Dutch Bros vs. Starbucks: Which Coffee Stock is a Better Buy?

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Supply disruptions from Brazil to Vietnam and rising input costs have pushed coffee prices to seven-year highs recently. Arabica futures for March delivery increased 4.8% to $2.235 per pound in New York, the highest for a most-active contract since October 2014. Moreover, analysts expect that prices could surge as high as $3.

But because coffee is an essential part of so many people’s daily routines, coffee consumption is expected to be little affected notwithstanding its rising price. Indeed, global coffee consumption is expected to rise to 168.8 million 60-kilogram bags this year, up from 164.8 million bags in the previous period. Thus, popular coffee retailers BROS and SBUX should benefit.

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