Black Rock Coffee Bar, Inc. Class A (BRCB) AI Stock Analysis

• Market Cap: $666.24M
• Dividend Yield: N/A
• Average Volume (3M): 457.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.48
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 161
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Food Confectioners
• EPS (TTM): -0.05
• Shares Outstanding: 17,478,453
• 10 Day Avg. Volume: 645,640
• 30 Day Avg. Volume: 457,120
• PEG Ratio: 1.97
• Price to Book (P/B): -25.24
• Price to Sales (P/S): 2.61
• P/FCF Ratio: -43.72
• Enterprise Value/Market Cap: 0.50
• Enterprise Value/Revenue: 2.29
• Enterprise Value/Gross Profit: 6.03
• Enterprise Value/Ebitda: 305.19
• 1Y Price Target: $26.00
• Price Target Upside: 100.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $15.00 ▲(15.47% Upside)
• Action: Downgraded Date: 01/29/26
• Date: Action: Downgraded 01/29/26

The score is held down primarily by financial risk (high leverage/negative equity and ongoing profitability and free-cash-flow challenges). Technicals also weigh negatively as the stock is in a clear downtrend with weak momentum, despite oversold readings. Valuation impact is neutral because P/E and dividend yield were not provided.

Positive Factors

Revenue Growth Momentum

Sustained ~21% YoY revenue growth indicates rising customer demand and successful unit or same-store expansion. Over a 2–6 month horizon this underpins scalability of the retail model and supports franchise rollouts, enabling leverage of fixed costs as the store base expands.

Healthy Gross Margin

A near-50% gross margin signals strong product-level economics and pricing power for premium coffee and food offerings. This margin buffer supports long-term profitability potential once operating leverage improves, and provides resilience versus commodity or input cost swings.

Access to Capital

Completion of an IPO plus a JPMorgan credit agreement materially improves liquidity and longer-term funding optionality. This structural financing access supports growth investments, potential debt refinancing, and franchise funding without immediate cash strain.

Negative Factors

High Leverage / Negative Equity

Negative equity and debt exceeding book equity reflect elevated leverage that constrains financial flexibility. Over months this raises refinancing and covenant risk, limits capital allocation choices, and increases vulnerability to revenue shocks or rising interest rates.

Negative Net Profitability

Despite solid top-line growth, a negative net margin shows operating costs and other expenses erode earnings. Persisting losses mean the business must improve operating efficiency or pricing to reach sustainable profitability, otherwise growth can worsen cash strain.

Negative Free Cash Flow

Negative free cash flow indicates ongoing cash outflows after investments, requiring external funding to support expansion and debt service. Structurally, sustained negative FCF elevates refinancing risk and may force slower organic growth or dilutive capital raises.

Black Rock Coffee Bar, Inc. Class A Business Overview & Revenue Model

Company Description

Black Rock Coffee Bar, Inc. is a holding company, which engages in the provision of caffeinated beverages. It offers roasted coffees, teas, smoothies, and flavorful energy drinks. The company was founded by Daniel Brand, Jeff Hernandez, Jake Spellmeyer, and Bryan Pereboom in 2008 and is headquartered in Scottsdale, AZ.

How the Company Makes Money

Black Rock Coffee Bar generates revenue through multiple streams, primarily from the sale of coffee and espresso beverages, teas, and food items at its retail locations. The company also benefits from drive-thru services, which enhance convenience for customers and increase sales volume. Additional revenue comes from the sale of branded merchandise and packaged coffee products. The company has established partnerships with suppliers for high-quality coffee beans and may engage in promotional collaborations with other brands to enhance its market presence. Franchise opportunities also contribute to revenue, allowing for expansion without significant capital expenditure from the company.

Black Rock Coffee Bar, Inc. Class A Financial Statement Overview

Summary

Strong revenue growth (+20.84% YoY) and a healthy gross margin (49.28%) are positives, but profitability is weak (negative EBIT and net margin; net margin -2.33%). The balance sheet is a major risk due to high leverage with debt exceeding equity and a negative equity position, and cash flow remains pressured with negative free cash flow despite improved operating cash flow.

Income Statement

Black Rock Coffee Bar, Inc. shows a strong revenue growth rate of 20.84% year-over-year, indicating positive sales momentum. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is healthy at 49.28%, but the negative net profit margin of -2.33% suggests challenges in managing operating expenses and other costs.

Balance Sheet

The balance sheet reveals significant financial leverage, with total debt exceeding stockholders' equity, resulting in a negative equity position. This high leverage poses a risk to financial stability. The absence of a positive return on equity further highlights the company's struggle to generate returns for shareholders.

Cash Flow

Operating cash flow has improved, providing some liquidity support, but free cash flow remains negative, indicating ongoing cash outflows. The operating cash flow to net income ratio is positive, suggesting some ability to convert earnings into cash, but the negative free cash flow to net income ratio underscores cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023
Income Statement
Total Revenue	146.68M	160.92M	133.16M
Gross Profit	55.73M	79.29M	61.00M
EBITDA	1.10M	1.96M	11.67M
Net Income	-712.00K	-3.74M	-8.82M
Balance Sheet
Total Assets	323.20M	212.91M	177.18M
Cash, Cash Equivalents and Short-Term Investments	32.65M	10.23M	17.20M
Total Debt	141.62M	205.60M	162.90M
Total Liabilities	222.84M	229.57M	179.89M
Stockholders Equity	100.36M	-16.66M	-3.15M
Cash Flow
Free Cash Flow	-25.84M	-9.62M	-11.24M
Operating Cash Flow	-2.91M	13.30M	5.17M
Investing Cash Flow	-23.18M	-22.92M	-15.45M
Financing Cash Flow	48.52M	2.64M	21.56M

Black Rock Coffee Bar, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DRI	76 Outperform	$24.92B	22.68	54.10%	3.06%	8.61%	9.39%
DPZ	68 Neutral	$12.94B	22.38	―	1.63%	3.92%	4.98%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ARKR	46 Neutral	$25.21M	-1.84	-29.84%	―	-9.70%	-194.23%
JACK	45 Neutral	$420.46M	-4.90	―	9.34%	-6.75%	-118.94%
BRCB	41 Neutral	$666.24M	―	―	―	―	―