Dutch Bros vs. Hershey: Which Stock Is the Better Buy Before 2027?
Key PointsDutch Bros is rapidly expanding its footprint and growing its high-margin proprietary energy drink segment.
When weighing the potential of Dutch Bros (BROS -0.62%) against Hershey (HSY -3.42%) for investment before 2027, investors must evaluate the growth prospects and stability offered by each. Dutch Bros, a fast-growing beverage chain, operates over 1,200 locations across the U.S. as of mid-2026, with revenue reaching nearly $1.6 billion in FY 2025, marking a 27.9% growth year-over-year.
The company continues to expand, opening 48 new stores in the second quarter of 2026 alone, despite facing risks related to aggressive expansion, supply chain dependence, and labor costs.
Hershey, on the other hand, is a global snack leader with substantial revenue of $11.7 billion in FY 2025, a 4.4% increase from the previous year. Net income was about $883.3 million, down from $2.2 billion in 2024, driven by rising costs and acquisition integration. Hershey's revenue is heavily concentrated with McLane Co., accounting for nearly 27% of sales, which poses a risk if their relationship changes.
Despite Hershey's mature position and dividend yield of 3.4%, the company is down 5.4% over the past year compared to Dutch Bros' 27.1% decline, suggesting Hershey's defensive stance may currently outweigh its growth potential.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
