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).
Excluding one-time items, Coca-Cola delivered adjusted EPS (earnings per share) of $0.50 in 3Q17, surpassing the consensus analysts’ estimate of $0.49.
Dr Pepper Snapple’s gross margin fell 50 basis points, mainly due to an unfavorable comparison of the mark-to-market activity on commodity derivative contracts.
Dr Pepper Snapple Group (DPS) is scheduled to announce its 3Q17 results on October 25, 2017. It has beaten analysts’ sales expectations in nine of the past ten quarters.
Beverage giant Coca-Cola (KO) is slated to announce its 3Q17 results on October 25. On October 18, KO stock rose 11.9% to $46.40 on a year-to-date basis.
PepsiCo (PEP) is scheduled to announce its fiscal 3Q17 results on October 4. The snack food and beverage giant surpassed analysts’ revenue and earnings expectations in the first two quarters of fiscal 2017.
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.
Higher-than-expected revenue Soda giant Coca-Cola (KO) delivered revenue of $9.1 billion in 1Q17. The company surpassed Wall Street analysts’ revenue estimate of $8.9 billion. However, the company’s revenue fell for the eighth straight quarter. Headwinds in 1Q17 Coca-Cola’s revenue fell 11.3% YoY (year-over-year) in 1Q17. Acquisitions, divestitures, and structural items related to the company’s refranchising […]
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 […]
Segment performance PepsiCo’s (PEP) North American segments continued to outperform its international segments in terms of revenue growth. PepsiCo’s operations are organized into six segments—Frito-Lay North America, Quaker Foods North America, North America Beverages, Latin America, Europe Sub-Saharan Africa, and Asia, Middle East & North Africa. In 4Q16, with the exception of the Latin America and […]
Negativity about the alleged ill-effects of sodas and energy drinks is putting pressure on the sales of nonalcoholic beverage companies such as Monster Beverage (MNST).
Monster Beverage’s recent performance has been negatively impacted by foreign currency fluctuations and a disruption due to the transition to Coca-Cola distributors.
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, […]
Weak soda volumes in key markets are making nonalcoholic beverage companies look for growth opportunities in up-and-coming categories like functional beverages.
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.
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.
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 […]
On a YTD basis, Dr Pepper Snapple (DPS) stock has fallen 5.5% to $87.12 as of October 20, 2016. It’s currently trading below its YTD average price of $92.25.
In its 2Q16 conference call, DPS’s CFO Martin M. Ellen said 2016 overall sales volumes are expected to be unchanged from 2015. Soda volumes are expected to be flat.
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 […]
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 […]
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%.
Monster Beverage’s (MNST) sales grew by 19.3% in 2Q16 to $827.5 million. Analysts expected the company to deliver net sales of $804.2 million in the second quarter.
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, the third-largest US soda maker, generated sales of ~$1.70 billion in 2Q16, beating the consensus analyst estimate of $1.68 billion.
Coca-Cola is focused on capturing growth opportunities in still beverages. Consumers are moving away from soda drinks and opting for healthier options.
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.
