From Black Rock Coffee Bar, Mark Davis, CEO, and Rodd Booth, CFO. For those of you who don't know Black Rock, it's a very quickly growing coffee-centered chain out of the Pacific Northwest originally, but now based out of Phoenix, growing at around a 20% clip and putting up consistently positive same-store sales in a rapidly growing category. We think there's a lot of room to grow this concept, even in their existing states, and likely portability into other regions. Oh, I keep forgetting to say this. There is a complete list of research disclosures and potential conflicts of interest at williamblair.com. Mark's going to set the stage with some slides, and then we're going to have a chat. Thank you. Perfect. Thank you, Sharon. Nothing like following the disclosure. I want to say thank you to everybody for being here very much. I get the privilege of talking about our company. Our company started in 2008. There is a picture for everyone that has never been to one, Seven states. Again, we are going to be predominantly west of Denver and Dallas, and you'll see it in California, you'll see it in Oregon, you'll see it in Washington, Idaho, and Arizona. As you look at it and you think about the points of difference, especially against the peer group, what you'll notice is that we have not only the drive-throughs, but we have the lobbies. Again, when you think about the lobbies, we have the garage doors that open up. We have the furniture, the lighting, the music, and the ambiance. What sets us apart is going to be the baristas. Guest satisfaction of about a 93%- 96%. Really strong. Again, that is built off these baristas that drive the experience. Again, the push on the mission is going to be connection, caffeine, and community. As I spoke to earlier, we really try to drive that experience. We believe that's going to be a point of difference. I think any of you, when you think about going to a beverage shop, there is the drive-thru capability. Every one of them have one. We also have the order ahead, and we have the third party. Again, we push real hard on that connection that we get through the lobby. The caffeine, everything that we roast is small batch. When you think about it, when you have a beverage with us that has coffee, you are typically going to have that anywhere between 10- 14 days from the time that it was roasted. Again, really fresh. I would add that when you look at the top 10 Pmix, Americano is going to be one of them. I made this joke the other day that anybody in finance is typically cold brew or Americano. When you think about the Americano being in there, it speaks to the quality of the coffee. The last thing is community. We are roughly coming up on 200 units. You'll see that pretty quick. Again, Rodd and myself and the team have guided that we'll end up right around 220 at the end of this year. The long-term algorithm is that we will grow the system-wide sales at least 20%. You'll see the EBITDA grow more than 20%, and then the units grow at least 20%. When you look at our first three quarters as a public company, we have done that all three. We feel real proud about that. I'm going to move this through pretty quickly here to show you just a couple of things. This is what we are most proud of. Again, for those of you that have kids, for those of you in the back of the room that have just evolved out of being kids, what I would say to you is, again, as you look at this, we try to teach our teams acumen right out of the gate. When you think about that, for those of you that have kids and you think about what you want for them, we literally sit down and go, "Hey, you have an external budget. We'd love to teach you how to have an internal budget." You're going to build your own sales levers. You're going to think about how to retain the team. You're going to think about how to drive that guest satisfaction and ultimately leverage into profitability. There is a great push on acumen, you go a step further. We being a smaller company that's growing, they're on the bottom floor, and there's a giant career path. I think you take it a step further, there is profit sharing. When you think about the profit sharing, if you're a young store lead, you get the ability to not only set a budget, go beat the budget, but then you share in the profits. As the profits grow, you get a percentage of it. Next thing, and one of the most important, if you think about the culture in the world today, while everyone loves the acumen, and I would say they love the career path, again, a store lead for us is going to make right around $65,000-$75,000. A multi-store lead, which is going to run three to four, is going to make $75,000-$85,000. Our AMs make upwards of $100,000. These are people that are going to be anywhere between 18- 23 years of age, so really, really impressive on that end. When you look at the performance culture, we stack rank, how'd you do on your sales growth? How did you do on your retention? How did you do on your satisfaction with your guest? How did you do growing your transactions? Ultimately, how did you leverage in your profitability? What it does is it allows us to provide a winner for monthly, quarterly, and yearly. What I would say to you is, as much as our teams love the acumen, as much as our teams love the career path and the profit sharing. What they really love is to give each other a bad time about where they are on the rankings. When you go to the top, what we push is we're each year going to take you to a great hotel called a JW Marriott. There'll be a lazy river. There'll be a casino night where you get to gamble with your friends, win prizes. The next day, you get to learn about your company. From there, you get to dress up and you win trips and awards and all the above, and all these things rode together. What eventually occurs is you see this great compounding growth rate both on sales and on the EBITDA, which is really, really good. Again, if I took you back to your kids or the people on our team, it is really what gives us that point of difference and drives the company. I'm going to turn it over to Rodd. Again, we had promised Sharon we'd be quick, and we could ask some questions and have some responses, and Rodd can talk to you a little bit about the model and the profitability. Thanks, Mark. For the group, I see several of you taking notes. I would just add everything up here is on the IR website. It's our investor deck, you can see that here. Really just to set the table in terms of size, company, where we're going. We ended last year at 181 units, you'll see target for us in 2026 is, hit the wrong button, 36 units. From a revenue standpoint, we're looking at $255 million-$257 million in revenue. From a comp standpoint, mid-single digits. We think that's something we can sustain long term. From a consolidated EBITDA standpoint, company level EBITDA, $33.5 million-$34.5 million. On the capital standpoint, we're looking at $40 million-$41 million of net capital investment. That supports not only the 36 stores that we're looking at in 2026, but also the early 2027 class. What's not up here, Mark spoke a lot about team and performance. One of the things we're really, really proud of is our team members really operate and run their stores like they're their very own. You look at the first quarter of 2026, we ran a 29.6% store-level margin. We couldn't do that without the phenomenal teams that we have. They do a really good job of managing their stores, connecting with the guests, managing the turn time, and the speed of service, and it's really a big part of what we do. Long term, from a modeling standpoint, really what we're going after is 20% unit growth. We think that's something we could do year-over-year for quite some time. We're targeting essentially 1,000 units by 2035. From a comp standpoint, we think mid-single digits is really a good place for us to be. You think about all the markets we're growing, all the things we're doing around digital and the loyalty and the things we're doing to engage our guests that are new have a lot of legs and some runway. Of course, 20%+ revenue growth long term is what we're looking at. On a company-level profitability standpoint, we're looking for store-level or company-level EBITDA that outpaces our revenue growth as we continue to leverage the G&A. Kind of wanted to set the stage with that from a finance standpoint, but as you guys, again, you can download this deck, this presentation from our investor website. Sharon, I think I'll open up to you for questions. I think the coffee landscape is very competitive. Probably the biggest question that we got from investors during the IPO and subsequently has been trying to figure out how does Black Rock fit into that competitive landscape. What do the customers see about you that's different from what they might get from one of the larger peers that we all know? Yeah. I think when you think about us, and I'd use anybody in the room, I think when you look at the peer group, that is typically going to be drive-through only. We have that. We can do that. Generally, we believe there will be moments, human connection, that you're going to want to go in, you're going to want to sit with somebody. The lobby experience and all of that makes a giant difference. I'd take a step further. Started in the Pacific Northwest in 2008. There are every one of the brands that we compete with and have always competed with. On the earnings call, I spoke to it and I gave examples in each state. Recently, we had a store we took over in Kneaders as a conversion, and right next to the Kneaders is that Dutch Bros. location. We opened up that location as a conversion. That location opened up at 28 a week. It's now doing roughly 35 a week. I think what you end up seeing is there is a different customer base. With us being 55% coffee, what you typically find is the demographic 18- 45. We're going to have a little bit more mature of a customer base, a little bit more disposable income, and I think going to skew more towards coffee. Can you talk about as well the portability of the brand? You alluded to it a bit in some of the regions you are, but how you've seen the performance throughout the states that you're in and how you think about the longer-term opportunity, how you approach that. Why 20% is the right growth rate. When we were going public, we tried to speak to what the potential could be, and the way that we came up with that is at 20% compounded growth each year, we would hit 1,000 units by 2035. With our pipeline of people, we're about a year ahead on people. We have the ability to grow and have had no issues with that. When you look at existing markets, I'll use Phoenix as an example. Phoenix is among our very most competitive market. Every brand that we've spoken to is there, and it is among our highest AUV, going to be north of $1.6 and growing, and is also going to be among our most profitable. We have three locations in California. Those locations are the most profitable and do the most sales. We've opened two this year already that are right in line with those stores. Again, portability, you see it there. When you go to Colorado, when I started four years ago, we had four stores. We now have 20. Those stores are all averaging in that $1.5 range. We've moved into Colorado Springs, again, when you look at same-store sales, same-store transactions, by the way, McDonald's ran their tests there. All of that, Colorado is our most successful same-store sales market and is growing at a rapid rate. Like I said, we'll have 20 by the end of this year. We opened 18 last week. We'll open 19 Sunday, and you'll see 20 within the month here. Again, I think as you look at it across the board, every state that we have, the seven that we're in. We have stores that rival any of the volumes of any of our peer group. Yeah. I think California especially is interesting because you could argue you could probably have as many locations in California as your entire company right now. Absolutely. When you're thinking about new markets, and I'm going to generically say states are new markets, which isn't the truth, right? Because California is obviously a big state. Do you see the need to push outside of the states you're in in the foreseeable future, or is it more working where you already are and making some of those states like California and Texas, which are really big states, more penetrated with Black Rock? Specifically to the 1,000 units, we could open all 1,000 in the seven states, and we would have no issue doing it. I think when you look at it, what we have said is we are going to develop where we are the most successful the majority of the time. When you think about that in the moment, that is going to be Austin, that's going to be California, that's going to be Colorado, that's going to be Arizona. Again, those are great development states for us. From a pipeline, 2027 is complete, so that's already built out. Again, the majority of the growth is going to be in those states, and I think you will see the opportunity to add a new state in 2028. I would say it won't be necessary, but there is the idea that as we grow, we again want to show that portability and show that we're able to do it. Yeah. Rodd, can you go over what the unit economics are that you target? Yeah. I think when you look across each class of stores, different states, different markets, we're essentially modeling each store. At 18 months, it's going to comp slightly below our current average AUV of $1.3 across the system. Slightly lower than that 29.6% store-level margin. They're typically comping in the low twenties, of course they're ramping from there. I think when you look at across all of our markets, really the more or the less mature markets they're going to take, call it three years to ramp. In our more mature markets, it's usually about two-ish years to ramp to company level profitability. Ultimately what we're going after in year one is that 35% cash on cash return. I think when you think about the AUVs and the profitability, one of the things we spend a lot of time on is making sure, given our size, that we're incredibly capital efficient. If you think about the 2025 class, the average net investment per store was about $650,000. That will of course incrementally go up as we continue to move forward, but we're trying to be very flexible in the deal types that we do. Mark mentioned the lobby as a differentiator to us. Ultimately we lead with the drive-through. We want to meet the guests where they are, be it the lobby, the app, the third party, and then ultimately, whether it's a build to suit deal all the way up to a ground lease. We do fewer of those because they're quite expensive. Conversions and end caps and things like that we're really trying to balance, both our ability to be flexible in the deal types that we do, but also balancing the capital for each class and each cohort. I think one other thing that's come up more recently as you've been growing really quickly has been cannibalization. That was certainly a well-worn topic on the last earnings call. Can you talk about how the cannibalization has emerged, whether it surprised you in the order of magnitude, and how do you expect that sales transfer, which is the nicer way of saying cannibalization, to play out for the remainder of this year? It seems to me like cannibalization is just part of the beverage market. You see that time and time again. This felt a little bit newer, at least from the outside. I guess maybe I speak to how we got there, and then you can speak to the math. Sure. Something like that, if that works okay. Sure. I think when we were making the decisions around Phoenix, we were coming up on a comp. When you look at the comparative number, we were about 9.2. We finished the quarter at 5.2, on a two-year stack we were at 14, which is a really strong number. Naively, I probably made the comment on the earnings call that I said, "Hey, we were at 5.2 and we could have been bigger had we not made the decision to drop three in Phoenix that are right next to really big, call it $2.5 million stores." One, it relieves a little bit of the pressure of those big stores and makes them run better. Two, instead of having one, $2.5 million store, you and I would now have two stores that are eventually going to be $4 million-$4.5 million and make lots of money for the company. I think looking back on it, and the advice that we've been given and we've talked about is that if you're going to grow as a public company, ideally you would spend that capital in a place where you're not going to see sales transfer. I think our genuine comment back would be, had we not taken that site, there is someone else that would have. It was good for the company. What I had said throughout the calls and continue to talk about, we have six stores coming in Phoenix that will have no sales transfer. We've worked through it. The sales transfer stores that we're talking about, the three, will lap in September. When you look at next year, there will be four to five in Phoenix that are going to be non-sales transfer. Generally speaking, we are going to continue to focus, as you spoke to earlier, Sharon, on the new markets, California specifically, Colorado, Austin, in places where we get the return without the risk of the sales transfer. Yeah. I think the counter to it is exactly what you've said, though. If you don't open there, I might, and I might get the customer. There is that fine line between pleasing Wall Street and doing what's best for the business. At that $2.5 million AUV, is there anything there that isn't great for the customer, where it does make sense to cannibalize? Should that just be part of the strategy to have some implicit cannibalization? I think when you look at it, and Mark, you mentioned, by the way, that was the headline of the whole first quarter. Yeah is the - 0.6 in transactions. When you think about it, Sharon, to your comment, the stores that we have, stores that are doing that high 2s approaching $3 million in AUV, the team is still focused on staffing the store well, what's the throughput, making sure the guest has a great experience. That's less of the concern, more of as we're continuing to grow a market like Phoenix where we have the most density, where we are growing quickly. We look at all sites, I think that was a decision for us where you go, "Hey, it's a great site, great visibility. We know that store can do well. We haven't experienced much, if any, sales transfer in the past." Ultimately, we felt it was the right thing to do for the business because it ultimately, all stores are still going to do great volume. They're still going to be incredibly profitable. Their turns are going to be great. Yeah. Everyone focuses on the -0.6%. I think the one thing that got lost in that conversation, we made comments to it, but if you think back to, I spoke to new loyalty program, new app. We launched that in June of 2024, and really in that first 6 months closing out 2024, we saw a lot of great growth in the loyalty program, really second in the industry, participation at 66%. A lot of traction with our guests. It was resonating with them, but we also were lapping a lot of outsized transaction growth. As a new loyalty member, you've got a free drink. We started the year in 2025 with a, hey, start the year off, some good value promotions. Again, what we also noticed in the first six months of the program is we had a lot of guests who were accruing points, accruing free drinks, but they weren't using them. What we really want is guests to come in to build their points, have a free drink, use that free drink. There's value there. They're coming back and doing it again, and our team can continue to engage. When you think about that, yes, transfer of some of those Phoenix stores was a portion of it, but we also are lapping outsized transactions, accelerated transaction growth from the early growth of the loyalty program. I think to answer your other question, I think you'll continue to see that through some of the year, primarily in the second quarter. Eventually we're going to lap those stores, and again, profitability and how we're thinking about growth, where we're growing. This isn't every store we open in Phoenix, oh man, we've got a sales transfer issue or a concern. It was really more strategically, we had some good sites that we liked very much that happened to be closer to some of our higher volume stores. I think the other thing, you may have noticed that people are very worried about high gas prices. Are they? Yeah. Having the slightly negative transactions in the quarter where gas prices spiked just leads to the obvious question, which is are you seeing any change in your consumer behavior related to higher gas? Yeah. The way that we have answered that is, I think for everybody in the room, when Rodd says we asked everyone to use their free drinks, we were going to give them 6 months to do it, January 1st to June 30th. We basically said you need to use them. We had transaction growth of somewhere between 9%- 12.5%. Big numbers. When we look at our transactions and how they're performing, we look at it on a two-year stack, we see that and go, at the moment, we don't appear to be feeling any type of sensitivity. I would say that everybody in the room realizes if the gas prices triple, that is going to have some effect. Generally speaking, we haven't felt it, at least in the moment. Yeah. I will knock on the fake wood that we don't- I'll knock with you. see gas prices triple. In terms of growth, which is obviously needed, expansion is really the story here, and not the comps in the March quarter. As you think about, you have a new Chief Development Officer who joined, is it 3 weeks ago? It was pretty recently. I'm sure they have everything planned out at this point. What are the chief priorities that you have for the new Chief Development Officer? What are the things that you would like to maybe see changed or optimized from what you were doing before? Again, if you go back to the first three quarters of being a public company, we again hit our sales growth numbers, we hit our profitability growth numbers, and we hit our unit growth. Opportunity, when you look at the units, they were back-loaded into the quarter. When we've talked to John, who I've worked with several times and know really well, what we've said is we want to be more predictable, more consistent. One of the things, for those of you that are on social media and you track it, we are now giving three months in advance the stores that are coming. When you look in April and May, what you'll see is we had committed to 10 for the quarter. We've already opened five. When you look at June, it lists the five that are going to open. When you go to July, it lists the five that are going to open. When you go to August, it lists the five that are going to open. One of the things that John has already done is been able to move them forward in the quarter, which obviously means not only are we going to get the units, but we're going to get the additional store weeks, and again, will help with revenue and again the consensus and all the above. The other topic that is really impressive about your business is the labor. Your labor runs at levels that nobody really sees as a percentage of sales. Can you talk about what drives that labor and how sustainable of an advantage you view that as? Again, going back to the culture and taking care of the teams, we have store leads that are obviously hourly. They earn tips. We have multi-store leads. When you think about a company, most companies, when you go from store lead to call it the Area Manager position, you go from 1- 10. Our multi-store leads work in the stores. They run 3-4. On their additional day of the workweek, they have an admin day. They not only get promoted from store lead, but when they get promoted, they pick their successor, and then they run that market, and in turn, shoulder to shoulder, and you get that great guest satisfaction that I spoke earlier. They're heavily invested in the ownership of it and what that drives, again, going back to what I spoke to at the beginning, industry's running somewhere between 120- 140 on team member turnover. We run 50, we are considerably better. The average tenure of that group is going to be about 3 years. If you thought about it intuitively, what that means is longer tenure, better retention, better experience, better sales growth, which we've seen, and in turn, we can leverage that into profitability. I think while the model is slightly different, what really works for the model is that retention. When you have that great retention, you have lower labor, and that's how we get there. I think we have time for one more question. I wanted to ask about loyalty. You're relatively early in your loyalty journey, but it's already about two-thirds of your transactions if I have the number right. Can you talk about what inning you're in and how you're using that data to influence frequency or spend, and which cohort are you seeing the biggest lift from? It's usually the less frequent users. If you can get them to come in more, that's like the Holy Grail. Are you starting to see that? What really motivates that customer? To your point, loyalty's going to be 66% of our transactions. When you look at that, again to Rodd's point, started in June of 2024, when we had started, Starbucks was number two at 55%. Dutch was number one, I think right at then about 63%. I believe Christine said they're around 72% right now. We're at 66%. When you say that in roughly a year and a half to get to that level is really exciting. Our top group on the quartiles of loyalty members are coming anywhere between 10- 15x in a month. Really, really strong. When you look at the second group, they're going to be 5- 1 0, and again, that is accelerating. To your point, we continue to work with the third and fourth group, which are right around five times a month, and that's where the opportunity is. I think being a new brand, we took our marketing budget from 1% up to 2% of sales, and the whole idea there is to have paid media that brings new people in, but use the segmentation to try to help influence those groups to come more often. Great. That went fast. We are going to have the breakout in the Richardson. Thank you everybody for having us. Very much. Thank you. Yeah. I will be going