BellRing Brands Q3 Earnings Miss Estimates, Net Sales Increase Y/Y

BellRing Brands, Inc. BRBR reported third-quarter fiscal 2026 results wherein earnings declined year over year and missed the Zacks Consensus Estimate. However, revenues increased year over year and came ahead of the consensus mark.

BRBR's Quarterly Performance: Key Insights

The company posted adjusted earnings of 30 cents per share for the third quarter of fiscal 2026, down 45.5% from 55 cents in the prior-year quarter. The figure missed the Zacks Consensus Estimate of 37 cents.

BellRing Brands Inc. Price, Consensus and EPS Surprise

BellRing Brands Inc. price-consensus-eps-surprise-chart | BellRing Brands Inc. Quote

Net sales increased 4.2% to $570.4 million from $547.5 million in the year-ago quarter and exceeded the Zacks Consensus Estimate of $562 million. Higher Premier Protein shake volume, driven by distribution gains and robust Dymatize sales growth, supported revenues, while significant input cost inflation, including tariffs, higher freight expenses and inventory-related charges, weighed on profitability.

BRBR's Premier Protein Results Remain Mixed

Premier Protein net sales increased 0.7% year over year. Volume rose 1.5%, while price/mix declined 0.8%, reflecting incremental promotional investments.

Premier Protein ready-to-drink (RTD) shake sales increased 1.2% from the prior-year quarter. Volume grew 3.1%, whereas price/mix declined 1.9%. Premier Protein RTD consumption increased 6% year over year. Premier Protein RTD consumption rose 50.9% in e-commerce, 26.1% in food and 10.1% in mass channels, while club consumption declined 7.6%.

BellRing's Dymatize Sales Accelerate

Dymatize net sales climbed 26.7% year over year. Volume increased 6%, while price/mix improved 20.7%, reflecting pricing actions implemented to offset inflationary costs and distribution gains in international markets.

Dymatize consumption increased 2.7% from the year-ago period. By channel, e-commerce sales increased 18%, while mass sales declined 11.9%, specialty and all other sales fell 3.9%, food sales decreased 12.2%, and club sales dropped 53%.

BRBR's Margin & Cost Performance

Adjusted gross profit declined 17.9% to $157.9 million from $192.4 million in the prior-year quarter. Adjusted gross margin contracted 740 basis points to 27.7% from 35.1%. The decline reflected significant input cost inflation, including tariffs, higher freight expenses and a $10 million charge related to excess shake bottle inventory. The inventory charge reduced adjusted gross margin by 180 basis points.

Selling, general and administrative expenses declined 35.2% to $93.7 million from $144.5 million, including reorganization charges of $5.4 million. As a percentage of sales, SG&A improved to 16.4% from 26.4%.

Adjusted EBITDA decreased 34.9% to $78.3 million from $120.3 million a year earlier. Management said that the excess shake bottle inventory charge and higher-than-expected freight costs were the primary reasons adjusted EBITDA came in below internal expectations.

Operating profit increased 46% to $65.4 million from $44.8 million, as lower reported SG&A expenses more than offset the decline in gross profit.

BRBR's Other Financial Information

Cash and cash equivalents totaled $50.4 million as of June 30, 2026, compared with $71.8 million as of Sept. 30, 2025. Inventories increased to $480.6 million from $330.4 million, while long-term debt rose to $1,135.3 million from $1,084.3 million over the same period.

Operating cash flow for the first nine months of fiscal 2026 declined to $65 million from $91.5 million in the comparable prior-year period.

During the first nine months of fiscal 2026, BellRing repurchased 4.9 million shares for $133.1 million. As of June 30, 2026, the company had $506.9 million remaining under its existing share repurchase authorization.

BellRing’s Outlook

For the fourth quarter of fiscal 2026, BellRing expects net sales to be flat at the midpoint of its outlook. Premier is anticipated to post low-single-digit sales growth, including an approximate 100-basis-point headwind from powders. The company also projects double-digit growth in RTD shake volumes, with the benefit expected to be largely offset by weaker price/mix stemming from elevated promotional activity across the club, mass and e-commerce channels.

BellRing forecasts an adjusted EBITDA margin of approximately 10% for the fourth quarter. The margin outlook reflects the impact of seasonal promotional spending, continued commodity and freight cost inflation ahead of planned pricing actions, as well as initiatives to reduce excess shake bottle inventory, which are expected to lower the quarterly adjusted EBITDA margin by roughly 100 basis points.

For fiscal 2026, BellRing increased its net sales outlook to $2.335-$2.375 billion, representing 1-3% year-over-year growth compared with its earlier expectation of flat to 2% growth. The company reaffirmed its adjusted EBITDA guidance of $275-$295 million and continues to expect an adjusted EBITDA margin of about 12%.

The outlook reflects inventory-related headwinds, planned promotional spending in the fourth quarter to accelerate the sell-through of excess shake bottle inventory, ongoing tariff-related pressure and elevated freight costs expected to weigh on second-half margins.

Shares of this Zacks Rank #3 (Hold) company have plunged 34.5% over the past six months compared with the industry’s decline of 1.7%.

Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks have been discussed below:

Darling Ingredients Inc. DAR develops, produces, and sells sustainable natural ingredients from edible and inedible bio-nutrients in North America, Europe, China, South America, and internationally. DAR currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for DAR’s current fiscal-year sales and earnings implies growth of 12.4% and 813.2%, respectively, from the year-ago actuals. DAR delivered a trailing four-quarter negative earnings surprise of 38.9%, on average.

The Chef’s Warehouse, Inc. CHEF distributes specialty food and center-of-the-plate products in the United States, the Middle East, and Canada. CHEF currently carries a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for CHEF’s current fiscal-year sales and earnings indicates growth of 10.8 and 24.7%, respectively, from the year-ago reported figures. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.

US Foods Holding Corporation USFD, together with its subsidiaries, markets, sells and distributes fresh, frozen, and dry food and non-food products to foodservice customers in the United States. USFD currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for US Foods’ current fiscal-year sales and earnings implies growth of 5.1% and 16.3%, respectively, from the year-ago actuals. USFD delivered a trailing four-quarter earnings surprise of 1.4%, on average.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research