BellRing Brands approves $300 million share buyback

ST. LOUIS - BellRing Brands, Inc. (NYSE:BRBR), a company with a market capitalization of $8.7 billion and strong financial metrics according to InvestingPro data, has announced that its Board of Directors has approved a new share repurchase program, authorizing the buyback of up to $300 million of its common stock over the next two years, starting from March 7, 2025. This move follows a series of repurchases where BellRing bought back 2.1 million shares for $151.7 million at an average price of $72.14 per share, leading up to March 6, 2025. The company’s strong financial position, with a current ratio of 3.35 and moderate debt levels, supports this capital return initiative.

The company had approximately $288 million in repurchases under its prior authorization, which was initiated on March 11, 2024, and has now been replaced by the new plan. The terminated program was close to its completion, with just $12 million remaining from the original $300 million cap.

BellRing’s repurchase strategy allows for transactions in the open market, private agreements, or through structured or derivative financial instruments. The timing and volume of the buybacks will depend on various factors, including market liquidity, stock price, prevailing market conditions, and regulatory considerations. It’s important to note that the authorization does not obligate BellRing to repurchase any specific number of shares, and the program can be suspended or discontinued at the company’s discretion.

This press release contains forward-looking statements that involve risks, uncertainties, and assumptions that could cause actual results to differ materially from those anticipated. These statements are based on current expectations and speak only as of the date of this press release. BellRing underlines that it does not intend to update these statements in the future.

BellRing Brands is known for its focus on the convenient nutrition segment, with notable brands like Premier Protein and Dymatize under its umbrella. The company distributes its products across various channels in over 90 countries, generating annual revenue of $2.1 billion with an impressive 21% growth rate. InvestingPro analysis reveals 13 additional insights about BellRing’s growth potential and market position, available to subscribers.

The information in this article is based on a press release statement from BellRing Brands, Inc.

In other recent news, BellRing Brands has reported impressive first-quarter earnings for fiscal year 2025, with both revenue and EBITDA surpassing expectations. The company experienced nearly a 24% rise in first-quarter revenue, and EBITDA increased by almost 25% to $125.3 million, outperforming estimates by $17.8 million according to Stifel. As a result, BellRing Brands has raised its full-year forecasts for both revenue and EBITDA, now expecting revenue growth between 13% and 17% and EBITDA growth between 7% and 14%.

In terms of analyst ratings, Mizuho has increased its price target for BellRing Brands to $85, maintaining an Outperform rating. Stifel also raised its target to $83 while keeping a Buy rating, and Jefferies adjusted its target to $86, retaining a Buy rating. Meanwhile, DA Davidson maintained a Neutral rating with a $90 target, highlighting the company’s strong start to fiscal year 2025.

BellRing Brands’ Premier shakes have shown increased buy rate growth and household penetration, contributing to the company’s strong performance. The company has also seen growth in international markets with its Dymatize brand. Analysts from Jefferies and Mizuho suggest that demand drivers such as display enhancements and advertising are expected to further boost performance, despite potential slower growth in the latter half of the year.

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