Analysis of Barron's 2026 Food and Beverage Turnaround Stocks (BROS, MNST, DPZ)

On December 31, 2025, Barron’s published an article identifying Dutch Bros (BROS), Monster Beverage (MNST), and Domino’s Pizza (DPZ) as food and beverage stocks with turnaround or continued momentum potential in 2026[1]. A “turnaround” typically implies a company reversing underperformance, though the article includes MNST, which has already shown strong recent growth, suggesting Wall Street sees additional upside.

• Domino’s Pizza (DPZ)
  is the most evident turnaround candidate: it has underperformed recently (-2.99% YTD 2025, +0.51% 1-year) [0]. Key potential catalysts include a 38.2% reduction in share count since 2019 and a strong margin profile (19.22% operating margin) [0]. Analysts give DPZ a consensus BUY rating with a $455 target, implying 7.8% upside [0].

• Dutch Bros (BROS)
  has already exhibited strong growth (128.42% 3-year return) [0], but analysts remain highly bullish (89.5% Buy ratings) due to planned expansion (175 new shops in 2026), digital engagement, and menu innovation [0]. The consensus target of $78.50 indicates 26.5% upside [0].

• Monster Beverage (MNST)
  has performed exceptionally well (47.98% YTD 2025) [0], driven by U.S./European sales, product innovation, and an expanding Coca-Cola distribution partnership [0]. Analysts still see 4.6% upside to $81 with a consensus BUY rating [0].

1. Valuation Disparities
   : BROS has a high P/E ratio (126.90x) reflecting aggressive growth expectations, while DPZ’s lower P/E (24.28x) suggests potential undervaluation compared to peers [0]. MNST’s moderate P/E (44.36x) aligns with its strong profitability (21.65% net profit margin) [0].

2. Analyst Sentiment Uniformity
   : Despite varying performance trajectories, all three stocks have consensus BUY ratings, indicating broad Wall Street optimism for 2026 [0].

3. Turnaround Definition Flexibility
   : The article includes MNST (strong current performance) and BROS (ongoing growth) alongside DPZ (underperformance), suggesting “turnaround” in this context includes sustained or accelerated momentum rather than just reversing declines.

• BROS
  : Successful execution of 2026 store expansion and breakfast menu innovation could drive further growth [0].
• MNST
  : Expanded Coca-Cola distribution may unlock international sales potential [0].
• DPZ
  : Share buybacks and margin efficiency could support valuation expansion [0].

• BROS
  : A very high P/E ratio (126.90x) makes it vulnerable to market corrections if growth expectations are not met [0].
• DPZ
  : Negative ROE (-14.91%) indicates challenges in generating shareholder value [0].
• MNST
  : Competition in the energy drink market and regulatory changes could impact sales [0].

This analysis integrates Barron’s 2026 turnaround stock selection with internal performance and financial metrics. DPZ is the most classic turnaround candidate, while BROS and MNST offer momentum continuation opportunities. Investors should monitor Q4 2025 earnings reports, expansion execution, and consumer trends to assess progress toward growth targets. Valuation disparities across the three stocks highlight the need for careful consideration of risk-reward profiles.

[0] Ginlix Analytical Database
[1] Barron’s article: 3 Food and Beverage Stocks Wall Street Thinks Could Turn Around in 2026 - URL: https://www.barrons.com/articles/food-beverage-stocks-rally-2026-43e0c346 - Date: 2025-12-31