Bellring Brands LLC

BellRing Brands reported a 4% increase in net sales for its fiscal third quarter, driven by stronger-than-expected consumption for both Premier Protein and Dymatize, but lowered its full-year adjusted EBITDA guidance to a range of $275 million to $295 million with a margin of approximately 12%. The company cited inventory-related headwinds and sharply higher freight costs as the primary reasons for the reduced profit outlook, with freight rates expected to remain elevated and weigh on second-half margins by about 140 basis points. CEO Michael Axelrod, in his first earnings call since joining the company, acknowledged that current financial performance does not reflect the long-term potential of the business and emphasized a focus on improving execution and operational discipline. CFO Paul Rode detailed plans for a double-digit price increase on Premier shakes effective in the first quarter of fiscal 2027 to offset sustained input cost inflation, along with productivity initiatives and an organizational realignment expected to generate $10 million to $12 million in annualized savings. The company also announced the launch of two new products—Premier Protein 42-gram Ultimate Shake and Premier Protein Sparkling Soda—rolling out this quarter to expand into new consumption occasions and distribution channels.

BellRing Brands reported third-quarter fiscal 2026 adjusted earnings of 30 cents per share, missing the Zacks Consensus Estimate of 37 cents and falling 45.5% from 55 cents a year earlier. Net sales rose 4.2% to $570.4 million, exceeding the $562 million consensus, driven by higher Premier Protein shake volume and robust Dymatize sales growth. Adjusted gross margin contracted 740 basis points to 27.7%, reflecting input cost inflation, tariffs, higher freight expenses, and a $10 million charge related to excess shake bottle inventory. The company raised its full-year net sales outlook to $2.335-$2.375 billion, representing 1-3% growth, while reaffirming adjusted EBITDA guidance of $275-$295 million. For the fourth quarter, BellRing expects net sales to be flat at the midpoint, with an adjusted EBITDA margin of approximately 10%.

BellRing Brands has lowered its forecast for annual adjusted EBITDA to a range of $275 million to $295 million, down from its previous estimate of $315 million to $335 million, citing inventory-related impacts and a quality issue with a third-party supplied ingredient. The new guidance includes $28 million of unfavorable inventory-related impacts, of which $21.3 million was recorded in the second and third quarters, including an $11.3 million charge for an ingredient that did not meet quality requirements and a $10 million charge for excess shake bottle inventory. The company also expects around $7 million in trade spending in the fourth quarter to support sell-through of excess inventory and optimize levels ahead of fiscal year-end. Despite the lowered earnings outlook, BellRing raised its annual net sales forecast to growth of 1% to 3%, implying $2.335 billion to $2.375 billion, after third-quarter net sales rose 4% to $570.4 million, beating market expectations.

BellRing Brands is scheduled to announce its third-quarter fiscal 2026 earnings results on Tuesday, August 4th, before the market opens. The consensus earnings per share estimate is $0.37, representing a 32.7% decline year-over-year, while the consensus revenue estimate is $548.19 million, up 0.1% from the same period last year. Over the past two years, the company has beaten EPS estimates 63% of the time and revenue estimates 88% of the time. In the last three months, EPS estimates have seen zero upward revisions and twelve downward revisions, and revenue estimates have seen zero upward revisions and thirteen downward revisions.

BellRing Brands shares fell 2.71% to $13.29 in the latest session, a steeper decline than the S&P 500's 1.52% loss. The nutritional supplements company has gained 5.56% over the past month, outpacing the Consumer Staples sector's 2.93% rise and the S&P 500's 1.92% advance. BellRing Brands is scheduled to report earnings on August 4, 2026, with analysts expecting earnings per share of $0.36, a 34.55% drop from the prior-year quarter, on revenue of $556.04 million, up 1.56%. Full-year consensus estimates stand at $1.23 per share and $2.34 billion in revenue, representing year-over-year changes of negative 43.32% and positive 0.93%, respectively. The stock carries a Zacks Rank of 3, or Hold, and trades at a forward price-to-earnings ratio of 11.1, a discount to the Food-Miscellaneous industry average of 13.68.

BellRing Brands has seen a sharp valuation reset in 2026, with its stock trading at 10.2 times forward earnings after falling 51.1% year to date, well below the five-year median and industry benchmarks. Management lowered fiscal 2026 net sales guidance to $2.33-$2.37 billion from $2.41-$2.46 billion and cut adjusted EBITDA outlook to $315-$335 million from $425-$440 million, citing weaker Premier Protein velocities, unfavorable mix, and higher costs. Fiscal second-quarter adjusted earnings fell 74% to 14 cents, with adjusted EBITDA margin dropping to 9% from 20.2% a year earlier, as volume growth relied on promotions that pressured pricing. Long-term demand drivers remain intact, with Premier Protein consumption outside club rising 15% and innovation through new products, while the company had $516.9 million remaining under its share-repurchase authorization as of March 31, 2026. The lower multiple improves the valuation setup but does not erase execution risk, leaving a balanced risk-reward profile.

