CELH's Foodservice Growth Picks Up: Poised for Further Expansion?

Celsius Holdings, Inc.’s CELH foodservice business is becoming a significant growth story within its North American operations. In the second quarter of 2025, the company reported a 9.8% year-over-year increase in foodservice volumes, with the channel now contributing about 12% of total North America brand sales through its distribution partnership with PepsiCo PEP. 

Celsius Holdings’ beverages have moved beyond retail shelves, increasingly becoming a staple in the everyday spaces where people live, work and play. 

Management pointed to stronger distribution and a deliberate push into new segments such as hotels, recreation venues, health care and quick-service restaurants as the main drivers behind this growth. These gains reflect a well-planned effort to diversify where and how CELH reaches consumers. The company continues to invest in enhancing supply-chain systems, operational analytics and on-the-ground execution to sustain growth as volumes scale.

We note that foodservice growth is effectively complementing Celsius Holdings’ strong retail performance. The company is managing its expansion methodically, aligning distribution rollouts and promotional efforts with market readiness. This approach helps ensure consistent availability and brand strength across multiple consumption occasions.

All said, Celsius Holdings’ foodservice business is transitioning from a developing opportunity into a meaningful growth engine. With solid volume gains, rising contribution to total sales, and operational alignment with PepsiCo’s network, the company is laying the foundation for continued expansion.

KO and PEP Double Down on Foodservice Growth

The Coca-Cola Company KO is seeing solid traction in the foodservice and away-from-home channel, which continues to serve as a core driver of its beverage growth. During the second quarter of 2025, The Coca-Cola Company reported ongoing strength in customer renewals and category expansion across its foodservice accounts, helping the brand secure a greater share of inventory in North America. Close partnerships with customers, improved local execution, and a balanced mix between quick-service and on-premise dining locations have been working well for KO.

Likewise, PepsiCo continues to invest in the away-from-home market as a growth opportunity, particularly through its North American Beverages division. Partnerships with key restaurant chains and convenience outlets are helping PEP drive incremental volume and strengthen brand presence in on-premise channels.

CELH Stock’s Price Performance, Valuation & Estimates

Shares of Celsius Holdings have soared 130.4% year to date against the industry’s decline of 9.1%.

CELH Price Performance Versus Industry

From a valuation standpoint, CELH trades at a forward price-to-earnings ratio of 44.48, higher than the industry’s average of 15.18.

CELH Valuation Compared to Industry

The Zacks Consensus Estimate for CELH’s 2025 and 2026 earnings implies year-over-year growth of 61.4% and 26.9%, respectively.

Celsius Holdings currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research