Black Rock Coffee Bar (NASDAQ:BRCB) executives highlighted what they described as a year of “strong execution and meaningful acceleration” in 2025, capped by a fourth quarter that featured double-digit two-year comparable sales, continued unit growth, and expansion in profitability measures.
Full-year 2025 results and unit growth
CEO Mark Davis said the company delivered 10.1% same-store sales growth in 2025, representing a 16.4% two-year “growth stack.” The company opened 32 new stores during the year, ahead of its plan, and ended 2025 with 181 stores.
Management also pointed to store-level profitability. Davis said store-level profit margins were 29% for the year, up 130 basis points versus the prior year, while Booth said full-year store-level profit margin expanded to 29.2% from 27.9%.
Looking longer term, Davis reiterated the company’s goal to reach 1,000 units by 2035, describing investments in the store pipeline and a scalable development approach as key enablers.
Fourth-quarter performance: comps, margins, and cost lines
For the fourth quarter, Booth said total revenue was $53.6 million, up 25.3% year-over-year, supported by 9.3% same-store sales growth despite lapping a 9.5% comp in the prior-year quarter. Same-store transaction growth was 4.2%, and the company opened 12 new stores during the quarter.
Store-level profit in the quarter was $15.7 million, up 35.8% year-over-year, and store-level profit margin was 29.4%, a 230-basis-point improvement. Consolidated adjusted EBITDA was $6.5 million, up 52.4% from the prior year.
Booth also detailed key cost components in the quarter:
- Beverage, food, and packaging costs: $14.7 million, or 27.4% of revenue (190 basis points favorable year-over-year).
- Store-level labor: $11.4 million, or 21.3% of revenue (70 basis points favorable year-over-year).
- Occupancy and related expenses: $4.4 million, or 8.3% of revenue (20 basis points unfavorable year-over-year).
- Pre-opening costs: $1.2 million, or 2.3% of revenue, tied to the 12 openings.
Booth said cost margin improvement reflected execution at the store level and procurement and pricing management with the supply chain team. On coffee, he said prices remained elevated into early 2026, though the company anticipates “some relief” in the second half of the year.
Adjusted SG&A was $8.0 million, or 15% of revenue, compared with $6.4 million a year earlier. Booth said the company plans to manage SG&A growth with discipline while investing to support expansion and strategic initiatives.
Customer engagement: loyalty, digital, paid media, and product initiatives
Davis said the company’s fourth-quarter results were supported by “healthy traffic and strong guest engagement,” and he outlined several initiatives across loyalty, digital, marketing, and menu innovation.
In loyalty, Davis said participation remained at 65% in the quarter. He added that loyalty members visit more often and spend more per visit than non-members, and described the loyalty platform as a growing channel for guest communication and insight generation since its June 2024 launch. During the quarter, the company tested segmented, targeted offers for specific guest cohorts; based on the results, management said it has established a “more disciplined segmentation strategy” for 2026 aimed at improving engagement, transaction frequency, and offer efficiency.
Davis also said digital sales continued to support transaction growth, with app ordering, online ordering, and third-party delivery contributing after the company’s native Olo launch last year. He noted increased investment in paid media during the quarter through structured tests that continued into the first quarter, with the company using results to develop a more performance-driven and “regionally tailored” approach.
On menu performance, Davis said the company leaned into holiday seasonal flavors and limited-time offerings (LTOs). He cited beverages including Butterscotch Breve, a sour candy Fuel with gummy worms, and peppermint bark, as well as “surprise and delight” drops. Davis identified the top-performing beverages for the quarter as Peppermint Bark Blondie, Pumpkin Blondie, White Chocolate Milano Mocha, and Butterscotch Breve.
Davis also discussed a second collaboration with influencer Avery Woods—a tangerine strawberry pomegranate Fuel—that he said outperformed the summer collaboration. He said the company is applying those learnings as it explores a structured micro-influencer strategy focused on local creators who are already fans of the brand.
Food was another focus area. Davis said Egg Bites continued to exceed expectations and drove attachment and check growth, while Booth later noted food had grown to about 12% of the mix. Davis said Fuel and food mix increased sequentially in the fourth quarter.
In Q&A, Davis addressed the company’s early-2026 partnership with OLIPOP to launch a “dirty soda” seasonal LTO. He said the partnership was driven by guest demand for functional, cleaner-label beverages, and that the company intends to use LTOs to validate demand before deciding on broader rollouts.
People and operations: retention, training, and inventory management
Davis emphasized investments in culture and talent development, saying retention remains a “real strength.” He said team member turnover and store lead turnover improved year-over-year, attributing progress to an updated learning management system and the company’s Career Roadmap training program for retail leaders.
He also said the company launched a high-potential talent development program in partnership with the Bold Font team to prepare advanced employees for senior leadership.
Separately, Davis said an inventory management module designed to improve cost of goods sold performance and business acumen is “continuing to drive improvements,” with efficiencies intended to be reinvested into employees over time.
Development cadence, pipeline investments, and 2026 guidance
On development, Davis said landlord delays and permitting extended timelines in 2025, shifting some store openings later in quarters and reducing “store weeks” carried into subsequent periods. In response, he said the company has expanded its pipeline buffer, refined systems, and improved cross-functional coordination, and expects better performance on store weeks in 2026.
In Q&A, Booth said roughly 25% of 2026 capital expenditures are expected to be committed to the 2027 pipeline, though he said there was “no change to total units” in the company’s current modeling. Davis added that the company has seen “no pressure” on site availability and said the “quality of sites has improved,” calling the brand an attractive tenant.
Davis also discussed the company’s first modular prototype with a lobby opened in the quarter, saying it can reduce capital expenditures and, importantly, speed store openings to drive more store weeks.
For 2026, Booth provided the company’s outlook:
- New store openings: 36
- Total revenue: $255 million to $257 million
- Same-store sales growth: mid-single digits
- Consolidated adjusted EBITDA: $33.5 million to $34.5 million
- Capital expenditures: $40 million to $41 million, including anticipated tenant improvement allowances; or $58 million to $61 million excluding anticipated tenant improvement allowances of $18 million to $20 million
Management reiterated longer-term targets including 20% annual new unit growth, revenue growth of 20% or more, mid-single digit same-store sales growth, and adjusted EBITDA growth that outpaces revenue growth, along with its 1,000-unit-by-2035 target.
On the balance sheet, Booth said the company ended 2025 with $28.4 million in cash and cash equivalents and total debt of $26.7 million, including $18.7 million under its credit facility and $8.0 million of financing obligations related to failed sale-leaseback arrangements. He said the company had a net cash position of $9.7 million and access to an unfunded revolver of $25 million.
Davis also noted that board members Jake Spellmeyer and Bryan Pereboom retired from their board roles effective Feb. 25, 2026.
About Black Rock Coffee Bar (NASDAQ:BRCB)
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.
