Jefferies has flagged a group of consumer food and beverage companies it views as well positioned to benefit from ongoing consumer interest in protein-fortified products, naming Coca-Cola Co. as its leading pick and endorsing BellRing Brands and Simply Good Foods as preferred names despite recent market pressure.
Coca-Cola: fairlife expansion underpins top pick
Jefferies places Coca-Cola at the top of its protein recommendations, citing the fairlife brand as the primary catalyst. The firm estimates that Coca-Cola will channel roughly 25% more fairlife supply through its distribution network in 2026, a move expected to open additional outlets such as convenience stores and food service channels while limiting crowding risk. Jefferies projects that fairlife will add more than 2 percentage points to Coca-Cola’s North American organic sales in 2026, which the bank says would account for about 40% of total growth that year. An incremental contribution of 1 percentage point is anticipated in 2027.
According to Jefferies’ outlook, fairlife’s growth should support a roughly 5% top-line expectation for Coca-Cola, keeping the company inside its algorithmic target range of 4% to 6% for revenue growth. In parallel developments, Coca-Cola announced that Sprite will return as the NBA’s official global soft drink partner, and both Piper Sandler and BofA Securities have maintained positive ratings on the company.
BellRing Brands: buy through the cycle, says Jefferies
Jefferies recommends maintaining ownership of BellRing Brands through the current challenging operating cycle, arguing that the stock’s valuation has over-corrected. The firm notes BellRing is trading at approximately 7 times fiscal year three EBITDA, below a peer group multiple near 9 times, and views the stock’s category leadership as a reason to keep exposure despite near-term pressures.
Analyst activity around BellRing includes a price target cut by TD Cowen following the company’s lowered fiscal 2026 guidance, while DA Davidson raised its price objective.
Simply Good Foods: upgrade amid execution and cost pressures
Jefferies upgraded Simply Good Foods to Buy, even as it acknowledges the company will face growth and margin headwinds from execution challenges and higher input costs. The bank’s internal estimates sit below Street consensus, yet Jefferies still identifies significant upside potential given current valuation levels. Simply Good Foods is trading at about 5 times fiscal year three EBITDA, representing a meaningful discount to the peer group average of 9 times, according to Jefferies.
Recent analyst moves for Simply Good Foods include a price target reduction from TD Cowen, which cited weakening retail sales growth, and the company appointed Joseph E. Scalzo to its board of directors.
Investment thesis and market implications
Jefferies’ selections reflect an emphasis on firms that can leverage protein-led demand and distribution advantages to generate outsized incremental growth. The bank’s focus on relative valuation - comparing current trading multiples to a peer average - underscores its view that recent market corrections have created entry points for investors willing to tolerate near-term volatility. These recommendations touch multiple corners of the consumer staples and retail ecosystems, including grocery, convenience-store and food service distribution channels.
Analyst activity and valuation context
The coverage notes several analyst reactions: Piper Sandler and BofA Securities reaffirmed positive stances on Coca-Cola; TD Cowen trimmed price targets on BellRing and Simply Good Foods after respective guidance and retail-sales signals; DA Davidson raised BellRing’s price target. Jefferies’ own estimates for Simply Good Foods are deliberately below Street consensus, reflecting anticipated margin and execution pressure while still implying upside from present valuations.
Investors weighing these names should consider the interaction of product expansion, channel access and valuation relative to peers when assessing potential risk and reward.