Important Notice Regarding Alleged Store Cannibalization Misrepresentations That Cost BRCB Investors Over 30% in a Single Day

NEW YORK, Aug. 5, 2026 /PRNewswire/ — Levi & Korsinsky, LLP notifies investors in Black Rock Coffee Bar, Inc. (NASDAQ: BRCB) that a class action lawsuit has been filed on behalf of shareholders who purchased securities between September 12, 2025 and May 12, 2026. Find out if you qualify to recover losses. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.

Black Rock Coffee shares lost $3.32 per share, a 30.3% single-day decline, after the Company revealed that its rapid store expansion was cannibalizing sales at existing locations. The lead plaintiff deadline is August 17, 2026.

The Alleged Cannibalization Methodology

Black Rock Coffee operated 169 drive-through coffee bars and raised approximately $306.5 million through its September 2025 IPO, the lawsuit contends. The Company told investors it followed a “disciplined, data-driven approach to site selection” and would “increase density with minimal sales transfer.” Sales transfer is the industry term for cannibalization, where new store openings divert revenue from nearby existing locations.

The complaint alleges this representation was materially misleading because new stores were already siphoning meaningful volume from established high-traffic locations, a dynamic management allegedly knew about but failed to disclose.

How Cannibalization Allegedly Affected Reported Financials

The lawsuit asserts that Black Rock Coffee’s reported same-store sales growth masked the erosion occurring underneath. When the Company finally acknowledged the problem in May 2026, same-store growth had dropped to 5.2% from 9.2% in the year-ago quarter. Management admitted the Phoenix market alone suffered a 160 basis point headwind from sales transfer.

Key Cannibalization Allegations for Shareholders

• The Company’s Registration Statement claimed expansion would proceed with “minimal sales transfer,” yet new locations were allegedly already pulling volume from existing stores at the time of the IPO
• Management allegedly used the phrase “thoughtfully rebalancing demand” to euphemistically describe cannibalization that was actively suppressing same-store sales
• The 160 basis point headwind disclosed for Phoenix alone suggests the problem extended beyond a single market, according to the lawsuit
• Revenue of $55.45 million for Q1 2026 missed consensus estimates
• The Company’s target of 1,000 stores by 2035 with 20% annual store growth allegedly amplified cannibalization risk that was already materializing

The Concentric Circle Factor

Black Rock Coffee promoted its “concentric circle” expansion model as a competitive advantage, the action claims. By building outward from proven markets, the Company said it could leverage overhead and build brand awareness. The complaint alleges this strategy instead compressed trade areas between stores, accelerating the very sales transfer the Company told investors would be minimal.

“This case presents important questions about expansion disclosure obligations in the quick-service restaurant sector. When a company raises over $300 million from public investors based on a growth strategy it describes as producing ‘minimal’ cannibalization, shareholders are entitled to know if that characterization is accurate.” — Joseph E. Levi, Esq.

Submit your information to join this case or contact Joseph E. Levi, Esq. at (212) 363-7500.

ABOUT LEVI & KORSINSKY, LLP — Over the past 20 years, Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders. The firm has extensive expertise in complex securities litigation and a team of over 70 employees. For seven consecutive years, Levi & Korsinsky has ranked in ISS Securities Class Action Services’ Top 50 Report. Applications to serve as lead plaintiff must be filed by August 17, 2026.

Frequently Asked Questions About the BRCB Lawsuit

Q: What is the BRCB class action lawsuit about? A: A securities class action has been filed against Black Rock Coffee Bar, Inc. (NASDAQ: BRCB) alleging materially false and misleading statements between September 12, 2025 and May 12, 2026. Shares fell approximately 30.3% after the truth about store cannibalization was revealed, causing significant losses for shareholders.

Q: Who is eligible to join the BRCB investor lawsuit? A: Investors who purchased BRCB stock or securities between September 12, 2025 and May 12, 2026 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses, not on whether you still hold the shares.

Q: What do BRCB investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at jlevi@levikorsinsky.com or (212) 363-7500. No immediate action is required to remain eligible as a class member.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What if I already sold my BRCB shares — can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the class period and sold at a loss may still participate.

Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.

Q: How long will the lawsuit take to resolve? A: Securities class actions typically take two to four years from initial filing to resolution.

CONTACT:

Levi & Korsinsky, LLP

Joseph E. Levi, Esq.

Ed Korsinsky, Esq.

33 Whitehall Street, 27th Floor

New York, NY 10004

jlevi@levikorsinsky.com

Tel: (212) 363-7500

Fax: (212) 363-7171

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SOURCE Levi & Korsinsky, LLP