Energy Drink Market's Hidden Champion: Why This US Stock Crushed Apple's 20-Year Returns

You’ve probably heard the Apple story—over 20,000% returns since 2000, turning early believers into multimillionaires. But what if we told you there’s a lesser-known US company that left even Apple in the dust? Monster Beverage (NASDAQ: MNST) has quietly become the best-performing stock of the past two decades, delivering a staggering 116,700% total return. That means $1,000 invested at the start of 2000 would be worth over $1 million today.

How a Niche Soda Brand Became an Energy Drink Juggernaut

Monster Beverage didn’t start as an energy drink company. Originally called Hansen’s Natural, it operated as a small player in sodas and juices since the Great Depression era. The real inflection point came in the late 1990s and early 2000s when the company launched Monster Energy—a bold, rugged energy drink packaged in large, eye-catching cans. This positioning directly challenged Red Bull, which dominated with premium marketing and slim packaging.

The timing was impeccable. The energy drink category exploded globally, with US market sales growing an astonishing 5,000% from 1999 onwards. Today, Monster and Red Bull form a near-duopoly, each holding approximately 40% of global energy drink revenue. This category dominance, combined with rapid international expansion, transformed Monster Beverage’s revenue from under $100 million annually to $6.3 billion by 2022.

The Two-Part Formula Behind 1,000X Returns

Monster Beverage’s extraordinary performance wasn’t accidental—it combined two powerful ingredients:

1. Consistent Revenue Expansion The company achieved a 20% compound annual growth rate (CAGR) since 2000, riding the wave of rising consumer demand for energy drinks across every major market globally.

2. Multiple Expansion As the business scaled and profitability improved, the market rewarded it with higher valuations. The price-to-sales (P/S) ratio expanded over 1,000%—from under 1 to approximately 9. Why? Because operating margins grew from roughly 10% in 2000 to 25% in 2022 (with margins exceeding 30% in prior years), demonstrating the profit potential of a scaled consumer packaged goods business.

What’s Next for Monster?

Today, Monster trades at a P/E ratio of 47—above market average. Some might think the best days are behind it, but the narrative isn’t that simple. The energy drink industry continues expanding globally, with projections for 10% annual growth this decade. If Monster maintains its 40% market share, revenue growth will follow industry tailwinds.

Beyond volume growth, margins should expand further as inflationary pressures from 2022 subside and the company benefits from economies of scale. However, don’t expect another 116,700% surge. The realistic outlook: steady, long-term appreciation driven by brand strength, market share stability, and operational efficiency—the hallmarks of a durable compounder that’s unlikely to destroy shareholder wealth over time.

The US stock market’s best performer over 23 years wasn’t the tech darling everyone watches. It was the energy drink maker building one can at a time.