Jim Cramer’s Recent Takes on These 12 Stocks

5. Black Rock Coffee Bar, Inc. (NASDAQ:BRCB)

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Black Rock Coffee Bar, Inc. (NASDAQ:BRCB) is one of the stocks Jim Cramer recently gave takes on. Cramer said that while there is nothing wrong with the company, Dutch Bros offers “better risk-reward.” He said:

“They have 1.8 million rewards members. These people make up 63% of their transactions. That’s very good. So even though I’m a little suspicious that this is a kind of a knockoff Dutch Bros, I think it’s worth looking at the numbers because they’re excellent. Last year, Black Rock Coffee put up 21% revenue growth, which accelerated to 24% in the first half of this year. In the latest quarter, they put up 10.9% same-store sales growth, which is terrific, and that’s up 3.9% in the same quarter last year. Nice growth…

What do you pay for a small coffee chain with strong numbers and huge growth ambitions?… The company has a market capitalization of roughly 1.4 billion right now. And in the last 12 months we have data for, they did 179 million in sales, meaning the stock’s trading at 7.8 times sales. Hmm, that’s not a small number. I mean, for some perspective, Starbucks trades at 2.6 times sales. Dutch Bros is a much closer comparison, trades at 6.6 times sales despite being legitimately profitable. Again, much of Black Rock Coffee Bar’s business is very similar to Dutch Bros…

The bottom line: if you want an Oregon-based coffee chain, or at least one that started there with drive-throughs and energy drinks that sound like they’ll give you an immediate proverbial heart attack, I go to Dutch Bros. Nothing wrong with the Black Rock Coffee Bar. It’s just that I think BROS has a much better risk-reward.”

Black Rock Coffee Bar, Inc. (NASDAQ:BRCB) runs a chain of drive-thru coffee shops serving specialty coffees, teas, smoothies, and energy drinks.