Stock Market

It’s that time of year again. Nope, not fall or autumn. It’s pumpkin spice latte season.

Everyone’s favorite PSL can come in varying forms and from varying chains. We’ll get to a few of the key players in the world of coffee in a minute.

However, for investors looking at ways to construct their portfolios, stability and growth matter. Over the long term, investors want relative certainty that their holdings can continue to grow and eventually provide a capital return. The three following companies certainly provide such an outlook and track record, making them portfolio-worthy for even the most discerning investors.

These three “PSL stocks” are worth adding to your portfolio right now.

Starbucks (SBUX)

Source: Grand Warszawski / Shutterstock.com

No list of PSL stocks would be complete without discussing Starbucks (NASDAQ:SBUX), the company that started this trend in the first place.

Indeed, Starbucks is the coffee giant that really needs no introduction. In the U.S. market, Europe, and around the world, Starbucks truly has one of the most valuable brands and loyal followings. For a business that prides itself on its core base of repeat customers, this is clearly an important factor investors have honed in on for decades.

The company’s financials have continued to remain robust. And while SBUX stock has seen its fair share of volatility in recent years, I think there’s plenty for investors to like on the growth front. The company is opening more than one store per day in China, a market with seemingly limitless upside potential.

So, for those bullish on the ability for Starbucks to truly rule the global coffee market, this is a stock to buy when it’s down.

Dutch Bros (BROS)

Source: Alexander Oganezov / Shutterstock.com

Sticking within the coffee space, Dutch Bros (NYSE:BROS) is another key contender worth watching. The company stock is down significantly from the its all-time high of more than $76 per share in 2021. Yet, BROS stock remains a key growth player in this still-fragmented industry.

Indeed, for many investors, the coffee space is one that’s dominated by Starbucks, with a few smaller chains making up the rest of the market.

Still, BROS stock should be a sturdy consideration for investors looking for growth. This company is growing its footprint within the U.S. at a relatively impressive pace. Thus, for investors looking for more domestic exposure, from a company with a strong (but up-and-coming) brand, Dutch Bros is a compelling option. At the higher-growth end of the spectrum, Dutch Bros is worth a buy for investors seeking higher growth over the long-term.

McDonald’s (MCD)

Source: Vytautas Kielaitis / Shutterstock

Last, but certainly not least, we have McDonald’s (NYSE:MCD). This fast food giant has become a staple in many long-term investor portfolios. That’s not only due to the company’s clear value as a defensive stalwart in times of uncertainty. It’s the company’s focus on continued growth and innovation, despite its absolutely enormous size.

Coffee is one vertical that has provided McDonald’s with yet another growth lever to pull in the past. The company’s breakfast business has surprised many in recent years. This facet is a key driver of the company’s 24-hour business model in many markets. For McDonald’s continued success, the company’s coffee sales, and its positioning in the coffee wars, is worthy of attention.

Now, McDonald’s is clearly focused on the more “value” end of the value spectrum. Thus, it’s not going to pull in significant margin from any one business segment. But in terms of volume and scale, McDonald’s will likely continue to be a winner, and a stock to watch. Scale will continue to matter in this game, and in that regard, McDonald’s is a company worth owning for the long-term.

On the date of publication, Chris MacDonald has a LONG position in MCD. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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