GICS Sector : Consumer Defensive
BellRing Brands, Inc., together with its subsidiaries, provides various nutrition products in the United States and internationally.It offers ready-to-drink shake and powder protein products primarily under the Premier Protein and Dymatize brands.The company sells its products through club, food, drug, mass, eCommerce, specialty, and convenience channels.
BellRing Brands reported a robust fiscal year 2025, with net sales growth of 16% and an adjusted EBITDA margin of 20.8%. The company's fourth-quarter net sales reached $648 million, up 17% year-over-year, with an adjusted EBITDA margin of 18.1%. Earnings per share (EPS) came in at $0.51, slightly below the estimated $0.546. The strong performance was driven by the successful launch of its first media campaign since 2021, expanded distribution, and accelerated innovation strategy.
Publication Date: Nov -19
Premier Protein net sales grew 15%, driven by volume growth from incremental promotional events and distribution gains. The company expects fiscal 2026 net sales growth of 4% to 8%, with adjusted EBITDA margins of 18%. It targets long-term annual net sales growth of 7% to 9% and reiterates its long-term adjusted EBITDA margin algorithm of 18% to 20%. The guidance assumes continued competition and is considered prudent and conservative.
The company expects gross margins to be down due to inflation, tariffs, and pricing. However, cost savings initiatives will be more impactful in the second half of the year. BellRing Brands faces its biggest margin headwinds in Q1, with Q2 also experiencing sizable headwinds, but the second half of the year is expected to be similar to the previous year from a margin perspective.
With a P/E Ratio of 15.06 and an EV/EBITDA of 12.09, the market seems to have priced in moderate growth expectations. Analysts estimate next year's revenue growth at 8.5%, which is within the company's long-term target range. The company's focus on investing in the business, share repurchases, and M&A opportunities is expected to drive future growth.
BellRing Brands discussed its market share and the competitive landscape, noting that it takes a long time to build a national network and supply chain, making it difficult for insurgent brands to expand. However, some of these brands may become competitive threats over time. The company feels good about its business in the long term despite short-term messiness.
In the RTD category, BellRing is seeing a shift towards ultrafiltered milk, with competitors launching their own versions. The company is focusing on ready-to-drink shakes and powders, with innovation expected to drive sales and consumption growth. Darcy Davenport believes that the category is maturing, and different consumer preferences are emerging.
BellRing Brands (BRBR) Investors that Lost Money are Encouraged to Act – Contact BFA Law about its Pending Securities Fraud Investigation
Dec -05
BRBR NEWS: BellRing Brands Investigated for Securities Fraud after Stock Plummets 18% -- Investors Notified to Contact BFA Law
Dec -03
BellRing Brands, Inc. (BRBR) Presents at Morgan Stanley Global Consumer & Retail Conference 2025 Transcript
Dec -02
BellRing Brands: Competitive Intensity Doesn't Erode The Growth Story
Dec -02
BellRing Brands: Business Transitions Into A More Mature Growth-Phase Company
Dec -02
BRBR LEGAL ALERT: BellRing Brands Hit with Securities Fraud Investigation due to Inventory Levels -- Investors Notified to Contact BFA Law
Dec -01
BYND INVESTMENT: Beyond Meat, Inc. Investors with Losses are Reminded to Contact BFA Law about its Ongoing Securities Class Action Investigation
Nov -28
BellRing Brands to Participate in the Morgan Stanley Global Consumer & Retail Conference
Nov -25
BellRing Brands, Inc.'s Shakes and Other Beverages segment growth is driven by increasing demand for convenient, healthy, and functional beverages. Rising popularity of plant-based and protein-enriched products, expanding distribution channels, and effective marketing strategies contribute to the 8% growth. Additionally, the company's focus on innovation, such as new flavor launches and packaging improvements, also supports the segment's growth momentum.
Powders from BellRing Brands, Inc. exhibit 7% growth driven by increasing demand for convenient and healthy nutrition, expanding e-commerce channels, and successful product innovation. Additionally, the company's strategic marketing efforts and partnerships with fitness influencers contribute to the segment's growth.
BellRing Brands' 10% growth is driven by increasing demand for healthy and convenient food options, successful product innovation, and strategic acquisitions. The company's diversified portfolio, including Premier Protein and Dymatize, benefits from a strong online presence and expanding distribution channels. Additionally, BellRing's focus on e-commerce and digital marketing contributes to its growth momentum.
BellRing Brands offers a range of RTD beverages, including protein shakes, meal replacement shakes, and other nutritional drinks.
The company offers a variety of powdered protein and nutrition products, including whey protein, casein protein, and plant-based options.
BellRing Brands offers specialty nutrition products, including probiotics, vitamins, and minerals, designed to support specific health needs.
The company provides contract manufacturing services for other companies, offering expertise in product development, manufacturing, and packaging.
BellRing Brands, Inc. operates in a competitive market with various breakfast cereal brands, but the threat of substitutes is moderate due to customer loyalty and brand recognition.
BellRing Brands, Inc. has a diverse customer base, and no single customer has significant bargaining power, reducing the threat of customer bargaining power.
BellRing Brands, Inc. relies on a few large suppliers for raw materials, giving them some bargaining power, but the company's size and scale mitigate this threat.
The breakfast cereal market has high barriers to entry, including significant capital requirements and established distribution networks, making it difficult for new entrants to compete with BellRing Brands, Inc.
The breakfast cereal market is highly competitive, with many established brands competing for market share, leading to a high intensity of rivalry.
| Value | |
|---|---|
| Debt Weight | 160.42% |
| Debt Cost | 8.49% |
| Equity Weight | -60.42% |
| Equity Cost | 8.49% |
| WACC | 8.49% |
| Leverage | -265.50% |
Value: 3.6
Growth: 5.9
Quality: 7.1
Yield: 4.0
Momentum: 4.0
Volatility: 9.3
1-Year Total Return ->
Value: 5.8
Growth: 4.0
Quality: 5.5
Yield: 7.0
Momentum: 1.0
Volatility: 8.3
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Value: 3.3
Growth: 4.2
Quality: 6.1
Yield: 5.0
Momentum: 2.5
Volatility: 9.0
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Value: 5.6
Growth: 5.4
Quality: 6.6
Yield: 0.0
Momentum: 1.0
Volatility: 6.7
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Value: 2.1
Growth: 9.1
Quality: 4.2
Yield: 0.0
Momentum: 0.5
Volatility: 4.0
1-Year Total Return ->
Value: 5.4
Growth: 2.7
Quality: 6.1
Yield: 0.0
Momentum: 0.5
Volatility: 3.7
1-Year Total Return ->