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$150 Million Cash Infusion Adds Heat to Black Rifle Coffee Stock


Some folks will call it the next Starbucks (NASDAQ:SBUX). It’s easy to make comparisons, as Black Rifle Coffee (NYSE:BRCC) serves coffee just like Starbucks does. That being the case, why should investors consider BRCC stock?

The facade of the New York Stock Exchange is decorated for the listing via a SPAC of Black Rifle Coffee Company (BRCC)
Source: rblfmr / Shutterstock

That’s a valid question. Starbucks practically has a stranglehold on the U.S. coffee-shop market. If you’re in a major city in America, there’s probably a Starbucks location within half an hour’s drive.

On the other hand, Black Rifle isn’t just a lesser-known Starbucks clone. For one thing, Black Rifle is a start-up and could therefore grow faster than the already established Starbucks.

Therefore, don’t count Black Rifle out just because it’s an up-and-comer. As we’ll see, the company’s vision is unique and could help it to remain competitive and drive revenue in the coming years.

A Closer Look at BRCC Stock

Not long ago, I made a hearty recommendation for SBEA stock, which represented a company called SilverBox Engaged Merger. Don’t go looking for that stock and company now, as they’ve disappeared from Wall Street.

That’s not a bad thing, though. SilverBox was just a shell company, and its purpose was to help Black Rifle Coffee go public. This finally happened on Feb. 10, 2022.

By that time, BRCC stock’s predecessor, SBEA stock, had already gained 18% year-to-date and risen 24% in the prior six months. Upon its Feb. 10 debut, the share price was $15 and change.

The positive momentum continued, with the stock climbing to $19.60 by Feb. 23. Everything seems quite bullish so far, and it would probably be unwise to short-sell a stock with this much forward momentum.

New Name, Same Mission

While we can continue to call the newly merged business Black Rifle Coffee, technically its name is BRC Inc. No matter what you call it, there’s no denying that the company is serious about providing a unique brand experience.

Reportedly, the business combination is expected to deliver $150 million in cash proceeds to Black Rifle. That’s a great start for a company that just recently went public, but what exactly makes Black Rifle different from the competitors and especially Starbucks?

While Starbucks might have an “army” of customers, Black Rifle focuses on the U.S. Army and other heroes as current and potential patrons.

Truly, Black Rifle is mission-driven as it was founded to support veterans, active-duty military, first responders and other great U.S. citizens of service.

We’re not talking about a coffee company trying to gain a “cult following.” Rather, it’s a business that provides a more meaningful experience for its patrons.

Not Just Talk

In other words, patriots who frequent Black Rifle can justifiably brag about going there. Honestly, who brags about going to Starbucks?

This isn’t just a talking point for Black Rifle, either. As the company’s founder and CEO, Evan Hafer, points out, Black Rifle has a “goal of hiring 10,000 veterans as we expand our coffee shop footprint across the United States.”

By the way, Hafer happens to be friends with ultra-popular podcaster Joe Rogan. There’s been talk of Hafer doubling down on a partnership with Rogan – and this could give Black Rifle a significant boost of exposure.

Also notably, Black Rifle plans to give several $10,000 checks to veteran and first responder organizations. Starbucks undoubtedly has its own ways of giving back, but it’s great to see Black Rifle leading by example.

The Bottom Line

Say good-bye to SBEA stock, and hello to BRCC stock. The shell company is gone, but now you can invest directly in an intriguing and unique coffee company.

Besides, Black Rifle’s mission is highly commendable. This is a business that both the customers and the investors can get behind.

Therefore, today might be a great time to consider a position in BRCC stock. It could make you some money in the long run, and you’ll feel good about owning shares of Black Rifle.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2022/03/150-million-cash-infusion-adds-heat-to-brcc-stock/.

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