Top Performing Coffee Stocks

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Coffee has been keeping minds sharp and nervous systems tingling for centuries. Economically speaking, coffee has been on a constant growth trajectory from its first cup through the latest commuter mug. As coffee has evolved, so has the value of many of the coffee stocks currently occupying the investment market.

Benzinga found seven coffee-related stocks that could provide healthy returns and drive innovation. Some of them are well-known names, and some may be surprising. All of them could put your investment balance in the black.

Quick Look at the Top Performing Coffee Stocks:

Deep Dive

Here’s a table that quickly summarizes Benzinga’s favorite coffee stocks.

1. Starbucks Corp. (NASDAQ: SBUX)

You’ve probably heard of the first stock on this list. There’s at least one — and probably several — Starbucks Coffee shops within a short walk or drive of your present location. Starbucks has long been a popular stock. Right now, it’s trading near some of its highest share prices in history. 

With a market cap of over $115 billion, Starbucks has weathered the storms that have come its way. After reshuffling locations and streamlining its offerings, Starbucks has seen its share prices stabilize. As you’ve likely noticed, Starbucks is not afraid of growth.

2. Keurig Dr Pepper Inc. (NASDAQ: KDP)

The humble, single-serving K-Cup is the most significant innovation in coffee-making in the last quarter century. Keurig is the company that invented it in the mid-1990s. After gaining a presence in supermarkets in the late 2000s, K-Cups have experienced tremendous consumer growth.

The parent company, Keurig Dr Pepper, has seen its ups and downs. Increased competition forced the stock price to drop off in the summer of 2018. But it’s been on a growth trajectory ever since.

3. Dutch Bros Inc. (NYSE: BROS)

Dutch Bros, based in Oregon, is perhaps the most significant new coffee retailer to emerge in the last few years. Its business model hinges on drive-through service, much like modern fast-food establishments. A publicly traded company since 2021, Dutch Bros currently has 817 locations in the United States. Most of them are concentrated in the western U.S., but they have arrived in parts of the South and Midwest as well.

Dutch Bros’ IPO came, somewhat courageously, in the middle of the COVID-19 pandemic. Some price fluctuations have been startling — though not unexpected for a newly public stock. Dutch Bros intends to add 1,000 more stores by 2025.

4. J M Smucker Co. (NYSE: SJM)

The brand is more familiar for its jams and fruit preserves, but J.M. Smucker has one of the biggest footprints in the coffee industry. It’s the corporate home of Folgers, the largest manufacturer of ground coffee in the U.S. J.M. Smucker also has a licensing deal with Dunkin’, the second-biggest coffee-centric chain behind Starbucks. If you like coffee with a hint of the exotic, J.M. Smucker also owns Café Bustelo and Medaglia d’Oro.

The stock has been stable and reliable, with shares currently priced around the $150 mark. Its success is largely from its diversity in addition to coffee products; Dunkin’ has expanded beyond its physical locations into supermarkets and mass retailers across the U.S. 

5. Nestle ADR (OTCMKTS: NSRGY)

The Swiss magnate is responsible for some of the biggest coffee brands in the world, including Nescafé. It’s also found success with Nespresso, its innovative brand of single-serving espresso makers. 

Nestlé has allied itself with Starbucks, bringing the Seattle brand into grocery stores and other retail outlets. The last few years have seen modest growth in Nestlé’s share price, and its expansive business model is a big reason why.

6. Farmer Bros Co. (NASDAQ: FARM)

Now headquartered in Texas, Farmer Brothers is a major player in coffee manufacturing. It operates several large roasting facilities across the U.S. Farmer Brothers is also a key provider of coffee equipment and services to hotels, restaurants and other food service businesses.

The company is dedicated to sustainability, issuing annual reports on responsible growth. Farmer Brothers stock is inexpensive, but its dedication to innovation may contribute to future price increases. 

7. Luckin Coffee Inc - ADR (OTCMKTS: LKNCY) 

Luckin Coffee is a Chinese company that started operations in 2017. It grew quickly with a technology-centric business plan. Through mobile app orders and custom delivery, Luckin was able to position itself as Starbucks’ primary competition in China. 

However, in 2019, disaster struck. Luckin was accused of artificially inflating sales figures. This revelation led to the ousting of several top executives, a precipitous fall in its share price and the exodus of the stock from NASDAQ. 

Pros

Coffee is an industry with nearly unlimited growth potential, and experts predict record consumption this year. The coffee industry is also a fulcrum for innovation, diversification and sustainability. For a commodity always in great demand, coffee’s evolution over the years is remarkable and shows no sign of stopping. All of these factors make coffee stocks attractive.

Where to Buy

This table shows some of the top markets for investing in coffee.

How to Choose

Not every coffee company is created equally. Consider these factors before choosing a stock.

Market Performance and Financial Stability of the Company 

Most major coffee stocks are connected to large, stable corporations. Even Starbucks, a relative newbie that joined the stock market in 1992, is a model of long-term success.

Industry Trends and Emerging Innovations 

Few food-related industries are the subject of constant evolution as coffee is. From developing new flavors to designing new methods of coffee delivery, look for companies at the forefront of change.

Sustainability and Ethical Practices by the Coffee Producer 

Coffee growers are flashpoints for environmental sustainability and ethical treatment of workers. Top coffee companies adapt their practices to reflect evolving consumer preferences.

Technological Innovations and Global Expansion Plans 

No business can achieve growth without looking toward the future. New means of growing, manufacturing and serving coffee crop up. The constant global demand for coffee means there are built-in opportunities for growth and expansion.

Frequently Asked Questions

Best Coffee Stocks Methodology

In compiling this list, Benzinga looked at several factors, including:

• Market performance
• Market capitalization
• Trading volume
• Sustainability
• Global presence