart have seen Black Rifle Coffee diversify its revenue streams significantly in recent years, much to the excitement of potential investors.
Dutch Bros Coffee
Dutch Bros Coffee (NYSE: BROS) is a relative newcomer to the publicly traded coffee market. The company debuted on Wall Street via IPO in September and has seen growth of over 20% since then. The company is built on the foundations of loyalty and trust, with Co-Founder Travis Boersma once stating that "the most important thing for us was building customer loyalty." This customer-centric approach has yielded rich rewards, with Dutch Bros now owning over 500 locations across 11 states.
The company recently reported revenue growth of over 50% YoY and presented a very strong outlook for 2022 and beyond. The firm will look to add at least another 112 stores to its collection next year as it continues to delight investors with rapid growth.
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