Dutch Bros is the better buy over Sweetgreen, according to a Motley Fool analysis, driven by consistent growth and profitability versus Sweetgreen's declining revenue and customer traffic. Dutch Bros is expanding rapidly with a target of 2,029 locations by 2029, while Sweetgreen's revenue has fallen for three straight quarters and its customer count per restaurant dropped 11% year over year in the first quarter of 2026. Dutch Bros trades at 105 times trailing earnings and 6.3 times sales, while Sweetgreen trades at 71 times earnings and 1.6 times sales, with management expecting net losses in 2026 and 2027. Dutch Bros has $116 million in retained earnings, whereas Sweetgreen has accumulated $884 million in losses, and analysts rate Dutch Bros a strong buy compared to a hold for Sweetgreen. The article concludes that Dutch Bros offers a high-growth story, while Sweetgreen represents a turnaround play that still needs to prove its automation can reduce costs and revive sales.
Dutch Bros IncArticle recommends Dutch Bros as better buy due to consistent growth, profitability, and strong analyst rating.
Sweetgreen IncSweetgreen's revenue has fallen for three straight quarters and customer count per restaurant dropped 11% year over year, indicating declining demand.