BRCC Stock Forecast & Price Target

BRC Inc. reported a 6.5% increase in total sales for 2Q25, achieving $94.8 million, driven by strong performance in its Wholesale and Outpost channels. The Wholesale segment witnessed a significant sales growth of 14.1%, totaling $61.3 million, alongside substantial distribution gains in packaged coffee, ready-to-drink coffee, and energy products. Additionally, projections for continued sales growth of 3.5% to $101.6 million are supported by the expansion of various product lines and enhanced distribution efforts.

BRC Inc. is experiencing significant financial challenges, as evidenced by an expected adjusted EBITDA of approximately $6.0 million, reflecting a margin compression of about 135 basis points and a gross margin decline of 515 basis points to 37%. Additionally, the Direct-to-Consumer segment reported a 7.8% decline in sales to $27.6 million, largely attributed to lower customer acquisition and a reduction in loyalty reserve accruals, along with a stark gross margin decline of 793 basis points primarily due to rising coffee bean prices and increased promotional investments. Furthermore, sales to Walmart, which account for a notable portion of total sales, were slightly down, and overall sales growth projections for 2025 have been revised down to 2.0%, with adjusted EBITDA estimates slightly reduced to $22 million, indicating a cautious outlook amidst macroeconomic uncertainties.