Is coffee good to invest in?

Coffee itself is a commodity, but some coffee stocks have been big winners over their lifetimes, like Starbucks.

What is the best way to invest in coffee?

The easiest way to invest in coffee is to buy coffee stocks, or companies operating in the coffee industry. You can also buy coffee futures, but that is more complex.

Do coffee stocks pay dividends?

Yes, some coffee stocks, like Starbucks, do pay dividends.

Is it better to invest in individual coffee stocks or ETFs?

There aren't any coffee exchange-traded funds (ETFs) that are suitable for regular investments, so individual coffee stocks are your best option.

How do coffee stocks contribute to a diversified investment portfolio?

Coffee stocks can contribute to a diversified investment portfolio in a number of ways. For example, you could go with Starbucks for exposure to consumer discretionary spending; J.M. Smucker for recession-resistant grocery store spending, or Luckin Coffee, for exposure to China.

Best Coffee Stocks of 2026 and How to Invest

Here's everything you need to know about the coffee industry.

By Jeremy Bowman – Updated May 18, 2026 at 5:32 PM EST | Fact-checked by Frank Bass

Key Points

Starbucks shows positive growth with a 7.1% increase in same-store sales and a plan to add over 2,000 stores.
Nestlé leads as the largest food company, with coffee contributing $32 billion to its annual revenue.
Keurig Dr Pepper plans to split into two companies, offering a significant restructure in the coffee sector.

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Top coffee stocks to consider

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Ticker Information Table
Name and ticker	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.	Dividend yield	Industry
Starbucks (NASDAQ:SBUX)	$120.8 billion	2.33%	Hotels, Restaurants and Leisure
Keurig Dr Pepper (NASDAQ:KDP)	$43.1 billion	2.90%	Beverages
Nestlé (OTC:NSRGY)	$260.8 billion	3.82%	Food Products
J.M. Smucker (NYSE:SJM)	$11.9 billion	3.94%	Food Products
Dutch Bros (NYSE:BROS)	$10.8 billion	0.00%	Hotels, Restaurants and Leisure
BRC (NYSE:BRCC)	$138.1 million	0.00%	Food Products
Luckin Coffee (OTC:LKNCY)	$8.6 billion	0.00%	Hotels, Restaurants and Leisure
Restaurant Brands International (NYSE:QSR)	$26.1 billion	3.37%	Hotels, Restaurants and Leisure

Data as of Jul 13, 2026. Showing 8 of 8 total entries.

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1. Starbucks

If you're looking for a pure-play coffee stock, Starbucks is your best bet. The company has come to dominate the global café industry by developing a brand synonymous with affordable luxury. It has defined itself as a third place between home and work where you can go to relax or meet up with friends. Today, Starbucks has about 40,000 locations worldwide, more than twice as many as Dunkin', its closest competitor.

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NASDAQ: SBUX

Starbucks

Today's Change

(-0.38%) $-0.40

Current Price

$106.01

Key Data Points

Market Cap

$121B

Day's Range

$105.55 - $107.56

52wk Range

$77.99 - $108.88

Volume

4.3K

Avg Vol

7.6M

Gross Margin

15.85%

Dividend Yield

2.33%

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Despite its longtime success, Starbucks has struggled in recent years due to new low-priced competition in China and complaints about slow service in the U.S. However, investors are hopeful that new CEO Brian Niccol, whom the company poached from Chipotle, can turn the business around, and after nearly two years at the helm he is starting to find success. Niccol has focused on bringing a human touch back to the brand, with baristas handwriting names on cups and serving drinks in mugs for customers staying in the café.

In the company's second quarter of fiscal 2026, it reported positive same-store sales growth of 7.1% and adjusted earnings per share growth, showing the turnaround is making progress. At its 2026 Investor Day conference, the company forecast global and U.S. comparable sales growth of at least 3%, more than 2,000 net new stores, an adjusted operating margin of 13.5%-15%, and adjusted earnings per share of $3.35-$4.00 in fiscal 2028. With a return to comparable sales growth and signs that Niccol's "Back to Starbucks" plan is paying off, Starbucks appears to be on the right track.

2. Keurig Dr Pepper

The formation of Keurig Dr Pepper (KDP) was the result of a 2018 merger between Keurig Green Mountain and Dr. Pepper Snapple. It was engineered by JAB, the private German holding company that's become a coffee juggernaut.

