Monster Beverage (NASDAQ:MNST) stock has trounced the market in the wake of the COVID-19 pandemic, with shares up 32% in 2020 through mid-August. The wider market is up by 5%, in contrast, and major beverage giants such as Coca-Cola and PepsiCo are trailing even that modest result.
The energy drink specialist is enjoying much stronger results than those peers despite market disruptions from COVID-19. Sales were roughly even in the three months ended on June 30, indicating steady volume even as consumption shifted away from on-the-go channels and toward home use of its products.
Monster Beverage even managed slightly higher profitability thanks to higher pricing and decreased expenses. Coke and PepsiCo each noted double-digit volume declines and reduced earnings for the comparable period.
In a conference call with investors, CEO Rodney C. Sacks and his team said sales gains came roaring back in July, with case volumes rising 17% after accounting for foreign currency shifts. Executives were careful to note that one monthly sales result isn't necessarily indicative of wider growth trends, and that many risks remain around COVID-19's recessionary impact through 2020. Thus, investors will have to wait for future earnings reports to confirm that Monster Beverage has returned to sustainable growth.