• 繁

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    The Bull Case For BellRing Brands (BRBR) Could Change Following Strong Sales Beat But Margin Miss

    Simply Wall St·12/25/2025 12:25:09
    語音播報
    • Earlier this week, BellRing Brands reported revenue growth of 16.6% year on year, beating analysts’ expectations by 2.3% but missing its full-year EBITDA guidance and gross margin estimates.
    • The company credited the strong top-line performance to expanding household penetration, broader retail distribution, and successful innovation, highlighting how demand drivers are gaining momentum even as profitability lags.
    • We’ll now examine how BellRing’s strong revenue beat but weaker margins may influence its investment narrative and future earnings trajectory.

    AI is about to change healthcare. These 29 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

    BellRing Brands Investment Narrative Recap

    To hold BellRing Brands, you need to believe that growing household adoption of ready to drink protein and expanding retail distribution can support steady long term revenue growth while the company works through margin pressure. This quarter’s revenue beat reinforces that demand story, but the miss on EBITDA and gross margin keeps input cost inflation and competitive pricing as the key near term risk, and the impact on the thesis looks meaningful rather than temporary.

    Against this backdrop, BellRing’s ongoing share repurchase program of up to US$600,000,000 stands out, as it signals continued use of cash to reduce share count even while profitability is under pressure. For investors focused on catalysts, that capital return sits alongside category growth, brand innovation, and expanding shelf space as they weigh the trade off between strong top line momentum and weaker margins.

    Yet beneath the strong revenue growth, rising input cost inflation and gross margin pressure remain a risk that investors should be aware of...

    Read the full narrative on BellRing Brands (it's free!)

    BellRing Brands' narrative projects $2.8 billion revenue and $312.5 million earnings by 2028. This requires 8.1% yearly revenue growth and an $84.2 million earnings increase from $228.3 million.

    Uncover how BellRing Brands' forecasts yield a $38.00 fair value, a 26% upside to its current price.

    Exploring Other Perspectives

    BRBR 1-Year Stock Price Chart
    BRBR 1-Year Stock Price Chart

    Five members of the Simply Wall St Community place BellRing’s fair value between US$38 and US$82.83, showing how far opinions can stretch. As you weigh those views against persistent margin pressure from higher ingredient and tariff costs, it is worth comparing several of these perspectives before deciding how this earnings profile might fit into your portfolio.

    Explore 5 other fair value estimates on BellRing Brands - why the stock might be worth just $38.00!

    Build Your Own BellRing Brands Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    Interested In Other Possibilities?

    Opportunities like this don't last. These are today's most promising picks. Check them out now:

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.