2 monster stocks purchased and held for a long time

Identifying emerging brands can be a profitable investment strategy. Promising new businesses are starting to attract attention on Wall Street in the restaurant and sportswear industry.

Dutch brothers (NYSE: Brothers) and hold (NYS: Ooook) The huge demand for its products is being reported, which is reflected in its share price performance, as both stocks have roughly doubled in value over the past year.

That's why these stocks are expected to provide investors with monster returns in the long run.

Image source: Getty Images.

Dutch Bros’ unique brand focuses on professional beverages, and friendly service is driving incredible growth. It is very promising to find new restaurant brands growing up that can make meaningful stocks long-term.

Over the past few years, revenue has increased by about 30% year-on-year. This is a combination of the same shopping sales growth from units in existing locations as well as powered by New Holland Brothers Stores. It reported revenues in the latest quarter rose 29% year-on-year, with management planning to maintain a steady pace of expansion, with 160 new stores scheduled to open in 2025.

One thing that makes Dutch Brothers an attractive investment is that the business is just starting to take advantage of opportunities to drive sales in existing locations. It has successfully introduced its coffee and energy-centric new flavors, recent works (such as cereal-flavored latte and brownie batter mochas).

Management attributes its new flavors to strengthening its brand and achieving outstanding financial results this quarter. In the long run, it can make it season and blend the drink menu in a variety of unlimited ways. This doesn't even count on food testing in certain locations in order to expand the menu into new sales opportunities.

The Dutch Brothers just opened the 1000 store in Orlando, Florida. It aims to open 2,029 stores in 2,029. It should be able to expand to thousands over the next decade and provide investors with multiple returns.

Runners go up the stairs.
Image source: Getty Images.

Discover Nike Stocks in the 1980s would bring wealth-building returns. Holding may give investors another opportunity. The emerging footwear brand has seen sales growth and has reached higher profit margins than Nike.

A target was set in 2024 to grow annual sales of 26% annually until 2026. In the most recent quarter, sales increased by 43% year-on-year. Not only is it faster than other top sportswear brands, but its profit margins continue to climb. ON now converts 10% of its sales into profits, while Nike's margin has dropped to unit numbers in a 12-month period.

ON's increased profit margins suggest that it has not adopted an aggressive sales strategy, such as discounted items, to increase sales. Consumers are paying high prices for ON's advanced buffering technology, which brings a soft feel without hurting the runner's ability to explode on takeoff.

The company's sales momentum also reflects that its cloud shoes are starting to attract people as everyday sneakers. It attracts millions of customers in 80 countries. A good sign of growing brand awareness is that clothing sales began to take off, up 40% year-on-year in the last quarter.

The brand’s annual sales grew by $3 billion, so it has a consistent presence in the sportswear industry, but is still small enough to bring huge benefits to patient shareholders. Management focuses on continuing to expand brand awareness, improve its online sales channels and maintain healthy profitability. As its stock performance has shown, the strong demand for its products points to excellent returns prospects.

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John Ballard owns a position at Dutch Bros. Motley Fool recommends Dutch Brothers and holds. Motley Fool has a disclosure policy.

2 Monster Stocks Buy and Hold for Long Times Originally published by Motley Fool