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NASDAQ: KDP

Keurig Dr Pepper

Today's Change

(3.04%) $0.94

Current Price

$31.66

Key Data Points

Market Cap

$43B

Day's Range

$30.65 - $31.70

52wk Range

$24.88 - $35.94

Volume

283.1K

Avg Vol

13.7M

Gross Margin

51.02%

Dividend Yield

2.90%

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As a diversified beverage company, KDP owns a wide variety of brands in coffee and soft drinks, including Snapple, Canada Dry, Green Mountain, Mott's, and its namesake brands -- but coffee is the star here. About 40 million U.S. households have a Keurig brewing system.

Now, Keurig Dr Pepper is set for another change that will split the company into two following its acquisition of Dutch coffee giant JDE Peet for $18 billion, which is expected to close in the second quarter of the year. KDP will split into a pure-play coffee company and a pure-play beverage unit, effectively unwinding the merger that created Keurig Dr Pepper. Coffee investors should keep an eye out for the split, which is expected by the end of 2026, as the new pure-play coffee stock will be one of the biggest in the world.

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3. Nestlé

Nestlé, the world's biggest food business, is a diversified conglomerate with more than 2,000 brands across categories such as coffee, tea, bottled water, candy and sweets, soups, condiments, and pet food. Although a company this diversified can't be distilled into a single product, coffee is a major component of its business, and brands such as Nescafé, Nespresso, and Coffee Mate are known around the world.

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OTC: NSRGY

Nestlé

Today's Change

(-0.01%) $-0.01

Current Price

$103.10

Key Data Points

Market Cap

$261B

Day's Range

$102.59 - $103.36

52wk Range

$86.98 - $109.59

Volume

506.3K

Avg Vol

453.8K

Gross Margin

45.55%

Dividend Yield

3.82%

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Nestlé's biggest category is powdered and liquid beverages, which includes the coffee brands Nescafé, Nespresso, and Starbucks, whose bottled beverages are produced by Nestle. The segment delivered $32 billion of the company's $113.9 billion in revenue in 2025, and Nespresso contributed $8.3 billion in revenue last year. The company said coffee grew in the high-single digits in 2025, due to price increases.

It's important to distinguish coffee companies like Nestlé, a consumer staples company that sells its products in grocery and convenience stores, from Starbucks, which sells coffee as a discretionary item in restaurants. Nestlé's global reach, marketing power, and expertise in bottled beverages make it an ideal partner for a company such as Starbucks. Selling bagged coffee and ready-to-drink beverages has been a key source of growth for both companies.

4. J.M. Smucker

The brand name Smucker is synonymous with jams, jellies, and other spreads, but packaged coffee makes up a significant percentage of the company's business. Smucker's primary coffee brands are Folgers, Café Bustelo, and Dunkin', which it licenses from Dunkin' (now a part of Inspire Brands).

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NYSE: SJM

J.M. Smucker

Today's Change

(0.66%) $0.73

Current Price

$111.60

Key Data Points

Market Cap

$12B

Day's Range

$110.02 - $111.81

52wk Range

$88.25 - $119.39

Volume

Avg Vol

1.8M

Gross Margin

33.19%

Dividend Yield

3.94%

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For fiscal 2025, which ended April 30, 2025, the U.S. retail coffee segment made up 32% of Smucker's total sales, or $2.8 billion of its $8.7 billion in total revenue. It's now the company's biggest category after it sold several pet food brands, including Rachael Ray Nutrish and 9 Lives. The coffee segment's revenue rose modestly in fiscal 2025, up 4%.

However, as with the other companies on this list, coffee is a high-margin business for Smucker, generating an operating profit margin of 28% in 2025. That makes coffee the company's most profitable segment both by margin and volume. With a collection of well-known brands and leadership in the U.S., coffee should continue to drive strong profits for Smucker.

5. Dutch Bros

After its September 2021 IPO, drive-thru-focused coffee chain Dutch Bros may be the latest to grab the mantle of the "next Starbucks." The Oregon-based coffee slinger is growing quickly, and it's easy to see why it has attracted so much attention from investors.

