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Here's How Much a $1000 Investment in Monster Beverage Made 10 Years Ago Would Be Worth Today
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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as 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
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Monster Beverage a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in January 2014 would be worth $5,074.33, or a 407.43% gain, as of January 15, 2024, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 159.66% and gold's return of 60.15% 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.
The stock is up 7.19% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2023. The consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in Monster Beverage Made 10 Years Ago Would Be Worth Today
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as 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
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Monster Beverage a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in January 2014 would be worth $5,074.33, or a 407.43% gain, as of January 15, 2024, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 159.66% and gold's return of 60.15% 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.
The stock is up 7.19% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2023. The consensus estimate has moved up as well.