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Will Monster Beverage's Expansion Strategy & Energy Drinks Unit Aid?

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Key Takeaways

  • Monster Beverage benefits from global energy-drink growth and strong momentum across its core portfolio.
  • Innovation and regional gains, from Predator to Zero Sugar launches, are supporting sales across markets.
  • MNST lifts performance through pricing strategy, supply-chain investment and wider channels.

Monster Beverage Corporation (MNST - Free Report) continues to benefit from the sustained expansion of the global energy drinks category and its steady cadence of product innovations. Robust consumer demand across key markets has supported strong momentum in MNST’s core energy portfolio. With category trends remaining favorable worldwide, the company is well-positioned to maintain its growth trajectory and continue gaining market share.

Within EMEA, the company is experiencing continued growth of Predator Fury in Egypt, Kenya and Nigeria, while on track with the rollout of Predator in Morocco. Innovation continues to drive performance in the region, specifically Monster Energy Lando Norris Zero Sugar, which is currently available in 27 EMEA markets. This has been the company's highly successful product launch in EMEA. Net sales in the US and Canada in the third quarter jumped 11.6% year over year in dollars, thanks to the solid execution across channels, momentum from innovations, strength of the Monster Energy Ultra family and robust contribution from the Juice Monster family.

The company offers a wide range of energy drink brands such as Monster Energy, Monster Energy Ultra, Monster Rehab, Monster Energy Nitro, Java Monster, Punch Monster, Juice Monster, Monster Super Fuel, Monster Dragon Tea, Reign Total Body Fuel, Reign Inferno Thermogenic Fuel, Reign Storm, True North, NOS, Full Throttle, Burn, Mother, Nalu, Ultra Energy, Play, Power Play (stylized), Relentless, BPM, BU, Gladiator, Samurai, Live+, Predator and Fury. In third-quarter 2025, the Monster Energy Drinks segment's net sales grew 16% year over year on a currency-adjusted basis. 

The company has seen growth opportunities in household penetration and per capita consumption, and robust demand for energy drinks. MNST’s pricing strategy includes consumer purchasing behavior, brand momentum, channel and package mix. It will continue to expand sales in non-Nielsen tracked channels. MNST has been investing in its supply chain to offer better service to customers and improve its cost structure.

At its core, Monster Beverage will continue to benefit from steady growth in the global energy drink market, supported by strong demand across convenience stores and other key retail channels. Its efforts to advance innovation, expand its international presence and enhance operational efficiency are expected to further strengthen its performance.

MNST’s Price Performance, Valuation and Estimates

Shares of Monster Beverage have gained 35.7% year to date compared with the industry’s growth of 6.6%.

Zacks Investment Research
Image Source: Zacks Investment Research

From a valuation standpoint, MNST trades at a forward price-to-earnings ratio of 32.34X compared with the industry’s average of 17.90X.

Zacks Investment Research
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for MNST’s 2025 and 2026 EPS indicates year-over-year growth of 22.2% and 12.8%, respectively. The company’s EPS estimate for 2025 and 2026 has increased in the past seven days.

Zacks Investment Research
Image Source: Zacks Investment Research

Monster Beverage currently sports a Zacks Rank #1 (Strong Buy).

A Glimpse of Other Stocks

The Chef's Warehouse (CHEF - Free Report) , which is a distributor of specialty food products in the United States, currently sports a Zacks Rank of 1. CHEF has a trailing four-quarter earnings surprise of 14.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CHEF’s current financial-year sales and EPS indicates growth of 8.1% and 29.3%, respectively, from the year-ago reported numbers.

Lamb Weston (LW - Free Report) is a key global manufacturer and marketer of value-added frozen potato products and sports a Zacks Rank of 1 at present. LW has a trailing four-quarter average earnings surprise of 16%.

The Zacks Consensus Estimate for Lamb Weston’s current financial-year sales implies growth of 1.3%, from the year-ago reported number.

Utz Brands Inc. (UTZ - Free Report) , which manufactures a diverse portfolio of salty snacks, currently carries a Zacks Rank #2 (Buy). UTZ has a trailing four-quarter earnings surprise of 1.3%, on average.

The Zacks Consensus Estimate for Utz Brands’ current financial-year EPS indicates growth of 6.5% from the year-ago reported numbers.

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