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NYSE: BROS

Dutch Bros

Today's Change

(3.12%) $2.05

Current Price

$67.69

Key Data Points

Market Cap

$11B

Day's Range

$65.64 - $67.94

52wk Range

$44.58 - $74.65

Volume

60.1K

Avg Vol

4.1M

Gross Margin

25.01%

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The company's drive-thru model and reputation for sweet beverages help differentiate it from coffee chains like Starbucks, and its high average unit volumes and continuing growth indicate strong demand. Dutch Bros finished 2025 with average sales of $2.12 million at its stores, better than most fast-food restaurants, and same-store sales were up 7.7%. As of March 2025, it had more than 1,100 stores in 25 states and was aiming for 4,000 locations over the long term.

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6. Black Rifle Coffee Company

Black Rifle, which went public through a special purpose acquisition company (SPAC) merger in February 2022, puts a unique spin on a commodity product by branding for a specific customer subset -- conservative Americans and veterans in particular. The company's mission is "to serve premium coffee and content to active military, veterans, first responders, and those who love America."

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NYSE: BRCC

BRC

Today's Change

(-0.84%) $-0.01

Current Price

$1.18

Key Data Points

Market Cap

$138M

Day's Range

$1.18 - $1.23

52wk Range

$0.60 - $2.10

Volume

290.8K

Avg Vol

1.2M

Gross Margin

18.07%

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Unlike the typical coffee company, Black Rifle defines itself as a media company, and it's a lifestyle brand as much as a coffee brand. The company puts out a magazine and is active in political and cultural issues with its blog and on social media. Black Rifle has begun opening its own stores, which it calls "outposts," and had 35 locations at the end of 2025, though it seems to pivoting away from that strategy. Most of its revenue now comes through the wholesale channel since it sells ready-to-drink and bagged coffee through retailers such as 7-11, Publix, and Walmart (NYSE:WMT).

7. Luckin Coffee

Luckin Coffee may be best known for an accounting scandal that sunk an earlier iteration of the company, leading to its delisting from the Nasdaq in 2019 and its bankruptcy. However, the company emerged from bankruptcy, restructured, and has built a viable and growing business under new ownership.

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OTC: LKNCY

Luckin Coffee

Today's Change

(-0.90%) $-0.29

Current Price

$31.91

Key Data Points

Market Cap

$8.6B

Day's Range

$31.83 - $33.30

52wk Range

$27.22 - $43.64

Volume

1.1M

Avg Vol

1.2M

Gross Margin

58.43%

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The core concept is essentially the same as the original. Luckin, which is based in China, is undercutting Starbucks, which pioneered the coffee market in China. In fact, Luckin is now larger than Starbucks in China, both in terms of store count and China-based revenue. It has challenged Starbucks by blanketing China with stores and beating it substantially on price. It also appeals to a younger, price-conscious demographic looking for a daily dose of caffeine rather than the "third place" Starbucks is known for being.

As of May 2026, the company had a market capitalization of $9 billion and was seeing growth driven through both new stores and double-digit same-store sales growth. Luckin has even begun expanding outside of China and now has two stores in New York City.

8. Restaurant Brands International

Restaurant Brands International is a diversified restaurant operator with franchises like Burger King, Popeyes, Firehouse Subs, and Tim Horton's under its umbrella. Tim Hortons is the biggest source of profit of those four chains, so it makes sense to consider the company if you're interested in coffee stocks. In 2025, Tim Hortons contributed $1.08 billion in adjusted operating income out of a total $2.58 billion for the company.

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NYSE: QSR

Restaurant Brands International

Today's Change

(0.43%) $0.32

Current Price

$75.26

Key Data Points

Market Cap

$26B

Day's Range

$74.66 - $75.99

52wk Range

$61.33 - $81.96

Volume

Avg Vol

3.4M

Gross Margin

48.58%

Dividend Yield

3.37%

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Tim Hortons is so profitable for Restaurant Brands because it owns the supply chain, selling products to its franchisees and earning a profit. Tim Hortons typically earns an adjusting operating margin of more than 10% as a percentage of systemwide sales, which is unusually high for a franchise business.

How to invest in coffee stocks

If you're looking to invest in coffee stocks, the process is simple. Just follow the list below:

Open your brokerage app: Log in to your brokerage account where you handle your investments.
Search for the coffee stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

Are coffee stocks right for your portfolio?

Here are a few reasons to consider owning coffee stocks:

It's one of the most popular beverages in the world and has been for hundreds of years.
Most of the Chinese population still doesn't drink coffee, representing a huge opportunity in that market.
It's typically a high-margin product/business.
It's generally considered healthy, unlike many competing beverages.
Some coffee stocks are recession-resistant, like consumer staples companies.

