7 Best Coffee Stocks to Buy Now

5. BRC Inc. (NYSE:BRCC)

Number of Hedge Fund Holders: 10

Average Upside Potential as of July 31: 26.70%

BRC Inc. (NYSE:BRCC), the Black Rifle Coffee Company,  is an American coffee business which was founded by former U.S. Army Green Beret Evan Hafer in 2014. The Veteran-founded and operated company is based in Salt Lake City, Utah. The company imports coffee beans directly from Colombia and Brazil to blend and roast exclusive coffee roasts for consumers in America. Additionally, the company offers apparel, accessories, and gear such as mugs, cups, glasses, and tumblers.

The mission-driven premium coffee company is a strong disruptor that strives on an innovative brand strategy that is unique as compared to big names in the coffee industry. The company’s sales are largely catalyzed by the extensive reach of popular retail stores such as 7-11, Walmart, Albertsons, and Giant. The company recently unlocked another major achievement by announcing a strategic partnership with Keurig Dr Pepper for the manufacturing and licensing of its single-serve pods which will foster growth across its current portfolio. With a patriotic mission of supporting Veterans, active-duty military, and first responders, the coffee company has a loyal consumer base which strengthens its business. As a fast-growing beverage brand, the Black Rifle Coffee Club (with 209,000 active subscribers) also serves as an accelerator.

The company’s wholesale business growth and emphasis on keeping operational expenses low have led to a strong financial performance over the recent fiscal quarter. The net revenue increased 18% year-over-year in the first quarter to $98.4 million. With the adjusted EBITDA hitting $14.1 million, the company witnessed record profitability. Analysts hold a consensus Buy rating on the stock and their 1-year median price target points to a 26.70% upside from the current stock price. Through a strong niche presence in a highly competitive coffee market and growth prospects, BRC Inc. (NYSE:BRCC) is another top coffee stock to buy. BRCC was held by 10 hedge funds at the close of Q1 2024. As of March 31, Engaged Capital is the dominant shareholder in the company with a position worth $55 million.