BRCB

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved 25% revenue growth driven by a differentiated operating model and disciplined execution across company-owned locations. Same-store sales growth of 4.2% was supported by a 15.1% two-year stack, overcoming the strongest year-over-year comparison in three years. Transaction declines of 2% were attributed to lapping the 2024 loyalty platform launch and structural reward expiration changes, which normalized to positive growth in July. Menu innovation, specifically the Fuel platform and seasonal offerings like the Prickly Pear Fuel, is successfully driving afternoon and evening daypart engagement. Maintained industry-leading retention with team member turnover at 59.8%, roughly half the industry average, which management cites as a primary driver of 30% store-level margins. Strategic focus on California is yielding high AUVs of approximately $1.6 million for new stores, significantly exceeding the system base and driving attractive cash-on-cash returns. Raised full-year new store guidance to at least 38 locations, supported by a front-loaded 2027 pipeline and increased rigor in site selection. Expect consolidated EBITDA growth to converge with and eventually exceed revenue growth as the company laps initial public company cost burdens in the second half of 2026. Allocating approximately 30% of total capital expenditures toward the 2027 pipeline to improve store operating weeks and ensure early-year openings. Testing extended operating hours and expanded food offerings, like the now-permanent grilled cheese, to capture incremental afternoon and evening sales. Anticipate mid-single-digit same-store sales growth for the full year, with easier comparisons expected in the fourth quarter. Incremental costs of operating as a public company impacted adjusted EBITDA growth, though these costs are considered fixed and leverageable over time. Shifted development strategy toward more reverse build-to-suit projects to gain greater control over development planning and delivery timelines. Sales transfer headwinds in the Phoenix market were described as intentional and strategic, with impacts expected to diminish as the company laps those specific openings in Q3. Food mix reached 13% of sales, providing a lever for check growth while management balances the lower-margin profile of food with high-margin beverage categories like Fuel. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed July transactions turned positive to 1.7% after lapping loyalty program structural changes. Cautioned that Q3 faces a difficult 10.8% lap from the prior year, but remains confident in the full-year mid-single-digit guidance. Confirmed all California locations will include drive-thrus, utilizing a flexible approach including conversions to manage higher build costs. Stated California is a highest-tier pricing market, which supports strong profitability and margins despite higher occupancy costs. Early results from extending hours by 60 minutes showed growth not just in the final hour, but in the hours immediately preceding it. Management expects initial labor deleverage to normalize as these new hours grow and become profitable week-over-week. Reported no meaningful pressure in the supply chain or coffee bean costs for the second half of 2026. Indicated potential for commodity benefits in the back half of the year, though the market remains dynamic.

This article first appeared on GuruFocus. Total Revenue: $63 million, up 25% year over year. Same-Store Sales: Increased 4.2%, or 15.1% on a two-year basis. Transactions: Down 2% in the quarter, but turned positive in July at 1.7%. Store-Level Profit: Grew 28.1% to $19 million, with margins expanding 70 basis points to 30.2%. Adjusted EBITDA: $9.4 million, up 17% year over year. Adjusted SG&A: $8.4 million, or 13.4% of total revenue. Preopening Costs: $1.3 million, or 2% of total revenue. New Store Openings: 10 new locations in the quarter, reaching 200 stores system-wide; 42 new stores over the last four quarters (27% unit growth). Store-Level Margins: 30.2% in the quarter. Food Mix: Food now represents 13% of product mix. Digital Sales: Reached 17.2% of sales in the second quarter. Loyalty Participation: Increased to 68% of transactions. Team Member Turnover: 59.8% on an annualized basis; store lead turnover at 23.5%. Cash and Cash Equivalents: $16 million at quarter end. Term Loan Balance: $19.6 million. FY2026 Guidance: Revenue expected at $255 million-$257 million; adjusted EBITDA raised to $34 million-$35 million; new store openings raised to 38; capital expenditures expected at $42 million-$43 million (inclusive of tenant improvement allowances). Warning! GuruFocus has detected 2 Warning Sign with BRCB. Is BRCB fairly valued? Test your thesis with our free DCF calculator. Release Date: August 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Black Rock Coffee Bar Inc (NASDAQ:BRCB) delivered strong financial results with 25% revenue growth, 28% store-level profit growth, and 