What happened

Shares of Black Rifle Coffee Company (BRCC 2.07%) -- also known as BRC -- hit all-time lows on Thursday after the company reported financial results for the fourth quarter of 2022. Results were within guidance, but management lowered guidance for 2023. And that's why BRC stock is down about 7% as of 10:50 a.m. ET, after being down as much as 10% in earlier trading.

So what

BRC sells ground coffee through partners including Walmart, operates its own branded stores, sells directly to consumers, and sells ready-to-drink coffee beverages in convenience stores. In Q4, it generated revenue of $93.6 million, up 30% from the prior-year period and within management's guidance.

BRC is in rapid expansion mode. During Q4, the company opened four new locations (which it calls outposts), helping to boost revenue for that channel and bringing its total outposts to 26. Moreover, its ready-to-drink beverages are in nearly 45% more locations now than last year. And its distribution for ground coffee quadrupled during 2022, thanks to its Walmart partnership.  

Now what

BRC is growing fast, but management lowered expectations for 2023. In the coming year, it believes it can generate revenue of $400 million to $440 million, down from its previous guidance of $500 million. Lowering guidance stings. But it may sting more than normal considering management had just reaffirmed this guidance last quarter.

Moreover, BRC expects revenue of $80 million to $82 million for the first quarter of 2023, down sharply from its Q4 revenue.

Based on questions from analysts during the conference call, there's significant concern that demand for BRC's products is dropping. But management asserts that's not the case. It says its revenue has seasonality, that convenience stores are hitting a reset cycle, and that it's waiting to agree to terms with a new retail partner like Walmart until it's confident it can provide adequate service for a nationwide rollout.

BRC stock is a lot cheaper than it used to be. And its revised guidance still implies robust year-over-year revenue growth of 32% to 46%. Assuming management is correct about consumer demand, and assuming it can manage expenses to run a profitable business, we could be approaching a buying opportunity for this high-growth coffee brand.