Dr Pepper Snapple Group Inc

At the end of the fourth week of April 2016, the S&P Consumer Staples slightly outperformed the S&P 500 and the S&P Consumer Discretionary as a whole. Let’s see which stocks stood out.

PepsiCo expects currency headwinds to impact its fiscal 2015 core EPS by 11% compared to its previous estimate of 7%. It expects currency headwinds to drag down EPS in 2Q15 by 12%.

Dr Pepper Snapple Group (DPS) has a market cap of $18.4 billion. It rose by 1.7% to close at $97.87 per share on July 28, 2016.

PepsiCo’s margins have improved in a volatile macro environment helped by tight cost controls and higher net pricing.

PepsiCo’s stock has appreciated by 20.7% since 2014 and has outperformed peers in the consumer staples sector like Coca-Cola, Mondelez, and Kellogg.

Dr Pepper Snapple Group (DPS) declared a quarterly dividend of $0.53 per share on its common stock. This dividend will be paid on January 5, 2017, to shareholders of record on December 13, 2016.

As of July 24, Dr Pepper Snapple’s (DPS) stock price has appreciated by 8.8% to $77.92 since the beginning of 2015.

In April 2015, PepsiCo (PEP) launched two new protein-packed snack mixes under its Cracker Jack’D food brand.

As of January 28, about 59% (or 17) analysts out of 29 analysts, have a “buy” recommendation for PepsiCo and 12 analysts have a “hold” recommendation. None of the analysts have a sell recommendation.

In 2014, Monster Beverage’s net sales increased by 9.7% to $2.5 billion, with 21.7% of its net sales from outside the United States.

Coca-Cola’s operating margin improved significantly to 15.2% in 4Q15 from 13.3% in the comparable quarter of the previous year.

An interesting development in the energy drinks industry is Monster Beverage’s strategic deal with Coca-Cola. The deal will expand Monster Beverage’s product line-up.

PepsiCo (PEP) has a market cap of $152.5 billion. It fell 0.15% to close at $105.92 per share on October 13, 2016.

Dr Pepper Snapple reported sales of nearly $1.6 billion in 4Q15, beating the consensus Wall Street analyst estimate of $1.53 billion.

Coca-Cola’s productivity program aims for annualized savings of $3 billion by 2019. The company will reinvest these savings in incremental media spending.

The US nonalcoholic beverage market comprises categories like carbonated soft drinks, ready-to-drink tea and coffee, bottled water, sports drinks, and energy drinks.

The volume growth of Dr Pepper Snapple’s still beverages portfolio surpassed the volume growth of carbonated soft drinks in each of the four quarters of fiscal 2015.

As of March 28, Coca-Cola and PepsiCo were trading at 12-month forward PE multiples of 22.7x and 22.0x, respectively.

PepsiCo rose by 1.5% to close at $107.49 per share on July 7. Its weekly, monthly, and YTD price movements were 4.2%, 4.9%, and 9.2% that day.

PepsiCo is getting ready to launch Kola House, its first hospitality venture, at its flagship location in New York City’s Meatpacking District. The first Kola House, which will operate as a kola bar, restaurant, lounge, and event space, is expected to open this spring.

Coca-Cola’s (KO) overall unit case volume rose 1% in 3Q16. The company’s soda or sparkling beverage unit case volumes were flat in 3Q16 on a YoY basis.

Monster Beverage’s (MNST) net sales in 1Q16 ended March 31, 2016, were $680.2 million, ahead of the consensus analyst sales estimate of $656.9 million.

The domestic non-sparkling bottled water category is the largest segment of bottled water in the US.

PepsiCo expects its recently launched flavors to boost beverage sales, which accounted for 47.0% of the company’s total revenue in 2014.

Coca-Cola has been aggressively implementing productivity initiatives to offset the impact of sluggish soda volumes and macro challenges in key markets.

As of January 28, 2016, PepsiCo (PEP) was trading at a forward price-to-earnings ratio of 20.6x.