17% adjusted EBITDA growth in Q2 2026. Same-store sales increased 4.2% in Q2, marking the 14th consecutive quarter of positive same-store sales, with a strong two-year stack of 15.1%. The company raised its full-year new store guidance to at least 38 openings, up from 36, reflecting robust development momentum and a strong pipeline. Store-level margins expanded 70 basis points to 30.2%, driven by disciplined procurement and inventory management, with strong leverage in beverage, food, and packaging costs. Newer stores, particularly in California, are performing above expectations, with AUVs trending to $1.6 million in their first year, exceeding base levels and driving strong returns. The company is seeing positive early results from strategic initiatives such as extended operating hours, new food offerings like grilled cheese, and enhanced loyalty and digital engagement, with July transactions turning positive at 1.7%. Transactions were down 2% in Q2, pressured by lapping elevated activity from the loyalty platform transition and structural changes, though this improved in July. Consolidated adjusted EBITDA growth of 17% lagged revenue growth of 25% due to incremental costs of operating as a public company, which were not present in the prior year. The company faces a tough same-store sales comparison in Q3, lapping 10.9% growth from the prior year, which may pressure comp performance. Labor costs increased 40 basis points to 21% of revenue, and occupancy and other store operating expenses also rose, partially offsetting margin gains. Extended operating hours are still in early testing and may cause temporary labor deleverage, with no clear guidance on their impact to same-store sales yet. The company is investing heavily in 2027 pipeline development, with 30% of capital expenditures allocated to future openings, which could strain near-term cash flow. Q: Can you provide your expectations for Q3 same-store sales, given the positive traffic step-up in July?A: Rodd Booth (CFO): We shared the July transaction figure of 1.7% to provide context on the Q2 decline, which was driven by lapping loyalty platform changes. While we are encouraged by the start to Q3, we are not providing specific total comp guidance. We feel good about the mid-single-digit guide for the year, but it's important to note that Q3 is a tough lap, similar to Q2's 10.8% comparison, while Q4 gets easier. We are encouraged by initiatives like grilled cheese, extended hours, and loyalty segmentation. Q: What was the impact of sales transfer on Q2 traffic, and how should we think about this dynamic into the second half?A: Mark Davis (CEO): The sales transfer in Phoenix was strategic and intentional. In Q2, the headwind was modest and less than Q1. Moving into Q3, we will lap the majority of those openings, so it will have no future impact. We have reviewed the pipeline with our new Chief Development Officer and are confident in the white space to grow, ensuring plenty of space between stores to avoid material transfer in the future. Q: Are all new units, including those in California, drive-through locations, and does California represent a higher pricing tier that supports margins?A: Mark Davis (CEO): Yes, every store we build will have a drive-through, including all California locations. We have not felt pressure from competition on development, and our ability to be nimble with different site characteristics is an advantage. California is among our highest AUV and profitability markets, and we have implemented a price increase there, making it our highest pricing tier. We plan 6-8 more California openings this year and 15 next year. Q: How are you balancing the labor impact of extended operating hours with the incremental sales they generate?A: Mark Davis (CEO): We extended hours by one hour at select stores in July, and results have been positive. While there may be slight deleverage initially due to the closing hour, we are seeing growth in that hour and the hours leading up to it. As these hours grow week over week, we expect the labor to leverage and become profitable. We will share more details after Q3. Q: Given the pull-forward in California stores, how should we think about average build costs and occupancy costs in that high-cost market?A: Rodd Booth (CFO): While California has higher build costs, we are managing this by doing more conversions there, which helps balance the overall pipeline cost. Occupancy is higher, but the higher AUVs and strong performance still result in great store-level margins and returns. We are encouraged by the AUV opportunity and profitability in California. Q: What is the typical conversion timeline versus a new build, and what is the current food mix and the lift from grilled cheese?A: Mark Davis (CEO): Conversion timelines are typically three to four months. Our nimbleness allows us to use existing prototypes effectively. We finished Q2 with 10 openings and now expect 38 stores in 2026. We are pulling 2027 stores forward to earlier in the year to improve