Starbucks Stock And 2 Coffee Chains Riding The Cold Drink Boom

Cold, colourful coffee drinks have gone from Instagram trend to everyday habit, and that shift is reshaping how global coffeehouse and beverage chains like Starbucks think about growth, pricing, and product design. For investors, this creates a fresh way to look at coffee stocks that are closely tied to viral menus and higher margin custom drinks. This article walks through three stocks exposed to this news and explains why each might deserve a closer look now.

The stocks covered below are just a starting sample from this coffee theme. The full screen surfaced 16 more companies with equally interesting stories that are not included here. To identify and analyze the broader set of global coffeehouse and beverage stocks tied to this idea, head straight to the Consumer Discretionary – Global Coffeehouse & Beverage Chains screener.

Starbucks (SBUX)

Starbucks is the reference point for the global coffeehouse theme, with thousands of stores focused on customizable coffee, tea, and higher margin cold drinks that line up neatly with social media driven beverage habits. The business is anchored in North America, which generates about US$28.5b of revenue, with International adding roughly US$7.5b and Channel Development contributing about US$2.2b. With a market cap of about US$122.9b, Starbucks is one of the largest consumer brands in this screener.

For investors following the cold coffee and customization trend, Starbucks offers one way to tap into Gen Z demand for colorful, highly personalized drinks that increasingly show up in social feeds as much as in store queues. The company is leaning into this with its turnaround playbook, cost cuts, and store revamps, while also carrying heavier debt, thinner margins, and governance questions that could matter if conditions get tougher. The mix of a powerful brand, a broad global footprint, and notable financial and execution risks makes Starbucks a stock that may warrant closer inspection before deciding how it fits into a portfolio.

Starbucks looks like a turnaround story hiding in plain sight, with viral cold drinks, heavy debt, and thinner margins all pulling in different directions. Get the full picture with the 1 key reward and 3 important warning signs (1 is major!)

Dutch Bros (BROS)

Dutch Bros is a drive thru coffee and energy drink chain that leans heavily into customizable, colorful cold beverages that line up closely with Gen Z trends. It generated about US$1.74b from company operated shops and US$141 million from franchising and other revenue in the United States, giving investors a primarily company owned store model with an additional royalty stream. With a market cap of roughly US$9.4b, Dutch Bros is one of the larger pure play coffee and specialty drink stocks in this screener.

Investors looking at the cold, customizable drink theme may consider Dutch Bros because its menu and drive thru format are built around exactly that customer behavior. Management is leaning into high margin specialty drinks like Protein Coffee and Boba, while also adding new sites through deals such as the planned conversion of Salad and Go locations. Together, these factors point to a combination of demand and footprint growth. The flip side is a rich valuation, heavy spending to open more company operated shops and exposure to higher labor and funding costs, all of which can pressure margins if traffic or pricing disappoint. The balance between those growth ambitions and the risks attached to expansion and competition is where the Dutch Bros story may be relevant for anyone weighing this stock against other coffee chains.

Dutch Bros growth story is racing ahead on cold, customizable drinks, yet the real twist is how that expansion, spending, and competition all stack up under the hood. Get the full 3 key rewards and 1 important warning sign

Luckin Coffee (LKNC.Y)

Luckin Coffee is a China based coffee chain built around app driven ordering, customizable drinks, and social media friendly limited releases that plug directly into the global specialty and cold beverage theme. The company generates all of its roughly CN¥55.9b in revenue from online retailers and digital channels, which fits the screener’s focus on large, consumer facing coffee and beverage businesses. With a market cap of about US$11.7b, Luckin Coffee is one of the bigger pure play coffee stocks tied to this trend.

Investors interested in the rise of customizable cold drinks may look at Luckin Coffee because it is combining rapid store expansion with a digital first model, record customer counts, and hit products that tap Gen Z tastes. At the same time, heavy reliance on external borrowing, margin pressure, and very fast store growth mean the story is not risk free. The tension between strong demand, high growth expectations, and those funding and execution risks is where some of the most important questions sit for this stock.

Luckin Coffee is racing ahead with app based ordering and popular cold drink offerings, yet its rapid store roll out and funding needs leave key questions unanswered. Get the full story in the analyst forecasts for Luckin Coffee

Curious About What Else You Might Be Missing

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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