Another plant-based beverage acquisition made by Coca-Cola was that of Xiamen Culiangwang Beverage Technology Company in 2015.

Carbonated soft drink volumes dropped to 8.8 billion 192-ounce cases in 2014. This is the tenth straight year of decline.

As of April 19, PepsiCo (PEP) was trading at a 12-month forward PE (price-to-earnings) ratio of 22.1x.

Monster Beverage (MNST) missed the consensus analyst earnings estimate in 2Q16 despite strong growth in its adjusted earnings on a year-over-year basis.

Dr Pepper Snapple is creating more visibility for its products by associating with popular movies. It expects its marketing spend to be ~7.6% of net sales in 2015.

Price movement PepsiCo (PEP) fell 1.1% to close at $105.62 per share during the third week of October 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -1.1%, -2.0%, and 8.0%, respectively, as of October 21. PEP is trading 1.1% below its 20-day moving average, 1.1% below its 50-day moving average, and […]

By refranchising its bottling operations to independent bottlers, Coca-Cola can take advantage of these bottlers’ local expertise—including local consumer preferences, demand, and marketing programs.

PepsiCo’s share price fell 1.1% since the announcement of its 1Q15 results on April 23. The company’s net revenue fell 3.2% to $12.2 billion in 1Q15.

As per the deal specifics that the companies disclosed, Coca-Cola Enterprises (CCE) shareholders should have a 48% shareholding in the new company.

Dr Pepper Snapple (DPS) saw higher volume growth in non-carbonated beverages in all the quarters of fiscal 2015 compared to CSDs.

On February 5, Jefferies upgraded Lowe’s (LOW) to “buy” from “hold” and raised the target price to $129 from $81.

PepsiCo (PEP) has a market cap of $156.2 billion. Its stock rose by 0.73% to close at $108.27 per share on July 8, 2016.

Carbonated soft drinks have been losing their fizz as more and more consumers are opting for healthier beverage options.

Monster Beverage (MNST) was trading at a 12-month forward PE (price-to-earnings) ratio of 36.6x as of July 25.

Monster Beverage’s valuation multiple is higher than its nonalcoholic beverage peers Coca-Cola (KO), PepsiCo (PEP), and Dr Pepper Snapple (DPS).

Monster Beverage expects its Monster Unleaded, Ultra Sunrise, and Ultra Citron lines, as well as Rehab Peach Tea + Energy, to perform well in 2015.

Of the 22 analysts covering Dr Pepper Snapple, 15, or 68%, have given the company a “hold” recommendation as of December 31, 2015.

In 2016, PepsiCo and Starbucks will distribute Starbucks’s ready-to-drink, or RTD, coffee and energy beverages in select Latin American markets.

On February 17, Dr Pepper Snapple’s stock price declined by 2.9% to $89.33, following the announcement of its 4Q15 results and its weak outlook for 2016.

In September 2015, Keurig Green Mountain announced the launch of its much-awaited Keurig Kold beverage system.

Consumer staple ETFs provide exposure to companies that produce essentials, including food, beverages, tobacco, and household items. The Consumer Staples Select Sector SPDR Fund (XLP) tracks the S&P Consumer Staples Select Sector Index.

On February 2, SocGen upgraded Mondelez International (MDLZ) to “buy” from “hold” and raised the target price to $55 from $45.

Gatorade’s position and volumes have been impacted by rising competition. It has also felt the effect of the popularity of bottled water, ready-to-drink tea, coffee, and energy drinks.

PepsiCo’s (PEP) performance in recent quarters has been under pressure due to currency headwinds and weakness in carbonated soft drink volumes.

On May 5, 2017, Monster Beverage (MNST) was trading at a 12-month forward PE (price-to-earnings multiple) of 31.1x, up 3.7% in reaction to its 1Q17 results.

Dr Pepper Snapple adopted a strong strategy by acquiring an 11.7% stake in BodyArmor. But it could grow more in other non-carbonated beverage categories.

Overall, in 2013, still beverages performed better than sparkling beverages across all the segments except for Europe. Sparkling beverage volumes have been declining over the past few years.

