| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 41.00 | 4857 |
| Intrinsic value (DCF) | 0.86 | 4 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
BRC Inc. (NYSE: BRCC), operating as Black Rifle Coffee Company, is a premium coffee and lifestyle brand catering to active military, veterans, and first responders. Founded in 2014 and headquartered in Salt Lake City, Utah, the company roasts and sells high-quality coffee, coffee accessories, branded apparel, and outdoor gear. Its product portfolio includes coffee brewing equipment, digital and print media, and podcasts, reinforcing its mission-driven brand identity. BRCC distributes through multiple channels, including convenience stores, grocery chains, mass merchandise retailers, and e-commerce, alongside company-operated and franchised Black Rifle Coffee retail locations. The company differentiates itself with a patriotic, veteran-focused ethos, resonating strongly with its target demographic. Operating in the competitive packaged foods sector (Consumer Defensive), BRCC combines direct-to-consumer sales with wholesale distribution, leveraging its brand loyalty to expand its market presence.
BRC Inc. (BRCC) presents a high-risk, high-reward investment opportunity due to its strong brand affinity and niche market positioning. The company’s revenue growth ($391.5M in FY 2023) is promising, but profitability remains a challenge (net loss of -$2.95M, diluted EPS of -$0.04). Its beta of 1.137 indicates higher volatility than the market, reflecting sensitivity to consumer discretionary spending. BRCC’s competitive edge lies in its loyal customer base and omnichannel distribution, but its debt load ($96.7M) and thin operating cash flow ($11.3M) raise liquidity concerns. Investors should weigh its growth potential in the premium coffee segment against execution risks in scaling retail operations and achieving sustained profitability.
BRC Inc. competes in the premium coffee and lifestyle segment, where brand differentiation is critical. Its veteran-focused mission and patriotic branding carve out a unique niche, appealing to a dedicated customer base. However, the company faces intense competition from established players like Starbucks (SBUX) and Dunkin’ (DNKN), which dominate scale and convenience, as well as specialty brands like Dutch Bros (BROS) and Peet’s Coffee (privately held). BRCC’s direct-to-consumer and wholesale hybrid model provides flexibility, but its smaller retail footprint limits visibility compared to national chains. The company’s media and merchandise offerings add diversification, though these segments contribute minimally to revenue. Key challenges include scaling profitability amid rising input costs and maintaining brand authenticity while expanding into mainstream retail. Its debt-to-equity ratio suggests leveraged growth, which could strain margins if top-line growth slows.