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Black Rifle Coffee Company’s Red Flags

Theta Thoughts | Black Rifle Coffee’s Red Flags

Black Rifle Coffee (NYSE: BRCC – $3.45 billion) is a company that offers direct-to-consumer, ready-to-drink, and retail services to deliver coffee and merchandise to its customers with an emphasis on supporting the military. They are also led by a CFO whose last job was an 18-month stint where he resigned while being sued for stock-price manipulation, a co-founder who had a restraining order instated from a former contractor, alleged sexual harassment from at least two of the company’s three co-founders, and a CEO that appears to be propagating a culture of sexism within the workplace.

That doesn’t even touch the fact that their core business is rapidly decelerating with just single-digit growth expected by 2023, a speculative bet on an experimental retail format that I do not believe will achieve their projected targets, and a valuation that I perceive to be unsustainable. Currently, I see the potential for downside of nearly 50% on the stock.

Submitted February 21, 2022 at 07:12PM by DirectorOfChaos
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