My Top IPO (Should They Ever Go Public)

Now that the IPO market is heating back up again, it’s worthwhile to identify the one company that I would buy in a nano-second – should they ever go public.

The company is Buc-ee’s, which boasts “the cleanest restrooms in American.”

I admit…

That may sound like a ridiculous investment thesis.

But, if you give me a moment to explain – you’ll realize what a genius marketing gimmick this really is.

You see, if you’ve ever been on a road-trip, then you know how valuable a good bathroom break is – and Buc-ee’s is a roadside attraction unlike anything I’ve ever seen before.

After dropping my daughter off in college in Savanah, Georgia – I was driving back to Chicago. And for miles on end, I was teased with tantalizing billboards that counted down the miles until I arrived at the next Buc-ee’s.

150 miles to Buc-ee’s…

75 miles to Buc-ee’s…

25 Miles to Buc-ee’s…

You’re Almost There!

Hold it a little longer! The best restrooms are closer than ever!

When it was finally time to exit, I had to check it out.

And I have to say… Buc-ee’s lived up to the hype.

It felt less like a convenience store and more than a roadside experience that reminded me of stopping at Wall-Drug in South Dakota.

As for the bathrooms…

The men’s room had around 30 urinals and 12 toilets.

The women’s restroom had 28 toilets (No… I didn’t go in to check – I had someone verify for me).

Each stall had walls (not thin dividers) and a surprisingly heavy metal door. And they are all monitored 24 hours a day, 365 days a year, by uniformed employees whose only job is to keep them pristine.

Nothing is worse than a bathroom stall that’s out of toilet paper – or out of towels to dry your hands – and Buc-ee’s is keenly aware of this.

But here’s the secret…

You see, in order to reach those restrooms, customers must walk past endless aisles of snack foods, candy, refrigerator cases filled with beer and soda, self-serve drink and coffee stations, and even a table filled with outstanding-smelling BBQ and pulled-pork sandwiches.

There was no way that anyone – including me – could head to the bathroom without buying something on the way out.

And that’s where Buc-ee’s gets you hooked.

As for profit margins…

10% to 12% of the packaged food sold there is Buc-ee’s-branded – and Forbes estimates that Buc-ee’s profit margin on major-label items is +32%.

Margins on Buc-ee’s-branded merch is +40%. Overall, Forbes estimates Buc-Ee’s makes +35% gross profit margin on in-store sales (which basically includes everything but gas).

The company, based in Lake Jackson (which is an hour south of Houston), only has 32 stores – with plans for 2 more (including one in Daytona Beach, Florida).

Their 12 “travel centers” are enormous. Most have more than 100 gas pumps, 52,000 square feet of retail space, and employ more than 200 people. Some even feature – what many consider – the largest car wash in the world.

Bon Appétit magazine called Buc-ee’s “the best rest stop in America.”

Texas restaurateur and celebrity chef Tim Love said, “When a new Buc-ee’s opens, it’s like a new roller-coaster ride. You just want to go in and see it.”



When it comes to these assessments, I couldn’t agree more. If Buc-Ee’s ever goes public, I’ll be buyer #1. Just something to keep an eye out for here in 2024.