As January 2026 draws to a close, two stocks in the consumer goods sector strike me as particularly strong buys — for very different reasons. Shares of soft drinks veteran Coca-Cola(NYSE: KO) are setting all-time price records while the rapidly expanding coffee chain Dutch Bros(NYSE: BROS) backed down 34% from last year’s peak.
Yes, the investment theses for these beverage stocks could hardly be more different. But there should be room for both approaches in a diversified investment portfolio. So let’s see why I’m drooling over Coke and Dutch Bros right now. I mean the stocks, not the drinks (or maybe both, honestly).
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At first glance, Coca-Cola doesn’t look like a record-setting business titan.
CEO James Quincey is stepping down in March after nearly a decade in the CEO seat. Longtime COO Henrique Braun should hit the ground running as his replacement, but Wall Street usually takes a dim view of C-suite transitions.
Sales volumes are holding firm across most product types and geographical markets. Coca-Cola keeps its top-line revenues growing by raising prices.
Health-conscious drink types aren’t saving the day, either. Juice, plant-based beverages, and dairy products saw 3% lower revenue in the third quarter.
Yet the stock keeps rising. As of this writing on Jan. 29, Coke’s share price is up by a market-beating 17.8% in 52 weeks.
And that makes sense, too. You see, Coca-Cola is making all the right moves.
Replacing Quincey with Braun won’t make much of a difference. The two executives have worked together for years, as Braun rose through the ranks under Quincey’s leadership.
Steady shipping volumes can be an achievement in a rickety global economy. Archrival PepsiCo(NASDAQ: PEP) saw 2% lower case shipments in the same period, despite raising its prices at a slower pace.
And healthy drinks aren’t all juices and milk. Water brands like Dasani and Smartwater posted 3% year-over-year growth, and the Coca-Cola Zero Sugar brand saw 14% growth. And Zero didn’t undermine the rest of Coke’s sugar-free portfolio, as Diet Coke and Coke Light also enjoyed positive shipping volumes.
It’s invigorating to see a centennial company rising to new heights, despite ever-changing and unpredictable market conditions. Whatever’s next, I’m sure Coca-Cola is already preparing for it. So I don’t mind buying Coke’s stock at a record-high price. It’s still inexpensive at 24 times trailing earnings, and the stock looks poised to deliver investor value in 2026 and beyond.
Dutch Bros isn’t a classic start-up. The company has been around almost as long as Starbucks(NASDAQ: SBUX), having started as an Oregon coffee stand in 1992. With a unique drink menu, a tight focus on drive-thru windows, and famously friendly service, the company built an empire on the West Coast.
The story changed in 2021. Dutch Bros entered the public stock market with nearly three decades of operating history under its belt. It immediately began a nationwide growth project, which carries on today. The store count has doubled in five years and should double again by the end of 2029.
It’s an exciting growth story, made possible by the drive-thru store template’s low construction costs and simpler maintenance. The company is currently expanding in my neck of the Florida swamps, with coffee shops in 24 states as of Q3 2025.
Image source: Getty Images.
And the growth story goes beyond just opening more locations. The Q3 store count rose by 14% year over year, while revenues jumped 25% and net income soared 38% higher. America is thirsty for what Dutch Bros is selling, from classic espresso-based coffee concoctions to the Rebel store brand of energy drinks.
It’s a profitable growth story with ambitious long-term goals. Dutch Bros also keeps beating analysts’ revenue and earnings targets in every quarter. I’ll admit that the stock isn’t cheap, trading at 115 times trailing earnings today. But the price includes a reasonable premium for Dutch Bros’ caffeinated business growth.
The share price is also relatively low, having retreated 34% from the peak in February 2025. If you were looking for a price correction before starting a Dutch Bros position, this could be just the drawdown you asked for.
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Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Starbucks. The Motley Fool recommends Dutch Bros. The Motley Fool has a disclosure policy.
