Can Dr Pepper Snapple Fight Sluggish Soda Demand in 2015?
The ill effects of sugary drinks are moving consumers away from soda drinks to healthier options. This is unfavorable for Dr Pepper Snapple with 80% in CSD volumes.
Dr Pepper Snapple’s valuation has been revised upward. As of April 17, it’s trading at a forward PE ratio of 19.6x, up 6.7% since the beginning of 2015.
Analysts expect Dr Pepper Snapple’s margins to be 59.9% in 1Q15, up from 58.2% in 1Q14. The company expects operating margins to be adversely impacted by some headwinds.
The consensus Wall Street analysts’ estimate for Dr Pepper Snapple’s 1Q15 adjusted EPS is $0.76. The estimate for full year 2015 adjusted EPS currently stands at $3.86.
The impact of currency headwinds was less on Dr Pepper Snapple’s sales than the two beverage giants. It gets 12.4% of net sales from international operations.
The impact of adverse forex movements on UA’s financial performance may be mitigated somewhat by the stronger retail environment in Europe.
Under Armour (UA) projects 2015 revenues to come in at $3.76 billion, a 22% increase over 2014. Analysts’ 2015 estimates are slightly higher at $3.81 billion.
Valuations for Under Armour (UA) have been spiking lately. The company’s valuation reached a new record of 78.2x forward earnings on April 16.
In 1Q15, Under Armour acquired two digital fitness companies, Endomondo and MyFitnessPal, to create the world’s largest fitness community.
Under Armour (UA), will report 1Q15 earnings on April 21. UA has recently touched new highs with its stock at an all-time record high of $85.71 on April 16.
PepsiCo (PEP) plans to generate ~$1.0 billion in productivity savings in 2015. The company expects these savings to offset commodity cost inflation.
PepsiCo’s net revenue increased by 0.4% in 2014 to $66.7 billion. Overall, weakening foreign currencies reduced 2014 net revenue by 3.0%.
On April 13, 2015, PepsiCo (PEP) announced a multi-year partnership with the National Basketball Association (NBA).
In April 2015, PepsiCo (PEP) launched two new protein-packed snack mixes under its Cracker Jack’D food brand.
PepsiCo (PEP) is scheduled to announce the results for the first quarter of 2015 on April 23. As of April 14, PepsiCo’s stock has declined by 3.8% to $96.6.
EAT should release its 3Q15 earnings on April 21. YTD, the stock increased 3.9% as of April 14 and has increased ~1% since its previous earnings release.
Brinker International stock remained nearly unchanged since the last earnings release. Since then, the company named Thomas J. Edwards, Jr., as its new CFO.
Brinker is adding units in the international markets at a much faster pace than in the domestic market. It had 319 international restaurants as of 2Q15.
Micro and macro factors can affect a restaurant’s same-store sales growth. For example, lower fuel prices can result in higher drive-through traffic.
Year-to-date, Brinker International stock increased 3.9% as of April 14. However, it has increased just ~1% since its previous earnings release.
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