BellRing CEO Darcy Davenport Retires After Stock Crashes 70%—Leaves Amid Tariff Headwinds
February 3, 2026 · by Fintool Agent
Bellring Brands-14.39% CEO Darcy Davenport is stepping down after transforming the protein shake maker from a $140 million business into a $2.3 billion powerhouse—but her departure comes as the stock trades 70% below its January 2025 peak and the company faces severe margin compression from tariffs and input cost inflation.
The retirement announcement, buried alongside weak Q1 FY2026 results, marks the end of a 15-year run for the executive who built Premier Protein into the #1 ready-to-drink protein brand in America.
The Timing Is Hard to Ignore
Davenport notified the Board on February 2, 2026, that she would retire by September 30, 2026, or whenever a successor is hired—whichever comes first. The company filed standard boilerplate language stating the departure "did not result from any disagreement with the Company on any matter relating to its operations, policies or practices."
But the timing tells a different story.
BRBR shares closed at $24.39 on February 2—down 70% from the all-time high of $80.67 reached on January 30, 2025. The stock has declined 68% over the past year alone, wiping out billions in shareholder value. Investors who bought at the January 2025 peak are now sitting on losses of roughly $56 for every $80 invested.
Ask Fintool AI AgentQ1 Results: Margin Implosion
The retirement announcement came alongside Q1 FY2026 results that revealed the depth of BellRing's challenges.
| Metric | Q1 FY2025 | Q1 FY2026 | Change |
|---|---|---|---|
| Net Sales | $532.9M | $537.3M | +1% |
| Gross Margin | 37.5% | 29.9% | -760 bps |
| Operating Profit | $115.3M | $78.5M | -32% |
| Net Earnings | $76.9M | $43.7M | -43% |
| Diluted EPS | $0.59 | $0.36 | -39% |
| Adjusted EBITDA | $125.3M | $90.3M | -28% |
The 760 basis point gross margin collapse is staggering. Management attributed it to "significant input cost inflation, inclusive of tariffs, unfavorable mix and lapping $5.0 million of non-recurring cost favorability in the prior year period."
The Tariff Problem
BellRing sources dairy protein ingredients from the European Union and New Zealand—both now subject to 15% tariffs that have increased costs and compressed margins.
CFO Paul Rode outlined the impact on recent earnings calls:
- Dairy inputs represent 33-40% of total cost of goods sold
- Tariffs affect a "portion" of dairy proteins sourced from New Zealand and the EU
- Management expects a "low single-digit impact" to total COGS from tariffs
- Whey protein cost headwinds are expected to continue into FY2026
The company has been "actively evaluating ways to mitigate tariff impacts" but acknowledged it "won't be able to fully mitigate them by just changing suppliers or changing ingredients."
Ask Fintool AI AgentDavenport's Legacy: 16x Revenue Growth
Whatever the circumstances of her departure, Davenport's track record is impressive. She joined Premier Nutrition as VP of Marketing in 2011 and rose to lead the business after Post Holdings+1.18% acquired it in 2014.
Under her leadership:
- Revenue growth: From ~$140 million to over $2.3 billion (16x expansion)
- Brand building: Premier Protein became the #1 RTD protein and proactive wellness brand
- IPO success: Led the October 2019 IPO that raised $516 million
- Spin-off: Successfully navigated Post Holdings' full divestiture by November 2022
- Distribution expansion: Products now sold in over 90 countries
- Category creation: Helped pioneer the "proactive wellness" positioning
Board Chairman Robert Vitale praised her tenure: "Darcy started with Premier Nutrition as Vice President, Marketing in 2011 and became the leader of Premier Nutrition Company after Post Holdings acquired it in 2014... she led sales growth from $140 million to over $2.3 billion and helped create a pure-play company focused on proactive wellness."
Insider Activity: Selling Into Strength
Form 4 filings reveal Davenport has been an active seller of company stock over the past two years. Since January 2024, she has disposed of approximately 256,900 shares through open market sales and tax withholding transactions, generating proceeds of roughly $11.4 million.
| Transaction Type | Shares | Estimated Value |
|---|---|---|
| Open Market Sales (S) | 99,800 | $6.6M |
| Tax Withholding (F-InKind) | 157,100 | $4.8M |
However, she still owns approximately 530,000 shares following a December 2025 RSU vesting that added 293,295 shares to her position—worth approximately $12.9 million at current prices.
Ask Fintool AI AgentPremier Protein: Cracks in the Foundation
Beyond the margin story, BellRing's core Premier Protein RTD shake business showed weakness. Consumption declined 2.2% in Q1, with the critical club channel down 14.2%—though management attributed this to "tough prior year comparisons including non-repeating promotions."
The bright spot was Dymatize, which grew 15.8% driven by "strong volume growth, particularly in the international channel."
| Brand Performance | Q1 FY2026 |
|---|---|
| Premier Protein RTD | -2.2% |
| Premier Protein Powder | +2.9% |
| Dymatize | +7.5% |
Management narrowed FY2026 guidance, now expecting:
- Net sales of $2.41-$2.46 billion (previously wider range)
- Adjusted EBITDA of $425-$440 million (~18% margin, down from 21%+ historically)
The GLP-1 Tailwind That Never Materialized
BellRing was supposed to be a beneficiary of GLP-1 weight loss drugs like Ozempic and Wegovy. The thesis: users of these medications need high-protein foods to maintain muscle mass while losing weight.
Davenport herself championed this narrative, telling analysts the company expected to benefit from "all the macro trends that are going on around protein is good for you, healthy eating and convenience."
Coresight Research analysts agreed, arguing companies focused on "high-protein, low-sugar, and energy-boosting products like protein powders and nutrition bars" had the most to gain from GLP-1 adoption.
Yet the stock's 70% decline suggests investors have soured on this narrative—perhaps because rising input costs and tariffs have overwhelmed any demand tailwind.
What Happens Next
The Board has commenced an external search for Davenport's replacement. She will remain as President and CEO through the transition, then serve in an advisory role.
Key questions for the new CEO:
- Margin recovery: Can pricing power or supplier diversification offset tariff impacts?
- Club channel: How to reverse Premier Protein's weakness in this critical channel?
- Competition: Coca-Cola's Fairlife and others are gaining share in protein beverages
- Capital allocation: BellRing repurchased $97 million of stock in Q1 at an average price of $31.95—well above current levels
The company still has $543.1 million remaining under its share repurchase authorization.
Ask Fintool AI AgentThe Bottom Line
Darcy Davenport built BellRing Brands into a legitimate consumer staples success story, growing revenue 16x over a decade and creating the leading RTD protein brand in America. But she's leaving at perhaps the most challenging moment in the company's history—with margins collapsing, tariffs biting, competition intensifying, and the stock down 70% from its peak.
The official narrative is a planned retirement. The timing suggests a leader who recognizes the next chapter will require a different approach to the headwinds she couldn't fully overcome.
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