Thursday, May 11

Monster: Secrets to Their Success

The consumer discretionary space is a huge mess as inflationary pressures continue to separate strong businesses from weaker ones.

We're seeing wild variances across the beverage industry and it's because some companies are either too large, too slow, or too niche to maintain growth while price pressures continue to mount. 

And that's why watching the industry, as a whole, buckle under pressure makes us feel pretty smug about our Monster Energy ($MNST) strategy as the stock hit our price target 3 quarters early on the back of a brilliant earnings report last week. 

Looking at Monster, we see a story of pure brand efficiency. Their regional launches are going well, the market isn't punishing them for raising prices, and their big launch into alcohol has led to an over a 200% revenue increase YoY. 

MNST is all about execution this year as they maintain their dominant position in energy drinks and expand their profile in alcohol. 

There are still some risks to worry about as consumer spending starts to run out of steam, but MNST has developed margins to the point where they can take a few punches before the market starts dialing back the optimism. 

So, let's make this report a little punchy as the numbers speak loud enough on their own. Time for some details 👇

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