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US retail sales grew by 1.2 percent in August, bouncing back from a drop in July. The growth was broad, with 12 out of 13 categories showing higher spending as families finished their back-to-school shopping.
This is a helpful sign for Monster because its energy drinks are often impulse buys at gas stations and convenience stores. When people are out shopping and spending more freely, it usually leads to higher volume for the core drink brands that drive this company's profits.
Source: Bloomberg Markets and Finance
On September 3, the board elected Matthew Burroughs as Chief Accounting Officer and Deputy Chief Financial Officer. Burroughs has been with the company since 2006 and has held several senior finance roles, including corporate controller and head of investor relations.
This is an orderly internal promotion for a key back-office role. While the Chief Accounting Officer ensures the books are accurate and taxes are handled, they do not typically set the company's growth strategy. For long-term owners, this suggests a smooth transition in the finance department rather than a shift in how the business is run.
Source: 8-K filing
Consumer spending rose at its slowest pace in over a year this July. This shift suggests that the boost from the 2026 World Cup has faded and people are starting to pull back on everyday purchases.
For a company like Monster, this is worth watching because energy drinks are an affordable luxury that people buy frequently. If shoppers start cutting back on small extras to save money, it could slow down the steady sales growth the company relies on in its home market.
Source: Market Watch
Monster reported second-quarter sales of $2.54 billion, which was higher than the $2.43 billion analysts expected. Profits also came in slightly ahead of targets at $0.30 per share. The growth was largely driven by a 20 percent jump in net sales, fueled by strong demand from customers outside of the United States.
This is a positive sign for the company's long-term goal of becoming a global brand. Monster relies on Coca-Cola's massive network of trucks and warehouses to get its drinks onto shelves worldwide. Seeing international sales grow at this pace suggests that the brand is successfully winning over new customers in emerging markets, which is necessary to keep growth high as the U.S. market matures.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
The company is set to share its results for the quarter ending in June after the market closes. Analysts expect earnings of about 58 cents per share.
For a business that relies on its massive distribution network with Coca-Cola, the most important numbers to watch are international sales and gross margins. We will be looking to see if sales outside the United States continue to grow faster than 20 percent and if the company is keeping its profit margins above 55 percent despite fluctuating costs for aluminum cans and sugar.
Management has hit its stride with six straight beats, showing they have a firm handle on their global expansion even as the business grows more complex.
| Expectation | |
|---|---|
| EPS | $0.29 |
| Revenue | $2.49B |
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