PepsiCo (PEP) has a market cap of $157.2 billion. It rose by 0.59% to close at $108.91 per share on July 11, 2016.

PepsiCo (PEP) is expected to announce its fourth quarter results on February 11, 2016. The consensus Wall Street analysts’ adjusted EPS estimate for 4Q15 ended December 26, 2015, is $1.06.

Dr Pepper Snapple Group (DPS) has a market cap of $16.1 billion. It fell 4.3% to close at $86.86 per share on October 4, 2016.

PepsiCo (PEP) is one of two beverage-industry behemoths. We break down everything investors should know about the stock and the business.

The Consumer Staples Select Sector SPDR ETF (XLP) fell 9.4% in the first six months of 2018.

Reaction to merger news Previously in this series, we discussed the merger of Dr Pepper Snapple (DPS) with Keurig Green Mountain and expected synergies. As mentioned previously, following the news of the proposed merger, Dr Pepper Snapple stock rose 22.4% on January 29. On January 30, Dr Pepper Snapple stock was downgraded by Deutsche Bank […]

Extensive portfolio Keurig Dr Pepper, the new company to be formed by the proposed merger between Dr Pepper Snapple (DPS) and Keurig Green Mountain, is to have an extensive portfolio of hot and cold beverages. The combined company is expected to have a portfolio of 125 owned, licensed, allied, and partner brands, including Dr Pepper, 7 Up, […]

Coca-Cola (KO) is currently trading at a higher valuation multiple than PepsiCo (PEP) and Dr Pepper Snapple (DPS) but lower than Monster Beverage (MNST).

Coca-Cola’s valuation multiple is currently higher than PepsiCo (PEP) and Dr Pepper Snapple (DPS) but lower than Monster Beverage (MNST).

Coca-Cola’s (KO) top line has reflected persistent weakness over the past few quarters.

Margins in 4Q16 In 4Q16, PepsiCo’s (PEP) gross margin narrowed on a year-over-year basis. However, productivity measures helped the company improve its 4Q16 operating margin. PepsiCo’s gross margin contracted by 15 basis points to 54.2% in 4Q16 due to commodity inflation. Improvement in operating margin PepsiCo’s operating margin expanded by 15 basis points to 12.2% in […]

Coca-Cola (KO) reported 3Q16 net operating revenues of $10.6 billion—a YoY fall of 7.0% from its net operating revenues of $11.4 billion in 3Q15.

On January 9, 2017, Goldman Sachs downgraded Coca-Cola Company’s rating to “sell” from “neutral.” It also reduced the stock’s price target.

On January 9, 2017, Barclays initiated the coverage of PepsiCo with an “equal-weight” rating. It set the stock’s price target at $102.0 per share.

Coca-Cola (KO) has a market cap of $180.2 billion. It fell 0.36% to close at $41.65 per share on January 4, 2017.

Price movement The Coca-Cola Company (KO) has a market cap of $178.5 billion. It fell 0.22% to close at $41.57 per share on December 21, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 0.87%, 1.4%, and -0.09%, respectively, on the same day. KO is trading 0.98% above its 20-day moving average, […]

Coca-Cola (KO) has a market cap of $180.1 billion. It rose 0.46% to close at $41.74 per share on December 16, 2016.

Coca-Cola’s net income and earnings per share fell to $1.0 million and $0.24, respectively, in 3Q16, compared to $1.4 million and $0.33 in 3Q15.

Coca-Cola’s net income and EPS fell to $1.0 million and $0.24, respectively, in 3Q16, compared to $1.4 million and $0.33 in 3Q15.

General Mills (GIS) reported fiscal 1Q17 net sales of $3.9 billion, a fall of 7.1% from its net sales of $4.2 billion in fiscal 1Q16.

On November 22, 2016, CLSA initiated the coverage of Graphic Packaging Holding Company with an “outperform” rating and set the stock’s price target at $15.00 per share.

Foot Locker (FL) has a market cap of $9.4 billion. It fell 0.49% to close at $69.72 per share on November 16, 2016.

