Celsius Holdings Inc

MGP Ingredients reported second-quarter revenues of $124.4 million, down 14.5% year on year and 0.7% below analyst expectations, though it beat EPS and EBITDA estimates. Among the 13 beverages, alcohol, and tobacco stocks tracked, the group overall beat revenue consensus by 1% and guided next quarter 2.2% above. Vita Coco was the best performer with revenue up 28.1% to $216.2 million, while Celsius was the weakest, missing revenue estimates by 6.2% despite 10.6% growth to $817.9 million. Molson Coors revenue fell 3.3% to $3.10 billion, meeting expectations, and Zevia revenue rose 1.1% to $45 million, beating by 1.8%.

Celsius Holdings reported second-quarter revenue and profit below Wall Street expectations, with management blaming overly aggressive SKU rationalization and acquisition integration issues. Revenue came in at $817.9 million, missing analyst estimates of $872 million, while adjusted EPS of $0.36 fell short of the $0.42 consensus. CEO John Fieldly admitted the company went too deep on Celsius brand rationalization, and operating margin dropped to 9.2% from 19.3% a year earlier. On the earnings call, analysts from UBS, Goldman Sachs, Jefferies, Stephens, and Morgan Stanley pressed management on the pace of recovery, with Fieldly citing innovation plans and retailer engagement as reasons for confidence in a return to growth exiting 2026.

The beverages, alcohol, and tobacco sector reported a mixed second quarter, with aggregate revenues beating analyst consensus by 1% while next-quarter revenue guidance came in 2.2% above expectations. Altria posted revenue of $5.36 billion, up 1.2% year-on-year and in line with estimates, but its stock fell 8.9% since the report. Vita Coco delivered the best performance of the group, with revenue of $216.2 million, a 28.1% increase that exceeded expectations by 3%, and it raised full-year guidance, though shares still dropped 16.4%. Celsius was the weakest, missing revenue estimates by 6.2% with $817.9 million, a 10.6% rise, and its stock declined 5.8%. Constellation Brands beat revenue expectations by 1.6% with $2.43 billion, down 3.3% year-on-year, but issued the weakest full-year guidance update among peers, and its shares slipped 2.4%. PepsiCo surpassed revenue estimates by 0.8% with $24.18 billion, up 6.4%, yet its stock fell 2.3%.

Fast food chains are aggressively rolling out energy drinks, and new Citi research suggests the move could boost sales and margins. A survey of 2,400 US consumers found that 60% of energy beverage consumption at restaurants and coffee shops is incremental, with 49% of respondents saying a restaurant energy drink would replace one purchased elsewhere. McDonald's is launching a Red Bull Dragonberry Energizer nationwide on August 17, while Starbucks introduced its Energy Refreshers lineup in April. Regional chains like Dave's Hot Chicken and 7 Brew are also scaling their own energy drink offerings. The trend poses a risk to pure-play energy drink sellers such as Celsius Holdings and Monster, as consumers may shift away from canned purchases at convenience stores.

Celsius Holdings reported second-quarter revenues rose 10.6% year over year to $817.9 million, but adjusted earnings fell 23% to 36 cents per share, highlighting a divergence between top-line expansion and profitability. The Alani Nu brand contributed about $364.4 million in revenues, up roughly 21%, while core CELSIUS brand revenues declined about 11.7%. Adjusted EBITDA dropped 12% to $184.2 million, and gross margin fell 340 basis points to 48.1% amid higher promotions and commodity costs. The Zacks Consensus Estimate for current-year earnings has moved 5.2% lower over the past four weeks, and the stock carries a Zacks Rank #5 (Strong Sell), suggesting investors may be better served waiting for clearer operating improvement.

Russ Savage, founder of Rockstar Energy, has built a stake of more than 12 million shares in Celsius Holdings and is calling for the removal of its chief executive after the energy drink company reported second-quarter results that missed analyst expectations. Savage told CNBC that the position represents approximately 4.7% of Celsius Holdings, with a market value of around $300 million, and he is pushing for the departure of Chairman and CEO John Fieldly, as well as the chief operating officer, brand manager, and marketing manager. Celsius Holdings stock dropped 18% on Thursday after second-quarter revenue of $817.9 million, representing 11% growth year over year, fell short of analyst forecasts, while adjusted diluted earnings per share of 36 cents also missed estimates and net income fell 45% to $55.3 million. Savage, who sold Rockstar to PepsiCo in 2020 for more than $4 billion, said he began acquiring his stake in March when the stock traded in the low $30 range and had been providing strategic advice for more than a year but was largely ignored. A Celsius Holdings spokesperson said the company welcomes value-creating ideas from shareholders and that board and management members have met with Savage multiple times, adding that the company remains focused on executing its total energy portfolio strategy.

Sprouts Farmers Market has introduced LivReal, a new energy drink made with real squeezed fruit, through its Innovation Set program and is rolling it out across stores nationwide. The launch is supported by a multi-channel marketing campaign aimed at health-focused shoppers, including a 120-store roadshow by the founders and 600 in-store demos. LivReal contains green tea caffeine and no artificial ingredients, positioning it in the better-for-you energy drink segment where it competes with brands like Monster Beverage, Celsius, and PepsiCo's Rockstar. The product is part of Sprouts' strategy to differentiate its beverage assortment and reinforce its identity as a specialty shop for wellness-oriented consumers. Investors will watch whether LivReal sustains demand after the Innovation Set trial period and whether such launches support customer traffic and basket size.