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Benefits and risks of investing in coffee stocks

Like any other sector, coffee stocks have both benefits and risks. Let's take a closer look at the two of them.

The benefits of investing in coffee stocks:

Coffee is a timeless beverage, and demand continues to grow, especially in emerging markets like Asia. It's also generally considered a healthy beverage, at least compared to alternatives like soda and alcohol.
Some coffee chains, like Starbucks, have experienced tremendous growth over their history, and the cafe business offers the potential for another growth juggernaut, such as Dutch Bros or Luckin Coffee.
Coffee stocks tend to generate high operating margins. The market lends itself to strong brands, which have leveraged their familiarity into wide profit margins.

Here are some of the risks facing coffee stocks:

Coffee stocks have commodity risk. Since coffee companies tend to buy their raw materials, rather than produce them, they are exposed to commodity price risk. Coffee prices could also rise due to climate change.
Packaged coffee tends to be a slow-growth market, growing with broader food spending.
While there is a growth opportunity in cafes, there's also a lot of risk. Plenty of companies aiming to be the next Starbucks have faded away.

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The bottom line

Coffee is a high-margin business for the world's top consumer products companies. It's also a timeless product that's likely to gain popularity as people in China and other countries move into the middle class and consumers seek alternatives to sugary beverages like sodas.

Although coffee is a competitive industry, it offers opportunities in both consumer discretionary and consumer staples stocks. Different types of investors can find the right fit, whether they're seeking growth stocks or dividend stocks. There may not be a lot of pure-play opportunities in the sector, but investors looking to perk up their portfolios should consider investing in a coffee stock like the eight above.

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FAQ

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Investing in coffee stocks FAQ

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About the Author

Jeremy Bowman has been a contributing Motley Fool stock market analyst, covering technology, consumer goods, and macroeconomic trends since 2011. Before The Motley Fool, Jeremy was a newspaper reporter, restaurant manager, and English teacher abroad. He holds a bachelor’s degree in English from Colorado College and a master’s degree in business administration from American University. One of his Motley Fool headlines was briefly featured on Late Night with Stephen Colbert.

TMFHobo

@TMFBowman

Jeremy Bowman has positions in Chipotle Mexican Grill and Starbucks. The Motley Fool has positions in and recommends Chipotle Mexican Grill, Dutch Bros, J.M. Smucker, Luckin Coffee, and Starbucks. The Motley Fool recommends Nestlé and Restaurant Brands International and recommends the following options: short March 2026 $42.50 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.

Best Coffee Stocks to Buy in 2026 and How to Invest in Them

Here's everything you need to know about the coffee industry.

Key Points

Top coffee stocks to consider

1. Starbucks

Key Data Points

2. Keurig Dr Pepper

Key Data Points

3. Nestlé

Key Data Points

4. J.M. Smucker

Key Data Points

5. Dutch Bros

Key Data Points

6. Black Rifle Coffee Company

Key Data Points

7. Luckin Coffee

Key Data Points

8. Restaurant Brands International

Key Data Points

How to invest in coffee stocks

Are coffee stocks right for your portfolio?

Benefits and risks of investing in coffee stocks

The bottom line

Related investing topics

Best Retail Stocks to Buy in 2026: Are They Right for Your Portfolio?

Best Fast-Food Stocks for 2026 and How to Invest

Best Stocks to Buy Now: Our Buy-and-Hold Picks for July 2026

Best Food ETFs to Buy in 2026

FAQ

Investing in coffee stocks FAQ

About the Author

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Best Stocks to Buy Now: Our Buy-and-Hold Picks for July 2026

Best Food ETFs to Buy in 2026

Key Data Points

Investing in coffee stocks FAQ

Is coffee good to invest in?

What is the best way to invest in coffee?

Do coffee stocks pay dividends?

Is it better to invest in individual coffee stocks or ETFs?

How do coffee stocks contribute to a diversified investment portfolio?

Top coffee stocks to consider

1. Starbucks

2. Keurig Dr Pepper

3. Nestlé

4. J.M. Smucker

5. Dutch Bros

6. Black Rifle Coffee Company

8. Restaurant Brands International

How to invest in coffee stocks

Are coffee stocks right for your portfolio?

Benefits and risks of investing in coffee stocks

The bottom line

Related investing topics

FAQ

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

7. Luckin Coffee

Key Data Points

Key Data Points