BellRing Brands shares fell nearly 8% on Thursday after Zacks Investment Research named the stock its bear of the day with a strong sell rating. Zacks senior equity strategist Bryan Hayes wrote that the Premier Protein maker is facing a margin squeeze from rising input costs, aggressive competitor promotions, and falling demand. The sell call overshadowed the company's announcement that Michael Axelrod will become CEO on July 29, replacing Darcy Davenport. BellRing's second-quarter sales grew only 2% year over year, and bottom-line erosion raised concerns.

Zacks Equity Research has named Victoria's Secret as the Bull of the Day and BellRing Brands as the Bear of the Day. Victoria's Secret, carrying a Zacks Rank of 1, has posted four straight quarters of positive comparable sales, expanded margins, and raised guidance, with shares up more than 40% year to date. The company recently changed its ticker to VSXY and lifted its full-year fiscal 2026 outlook to net sales of $7.03 to $7.13 billion and adjusted operating income of $550 to $580 million. BellRing Brands, rated a Zacks Rank of 5, missed its fiscal second-quarter 2026 earnings estimate by 55%, saw adjusted gross margin plunge to 22.7% from 34.5%, and slashed its full-year adjusted EBITDA guidance by roughly $115 million at the midpoint. The stock is down about 50% year to date and roughly 75% over the past year. The report also highlights Cenovus Energy and Par Pacific as bargain top-ranked energy stocks, both sporting a Zacks Rank of 1 and trading at EV/EBITDA multiples below their industry averages.

BellRing Brands has appointed Snak King CEO Michael Axelrod as its new president and chief executive, effective 29 July. Axelrod will also join the board of the Premier Protein and Dymatize brand owner, succeeding Darcy Davenport, whose departure was announced in February. Davenport will remain in a senior advisory role to support the transition. BellRing highlighted Axelrod's three decades of consumer-packaged goods experience, including CEO roles at Del Real Foods and Snak King, and executive positions at Kraft Foods and McCain Foods. The appointment follows a difficult quarter in which operating profit fell 30.6% to $66 million and net earnings dropped 42.2% to $33.9 million, prompting a cut to the full-year outlook with net sales now expected between $2.33 billion and $2.37 billion.

Shelf-stable food stocks reported mixed first-quarter results, with revenues in line with analysts' consensus estimates but next quarter's revenue guidance coming in 11.6% below expectations. Hormel Foods posted revenues of $2.97 billion, up 2.5% year on year, matching expectations and delivering strong beats on EBITDA and gross margin estimates. Hershey outperformed with revenues of $3.10 billion, up 10.6% year on year, exceeding expectations by 2.4% and beating EBITDA and organic revenue estimates. BellRing Brands was the weakest performer, with revenues of $598.7 million, up 1.8% year on year, missing expectations by 1.7% and issuing full-year EBITDA guidance significantly below estimates. B&G Foods topped expectations by 2.4% with revenues of $408.9 million, down 3.9% year on year, and achieved the highest full-year guidance raise among its peers. Campbell's missed expectations by 0.6% with revenues of $2.37 billion, down 4.4% year on year, in a mixed quarter that included a narrow EBITDA beat.

The shelf-stable food industry reported mixed first-quarter results, with The Marzetti Company falling short of expectations. Marzetti posted flat revenues of $451.8 million, missing analyst estimates by 2.6%, and also fell short on earnings per share and EBITDA. Among the 17 tracked companies, aggregate revenues met consensus, but next-quarter guidance came in 11.6% below expectations. Hershey was the top performer with revenue up 10.6% to $3.10 billion, while BellRing Brands was the weakest, with shares tumbling 32.6% after missing estimates and issuing disappointing full-year EBITDA guidance. Simply Good Foods also lagged, with revenue down 9.4% and a significant guidance miss, while Utz met revenue expectations and beat on EBITDA and operating income.

Moore Law PLLC is investigating potential claims against officers and directors of BellRing Brands, Inc. The investigation concerns allegations that BellRing misrepresented its sales growth as driven by increased end-consumer demand, while in reality it was fueled by customer inventory stockpiling. The company also allegedly downplayed competitive pressures, claiming a 'competitive moat' in the ready-to-drink category. Following a disclosure that competition was materially weakening demand, BellRing's share price fell nearly 33%, from $53.64 on August 4, 2025, to $36.18 on August 5, 2025. Shareholders are encouraged to contact the law firm to discuss potential claims.

Mondelez reported first-quarter revenues of $10.08 billion, an 8.2% increase year on year, exceeding analysts' expectations by 3%. The packaged snacks giant, known for brands like Oreo and Cadbury, also posted a solid beat on EBITDA and organic revenue estimates. Among the 17 shelf-stable food stocks tracked, overall revenues were in line with consensus, but next-quarter guidance came in 1.8% below expectations. Hershey was the best performer in the group with revenue up 10.6% to $3.10 billion, while BellRing Brands was the weakest, missing estimates with a 1.8% revenue increase to $598.7 million and issuing disappointing full-year EBITDA guidance. Mondelez shares have risen 5.9% since the report.