There is a category of ASX stock that tends to get overlooked: quality consumer businesses that are not retailers, not banks, and not miners.
They do not fit neatly into any of the narratives dominating the market in 2026.
Breville Group Ltd (ASX: BRG) is a perfect example.
The Sydney-based designer and distributor of premium kitchen and home appliances operates across more than 70 countries, generates consistent earnings growth, and has outperformed its global industry peers for the better part of a decade.
Yet Breville shares are down approximately 23% from their peak of $37.11, and barely anyone is talking about them.
This has created an interesting situation for patient investors.
Image source: Getty Images
Why Breville keeps outperforming its peers
Breville does not compete on price.
The company rather competes on design, innovation, and the aspirational appeal of its premium brands. These include Breville in Australia and the US and Sage in Europe and the UK.
Breville's positioning insulates the business from the margin pressure that squeezes lower-end appliance manufacturers when commodity costs rise or consumer budgets tighten.
Macquarie has been tracking the global small appliance industry for years and its data offers clear insight.
Breville has outperformed the industry benchmark by approximately 11% per annum between 2018 and 2024.
Most remarkably, Breville is one of only a handful of global appliance companies whose revenue is currently above pandemic-era peaks, a group that also includes Nespresso and De'Longhi.
Every other major player is still trying to recover to their 2021 revenue levels. Meanwhile, Breville has already blown past them.
The FY2025 result confirmed the momentum
The most recent full-year result delivered further evidence of the outperformance story.
Breville reported FY2025 revenue growth of 10.9% and a 14.6% increase in NPAT, with the global products segment. This segment accounts for the overwhelming majority of revenue, delivering constant currency growth of 13.0% in the December 2024 half.
The coffee segment continues to be the primary growth engine, benefiting from the ongoing premiumisation trend in home coffee preparation that accelerated during the pandemic.
New market development, particularly in Asia and Latin America, is adding a further growth dimension that is still in its early stages.
What Macquarie thinks about Breville shares
Macquarie retained its outperform rating on Breville shares this week with a $37.10 price target.
The broker was pleased with the most recent industry data.
At the current Breville shares price of approximately $26.26, that $37.10 target implies upside of approximately 30%.
Furthermore, Macquarie forecasts Breville's dividend to grow from 39.1 cents per share in FY2026 to 51.1 cents by FY2028.
This is a 31% increase in the payout over three years, backed by earnings growth the broker describes as highly visible given the company's long order pipeline and global distribution reach.
The risks worth acknowledging
Breville is not without risk.
Consumer discretionary spending is under pressure from the RBA's rate hiking cycle, and a sustained deterioration in household budgets could delay appliance upgrade cycles.
The strong Australian dollar reduces the AUD value of overseas earnings when translated back to domestic reporting currency.
Lastly, tariff risk in the United States, where a significant portion of revenue is earned, has not fully resolved despite some moderation in the trade tension environment.
Foolish takeaway
Breville shares have drifted lower while the underlying business has kept outperforming every global benchmark the industry tracks.
Macquarie has done the homework and arrived at a bull case backed by three years of forecast dividend growth.
For investors looking for a quality consumer stock that the market has temporarily lost interest in, Breville shares look like exactly the kind of opportunity that tends to reward patient investors.
