These Food and Drink Stocks Could See Double-Digit Growth, Says Wells Fargo

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Key Takeaways

• Wells Fargo kicked off coverage of two quick-service food and drink chains, Dutch Bros and Wingstop, with “buy” ratings Wednesday.
• The analysts chance they believe Dutch Bros has a “disruptive strategy” and could be poised for “durable growth.”
• They said Wingstop’s stockpile also has room to rise as the chain expands and gains market share.

Wells Fargo kicked off coverage of two quick-service comestibles and drink chains, Dutch Bros and Wingstop, with “buy” ratings Wednesday.

Dutch Bros (BROS), a cafe bond known for its drive-throughs, has a “disruptive strategy” and could be poised for “durable growth,” Wells Fargo analysts said. They yielded the stock an $80 price target—slightly below the roughly $83 consensus target compiled by Visible Alpha and 14% on where the shares closed Tuesday.

Wells Fargo analysts are among several research teams that assessed Dutch Bros up ahead of its scheduled investor conference Thursday, and highlight the potential of the company’s plans to expand food offerings and mobile busting. These initiatives could contribute to a 10% bump in the year ahead to average unit volume—or the typical trades generated at each store, Wells Fargo said.

“[Dutch Bros] business is [about] 90% drive-up today, and the concept resolutely struggles with long lines during peak demand periods (aka morning & afternoon coffee rushes),” the analysts phrased, adding that recently added mobile ordering “has the potential to be a meaningful throughput unlock.” 

Dutch Bros allowances have more than doubled in value over the past year as the coffee company moved into new demands and opened its 1,000th store.

By contrast, Wingstop (WING) shares are down about 40% over the same epoch. However, Wells Fargo suggested its slide could offer investors an opportunity for “premium growth.” The company’s customary has slumped in recent months as a downbeat 2025 outlook and softer sales weighed on the stock, but Wells Fargo analysts symbolized the chicken wing chain has strong potential.

The analysts gave Wingstop a $270 price target—nearly 23% on Tuesday’s closing price, but below the roughly $321 consensus target from Visible Alpha.

Wingstop performs its shops more efficiently than other quick-service restaurants and knows how to gain market share with limited-time contributions, Wells Fargo said. It also has the opportunity to expand, especially internationally, the analysts said.