Love Dutch Bros Stock? Here’s a Little-Known Coffee IPO You Should Take a Look At

Caffeine meets capital markets in this under-the-radar opportunity brewing on Wall Street.

The Next Coffee Contender

While Dutch Bros continues its expansion frenzy, another player is quietly preparing to percolate through the IPO pipeline. This isn't just another coffee chain—it's positioned to disrupt the entire specialty beverage sector with a tech-forward approach that traditional analysts keep overlooking.

Market Positioning That Actually Makes Sense

Unlike the overhyped SPAC deals flooding the market, this company boasts real revenue growth and unit economics that don't require rose-colored spreadsheets to justify. Their store-level profitability metrics would make even the most skeptical short-seller reconsider their position.

Growth Strategy Beyond Basic Brews

Digital integration, subscription models, and proprietary technology stack separate this contender from the crowded coffee space. They're not just selling coffee—they're building an ecosystem that captures customer loyalty through data-driven personalization.

Because what's better than caffeine? Caffeine with compound annual growth rates that outpace the broader market's returns.

Meet the new Oregon coffee stock

Like Dutch Bros, Black Rock Coffee Bar is primarily a drive-thru coffee chain, although Black Rock does now have seating areas in 75% of its 158 locations. But unlike Dutch Bros', all of Black Rock's locations are owned by the company, meaning there aren't any franchisees to consider.

Image source: Getty Images.

This is a massive growth opportunity for investors today. Black Rock Coffee Bar's management expects to grow its base of coffeehouses by 20% annually. If it can keep up this strong pace, it could have about 1,000 locations by 2035 -- roughly the same size that Dutch Bros is now.

The other component of its growth engine may be same-store-sales growth. As of June, Black Rock's AUV was $1.2 million; that's still a small sales base per location. But same-store sales are routinely ticking higher, including a strong 6% gain in 2024 and a 10% gain in the first half of 2025. And because sales per location are relatively low, it has plenty of room to increase on a per-store basis for years to come.

If Black Rock Coffee Bar's same-store sales continue to increase, its digital business will likely play a part. The company only launched a loyalty program with its app in June 2024. But in just one year, it hit 1.8 million members -- around 12,000 per location -- and these members make purchases far more frequently than before. It's a good sign for a young brand.

Based on its valuation when it went public, Black Rock Coffee Bar has a market cap of about $1 billion as of this writing. Considering it's generated $179 million in trailing-12-month revenue, that means it trades at just over 5 times its sales. For comparison, Dutch Bros stock trades at a price-to-sales (P/S) ratio of 4.

Black Rock Coffee Bar trades at a comparable P/S ratio to Dutch Bros, which suggests that this IPO stock isn't outrageously priced. And if it delivers even a fraction of the growth that it intends to deliver over the next several years, then Black Rock's valuation today WOULD certainly look like a bargain in hindsight.

Some things to watch

In 2024, Black Rock had a net loss of $7.2 million, and it lost another $1.9 million in the first half of 2025. It would be easier to be bullish about the company if it was profitable.

However, store-level economics give some reason to hope. In the first half of 2025, Black Rock had a store-level profit margin of 29%. This metric strips out corporate expenses, so it could be a good indicator of what the business is capable of as it scales up and gains operating leverage.

Dutch Bros measures this with its company-operated store contribution margin, which stands at about 30% right now. So when looking at per-store economics, Black Rock Coffee Bar stands toe-to-toe with Dutch Bros. The key to profitability, therefore, may simply be a matter of scale.

Scaling up will not be easy for Black Rock Coffee Bar -- this space is intensely competitive and success isn't guaranteed. But the company has shown promise early, and could be a big winner if it's able to execute its long-term growth plans.