Dutch Bros vs. Wingstop: Which Stock Has Stronger Growth Plan?

Dutch Bros Inc. BROS and Wingstop Inc. WING are two fast-growing players in the quick-service restaurant industry, each aggressively expanding with a unique growth playbook. Dutch Bros focuses on serving high-quality, hand-crafted beverages with exceptional speed and service through its drive-thru shops, aiming to scale rapidly across the United States. Wingstop, the world’s largest fast-casual chicken wings-focused chain, operates with a heavily franchised, asset-light model that supports fast, capital-efficient growth and strong cash flows.Both companies are actively expanding their footprints and refining their strategies to capture a larger share of the quick-service market. Dutch Bros is working to strengthen its presence in both new and existing markets by improving its real estate planning, shop operations, and customer convenience features like order-ahead and loyalty programs. Wingstop, meanwhile, is scaling its global presence while focusing on kitchen innovation, brand partnerships and digital initiatives to enhance speed, consistency and guest experience.However, both companies still face challenges, including inflation, lingering tariff risks and cautious consumer spending. Although inflation is easing, input costs and consumer sentiment remain hurdles. Navigating these headwinds will be key to sustaining their ambitious growth plans.With both brands positioning themselves for long-term expansion, now is a great time to take a closer look at their fundamentals. Let us dive deep and closely compare the two stocks to determine which is a better investment now.The Case for BROSDutch Bros is steadily building a long-term growth story through disciplined expansion and market-focused strategies. The company is heavily investing in real estate capabilities, site selection and operational planning to support its ambitious goal of reaching 2,029 shops by 2029. These efforts are backed by a robust real estate pipeline and a total addressable market of 7,000 shops, which provides a significant growth runway.In the first quarter of 2025, total revenues rose 29% year over year to $355.2 million. This improvement was supported by a balance of shop openings and improved shop productivity. Dutch Bros also reported strong system same-shop sales growth of 4.7%, along with steady transaction gains.Dutch Bros reported solid momentum in the quarter, opening 30 shops and maintaining a balanced focus on both new market entry and enhancing shop-level performance. The company plans to accelerate its opening rate in the second half of the year, targeting at least 160 system shop openings in 2025. Its strategy is supported by investments in market planning, development, and refined site selection processes aimed at building high-quality, high-performing locations.Dutch Bros is also focusing on strengthening same-shop sales performance as a core pillar of its expansion. Initiatives like order-ahead, loyalty programs and throughput improvements are being scaled to improve customer convenience and transaction growth. These efforts are expected to contribute to consistent mid-teens annual shop growth over the coming years.The Case for WINGWingstop is aggressively scaling its global presence with a proven, capital-efficient model. In the first quarter of 2025, system-wide sales increased 15.7% to $1.3 billion, marking the highest quarterly sales in the company’s history. This performance reflects strong brand partner confidence in Wingstop’s growth strategies and best-in-class unit economics.The company opened a record 126 net new restaurants in the quarter and subsequently raised its 2025 unit growth guidance to 16-17%, implying 410-435 net new openings worldwide this year. Wingstop’s growth is underpinned by a strong global development pipeline, with more than 2,000 committed restaurant agreements in place.International expansion is becoming an increasingly significant growth driver for Wingstop, with new markets like Kuwait and Australia showing early signs of strong demand. The company is not just expanding its footprint but is also opening higher-performing restaurants, with some new units already operating above the company’s $3-million AUV target.Wingstop is leveraging its Wingstop Smart Kitchen — an AI-powered back-of-house solution designed to improve order consistency and reduce quote times, especially during peak hours. This initiative is expected to unlock additional demand and enhance the guest experience, further fueling the company’s growth.Going forward, management remains focused on reaching 10,000 restaurants globally. Ongoing efforts in menu innovation, digital expansion, delivery channels and operational improvements are closely aligned with this long-term vision, positioning Wingstop well for sustained global growth.Price Performance & Valuations for BROS, WING StocksDutch Bros’ stock has gained 5.3% in the past three months, outperforming its industry’s 2.6% fall. Meanwhile, Wingstop’s shares have soared 63.2% in the same time. Image Source: Zacks Investment Research Considering valuation, Dutch Bros’ is trading below Wingstop on a forward 12-month price-to-sales (P/S) ratio basis. Image Source: Zacks Investment Research Overall, from these technical indicators, it can be deduced that BROS stock offers a steady growth trend with a discounted valuation, while the WING stock offers a surge growth trend with a premium valuation.Comparing EPS Projections: BROS & WINGThe 2025 EPS estimates have trended upward over the past 30 days for WING stock, while the same remained unchanged for BROS. The Zacks Consensus Estimate for BROS’ 2025 bottom line suggests a 24.5% improvement, while that for WING indicates a year-over-year increase of 6.6%.For BROS Stock Image Source: Zacks Investment Research For WING Stock Image Source: Zacks Investment Research ConclusionAt present, Wingstop appears better positioned than Dutch Bros due to its faster pace of global expansion, strong brand partner confidence and the company’s ability to consistently open higher-performing restaurants. Wingstop’s asset-light model, coupled with its investment in smart kitchen technology, positions it well to sustain high growth and improve operational efficiency. The company’s increasing international footprint and growing digital capabilities strengthen its long-term outlook.Dutch Bros continues to build a steady growth story, supported by disciplined expansion, a solid real estate strategy and consistent same-shop sales gains. Its focus on customer experience, loyalty programs and operational improvements provides a strong foundation. However, Wingstop’s superior price performance, upward-trending EPS projections and stronger near-term growth momentum give it a competitive edge at this time.WING currently has a Zacks Rank #2 (Buy), whereas BROS carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Wingstop Inc. (WING): Free Stock Analysis Report Dutch Bros Inc. (BROS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks