Financial Data and Key Metrics Changes - The preliminary voting results indicated that all director nominees were duly elected to serve until the 2026 annual meeting [21] - The selection of Ernst and Young LLP as the independent registered public accounting firm for the fiscal year ending 12/31/2025 was ratified by approximately 100% of the votes cast [22] - A nonbinding advisory vote on the compensation of the company's named executive officers was approved by approximately 94% of the votes cast [22] Business Line Data and Key Metrics Changes - The company launched several new products in the first quarter, including two new full sugar Monster flavors and various strategic brands in EMEA [27][28] - The Ultra family of products has been growing at over 20% [45] - The company is expanding its Predator brand in various markets, including a national rollout in China [29][56] Market Data and Key Metrics Changes - According to Nielsen, sales in the energy drink category increased by 12.5% year-over-year, with Monster's sales increasing by 10.1% [31] - In Mexico, Monster's sales increased by 17.6%, and its market share rose to 31.2% [34] - In EMEA, the energy drink category grew approximately 13.6% year-over-year, with Monster's market share increasing in several countries [35][36] Company Strategy and Development Direction - The company continues to focus on expanding its energy drink category while exploring opportunities in other beverage categories, including alcoholic beverages [52] - The upcoming launch of Blind Lemon, a new hard lemonade line, is part of the strategy to boost profitability in the Alcohol Brands division [53] - The company is optimistic about the long-term prospects for the Monster brand in China and is excited about the rollout of Predator [56] Management's Comments on Operating Environment and Future Outlook - Management noted a strong recovery in the U.S. energy category, driven by functionality, value proposition, and diverse offerings [43][44] - The company is focused on long-term value creation opportunities and optimizing trade spend [51] - Management expressed confidence in the company's growth strategy and innovation pipeline for 2026 and beyond [62] Other Important Information - The company highlighted that Nielsen data does not capture all sales channels, including foodservice and e-commerce [30] - The company acknowledged the impact of increased input costs and tariffs on aluminum but does not expect a significant impact on gross margins in the short term [49][50] Q&A Session Summary Question: Key factors behind the recovery and sustainability of revenue growth in the U.S. Energy category - Management attributed recovery to functionality, affordable value, image, and diverse offerings appealing to a broad consumer base [43][44] Question: Drivers of strong industry-wide scanner data and consumer preferences - Management noted growth from new consumers, particularly younger females, and a narrowing price differential between energy drinks and other beverages [47][48] Question: Strategy for protecting gross margins - Management discussed input cost increases and a hedging strategy for aluminum, emphasizing ongoing cost savings and pricing evaluations [49][50] Question: Role of Alcohol Brands division in overall strategy - Management stated the focus remains on energy drinks while exploring growth in alcoholic beverages, including the launch of Blind Lemon [52][53] Question: Update on dual brand price point strategy in China - Management highlighted optimism for the Monster brand in China and the rollout of Predator as a key growth driver [56][57] Question: Ongoing involvement of Rodney Sachs in the company - Management confirmed that Rodney Sachs will focus on marketing and innovation while remaining involved in legal matters [58][60]

Core Viewpoint - PepsiCo's stock performance has lagged behind the broader market, with a recent decline and projected earnings showing a year-over-year decrease [1][2]. Financial Performance - The upcoming earnings report on July 17, 2025, is expected to show earnings of $2.04 per share, a decline of 10.53% year-over-year, with projected revenue of $22.37 billion, reflecting a 0.6% decrease from the same quarter last year [2]. - For the entire fiscal year, earnings are projected at $7.87 per share, down 3.55% from the prior year, while revenue is expected to be $92.2 billion, an increase of 0.38% [3]. Analyst Estimates and Ratings - Recent changes in analyst estimates for PepsiCo are crucial, as they reflect near-term business trends, with positive revisions indicating a favorable outlook [3][4]. - The Zacks Rank system currently rates PepsiCo at 4 (Sell), with the consensus EPS estimate moving 0.18% lower over the past month [5]. Valuation Metrics - PepsiCo is trading at a Forward P/E ratio of 16.75, which is below the industry average of 19.23, suggesting a relative discount [6]. - The company has a PEG ratio of 3.79, compared to the industry average of 2.56, indicating higher expected earnings growth relative to its price [7]. Industry Context - The Beverages - Soft drinks industry, part of the Consumer Staples sector, holds a Zacks Industry Rank of 61, placing it in the top 25% of over 250 industries [7].

Group 1 - PepsiCo's stock closed at $131.83, with a +1.44% increase, outperforming the S&P 500's gain of 0.55% for the day [1] - Over the past month, PepsiCo shares declined by 1.31%, underperforming the Consumer Staples sector, which gained 1.91%, and the S&P 500, which gained 6.29% [1] Group 2 - The upcoming earnings report for PepsiCo is scheduled for July 17, 2025, with an expected EPS of $2.04, reflecting a 10.53% decrease from the prior-year quarter [2] - Revenue is anticipated to be $22.37 billion, indicating a 0.6% decline from the same quarter last year [2] Group 3 - For the fiscal year, earnings are projected at $7.87 per share and revenue at $92.2 billion, representing changes of -3.55% and +0.38% respectively from the prior year [3] - Recent analyst estimate revisions are crucial as they reflect near-term business trends, with positive revisions indicating a favorable business outlook [3][4] Group 4 - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), shows that PepsiCo currently holds a Zacks Rank of 4 (Sell) [5] - The Forward P/E ratio for PepsiCo is 16.51, which is lower than the industry average of 19.21 [5] Group 5 - PepsiCo has a PEG ratio of 3.73, compared to the average PEG ratio of 2.56 in the Beverages - Soft drinks industry [6] - The Beverages - Soft drinks industry is part of the Consumer Staples sector and holds a Zacks Industry Rank of 45, placing it in the top 19% of over 250 industries [6][7]

Core Insights - The Coca-Cola Company (KO) has demonstrated strong growth, reflecting its robust market positioning and brand power compared to other non-alcoholic beverage companies [1] - Concerns arise regarding KO's current forward 12-month price-to-earnings (P/E) multiple of 23.37X, which is significantly higher than the industry average of 18.68X, suggesting the stock may be overvalued [2][5] - The price-to-sales (P/S) ratio of 6.27X also exceeds the industry's 4.46X, contributing to investor unease, particularly given its Value Score of F [3] Valuation Concerns - KO's premium valuation at 23.37X P/E is significantly above peers like PepsiCo (16.13X), Keurig Dr Pepper (15.7X), and Primo Brands (18.13X), indicating a potential disconnect between valuation and growth trajectory [5][6] - Despite a year-to-date share price increase of 15.3%, which outperformed the broader industry and major indexes, the high valuation raises questions about sustainability [7][8] Financial Performance - Coca-Cola reported a 12% organic revenue growth, driven by strong pricing and recovery in away-from-home consumption, showcasing resilience amid macroeconomic uncertainties [14] - The company has outperformed competitors like PepsiCo and Keurig Dr Pepper, which saw declines of 21.3% and 2.6% respectively, while KO's performance is still below Primo Brands' growth of 29.5% [8] Market Positioning - KO's current share price of $71.77 is 3.5% below its 52-week high of $74.38 and 18.4% above its 52-week low of $60.62, indicating a bullish sentiment as it trades above its 50 and 200-day moving averages [12] - The company's disciplined brand-building strategy and marketing investments have resonated well, particularly with products like Coca-Cola Zero Sugar, which has seen double-digit growth [16] Strategic Outlook - Coca-Cola's ability to innovate and engage with younger, health-conscious consumers is crucial for maintaining its market leadership [17] - The company is focused on margin resilience through productivity initiatives and pricing power, despite facing inflationary pressures and currency fluctuations [18] - Management's confidence is reflected in the full-year guidance, indicating a strong belief in the underlying business fundamentals [15] Earnings Estimates - The Zacks Consensus Estimate for Coca-Cola's 2025 EPS remains unchanged, while the estimate for 2026 EPS has seen a slight upward revision, indicating analysts' confidence in the stock [20] - For 2025, the consensus estimates imply 2.4% revenue growth and 2.8% EPS growth, with 2026 estimates suggesting 5.3% revenue growth and 8.2% EPS growth [20] Investment Considerations - Despite premium valuation concerns, Coca-Cola's strong fundamentals, brand equity, and strategic direction present a compelling case for long-term investors [23][24] - The company's global scale and disciplined execution support its growth trajectory across diverse markets, making it a potential addition to a diversified portfolio [25][26]