store weeks. The 2027 pipeline is front-loaded, which we are happy about. Q: What is driving the higher unit growth guidance for this year, and does a competitor's plan to use conversions in Phoenix change your development strategy there?A: Mark Davis (CEO): The 10 stores opened in Q2 were in Idaho, Arizona, Colorado, and Texas, and the cohort is performing well. Given the strength, we are pushing harder on development. Regarding Phoenix, we will continue to develop but with enough space between stores to avoid sales transfer. Our competitive advantage lies in our teams, lobbies, and customer experience execution. Q: How are you thinking about commodity and coffee costs in the second half, and do you have any early thoughts on 2027?A: Rodd Booth (CFO): We are not seeing meaningful pressure in our supply chain or costs today. Our teams are working with partners to stay ahead of potential issues. We still believe there could be some benefit from commodities, particularly beans, in the second half. There is no real pressure that gives us concern, and we are in a good spot. Q: How large can food become as a percent of sales, and what is the impact on average check and margins?A: Mark Davis (CEO) and Rodd Booth (CFO): Food is currently just north of 13% of sales. We use food to drive attachment, ticket, and daypart expansion, particularly in the afternoon and evening. While food has lower margins, we balance it with higher-margin items like Fuel, which has grown to nearly 27% of sales. We are focused on bringing great items to guests rather than targeting a specific food percentage. Q: Are you including any same-store sales lift from extended operating hours in your guidance for the second half?A: Mark Davis (CEO): We are about 30 days into the extended hours test and are encouraged by the results. However, it would be premature to provide expectations on its impact to same-store sales. We will provide more details when we discuss Q3 earnings in November. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Total Revenue Growth of 25.0% Year Over Year in the Second Quarter Same Store Sales Growth of 4.2% Year Over Year in the Second Quarter Opened 10 New Stores in the Second Quarter SCOTTSDALE, Ariz., Aug. 11, 2026 (GLOBE NEWSWIRE) -- Black Rock Coffee Bar, Inc. (Nasdaq: BRCB) (“Black Rock Coffee Bar” or the “Company”) today announced financial results for the second quarter ended June 30, 2026. Second Quarter 2026 Highlights Opened 10 new stores during the period Total revenue of $63.0 million, up 25.0% compared to the prior year period Same Store Sales Growth(1) increased 4.2% compared to the prior year period Income from operations of $4.1 million compared to $3.3 million in the prior year period. In the second quarter of 2026, income from operations margin was 6.5% Store-Level Profit(2) of $19.0 million as compared to $14.9 million in the prior year period. In the second quarter of 2026, Store-Level Profit Margin was 30.2% Selling, general, and administrative (“SG&A”) expenses of $9.8 million, or 15.6% of total revenue, compared to $7.9 million, or 15.6% of total revenue, in the prior year period Adjusted SG&A Expenses(2) of $8.4 million, or 13.4% of total revenue, compared to $6.0 million, or 12.0% of total revenue, in the prior year period Net income grew 403.3% to $3.2 million, as compared to a net loss of $(1.1) million in the prior year period Adjusted EBITDA(2) grew 17.2% to $9.4 million, as compared to $8.0 million in the prior year period Total store operating weeks(1) of 2,510, as compared to 2,015 in the prior year period “We delivered another strong quarter, where revenue increased 25% and adjusted EBITDA grew 17% year-over-year, reflecting the continued strength of our brand, customer engagement strategy, and operating model. Same store sales growth increased 4.2%, or 15.1% on a two-year basis, despite lapping a particularly strong 10.9% same store sales growth comparison from the prior year, underscoring the resilience of customer demand and the consistency of our overall performance. During the quarter, we opened 10 new locations, reaching 200 stores systemwide, while continuing to execute against our disciplined expansion strategy. Deepening guest engagement, fostering a people-oriented culture and growing our market presence remain key priorities. During the quarter, we continued to invest in initiatives to expand opportunities to engage with our customers, including new and exciting menu offerings, loyalty segmentation and daypart-based offers, and extended operating hours. At the same time, we continue to grow our presence and build brand awareness in our existing markets, while the visibility provided by our largely committed 2026 and 2027 development pipeline reinforces our confidence in the significant expected whitespace opportunity ahead. Combined with the strength of our high-performing, culture-driven team and growing leadership pipeline, we believe we are well positioned to scale and deliver sustainable long-term growth," said Mark