BofA warns Fed risks policy mistake with early rate cuts
BRC Inc. (NYSE:BRCC), a beverage sector company with a market capitalization of $455 million, announced on Monday the expansion of its board of directors from seven to nine members and the appointment of two new directors, effective April 11, 2025. The appointments come at a challenging time for the company, whose stock has declined 51% over the past year, though InvestingPro analysis suggests the company is currently undervalued. The appointments were made following recommendations from the Nominating and Corporate Governance Committee.
Stephen Kadenacy, who currently serves as BRC Inc.’s Chief Financial Officer, and Sean Moriarty, a new member, have been appointed to fill the newly created board seats. Both will serve as Class II directors until the 2027 annual meeting of stockholders. While the company isn’t currently profitable, analysts tracked by InvestingPro expect BRC to turn profitable this year, with forecasted earnings per share of $0.06. Get access to 8 more exclusive InvestingPro Tips and comprehensive analysis through the Pro Research Report.
The addition of Kadenacy and Moriarty to the board follows a previously disclosed intention to nominate Kadenacy reported on September 11, 2023. There are no disclosed arrangements or understandings between the new directors and any other persons, nor are there any material interests requiring disclosure under SEC regulations.
Kadenacy will continue his role as CFO of BRC Inc. until a successor is appointed or at a date decided by the board. Moriarty, as a non-employee director, is entitled to an annual cash compensation of $50,000, which he has elected to receive in the form of restricted stock unit awards (RSUs) under the company’s 2022 Omnibus Incentive Plan.
On his appointment, Moriarty was granted 69,767 RSUs, representing a joining grant with a fair value of $150,000, which will vest over three years. Additionally, he received 7,646 RSUs as the first annual grant, with a fair value of $16,438, vesting after one year, and 23,256 RSUs in lieu of annual cash compensation, vesting quarterly.
Moriarty will also be eligible for future annual grants with a fair value of $125,000, vesting on the first anniversary of the grant date, subject to continuous service. BRC Inc. has also entered into a standard indemnification agreement with Moriarty, similar to those with other directors.
The information reported is based on a press release statement and SEC filings from BRC Inc. With the next earnings report scheduled for May 5, 2025, and analyst price targets ranging from $2.50 to $4.00, investors will be watching closely to see how these governance changes impact the company’s performance.
In other recent news, BRC Inc. reported its fourth-quarter 2024 earnings, revealing a miss on both earnings per share (EPS) and revenue forecasts. The company posted an EPS of -$0.03, falling short of the forecasted $0.002, and revenue came in at $105.9 million, slightly below the expected $106.2 million. Despite these misses, BRC Inc. demonstrated resilience with a significant improvement in gross margin, which increased by 9.5 percentage points to 41.2%. The company has also launched a new energy drink line, which is now available in 7,000 retail locations. Analysts from DA Davidson and Telsey Advisory Group have adjusted their price targets for BRC Inc. shares, with DA Davidson reducing it to $3.00 while maintaining a Buy rating, and Telsey lowering it to $4.00 but continuing to endorse the stock with an Outperform rating. Both firms noted the company’s strategic moves to optimize its business structure and the promising growth of its energy drink segment. BRC Inc. has also been focusing on expanding its product lineup and increasing its distribution reach, particularly in the energy drink sector. These developments indicate ongoing efforts to strengthen its market presence and operational efficiency.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.