12-month forward PE In this article, we’ll discuss Coca-Cola’s (KO) valuation using the 12-month forward PE (price-to-earnings) ratio. As of October 17, Coca-Cola was trading at a 12-month forward PE of 21.1x. The company is trading below its YTD (year-to-date) average forward PE of 22.4x. Peers’ valuation As of October 17, nonalcoholic beverage companies PepsiCo […]

Tyson Foods (TSN) declared a quarterly dividend of $0.15 per share on its Class A common stock and $0.14 per share on its Class B common stock.

Price movement PepsiCo (PEP) has a market cap of $155.1 billion. It rose 0.35% to close at $107.76 per share on September 29, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -0.06%, 1.2%, and 10.2%, respectively, on the same day. PEP is trading 1.2% above its 20-day moving average, 0.57% above […]

The overall volume of PepsiCo’s North America Beverages segment fell 1% in fiscal 2Q16. This fall was caused by a 4% fall in PepsiCo’s soda volumes.

Johnson Controls (JCI) has a market cap of $42.3 billion. It rose 0.61% to close at $44.55 per share on September 16, 2016.

Coca-Cola’s (KO) still beverage volumes have seen higher growth compared to sparkling or soda beverages.

Coca-Cola has a dominant position in the US market. However, US soda volumes have been declining for more than a decade.

Coca-Cola (KO) has a market cap of $189.4 billion. It rose by 0.51% to close at $43.54 per share on August 29, 2016.

PepsiCo (PEP) has a market cap of $156.0 billion. It rose by 0.50% to close at $107.99 per share on August 29, 2016.

PepsiCo rose by 0.12% and closed at $108.72 per share on August 15. The stock’s weekly, monthly, and YTD price movements were 0.54%, -0.86%, and 10.4%.

As of August 5, Monster Beverage (MNST) was trading at a 12-month forward PE (price-to-earnings) ratio of 36.8x.

Dr Pepper Snapple’s (DPS) gross margins increased by 120 basis points to 60.5% in 2Q16 on a YoY (year-over-year) basis.

Coca-Cola is focused on capturing growth opportunities in still beverages. Consumers are moving away from soda drinks and opting for healthier options.

Coca-Cola generated revenue of $11.5 billion in fiscal 2Q16 ending July 1, 2016. It missed analysts’ consensus revenue estimate of $11.6 billion.

Monster Beverage (MNST) impressed its investors with a 26% growth in its 1Q16 EPS (earnings per share), excluding the impact of one-time items.

Coca-Cola’s (KO) margins contracted in 1Q16 due to the impact of adverse currency fluctuations and structural headwinds.

Despite weakness in US carbonated soft drink volumes, Dr Pepper Snapple Group (DPS) has reported sales growth for nine straight quarters. For 2Q16, analysts expect Dr Pepper Snapple Group’s sales to grow by 1.7% to $1.7 billion.

On a year-to-date basis, Dr Pepper Snapple Group’s stock has risen by 5.4% to $97.21, as of July 13.

In 1Q16, the growth in Dr Pepper Snapple Group’s branded carbonated soft drink volumes was driven by a 4% volume rise in the company’s key brand, Dr Pepper.

Monster Beverage (MNST) has a market cap of $31.7 billion. It fell by 3.8% to close at $155.54 per share on July 18, 2016.

Coca-Cola fell by 0.13% to close at $45.63 per share on July 15. Its weekly, monthly, and YTD price movements were 0.55%, 1.4%, and 7.9%, respectively.

PepsiCo (PEP) is trading 4.6% above its 20-day moving average, 6.2% above its 50-day moving average, and 10.4% above its 200-day moving average.

PepsiCo’s gross margin expanded to 55.6% in 2Q16 from 54.5% in 2Q15.

Leading snack and beverage maker PepsiCo (PEP) delivered adjusted EPS (earnings per share) of $1.35 in 2Q16 ended June 11, 2016.

PepsiCo’s (PEP) revenue declined by 3.3% in 2Q16 ended June 11, 2016.