Davis, Chief Executive Officer. Balance Sheet & Liquidity As of June 30, 2026, Cash and cash equivalents totaled $16.0 million and total debt was $30.6 million, consisting of $18.6 million outstanding under our credit facility and $12.0 million of financing obligations related to certain reverse build-to-suit lease arrangements. As of June 30, 2026, outstanding principal under the Company's term loan facility was $19.6 million. The Company's $25 million revolving credit facility remains undrawn. Full Year 2026 Outlook The Company is updating its full year 2026 guidance to: 38 new store openings Total Revenue in the range of $255 to $257 million Same Store Sales growth in the mid-single digits Adjusted EBITDA in the range of $34 to $35 million(3) Capital Expenditures in the range of $42 to $43 million which includes anticipated tenant improvement allowances (1) Same Store Sales Growth and total store operating weeks are defined in the section "Key Performance Measures".(2) See “Non-GAAP Financial Measures” for a discussion of Store-Level Profit, Store-Level Profit Margin, Adjusted Selling, General, and Administrative Expenses, and Adjusted EBITDA and reconciliation of each measure to its most directly comparable GAAP measure.(3) A reconciliation of adjusted EBITDA outlook to GAAP net income is not available without unreasonable efforts due to the inherent difficulty in forecasting and quantifying with reasonable accuracy significant items required for the reconciliation, including share-based compensation. Conference Call and Webcast Information Black Rock Coffee Bar will host a conference call on August 11, 2026, at 5:00 p.m. Eastern Time to discuss second quarter ended June 30, 2026 results. The conference call can be accessed live over the phone by dialing 1-877-704-4453 or for international callers, 1-201-389-0920. A replay will be available two hours after the call and can be accessed by dialing 1-844-512-2921, or for international callers, 1-412-317-6671. The passcode for the live call and the replay is 13761422. The replay will be available until Tuesday, August 25, 2026. A live webcast of the conference call and related presentation materials will also be available in the investor relations section of Black Rock Coffee Bar’s website, ir.br.coffee. About Black Rock Coffee Bar Black Rock Coffee Bar is a high-growth operator of guest-centric, drive-thru coffee bars offering premium caffeinated beverages and an elevated in-store experience crafted by our engaging baristas. Black Rock Coffee Bar was founded in 2008 in Beaverton, Oregon. What started as a single 160 square foot coffee bar in 2008 is now one of the fastest growing beverage companies in the United States by revenue and the largest fully company-owned coffee retailer in the country, with more than 200 locations spanning seven states from the Pacific Northwest to Texas. Forward-Looking Statements This release contains a number of “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, Black Rock Coffee Bar’s strategy, future financial condition, sustainable long-term growth, future operations, projected costs, prospects, plans, objectives of management, expected market growth and whitespace opportunity, and full year 2026 outlook, including new store openings, total revenue, same store sales growth, adjusted EBITDA, and capital expenditures. These statements are based on Black Rock Coffee Bar’s current expectations and beliefs, as well as a number of assumptions concerning future events. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “shall,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “goal,” “objective,” “seeks,” or “continue,” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Black Rock Coffee Bar’s control that could cause actual results to differ materially from the results discussed in the forward-looking statements, including our inability to successfully identify and secure appropriate sites and timely develop and expand our operations; our inability to protect our brand and reputation; our inability to secure, protect, and enforce our intellectual property rights; our dependence on a small number of suppliers and two roasting facilities; our dependence on third-party information technology systems and services; our and our vendors’ vulnerability to security breaches, including breaches that may impact confidential customer information; our expectations regarding our future operating and financial performance; the size of our addressable markets, market share, and market trends; our ability to compete in our industry; changes in consumer tastes and nutritional and dietary trends; our ability to effectively manage the continued growth of our workforce and operations; our inability to open profitable stores; our failure to generate projected same store sales growth; the sufficiency of our cash, cash equivalents, and investments to meet our liquidity needs; our dependence on long-term non-cancelable leases; our relationship with our employees and the status of our workers; the