Industry Overview - The Zacks Beverages – Soft Drinks industry is characterized by strong growth potential driven by rising consumer demand for healthier, functional, and eco-friendly beverages [1] - Companies are innovating and diversifying their portfolios to capture new market opportunities [1] - The industry is experiencing a digital transformation with brands adopting direct-to-consumer channels and subscription models to enhance customer relationships [1] Current Challenges - The industry faces persistent headwinds such as elevated input costs, supply-chain disruptions, and tariff-related uncertainties that pressure margins [2] - Rising packaging and freight expenses, along with volatile commodity prices, challenge profitability [2] - Newly imposed U.S. tariffs on imports from Canada and Mexico create additional financial pressure and uncertainty [6] Consumer Trends - There is a significant shift in consumer preferences towards healthier beverage options, including drinks made with natural ingredients and reduced sugar [4] - Plant-based beverages and functional drinks that promote hydration and energy are gaining popularity among health-conscious consumers [4] - Companies are expanding into adjacent categories, such as ready-to-drink alcoholic beverages, to capitalize on these trends [4] Digital Growth & Innovation - The industry is leveraging digital transformation to enhance consumer engagement and boost growth [5] - Brands are investing in direct-to-consumer platforms and subscription-based models to secure recurring revenue [5] - Product innovation remains a key growth driver, with companies refining their portfolios and launching new products [5] Financial Performance - The Zacks Beverages – Soft Drinks industry currently holds a Zacks Industry Rank of 63, placing it in the top 26% of over 250 Zacks industries, indicating bright near-term prospects [8] - The industry has underperformed the Consumer Staples sector and the S&P 500 Index over the past year, with a collective growth of 0.4% compared to the sector's 3.5% and the S&P 500's 11.9% [10] Valuation Metrics - The industry is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 18.68X, compared to the S&P 500's 21.97X and the sector's 17.75X [13] - Over the past five years, the industry's P/E ratio has ranged from a high of 23.8X to a low of 17.22X, with a median of 21.45X [13] Notable Companies - **Coca-Cola (KO)**: Positioned for long-term growth through strategic transformation and digital investments, with a projected sales growth of 2.4% and earnings growth of 2.8% for 2025 [17][18] - **Zevia (ZVIA)**: Focused on zero-sugar, naturally sweetened drinks, with a projected sales growth of 3.4% and earnings growth of 38.7% for 2025 [21][22] - **Monster Beverage (MNST)**: Continues to perform well in the energy drinks category, with projected sales growth of 5.9% and earnings growth of 14.8% for 2025 [24][25] - **Keurig Dr Pepper (KDP)**: Expected to benefit from growth in the Refreshment Beverages segment, with projected sales growth of 5.6% and earnings growth of 6.3% for 2025 [28][29] - **Primo Brands (PRMB)**: Specializes in healthy hydration with a projected sales growth of 145.6% and earnings growth of 52.5% for 2025 [33]

Investors interested in Consumer Staples stocks should always be looking to find the best-performing companies in the group. Carlsberg AS (CABGY) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.Carlsberg AS is one of 178 individual stocks in the Consumer Staples sector. Collectively, these companies sit at #13 in the Zacks Sector Rank. The Zac ...

Core Insights - PepsiCo Inc. has experienced a downtrend in recent months due to slowed sales performance and challenges in North America operations, including reduced consumer demand and product recalls [1][16] - The company's current forward 12-month price-to-earnings (P/E) multiple of 16.26X is below the industry average of 18.65X, indicating a potentially attractive valuation [1][8] - Recent tariff-related headwinds are expected to impact performance in upcoming quarters [1] Financial Performance - PepsiCo's price-to-sales (P/S) ratio stands at 1.92X, significantly lower than the industry's 4.44X, which may enhance investor expectations [2] - Over the past three months, PepsiCo's shares have declined by 15.1%, underperforming the broader industry decline of 0.3% and the Zacks Consumer Staples sector's growth of 2.8% [5][6] - The stock is currently trading 27.6% below its 52-week high of $180.91 and 2.5% above its 52-week low of $127.75, indicating bearish sentiment [11] Segment Performance - The company reported only 1.2% organic revenue growth in Q1 2025, with a notable decline in the PepsiCo Foods North America segment [16][19] - The PFNA segment experienced a 2% organic revenue decline and a 7% drop in core operating profit, while Beverages North America showed improved sales and margin performance [17][18] - Mixed segment results raise concerns about the company's ability to achieve consistent growth, particularly in North America [17] Margin and Cost Pressures - Core operating margins declined in Q1 despite modest gains in gross margins, as rising input costs and tariff exposure continue to challenge profitability [18] - Global supply-chain disruptions and tight consumer spending in developed markets further complicate cost control and pricing flexibility [18] Earnings Outlook - PepsiCo has revised its 2025 earnings outlook downward, now expecting flat core EPS growth instead of mid-single-digit gains [19] - The Zacks Consensus Estimate for 2025 sales suggests a year-over-year growth of only 0.4%, with EPS expected to decline by 3.6% [20][21] - Analysts have shown decreasing confidence in the company's growth potential, as reflected in downward revisions of EPS estimates for 2025 and 2026 [20] Valuation and Investment Sentiment - Despite a lower valuation compared to peers, the discount may reflect underlying issues rather than a straightforward investment opportunity [4][23] - Long-term initiatives around productivity and global diversification are seen as strategically beneficial, but their delayed impacts contribute to investor hesitation [24] - The current cautious outlook and lack of near-term catalysts suggest a defensive stance may be prudent for investors [25]

For those looking to find strong Consumer Staples stocks, it is prudent to search for companies in the group that are outperforming their peers. Coca-Cola European (CCEP) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Staples sector should help us answer this question.Coca-Cola European is one of 178 companies in the Con ...

