BellRing Brands, maker of Premier Protein and Dymatize, is facing down a swarm of lawyers as multiple law firms specializing in shareholders rights have announced investigations into the publicly traded CPG company over allegations it violated securities laws in its last earnings report.
The investigations are focused on whether BellRing made false or misleading statements to investors on its fiscal year Q2 earnings call on May 6, potentially leading shareholders to lose money.
According to a press release from one investigating firm, Los Angeles-based The Schall Law Firm, the company announced during the call that it expected Q3 sales to slow significantly as some of its retail partners were planning to “optimize” their inventory and reduce their “weeks of supply on hand.”
Immediately following the call, BellRing’s stock value plummeted 19%, and has continued to fall since then, down over 28% in the last six months as of July 23.
Other firms investigating the company include New York-based Levi & Korsinsky, Bragar Eagel & Squire and Bleichmar Fonti & Auld LLP.
BellRing Brands is scheduled to release its fiscal year Q3 earnings in about two weeks, on August 5.
But some analysts aren’t fretting about the business’s future prospects. A report from investment bank Jefferies today took an optimistic view on BellRing’s upcoming quarterly earnings, noting that consumption “remains solid and sentiment is (overly) negative” for the company’s revenue projections and stock potential.
The bank issued a Buy rating and raised its 2025 estimates for BellRing to the higher end of its guidance, with sales expected to be up about 16% and EBITDA up 11% for the full year.
“[M]anagement’s commentary around confidence in long-term growth alongside confirmation that the destocking was not slowdown related should help alleviate some concerns and bring in new investors. Fundamentals support a higher multiple,” the report noted.
While retailer destocking is still expected to be a headwind come Q3, consumption trends appear to be strong at 28% retail sales growth. As well, Premier Protein was among the topselling protein brands on Amazon’s most recent Prime Day.
Increased competition in the protein category is also a continual concern for BellRing, as Jefferies cited brands such as Nurri, Oikos, Vital Proteins and products from Coke and PepsiCo as strong challengers, but the “concerns look overdone to us,” the report concluded.
According to Circana, sales of Premier RTD products were up 20.4% to over $2.1 billion in U.S. MULO and convenience stores in the 52-week period ending April 20, 2025. Dymatize RTD shakes fell by 3.6% in the same period to around $184.6 million.