effects of seasonal trends on our results of operations; our vulnerability to global financial market conditions, including inflation and other macroeconomic factors, including, without limitation, due to the ongoing conflict in the Middle East; our ability to attract, retain, and motivate skilled personnel, including key members of our senior management; our vulnerability to adverse weather conditions in local or regional areas where our stores are located; our realization of any benefit from the Tax Receivable Agreements and our organizational structure; the increased expenses associated with being a public company; and those other risks described under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission ("SEC") on March 4, 2026, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 filed with the SEC on May 12, 2026, as will be updated by our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, once filed, and in our future reports to be filed with the SEC. Forward-looking statements contained in this release are made as of this date, and Black Rock Coffee Bar undertakes no duty to update such information except as required under applicable law. Non-GAAP Financial Measures This press release contains “non-GAAP financial measures” that are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”). Specifically, we make use of the non-GAAP financial measures “Adjusted EBITDA”, "Adjusted EBITDA Margin", “Store-Level Profit”, “Store-Level Profit Margin”, “Adjusted Selling, General, and Administrative Expenses”, and "Adjusted Selling, General, and Administrative Expenses Margin". We believe these non-GAAP financial measures assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our operating performance. Management supplements GAAP results with non-GAAP financial measures to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone provide. Please refer to the tables in this press release for a reconciliation of non-GAAP measures to the most directly comparable financial measure prepared in accordance with GAAP. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to the financial information prepared and presented in accordance with GAAP. Store-Level Profit and Store-Level Profit Margin Store-Level Profit represents store revenue in the specific period less beverage, food and packaging, labor and related expenses, occupancy and related expenses, and other store operating expenses, excluding depreciation and amortization and pre-opening costs in the period. Store-Level Profit Margin represents Store-Level Profit as a percentage of store revenue. We use Store-Level Profit and Store-Level Profit Margin in our evaluation of the performance and profitability of each store. We use Store-Level Profit and Store-Level Profit Margin to supplement GAAP measures of performance in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, and to compare our performance against that of other peer companies using similar measures. Adjusted EBITDA and Adjusted EBITDA Margin Adjusted EBITDA is net income (loss) adjusted to exclude interest expense, net, income tax expense, and depreciation and amortization, further adjusted to exclude certain items that we do not consider indicative of our ongoing operating performance, including transaction costs associated with our initial public offering ("IPO"), capital restructuring costs, equity-based compensation, gain (loss) on the remeasurement of the liability related to the TRA, certain litigation costs, net and other non-core costs. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of Total revenue. We use Adjusted EBITDA and Adjusted EBITDA Margin to supplement GAAP measures of performance in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, and to compare our performance against that of other peer companies using similar measures. Adjusted Selling, General, and Administrative Expenses and Adjusted Selling, General, and Administrative Expenses Margin Adjusted Selling, General and Administrative Expenses is selling, general, and administrative expenses adjusted to exclude transaction costs, equity-based compensation, legal settlement, net and other costs. Adjusted Selling, General and Administrative Expenses Margin represents Adjusted Selling, General and Administrative Expenses as a percentage of Total revenue. We use Adjusted Selling, General, and Administrative Expenses and Adjusted Selling, General, and Administrative Expenses Margin because it may provide a more meaningful comparison to prior periods and may be indicative of the level of such expenses to be incurred in future periods. BLACK ROCK COFFEE BAR, INC. Condensed Consolidated Statements of Operations (Unaudited)(in thousands, except share and per share amounts) (1) Basic and diluted net loss per share of Class A common stock is applicable only for the period subsequent to September 12, 2025, which is the period effective with and following the IPO and transaction related thereto. BLACK ROCK COFFEE BAR, INC. Condensed Consolidated Balance Sheets (Unaudited)(in thousands, except share data) BLACK ROCK COFFEE BAR, INC. Summary Cash Flow Data(in thousands; unaudited) Key Performance Measures($ in thousands; unaudited) (1) Same Store Sales Growth reflects the change in year-over-year sales for the comparable store base, which we define as stores open for 18 months or longer.