Posted on 02/10/2022 7:40:00 PM PST by lasereye
Black Rifle Coffee (BRCC) - Get Black Rifle Coffee Report shares jumped 30% in their first day of trading on the New York Stock Exchange.
The Austin coffee-bar chain bills itself as a company founded "to support veterans, active duty military [and] first responders" and "to [connect] consumers with great coffee and a unique brand experience."
Black Rifle is a unit of Authentic Brands, the closely held New York brand-management company. The company went public via a merger with a special purpose acquisition company, or SPAC, affiliate of SilverBox Capital.
The new company is BRC Inc., trading under the symbol BRCC. The shares closed Thursday at $15.64.
The company says that it aims to hire 10,000 veterans as it expands across the U.S. The merger will give Black Rifle about $150 million cash to fund its strategy.
As part of its efforts, Black Rifle is donating more than 530,000 shares to a foundation that aims to improve the lives of veterans, active soldiers and first responders.
The company was founded in 2014 by a Green Beret, Evan Hafer, who leads as chief executive.
It was long a favorite of Americans on the conservative end of the spectrum, with its merchandise co-opted over the last two years by extremists including Kyle Rittenhouse, who killed two Black Lives Matter protestors in Wisconsin in 2020.
An interview the company's leadership did with the New York Times last summer seemed to dampen that appeal, however, as they sought to distance themselves from political extremism.
Salt Lake City-based Black Rifle produces dark roast under brand names like Blackbeard's Delight and Freedom Fuel, as well as medium roast under the names Thin Blue Line and Coffee Or Die.
It also publishes a magazine under the title Coffee or Die.
Black Rifle Coffee currently operates 16 stores, which it calls outposts, with eight of them franchised and eight corporate-owned. The stores are located in Texas, Utah, Oklahoma, Florida, Georgia and Tennessee.
It said expects to more than double that total to 36 this year and double it again to 78 in 2023.
Its focus states for expansion: Arizona, North Carolina, Virginia and Maryland.
The company in its investor presentation notes that it has an omnichannel model, including a direct-to-consumer subscription business "with low churn."
It also has a growing wholesale business, a canned ready-to-drink product, and a growing base of coffee bars.
The company estimates revenue for 2021 was $230 million, 40% above the 2020 figure. Gross margin is also estimated at 40%.
For 2022, Black Rifle pegs revenue at $311 million with a gross margin of 41%. The figures for 2023 are $430 million and 44% margin.
SPACs, or blank-check companies, are formed for the express purpose of finding and merging with an operating partner. The idea is to speed the operating company to the public markets and avoid the extended process of a traditional initial public offering.
Black Rifle likely isn’t about making a profit.
Pump-and-dump.
After how they treated Kyle Rittenhouse, they will not get a penny from me, no matter how much they pose as conservatives.
Celebrate Guns, Veterans and Coffee with SilverBox Engaged Merger
This isn't about earning a profit, is it....
If there were truth in advertising this would be called the Deep State Coffee Company.
“I thought that company turned out to be libtard frauds? 🤪”
Yes. I definitely recall hearing and reading that. Not sure the context, but maybe they supported the Antifa and BLM riots...? (Based on lib Austin, too.)
BRC SUX
Generally true. Plus there are no fundamentals available such as earnings, PE ratios or betas. The stock has been listed for more than six months and would normally have those by this time. It is a purely speculative bet.
Something is going on.
And it has bugger all to do with coffee.
I ordered a few boxes of K-cups back when they were thought of as pro-2nd amendment conservatives. It was kind of expensive, and when they revealed themselves as woke posers, I gave up on them and do not plan to re-order.
Screw them. They’re fake conservatives cashing in on patriotic symbols. They’re really a bunch of Klantifa/BLM sympathizing Leftists. I dropped them like a bad habit when they took the standard corporate media line about Rittenhouse defending himself against Klantifa thugs who were trying to kill him.
More often, the shares would become worthless. With nearly 12,000 stocks and ETFs on the market, I just don't have the stomach to do that anymore especially with so many of them backed by real stuff like earnings.
When Kyle gets his money he should purchase a BRCC franchise. But in a highly RED surrounding though.
They’re big time killery klinton/ zhou xiden, blm supporters.
Another thing, their claim of supporting veterans is just window dressing.
They think handing out free coffee and swag is “supporting” veterans, etc. They never disclose any financial support.
Founding Fathers Coffee on the other hand, discloses right on their packaging that 50% of all proceeds goes towards helping veterans.
The Wolf of Wall Street great movie about the legend Jordan Belfort is exactly what you are talking about man you can make bank on pink sheets if you have the right intel.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.