BRBR Stock Forecast & Price Target

BellRing Brands Inc. has demonstrated significant growth in its key brand, Premier Protein, with a 14.9% year-over-year increase in sales, driven largely by an 18.4% rise in volume due to distribution gains and enhanced promotional support. The company has revised its long-term sales growth target to 7%-9%, while successfully maintaining its EBITDA margin target at 18%-20%, indicating strong operational resilience and profitability. Additionally, net sales reached $648.2 million, surpassing estimates, and management anticipates that Premier Protein will resume double-digit year-over-year growth as early as the second half of December, further bolstering a positive financial outlook.

BellRing Brands is experiencing declining financial performance, highlighted by a significant gross margin decrease of 620 basis points to 29.7%, attributed to higher promotional and packaging redesign costs. The company also revised its fiscal year 2026 adjusted EBITDA guidance downwards from $431.1 million to $416.6 million, influenced by a substantial cut in projected volume growth for its Premier Protein brand. Additionally, the ongoing trend of downward estimate revisions, coupled with decreased advertising expenditure relative to its peers, raises concerns about consumer brand awareness and could negatively impact sales growth and market share.