(2) See “Non-GAAP Financial Measures” for a discussion of Store-Level Profit, Store-Level Profit Margin, Adjusted EBITDA and Adjusted EBITDA margin and reconciliation of each measure to its most directly comparable GAAP measure.(3) The Company does not consider income from operations, income from operations margin, net income (loss) or net income (loss) margin to be key performance measures but has included such metrics in this table to provide the most directly comparable GAAP metric to Store-Level Profit, Store-Level Profit Margin, Adjusted EBITDA and Adjusted EBITDA Margin.  (4) Total store operating weeks are calculated based on the number of operating days for the store base and dividing by 7. Our store base is defined as stores opened as of the period end date. Management uses this metric as an indicator of our overall financial health, growth and future expansion prospects. Supplemental Reconciliation of U.S. GAAP Actuals to Non-GAAP Actuals Following are the reconciliations of the most comparable GAAP financial measures to non-GAAP financial measures. These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP, and reconciliations from U.S. GAAP to Non-GAAP measures should be carefully evaluated. Please refer to "Non-GAAP Financial Measures" in this press release for a detailed explanation of the adjustments made to the comparable U.S. GAAP measures, the ways management uses the non-GAAP measures, and the reasons why management believes the non-GAAP measures provide useful information for investors. (1) Includes non-recurring professional service fees and executive compensation related to our IPO.(2) For the three months ended June 30, 2026 and 2025, includes non-recurring legal costs.(3) Non-recurring professional service costs. (1) Includes non-recurring professional service fees and executive compensation related to our IPO.(2) For the six months ended June 30, 2026, includes non-recurring legal costs. For the six months ended June 30, 2025, includes legal costs, offset by insurance proceeds.(3) Non-recurring professional service costs. (1) Includes non-recurring professional service fees and executive compensation related to our IPO.(2) For the three months ended June 30, 2026 and 2025, includes non-recurring legal costs.(3) Non-recurring professional service costs. (1) Includes non-recurring professional service fees and executive compensation related to our IPO.(2) For the six months ended June 30, 2026, includes non-recurring legal costs. For the six months ended June 30, 2025, includes legal costs, offset by insurance proceeds.(3) Non-recurring professional service costs. Investor Contact: Will MacIntosh [email protected] (541) 208-1860

Interested in Black Rock Coffee Bar, Inc.? Here are five stocks we like better. Q2 revenue rose 25% to $63 million, while same-store sales increased 4.2% and the store base reached 200 locations after 10 openings. Store-level profit climbed 28.1% to $19 million, lifting the margin to 30.2%. Customer transactions turned positive in July, rising 1.7% as loyalty-platform comparisons eased. Management maintained its full-year expectation for mid-single-digit same-store sales growth, supported by new beverages, food offerings, loyalty promotions and digital engagement. Black Rock raised its outlook, targeting at least 38 new stores in 2026 and adjusted EBITDA of $34 million to $35 million, while maintaining revenue guidance of $255 million to $257 million. The company continues to target 1,000 locations by 2035. Black Rock Coffee Bar (NASDAQ:BRCB) reported second-quarter 2026 revenue growth of 25% as the company expanded its store base, increased store-level margins and raised its full-year new-unit and adjusted EBITDA outlook. Total revenue reached $63 million in the quarter, while same-store sales rose 4.2% against a 10.9% comparison in the prior-year period. On a two-year basis, same-store sales increased 15.1%. The company said it opened 10 locations during the quarter, bringing its systemwide total to 200 stores. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat CEO Mark Davis said the results reflected the company-owned model, product innovation and operational execution. “Store-level margins have never been stronger,” Davis said, adding that Black Rock expects to continue pursuing its long-term targets of 20% unit growth, 20% revenue growth and EBITDA growth above revenue growth. Same-store sales growth in the second quarter was supported by a 2.4% contribution from price and 3.8% growth in average check. Transactions declined 2%, which management attributed largely to comparisons related to the launch and transition of its loyalty platform in the second half of 2024, as well as changes surrounding reward expiration during the first half of 2025. → 3 Dividend Champion Utilities for a Market That Can't Sit Still Chief Financial Officer Rodd Booth said those comparisons have since eased. The company disclosed that July same-store transactions increased 1.7%, although it did not provide a total same-store sales figure for the month. Management maintained its outlook for mid-single-digit same-store sales growth for the full year. Booth said the third quarter still faces a difficult prior-year comparison, while the fourth-quarter comparison becomes easier. → Is Wingstop's Growth Story Losing Steam? Davis said the company’s initiatives to drive traffic include seasonal beverage offerings, food innovation, targeted loyalty offers, extended store hours and digital engagement. Loyalty participation reached 68% of transactions during the quarter, while digital sales represented 17.2% of revenue. The company said its Fuel beverage platform has gained traction, particularly in the afternoon. Black Rock also tested a grilled cheese offering in Arizona and the Pacific Northwest in June before expanding it systemwide in July. Following what management described as strong guest response, the item will become permanent. Food represented about 13% of product mix. Store-level profit increased 28.1% to $19 million, and the store-level margin expanded 70 basis points to 30.2%. Beverage, food and packaging costs declined 220 basis points to 26.9% of revenue, which Booth attributed to procurement discipline, strategic initiatives and inventory management. Labor costs rose 40 basis points to 21% of revenue, occupancy costs increased 30 basis points to 8%, and other store operating expenses rose 70 basis points to 13.7%. Adjusted EBITDA was $9.4 million, up 17% from the prior-year quarter. Adjusted selling, general and administrative expenses totaled $8.4 million, or 13.4% of revenue, compared with $6 million a year earlier. Booth said the difference between revenue growth and EBITDA growth reflected the cost of operating as a public company, which was not included in the year-ago period. He said those expenses are largely fixed and the company expects EBITDA growth to converge toward, and eventually exceed, revenue growth as comparisons begin to include those costs. The company also reported $1.3 million in preopening costs, compared with a period when it opened four stores a year earlier. Black Rock ended the quarter with $16 million in cash and cash equivalents, full access to a $25 million revolving credit facility and a $19.6 million term loan balance. Black Rock raised its full-year development target to at least 38 new stores from 36 previously. It had opened 19 stores in the first half and 42 over the trailing four quarters, representing 27% unit growth. The company said its 2026 and 2027 development pipeline is largely committed. Davis highlighted California as a significant growth market, saying newer stores in the state are trending toward first-year average unit volumes of $1.6 million, above the company’s base expectations. Management expects seven additional California openings in 2026 and roughly 12 to 15 in 2027. Every Black Rock location includes a drive-through, Davis said. The company acknowledged California carries higher construction and occupancy costs, but said it is using more conversions in the market to help manage capital expenditures and expects strong store-level profitability and returns. Black Rock said it is also taking a more disciplined approach to spacing in Phoenix following strategic openings that created some sales-transfer pressure. Management said the second-quarter effect was modest and less than in the first quarter, and that most of the affected store openings will be lapped in the third quarter. The company reaffirmed full-year revenue guidance of $255 million to $257 million, representing 27% year-over-year growth. It raised adjusted EBITDA guidance to $34 million to $35 million from a prior range of $33.5 million to $34.5 million. The updated EBITDA range implies growth of 24% to 27% for the full year, with management expecting 28% to 35% growth in the second half versus the prior-year period. Black Rock now expects capital expenditures of $42 million to $43 million inclusive of tenant improvement allowances, or $57 million to $59 million excluding $15 million to $16 million of such allowances. Approximately $13 million to $14 million of capital spending is expected to support the 2027 pipeline. Management said it remains focused on reaching 1,000 locations by 2035 while directing capital toward what it views as the highest-return development opportunities. Our Mission: To Fuel People Forward - One Connection, One Moment, One Cup at a Time We are a high-growth operator of guest-centric, drive-thru coffee bars offering premium caffeinated beverages and an elevated in-store experience crafted by our engaging baristas. Black Rock Coffee Bar was founded in 2008 in Beaverton, Oregon, by our co-founders Daniel Brand and Jeff Hernandez. What started as a single 160 square foot coffee bar in 2008 is now one of the fastest growing beverage companies in the United States by revenue and the largest fully company-owned coffee retailer in the country, with 158 locations spanning seven states as of June 30, 2025, from the Pacific Northwest to Texas. