[U.S. IPO] Black Rock Coffee Bar Raises $294M in US IPO, Shattering Restaurant Sector's IPO Lull

TradingKey - U.S. coffee chain Black Rock Coffee Bar completed its initial public offering (IPO) on Thursday, becoming the first restaurant company to enter the U.S. market since Cava Group's listing in 2023.

The IPO priced 14.7 million shares at $20 per share, raising a total of $294.1 million. Based on this IPO price, Black Rock Coffee's market capitalization is approximately $956.3 million. The pricing exceeded the previously set range of $16 to $18 per share, reflecting strong market demand.

Sources revealed that subscription demand reached approximately 20 times the offering size. Wellington Management, a major asset management firm, has explicitly expressed interest in purchasing up to $30 million worth of shares in this offering, providing significant support for the IPO.

The IPO was jointly underwritten by J.P. Morgan, Jefferies, Morgan Stanley, and Baird. Black Rock Coffee's common stock is expected to begin trading on the Nasdaq Global Market on Friday, Eastern Time, under the ticker symbol "BRCB."

Founded in 2008 with a single store in Beaverton, Oregon, Black Rock Coffee has grown into a coffee retailer distinguished by its "drive-thru" convenience service. Its product portfolio includes hot coffee, iced coffee, iced tea, energy drinks, and breakfast foods, aiming to meet customers' needs for quick and convenient consumption.

Despite achieving strong growth in recent quarters, the company has also faced rising costs due to tariffs and inflation.

Filings show that for the three months ended June 30 of this year, Black Rock Coffee generated revenue of $50.4 million, a significant increase from $40.6 million in the same period last year. However, the company reported a net loss of $1.1 million for the quarter, compared to a net loss of $522,000 in the same period last year.

The company relies heavily on imported coffee beans, with primary sourcing countries including Brazil, Ethiopia, Colombia, and Mexico. Global coffee prices have continued to rise to historical highs due to droughts in top-producing countries like Brazil and Vietnam, compounded by the 50% tariff the U.S. imposes on imported coffee beans from Brazil, collectively driving up raw material costs.

As a brand that has regional markets through localization expertise and a loyal customer base, Black Rock Coffee is actively competing for market share from industry giants. The company plans to open approximately 30 new stores in 2025 and aims to maintain an annual store growth rate of about 20%, with a long-term goal of expanding its total store count to 1,000 by 2035.

Its competitor Dutch Bros went public in 2021 and has seen its stock price more than double since its IPO.