Mystery Dumpling: The New Collectible Sensation Driving Five Below's Success

• The 'Mystery Dumpling' is the latest viral toy trend, gaining traction on TikTok and other online platforms.
• Created by RMS USA, these squishy dumplings are shaped like bao buns and packaged in miniature bamboo steamers, with consumers unable to see the version until purchase.
• Wolfe Research analyst Spencer Hanus highlights Five Below's ability to capitalize on this trend as a key catalyst, driving incremental traffic and higher ticket sales.
• The dumpling craze could add 100-200bps to Five Below's comparable sales through 2026, with an outperform rating and a new price target of $291.
• This trend parallels the Labubu doll sensation, though analysts note the fleeting nature of such trends, emphasizing the importance of 'Five Below' searches.