Black Rock Coffee Bar valued at $1.27 billion as shares jump in Nasdaq debut

By Abigail Summerville and Ankita Bora

Sept 12 (Reuters) - Black Rock Coffee Bar BRCB.O was valued at $1.27 billion after its shares rose 32.5% above their initial public offering price on Friday, signaling healthy investor appetite for consumer-focused companies in a tech-dominated IPO market.

Shares of the Scottsdale, Arizona-based company opened at around $26.5, versus the offer price of $20.

The rebound in U.S. public listings after a lull driven by high interest rates and tariffs has been led by high-growth tech stocks as inflation and labor market concerns cloud the consumer outlook.

Black Rock Coffee raised $294.1 million, selling 14.7 million shares, in the first IPO by a U.S. restaurant since Cava CAVA.N in 2023, according to Renaissance Capital, a provider of IPO-focused research and ETFs.

"Our baristas are our magic," Black Rock Coffee's CEO Mark Davis said in an interview. "We believe with the value proposition we have and doubling down on that experience, it’s a giant point of difference and that’s what ultimately the investors saw as valuable and why they wanted to be a part of it."

Founded in 2008, Black Rock operates 158 corporate-owned stores across seven U.S. states, aiming to achieve 1,000 stores by 2035.

The chain's Nasdaq listing will place it alongside publicly traded peers such as Starbucks SBUX.O and Dutch Bros BROS.N, which went public on the NYSE in 2021 and currently operates 1,043 stores, with nearly 30% being franchises.

In an era where even quick-service restaurants such as Wendy's WEN.O are vying for money from caffeine products, Black Rock stands out for its community-focused stores, with 75% of them featuring seating areas that the company calls "lobbies."

The strategy is reaping results, with same-store sales rising 10.9% in the second quarter of 2025, compared to 3.9% a year ago.