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Black Rock Coffee Bar Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Total Revenue: $55.5 million, an increase of 23.7% year-over-year. Adjusted EBITDA: $7.4 million, up 23.5% over the prior year. Same-Store Sales Growth: 5.2%. New Store Openings: 9 new locations, bringing total to 190 stores. Store-Level Profit: $16.4 million, with a margin of 29.6%. Cash and Cash Equivalents: $20 million. Total Debt Position: $27.4 million. Net Debt Position: $7.4 million. Same-Store Transactions: Declined 0.6%. Pricing Contribution: 3%. Check Growth: 2.8%. Store-Level Labor Costs: $11.5 million, 20.7% of total revenue. Occupancy and Related Expenses: $4.7 million, 8.5% of total revenue. Other Store Operating Expenses: $7.8 million, 14% of total revenue. Pre-Opening Costs: $1.1 million, 2% of total revenue. Adjusted SG&A: $7.9 million, 14.3% of total revenue. Capital Expenditures: $40 million to $41 million, inclusive of tenant improvement allowances. Warning! GuruFocus has detected 2 Warning Signs with BRCB. Is BRCB fairly valued? Test your thesis with our free DCF calculator. Release Date: May 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Black Rock Coffee Bar Inc (NASDAQ:BRCB) achieved a 24% growth in both revenue and adjusted EBITDA compared to the prior year, surpassing their long-term growth algorithm. The company opened nine new locations in the first quarter, bringing the total store count to 190, demonstrating successful expansion efforts. Same-store sales growth was 5.2%, or 14.4% on a two-year basis, indicating resilient demand and strong execution. Digital sales reached approximately 17% of total sales, driven by increased guest frequency across app, online ordering, and third-party delivery. The loyalty program showed strong momentum with a 66% participation rate, leading to higher visit frequency and greater spend per visit. The strategic densification in Phoenix resulted in a 160 basis point headwind to same-store sales due to sales transfer between existing and new stores. Same-store transactions declined by 0.6%, attributed to a challenging comparison with the prior year and the impact of sales transfer. The Ollipop Dirty Soda limited-time offer did not perform as strongly as expected, highlighting challenges in new product launches. The company faces potential challenges from increased competition, such as Starbucks and McDonald's launching new beverages. Despite strong performance, the company anticipates flat full-year margins, indicating potential pressure on maintaining profitability levels. Q: Could you elaborate on the strategic densification strategy and its impact on sales? A: Mark Davis, CEO, explained that densification, particularly in Phoenix, involves opening new stores near high-volume locations, which can lead to some sales transfer. However, the new stores have high Average Unit Volumes (AUVs), and the strategy is intentional to capitalize on strong market demand. Rodd Booth, CFO, added that the sales transfer impact was about 160 basis points, but the new stores are expected to build back sales over time. Q: How is the start of the second quarter looking in terms of sales growth? A: Mark Davis, CEO, stated that they are reaffirming their guidance for mid-single-digit same-store sales growth for the year. The company is confident in its long-term growth algorithm, which includes 20% growth in system-wide sales, EBITDA, and unit growth. Q: Can you discuss the impact of segmented loyalty offers and marketing campaigns on first-quarter performance? A: Mark Davis, CEO, highlighted that segmented loyalty offers, which tailor incentives based on customer preferences, have doubled engagement and nearly doubled spend. The marketing spend increased by 30% year-over-year, focusing on paid media, influencer marketing, and merchandise activations to drive brand awareness and engagement. Q: What are the expectations for unit-level margins for the rest of the year? A: Rodd Booth, CFO, noted that the first-quarter store-level profit margin was 29.6%, and they expect to maintain strong margins throughout the year. The margin improvement was driven by strategic initiatives like inventory management and reduced discounting compared to the previous year. Q: How are new market entries planned for 2027, and why move up the timeline? A: Mark Davis, CEO, mentioned that they are evaluating new markets with a coffee culture and similar customer demographics. The timeline for new market entries has been moved up to 2027 to stay ahead of growth commitments and ensure predictable expansion. For the complete transcript of the earnings call, please refer to the full earnings call transcript.