Celsius Holdings Company Conference Call Summary Company Overview - Celsius Holdings is a global maker of premium lifestyle energy drinks, including the Celsius brand and Aloni New, which is the fourth largest energy drink brand in the U.S. [2][3] - The company generated approximately $2 billion in revenue last year, with significant growth expected in both the U.S. and international markets [2][3]. Industry Dynamics - The energy drink category is experiencing a renaissance, with an increasing number of consumers, particularly females, entering the market [6][7]. - The category is evolving, with energy drinks being consumed throughout the day and with meals, rather than just for specific needs [7][8]. - The U.S. market has seen a shift towards sugar-free options, with over 50% of sales in the energy drink category now being sugar-free [13][14]. Market Position and Strategy - Celsius currently holds approximately 10.8% to 11% market share in the U.S. energy drink category, down from a peak of 12.3% [25][26]. - The company aims to regain growth through a balanced innovation strategy, including new flavors and partnerships [27][28]. - The addition of Aloni New is expected to enhance Celsius's market position, with both brands together representing about 16.5% of the category [11][12]. Financial Performance and Projections - Celsius is targeting $50 million in synergies from the integration of Aloni New, with a two-year plan to align financial profiles [17][18]. - The company has a gross margin in the low fifties and SG&A in the low thirties, with expectations to improve these metrics through synergies and global expansion [17][18]. - The energy drink category is projected to grow at high single-digit rates over the next several years, providing a favorable environment for Celsius [80]. International Expansion - Celsius is focusing on international markets, having recently launched in France, Australia, New Zealand, and the UK, with a goal of achieving a 10% market share in these regions within three to five years [41][43]. - The company has established a partnership with Suntory for distribution in international markets and aims to build a loyal consumer base [41][44]. Brand Synergies and Management - Celsius and Aloni New will maintain separate marketing teams to preserve brand identities while leveraging synergies in supply chain and promotional strategies [48][49]. - The dual-brand strategy allows for more flexible pricing and promotional tactics, enhancing market competitiveness [47][48]. Product Innovation and SKU Management - Celsius is reviewing its SKU assortment to ensure consistency across retailers and optimize the product portfolio [64][66]. - Limited-time offerings (LTOs) are being used strategically to attract new consumers and disrupt purchasing habits [72][76]. Future Outlook - The company is focused on regaining market share in the U.S. and expanding internationally, with a strong emphasis on health and wellness trends [108][109]. - Celsius aims to continue innovating within the energy drink category while exploring opportunities in adjacent markets, such as hydration products and protein offerings [99][90]. Conclusion - Celsius Holdings is well-positioned to capitalize on the evolving energy drink market, with a clear strategy for growth through innovation, brand synergy, and international expansion [109].

Company Overview - PepsiCo's stock closed at $131.92, reflecting a gain of +0.96% from the previous trading session, outperforming the S&P 500's daily gain of 0.4% [1] - Over the past month, PepsiCo's shares have declined by 3.62%, underperforming the Consumer Staples sector's gain of 1.13% and the S&P 500's gain of 6.69% [1] Upcoming Earnings - PepsiCo is projected to report earnings of $2.04 per share, indicating a year-over-year decline of 10.53% [2] - The consensus estimate for revenue is $22.37 billion, reflecting a 0.6% decline compared to the same quarter last year [2] Full Year Projections - For the full year, earnings are estimated at $7.87 per share, representing a decline of 3.55%, while revenue is projected at $92.2 billion, showing a slight increase of 0.38% from the previous year [3] Analyst Estimates and Rankings - Recent adjustments to analyst estimates for PepsiCo indicate evolving short-term business trends, with positive revisions suggesting a favorable outlook on the company's health and profitability [4] - The Zacks Rank system currently rates PepsiCo at 4 (Sell), with a recent 0.18% decline in the Zacks Consensus EPS estimate [6] Valuation Metrics - PepsiCo's Forward P/E ratio stands at 16.6, which is below the industry average of 20.15 [7] - The PEG ratio for PepsiCo is 3.75, compared to the average PEG ratio of 2.54 for the Beverages - Soft drinks industry [7] Industry Context - The Beverages - Soft drinks industry is part of the Consumer Staples sector and holds a Zacks Industry Rank of 50, placing it in the top 21% of over 250 industries [8]