Better Buy in July: 1 Share of Starbucks or 1 Dutch Bros Share Plus 1 Chipotle Share?

Making capital allocation decisions requires making trade-offs. If you buy $100 of one stock, you can't invest that $100 elsewhere. For example, you can buy one share of Starbucks (NASDAQ: SBUX) for around $100 as July gets underway. Or you could buy one share of Dutch Bros (NYSE: BROS) and one share of Chipotle Mexican Grill (NYSE: CMG) for roughly the same amount of money. Here's why buying two stocks might be a better choice.

Starbucks is the coffee giant

There's little question, Starbucks is the name to beat in the coffee space. The company operates over 41,000 locations worldwide. It generated $9.5 billion in revenue in the fiscal second quarter of 2026. And notably, same-store sales rose 6.2%, a reversal from fiscal 2025, when this key metric fell 1%.

Basically, Starbucks is a restaurant giant that stumbled but has, seemingly, gotten back on track. There are good reasons to consider buying the stock, but there's one key negative: it is hard to grow an already large business. For example, the company opened 11 new stores in the fiscal second quarter. That's not particularly impactful when there are over 41,000 other locations.

Dutch Bros has more growth appeal

Instead of buying Starbucks, you could buy Dutch Bros. This is a relatively small coffee chain that is growing quickly. It has about 1,200 locations across 25 U.S. states. If you compare that to Starbucks, Dutch Bros likely has decades of growth ahead. Even if the company only reaches a quarter of Starbucks's size, it has a long runway for growth.

That growth is coming quickly, too, with the company opening 41 new locations in the first quarter of 2026. Year over year, the number of Dutch Bros locations increased by a huge 16%. By contrast, Starbucks' store count increased by less than 1% year over year in its most recent quarter. If you want growth, Dutch Bros is likely the better option of the two coffee chains.

Add in a little Chipotle Mexican Grill

You could simply buy one share of Dutch Bros instead of buying one share of Starbucks. But there's an interesting pricing twist here: the two stocks differ by roughly $30. You could use the extra cash left after buying Dutch Bros to buy one share of Chipotle. Chipotle is a large Mexican-themed fast-casual restaurant with roughly 4,100 locations globally as of the end of the first quarter of 2026. It has expansion opportunities and turnaround appeal, because it hasn't been performing particularly well of late.

For example, same-store sales rose a modest 0.5% in the first quarter. Earnings fell nearly 18% as inflation crimped the company's profit margins. The stock is down around 40% over the past year. That said, Chipotle's business is still growing, with overall sales rising 7% in the first quarter, helped by new locations. It is most likely that the restaurant chain is simply working through a weak patch.

But here's the big story. If you buy Dutch Bros over Starbucks, you can add the Chipotle turnaround story and spend roughly the same amount for the entire trade. That's a pretty appealing asset allocation choice as you put your cash to work, since you get a growth investment and a value investment for the same amount of money.

Every decision you make is a trade-off

There's no way to know in advance whether buying Dutch Bros and Chipotle will be a better long-term investment than buying Starbucks. You have to choose what makes the most sense to you. However, buying two stocks provides diversification, and Dutch Bros and Chipotle offer growth and turnaround stories. If you are looking to buy Starbucks today, going all in on one company and one food concept, you may want to consider the alternatives available for about the same amount of cash.

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill, Dutch Bros, and Starbucks. The Motley Fool recommends the following options: short September 2026 $35 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.