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Two stocks that can make you rich easily.

These consumer stocks are thriving as they expand from a regional to a national level.
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Wealth accumulation is one of the main reasons why individuals invest in the stock market. ConsideringHome Depot(math.) andAmazonWith the history of companies such as the U.S. Bancorp, many growth investors are looking for small and mid-cap stocks destined to become the next Big Rock or Super Big Rock stock.

Finding such a stock requires hard work and luck, provided unforeseen events don't derail a potentially lucrative stock.

However, a regional company with national or international expansion can generate superior returns. For this reason, theHolland Brothers firms(NYSE: BROS)respond in singingKawa Group (NYSE: CAVA)Consumer stocks, such as the U.S., are likely to outperform the U.S., after rapidly expanding their footprints.Standard & Poor's 500Index.

1. Dutch Brothers

Dutch Bros. may not seem like a successful investment on some levels. After all.Starbucks ResonanceThe coffee shop market is dominated by independent coffee shops, private chains such as Dunkin andMcDonald'sWith its emerging chains also competing in this market, Dutch Bros. doesn't look like a stock that will gain much traction.

However, its tea drinks, lemonade, energy drinks, smoothies and coffee are popular among consumers. The chain has grown from 716 locations in 14 states a year ago to 831 locations in 16 states. This shows that Dutch Bros. is making rapid progress in driving national expansion.

This growth brings its revenues to $966 million in 2023, up 31% from a year ago.In addition, Dutch Bros. is now profitable, with net income attributable to the company of $1.7 million.In 2022, the company lost about $5 million.

Despite its huge potential, Dutch Bros. stock is costing many investors money, most likely due to a poorly timed IPO in the swing season of 2021. In addition, as a newly profitable company, its margins are too small for the P/E ratio to reflect its valuation.

However, its market-to-sales (P/S) ratio of 2.1 is much lower than Starbucks Resonance's sales multiple of 2.7. In addition, Dutch Bros' relatively small size means that it can generate significant revenue growth simply by expanding. As Dutch Bros. continues to expand its service offerings in the U.S., this growth process could eventually bring investors back to the company's stock.

2. Kawa Group

Like the Dutch Bros. following in the footsteps of Starbucks, one might suspect that Kawa (CavaFollow the example.ChipotleThe Practice. Like the fast food giant, Cava offers healthy and tasty fast food. But what sets it apart from the rest is its Mediterranean cuisine.

By the end of 2023, the company had 309 pre-restaurants in 24 states and Washington, D.C., up from 237 at the end of 2022.

The company has set a goal of reaching 1,000 studios by the end of 2032. To achieve this, the company plans to open an average of 77 additional restaurants per year until then, with the possibility of opening more in other locations once the goal is reached.

Through this strategy, Kawa earned $729 million in revenue in 2023, a year-over-year increase of 291 TP3 T. Fortunately, it limited the growth in operating expenses to 181 TP3 T. As a result, it earned $13 million in profit in 2023, a significant improvement from the $59 million loss it incurred the previous year.

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Investors are increasingly recognizing Kawa's potential. The company's shares have risen nearly 50% since its June IPO.

However, this growth has also brought its price-to-earnings ratio to 8.9, and while this level may be a deterrent to investors, they should also keep in mind that Chipotle's sales multiple is not far behind at 8.2.

In addition, Kawa's market capitalization is just over $7 billion, which is much lower than Chipotle's market capitalization of $80 billion. As a result, Kava's smaller size makes it easier for it to realize higher percentage growth. This factor, coupled with the potential revenue and profit growth from national expansion, could make Kawa's stock worth a premium.

Should you invest $1,000 in Holland Brothers now?

Before buying shares of Dutch Bros. stock, consider the following factors:

Motley Fool Stock AdvisorA team of analysts have just named what they think are the best values for investors.10Only ...... and Dutch Bros. were not among them. The 10 stocks that made the list are poised to generate huge returns in the coming years.

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*Stock Advisory Rates as of April 8, 2024

John Mackey, former Chief Executive Officer of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's Board of Directors.Will Healy has no position in any of the stocks mentioned above.The Motley Fool recommends Amazon.com, Chipotle Mexican Grill, Home Depot, and Starbucks Resonance. The Motley Fool recommends Cava Group.The Motley Fool has a disclosure policy.

Two Stocks That Can Make You Rich Easily was originally published by The Motley Fool.

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