The American Heart Association said moderate caffeine intake appears safe for most adults and may be linked to lower cardiovascular risk. Up to 400 milligrams of caffeine per day, roughly 3 to 5 cups of coffee, is generally considered safe. Drinking caffeinated coffee without added sugar, flavoring or cream was associated with a lower risk of Type 2 diabetes, heart disease, stroke, heart failure and some irregular heart rhythms. The findings could support coffee demand at companies including Starbucks, Dutch Bros and McDonald's, as well as packaged coffee businesses such as J.M. Smucker, Nestle and Keurig Dr Pepper. Higher caffeine doses, particularly from energy shots, may raise the risk of high blood pressure and abnormal heart rhythms, which could weigh on companies such as Monster Beverage and Celsius.

Needham, UBS, and Roth Capital have all lowered their price targets on Celsius Holdings but kept Buy ratings on the stock. On July 9, Needham cut its target to $55 from $75, citing slower-than-expected fundamentals and reduced revenue estimates based on recent scanner trends, though it called the risk/reward setup compelling with a cleaner 2027 ahead. UBS lowered its target to $50 from $55 on June 30, noting management is still optimizing SKUs and shelf space while core fruit flavors remain resilient. Roth Capital reduced its target to $57 from $65 on June 25, reflecting slower growth in the North America energy drink category and lagging market share for the Celsius brand, but expects the Alani brand to outperform and Celsius to show better year-over-year performance in the back half of 2026.

Celsius Holdings stock has fallen roughly 36% so far in 2026, prompting a debate over whether to buy the dip or split an investment evenly between Coca-Cola and PepsiCo. The article argues for the 50/50 split, noting that Celsius is now a portfolio of energy drink brands including Alani Nu and Rockstar, but its flagship Celsius brand has lost momentum. Meanwhile, Coca-Cola and PepsiCo are adapting to health trends with products like Simply Pop prebiotic soda and the acquisition of Poppi, reducing the competitive edge of smaller disruptors. A combined investment in the two giants offers diversification across beverages and snacks, reliable dividends with decades of annual increases, and indirect exposure to energy drink growth through PepsiCo's stake in Celsius.

Celsius Holdings stock has delivered a 36.4% gain over the past five years, yet current checks suggest the shares may still be pricing in a lot of optimism rather than offering a clear bargain. The stock trades on a P/E of 71.2 times, well above the Beverage industry average of 16.8 times and the peer group average of 51.8 times, while a tailored fair P/E ratio for Celsius Holdings sits at 28.6 times. Regulatory scrutiny over Alani Nu's marketing and product safety may limit how much investors are willing to pay for that growth. With the stock only passing two of six valuation checks, Celsius Holdings currently leans expensive rather than reading as a straightforward value opportunity.

The 13 beverages, alcohol, and tobacco stocks tracked reported a strong Q1, with revenues beating analysts' consensus estimates by 4.9% on average, though next quarter's revenue guidance came in 3% below. Celsius led the group with revenue growth of 138% year on year to $782.6 million, exceeding expectations by 2.6%, but its stock fell 10.7% as investor hopes ran higher. Vita Coco delivered the biggest analyst estimate beat, with revenue up 37.3% to $179.8 million, topping forecasts by 20.5%, and its stock surged 28.3%. Boston Beer was the weakest performer, with revenue down 4.4% to $433.9 million and a significant miss on adjusted operating income and EPS, sending its stock down 22%. Constellation Brands reported revenue of $2.43 billion, down 3.3% but beating estimates by 1.6%, while PepsiCo posted revenue of $19.44 billion, up 8.5% and surpassing expectations by 2.9%.

At the halfway point of 2026, J.P. Morgan’s three overweight picks with the highest implied upside have delivered a counterintuitive scorecard. GE Vernova, the pick with the lowest percentage upside, surged 68.7% year to date to $1,102.51, clearing the $1,000 target, driven by AI and data-center power demand that pushed Q1 orders up 71% organically to $18.30 billion. In contrast, Bright Horizons Family Solutions fell 30.1% to $70.89 after disclosing plans to close 45 to 50 centers and $45.1 million in impairment charges, triggering securities fraud investigations. Celsius Holdings dropped 34.9% to $29.79 despite 137.7% revenue growth and a 20.9% U.S. energy drink share, as the Alani Nu integration compressed gross margin to 48.3% and a $24.6 million legal settlement weighed on results.

Reddit users are showing bullish sentiment on Celsius Holdings, Chewy, and Estée Lauder, but Wall Street analysts agree with only two of the three. Celsius sentiment scores ranged from 86 to 90 in early June, driven by a post calling the stock criminally undervalued, yet shares are down 38% year to date and gross margins have compressed to 48% from 52%. Chewy sentiment rose from 78 to 88, supported by an acquisition thesis and a 52% jump in GAAP net income, with analysts setting a $31 target well above the $18 price. Estée Lauder sentiment swung from 35 to 72 after a viral thread about Michael Burry's position, but analysts remain cautious with a $95 target versus an $84 price, citing a $100 million tariff headwind and a 10,000-position restructuring.

Pomerantz LLP is investigating claims on behalf of investors of Celsius Holdings, Inc. The investigation concerns whether Celsius and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. On June 4, 2026, Texas Attorney General Ken Paxton announced an investigation into Celsius over concerns that its high-caffeine energy drinks are being marketed to children and teens, specifically examining whether Celsius and its subsidiary Alani Nutrition violated the Texas Deceptive Trade Practices Act by misrepresenting product safety. Following the news, Celsius’s stock price fell $2.26 per share, or 7.53%, to close at $27.75 per share on June 4, 2026.