Acknowledge Growing Pains, But Still Watch Black Rifle Coffee

  • Black Rifle Coffee (BRCC) offers a unique alternative to traditional coffee shops.
  • The company's financial results are imperfect, but still suggest rapid growth.
  • Investors should acknowledge the potential risks, but can still hold a few shares of Black Rifle Coffee for the long-term.
BRCC stock - Acknowledge Growing Pains, But Still Watch Black Rifle Coffee

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Suffice it to say that Utah-headquartered Black Rifle Coffee (NYSE:BRCC) isn’t a run-of-the-mill coffee-shop chain. The company is ambitious and unique, with its focus on constitutionally protected freedoms. If you’re on board with the company’s vision and can handle some risk, then BRCC stock may be worth considering.

Mainly, the risk comes from Black Rifle Coffee’s status as a relatively new business that’s facing heavy competition. With an up-and-coming company in a niche market, we can’t expect perfection.

That being said, it will be interesting to witness the future progress of this mission-driven premium coffee company. Given enough time, investors could enjoy substantial returns as Black Rifle Coffee’s growth story develops.

Ticker Company Price
BRCC Black Rifle Coffee $8.06

What’s Happening with BRCC Stock?

BRCC stock has run as high as $34, but recently it came down around the $8 area. That’s a steep discount and investors should acknowledge that the Black Rifle share price could move much lower or higher from here.

Staying in the trade with confidence means believing in the company. By holding BRCC stock, traders are effectively aligning with certain values: community, authenticity and freedom of expression. In other words, it’s not just about the coffee.

As Chief Executive Officer Evan Hafer explained, “People are making choices—whether it’s a coffee shop, a place to meet, or somewhere to stop for a treat—based on where their values are reflected.” This quote comes from a press release in which Black Rifle announced the opening of a new coffee shop in Spanish Fork, Utah.

The company is growing in more ways than one, as Black Rifle Coffee recently added Chris Clark as its chief technology officer. Hafer proudly noted Clark’s “tremendous breadth of technology and supply chain experience.”

Robust Performance

As Black Rifle expands its business, investors are undoubtedly monitoring the company’s financial performance. Again, growing pains are to be expected, but Black Rifle’s stakeholders will at least want to see improving revenue.

In that area, Black Rifle Coffee can honestly say that it passed the test. During 2022’s first quarter (Q1), Black Rifle increased its net revenue 35% year-over-year to $66 million.

Hafer asserted, “The strength of our brand continues to drive robust operating performance.” The company’s revenue improvement provides evidence of this. Furthermore, Black Rifle’s quarterly gross profit increased 18% year-over-year to $23.2 million, which would translate to 35% of the company’s net revenue.

We can break down Black Rifle’s revenue stats even further and paint a brighter fiscal picture. In Q1 of 2022, the company’s wholesale revenue increased 135% to $22 million.

Even more impressively, Black Rifle’s outpost revenue increased 397% to $5.5 million. The missing piece here is that the company didn’t report a profitable quarter, so there’s room to improve in that respect.

What You Can Do Now

Black Rifle Coffee is an expanding business with a specific vision. Even beyond offering premium coffee, the company provides a sense of community and authenticity.

The data indicates that Black Rifle isn’t profitable, so that’s a goal that may be achieved in due time. For now, the BRCC stock bulls can appreciate that Black Rifle Coffee is growing its revenue and advancing its business one customer at a time.

BRCC stock currently earns a “B” in my Portfolio Grader.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

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