Stunning Stocks in Steaming Trouble! Are Coffee Prices Crippling Your Favorite Brews?
Just when investors thought they were riding high on the steep wave of soaring Starbucks (NASDAQ: SBUX) and Dutch Bros (NYSE: BROS) stock prices, BOOM! They were blindsided! Both coffee giants are now taking a brutal hit as coffee prices skyrocket. Starbucks has plummeted over 4% in the past month, while Dutch Bros is reeling with a staggering 12% drop. Can you believe it?!
Up Against Rising Coffee Prices: Is Your Daily Fix Going to Cost You?
The caffeine rush of profits is quickly fading away as the threat of tariffs and recession looms large over the coffee industry. Is this a signal to grab your wallets and run? Investors are scratching their heads—are these stocks coming back to fair value or are they just about to stab you like falling knives? While both companies boast solid fundamentals, the burning question remains: is it time to sip or spit?
Two Brew-tiful Brands, Two Gritty Stories! What’s Going On?
Starbucks, the rockstar of coffee, has nearly 17,000 stores scattered across the U.S. and transformed how America thinks about coffee culture. But guess what? Despite raking in a whopping $36.1 billion in revenue in 2024, even the coffee titan saw its earnings drop to $3.10 a share. Now, this giant is grappling with a major transformation led by former Chipotle CEO Brian Niccol. Can he brew up a miracle?
On the flip side, Dutch Bros is the scrappy newcomer! Only publicly traded since 2021, this company has captured hearts with its vibrant drinks and community-driven approach. Hitting milestone after milestone, Dutch Bros recently opened its 1,000th location in sunny Orlando. In amidst the storm, BROS stock is still up an astonishing 11% in 2025 and a jaw-dropping 92.6% over the past year! Talk about a rollercoaster ride!
Coffee Prices Sipping Up — How High Can They Go?
Coffee lovers, brace yourselves! It’s getting mugged! Arabica coffee prices have surged over 70% since November 2024, hitting heights not seen since the disco days of 1977! Blame the tariffs? Sure, but there’s a sinister frost phenomenon in Brazil (dubbed the "black frost") damaging coffee crops during a severe drought. This is a disaster for both Starbucks and Dutch Bros, who heavily rely on these beans for their signature brews.
While Dutch Bros sources its beans from Brazil and a few other Latin American nations, Starbucks digs deeper. This titan gets its coffee from over 30 countries—including Africa and Asia—but that doesn’t mean it’s safe from those pesky price explosions. They buy a whopping 3% of the world’s coffee supply, so it’s clear nobody is immune!
The Ultimate Showdown: Which Stock Will Reign Supreme?
Both stocks are sizzling at premium valuations—buckle up! BROS trades at an eye-watering 111x forward earnings, while SBUX looks like a bargain at just 35x! Not to mention, investors are shelling out big bucks for growth. But could this be the golden opportunity to snag BROS below its 200-day moving average? While it’s still overvalued, its earnings growth and expansion could be your golden ticket!
Coffee aficionados and investors alike, this brewing battle isn’t over yet! Keep an eye on these stocks—they might just surprise you! Will they plunge further or make a miraculous comeback? The stakes have never been higher!
