Investing

How Much Would Buc-ee's Stock Be Worth if it Went Public?

Andrew Dupont

Published: November 24, 2023 8:47 am

Society will always need a place to stop to fill up the gas tank and get food from. If you live in the southern part of the United States, then you’re most certainly familiar with Buc-EE’s. The gas station also has electric charging stations attached to most stores. When people visit Buc-EE’s, they can expect to find delicious snacks, great drinks, wonderful baked goods, and the cleanest bathrooms of any gas station. The company was first founded back in 1982 and has exploded in growth. The first station was founded in Texas, but you can now find them in six other states, with even more planning to join. One of the most impressive parts of Buc EE’s is the fact they’ve been able to do it without going public on the stock market. Just how much would Buc-EE’s stock be worth if they went public?

How Does Buc-EE’s Make Their Money?

Source: Shutterstock

Before we can give a proper valuation, it’s important to dive in and find out just how Buc-EE’s make their money. As stated previously, they have gas, and electric charging stations, food courts, and a convenience store. As of November 2023, they don’t have any other holdings or ways to profit in their business. This isn’t a bad thing, though. Buc-EE’s has become much more than just a gas station to a lot of people.

They go for the experience Buc-EE’s provides, thanks to those snacks and bathrooms. The Beaver Nuggets and brisket are so famous people drive hundreds of miles just to try it. There are tons of examples of companies that see huge profits and want to expand into other avenues they don’t know much about. Doing this is a huge risk to them and can bring down the bottom line at the end of the year.

What Would Buc-EE’s Stock Value Sell For?

Source: Shutterstock

Now that we’ve figured out how Buc-EE’s makes its money, we can try to dive in and find comparable businesses on the stock market. The best comp there is for Buc-EE’s would be ConocoPhillips (NYSE: COP), even though there’s a huge difference in company value. There aren’t a lot of companies like Buc-EE’s on the stock market to compare it to. Just like Buc-EE’s, ConocoPhillips offers a store, gas, and electric charging ports.

Buc-EE’s is worth somewhere around $2 billion, with that number most certainly growing in the future. However, we can’t just live in the future. ConocoPhillips has been valued at just under $134 billion. They’re in almost every state, while Buc-EE’s is still expanding. ConocoPhillips is selling for $115.69 as of November 2023. If you take $2 billion and divide it by $134 billion, you get 0.015. The next thing you’ll do is multiply this number by the current Kroger stock price, which gives you $1.72. That’s not what Buc-EE’s would open at. What this number does is give us a true sense of where to start and just how far Buc-EE’s has to grow.

Because the company already has locations in multiple states and a proven business model, investors won’t be shy to bump that price up a little bit. It’s fair to estimate this stock would open around $4. The key with a place like Buc-EE’s is getting as many stores open as possible. You have to make sure they aren’t too close, to maximize profit. The smaller scale has worked for Buc EE’s, but if they can succeed in the major expansion, there’s no telling just how high this stock could go.

Will Buc-EE’s Ever Go to Wall Street?

Source: MicroStockHub / iStock via Getty Images

Given how much the company is growing and rapidly expanding across the country, it might make sense for them to consider going public. Sadly, they don’t appear to be heading in that direction. One of the things Buc-EE’s wants to ensure is the quality of each station that’s opened up. If you expand too quickly, it becomes harder and harder to ensure your quality is being met. It’s also important to figure out how much gas will still be sold.

Even though Buc-EE’s has become much more than just a gas station, that’s still a huge part of their business. Yes, they do have electric charging ports, but when will electric cars take over? They’d rather keep everything in-house and not have to answer to other board members who might want to expand too fast. If Buc-EE’s ever does go public, they’d make a great investment. Any company that has a fanatic fan base will be around forever. It’s worth noting that Buc-EE’s has created passionate fans for themselves and it is set for the future.