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Here's How Much You'd Have If You Invested $1000 in Monster Beverage a Decade Ago
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Monster Beverage (MNST - Free Report) ten years ago? It may not have been easy to hold on to MNST for all that time, but if you did, how much would your investment be worth today?
Monster Beverage's Business In-Depth
With that in mind, let's take a look at Monster Beverage's main business drivers.
Monster Beverage Corporation, headquartered in Corona, CA, is a marketer and distributor of energy drinks and alternative beverages. Incorporated in 1990 in Delaware, Monster Beverage was previously known as Hansen Natural Corporation. In 1992, the company acquired the Hansen Beverage business.
On Jun 12, 2015, Monster Beverage closed a deal with The Coca-Cola Company (TCCC). Per this long-term strategic deal, Coca-Cola acquired an approximate 16.7% equity stake in Monster Beverage. Coca Cola also transferred ownership of global energy drinks business, which includes brands like NOS, Full Throttle, to Monster Beverage. In exchange, Monster Beverage transferred non-energy business to TCCC.
Monster Beverage reports results under three operating segments:
Monster Energy Drinks (92.4% of net sales in FY22): Monster Energy Drinks Segment includes the former Direct Store Delivery segments, excluding Peach Tea brand. This segment comprises mostly Monster Energy brand products.
Strategic Brands (5.6%): The Strategic Brands segment includes brands acquired from the “TCCC Transaction”. Monster Beverage observes the same business model with acquired brands as their previous owner.
Alcohol Brands (1.6%): Alcohol Brands segment includes various craft beers and hard seltzers purchased as part of its acquisition of CANarchy Craft Brewery Collective LLC on Feb 17, 2022 as well as The Beast Unleashed. It also sells kegged and ready-to-drink canned beers, hard seltzers and FMBs, primarily to beer distributors in the United States.
Other (0.4%): The Other segment includes the former warehouse segment and the Peach Tea brand. The segment also includes products acquired from the AFF Transaction that are sold to independent third-parties. On Apr 1, 2016, the company acquired the concentrate and flavor business of American Fruits and Flavors (AFF).
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Monster Beverage, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in November 2013 would be worth $5,787.94, or a 478.79% gain, as of November 15, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 151.07% and the price of gold went up 46.55% over the same time frame.
Looking ahead, analysts are expecting more upside for MNST.
Shares of Monster Beverage have outpaced the industry in the past year. The company gained from the expansion of the energy drinks category and product launches. The company launched many products and expanded distribution in international markets. MNST continued to implement price hikes with additional price hikes planned in a number of other markets through the rest of the year. Also, the company has been witnessing gross margin momentum driven by pricing actions, lower freight-in costs and reduced aluminum can costs. However, Monster Beverage has been witnessing rising costs. The shift in consumers’ preferences is impacting the volumes of soda beverages and energy drinks. The company’s profits and margins are particularly pressured due to higher product mix costs and stepped-up advertising expense.
Over the past four weeks, shares have rallied 11.83%, and there have been 7 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in Monster Beverage a Decade Ago
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Monster Beverage (MNST - Free Report) ten years ago? It may not have been easy to hold on to MNST for all that time, but if you did, how much would your investment be worth today?
Monster Beverage's Business In-Depth
With that in mind, let's take a look at Monster Beverage's main business drivers.
Monster Beverage Corporation, headquartered in Corona, CA, is a marketer and distributor of energy drinks and alternative beverages. Incorporated in 1990 in Delaware, Monster Beverage was previously known as Hansen Natural Corporation. In 1992, the company acquired the Hansen Beverage business.
On Jun 12, 2015, Monster Beverage closed a deal with The Coca-Cola Company (TCCC). Per this long-term strategic deal, Coca-Cola acquired an approximate 16.7% equity stake in Monster Beverage. Coca Cola also transferred ownership of global energy drinks business, which includes brands like NOS, Full Throttle, to Monster Beverage. In exchange, Monster Beverage transferred non-energy business to TCCC.
Monster Beverage reports results under three operating segments:
Monster Energy Drinks (92.4% of net sales in FY22): Monster Energy Drinks Segment includes the former Direct Store Delivery segments, excluding Peach Tea brand. This segment comprises mostly Monster Energy brand products.
Strategic Brands (5.6%): The Strategic Brands segment includes brands acquired from the “TCCC Transaction”. Monster Beverage observes the same business model with acquired brands as their previous owner.
Alcohol Brands (1.6%): Alcohol Brands segment includes various craft beers and hard seltzers purchased as part of its acquisition of CANarchy Craft Brewery Collective LLC on Feb 17, 2022 as well as The Beast Unleashed. It also sells kegged and ready-to-drink canned beers, hard seltzers and FMBs, primarily to beer distributors in the United States.
Other (0.4%): The Other segment includes the former warehouse segment and the Peach Tea brand. The segment also includes products acquired from the AFF Transaction that are sold to independent third-parties. On Apr 1, 2016, the company acquired the concentrate and flavor business of American Fruits and Flavors (AFF).
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Monster Beverage, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in November 2013 would be worth $5,787.94, or a 478.79% gain, as of November 15, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 151.07% and the price of gold went up 46.55% over the same time frame.
Looking ahead, analysts are expecting more upside for MNST.
Shares of Monster Beverage have outpaced the industry in the past year. The company gained from the expansion of the energy drinks category and product launches. The company launched many products and expanded distribution in international markets. MNST continued to implement price hikes with additional price hikes planned in a number of other markets through the rest of the year. Also, the company has been witnessing gross margin momentum driven by pricing actions, lower freight-in costs and reduced aluminum can costs. However, Monster Beverage has been witnessing rising costs. The shift in consumers’ preferences is impacting the volumes of soda beverages and energy drinks. The company’s profits and margins are particularly pressured due to higher product mix costs and stepped-up advertising expense.
Over the past four weeks, shares have rallied 11.83%, and there have been 7 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.