Core Insights - FEMSA reported third-quarter 2025 adjusted net majority earnings per ADS of 88 cents, down from $1.37 in the same quarter last year, missing the Zacks Consensus Estimate of $1.06 [1] - Net consolidated income was Ps. 5,838 million (US$318.2 million), reflecting a decline of 36.8% year over year [1] - Total revenues increased to US$11.7 billion (Ps. 214,638 million), a 9.1% rise year over year, surpassing the Zacks Consensus Estimate of $11.2 billion [2] Financial Performance - Gross profit rose 8% year over year to Ps. 85,709 million (US$4.67 billion), while the consolidated gross margin contracted 40 basis points to 39.9% [4][6] - Operating income improved 4.3% year over year to Ps. 18,126 million (US$988.1 million), with a consolidated operating margin decrease of 40 bps to 8.4% [8] - The company had cash and cash equivalents of Ps. 123,635 million (US$6.7 billion) and long-term debt of Ps. 130,822 million (US$7.1 billion) as of September 30, 2025 [16] Segment Performance - Proximity Americas: Revenues rose 9.2% year over year to Ps. 84,738 million (US$4.6 billion), with same-store sales growth of 1.7% [9] - Proximity Europe: Revenues grew 10.1% year over year to Ps. 14,837 million (US$808.8 million), benefiting from currency appreciation [11] - Health Division: Total revenues were Ps. 21,483 million (US$1.19 billion), up 2.9% year over year, with a same-store sales increase of 0.8% [12] - Fuel Division: Revenues rose 5% year over year to Ps. 17,933 million (US$977.6 million), with average same-station sales increasing by 8.3% [13] - Coca-Cola FEMSA: Revenues advanced 3.3% year over year to Ps. 71,884 million (US$3.9 billion), with an operating margin expansion of 50 bps to 14.3% [14][15] Capital Expenditure - Capital expenditure totaled Ps. 13,128 million (US$715.6 million), an increase from the prior year, primarily due to higher spending in Coca-Cola FEMSA [17] - Proximity Americas recorded slightly lower CAPEX in Mexico, focusing on selective store openings and optimization of existing locations [18]

Key Takeaways Keurig posted Q3 sales of $4.31B, up 10.7% year over year and beat consensus estimates.Strong U.S. Refreshment Beverages growth and steady U.S. Coffee gains drove market share up.KDP raised its 2025 net sales outlook to high-single-digit growth while keeping EPS guidance unchanged.Keurig Dr Pepper Inc. (KDP) reported third-quarter 2025 results, wherein both the top and bottom lines improved year over year. Sales beat the Zacks Consensus Estimate and earnings met the same. Reflecting continued ...

Group 1 - Ambev S.A. is considered one of the best penny stocks to buy according to hedge funds, despite Goldman Sachs reducing its price target to R$10.10 from R$10.20 while maintaining a Sell rating [1] - The latest industrial product data from IBGE indicates a 12% decrease in alcoholic beverage production in Brazil for August, averaging a 13% year-over-year contraction quarter-to-date and a 4% drop over the past 12 months [2] - Ambev S.A. operates in three geographical segments: Brazil, Central America and the Caribbean (CAC), and Canada [3] Group 2 - The company produces, distributes, and sells a variety of beverages, including carbonated soft drinks, beer, and other non-alcoholic and non-carbonated products [2] - There is a belief that certain AI stocks may offer greater upside potential and carry less downside risk compared to Ambev S.A. [3]

Company Overview - Keurig Dr Pepper Inc. (KDP) is a non-alcoholic beverage company based in Burlington, Massachusetts, with a market cap of $38.9 billion [1] - The company operates through three segments: U.S. Refreshment Beverages, U.S. Coffee, and International [1] Market Position - KDP is classified as a large-cap stock, reflecting its substantial size and influence in the non-alcoholic beverages industry [2] - The company is known for its diverse product offerings, including carbonated soft drinks, ready-to-drink teas and juices, and specialty coffees [2] Stock Performance - KDP's stock reached a two-year high of $38.28 on September 24, 2024, but is currently trading 27.8% below that peak [3] - Over the past three months, KDP stock has dropped 15.7%, underperforming the Nasdaq Composite's 11.6% increase during the same period [3] - Year-to-date, KDP's stock has declined nearly 14%, and it has fallen 25% over the past 52 weeks, while the Nasdaq has surged 12.9% in 2025 and 30.6% over the past year [4] Recent Developments - On August 25, KDP's stock plummeted 11.5%, followed by a 6.9% drop in the next trading session, coinciding with the announcement of its acquisition of JDE Peet for approximately €15.7 billion (or $18.4 billion), which included a 33% premium on the target's share prices [5] - Following the acquisition, KDP plans to split into two separate companies, one focusing on soft drinks and the other on coffee, which management views as strategically beneficial [6] - Investor sentiment has been negatively impacted due to the premium paid for the acquisition, and KDP has underperformed compared to its peer, Monster Beverage Corporation, which has seen gains of 19.9% year-to-date and 29.5% over the past 52 weeks [6]

Core Insights - PepsiCo, Inc. is addressing volume softness through strategic pricing, targeted value investments, and product innovation, particularly in its Frito-Lay North America segment [1][3] - The company has implemented a "dual-size" price-pack architecture to cater to both value-conscious and premium consumers, resulting in improved unit volumes [1][3] - PepsiCo is focusing on intelligent reinvestment strategies that balance affordability with profitability, utilizing data to optimize promotions and product sizes [2][3] Strategic Initiatives - The introduction of smaller packs and value-priced options aims to maintain consumer frequency while enhancing operational efficiencies [2][8] - PepsiCo's portfolio transformation includes expansion into high-growth international markets, with expected mid- to high-single-digit growth from countries like India and Brazil [3][8] - The company is leveraging international momentum to offset domestic volume pressures and preserve margins [3][8] Competitive Landscape - Coca-Cola and Mondelez are key competitors in the beverage and snack sectors, respectively, with Coca-Cola focusing on beverage dominance and Mondelez competing in the snack category [4][5][6] - Both competitors are also emphasizing innovation, affordability, and international expansion to capture market share [6] Financial Performance - PepsiCo's shares have declined by 11.6% year to date, contrasting with the industry's growth of 7% [7][8] - The company trades at a forward price-to-earnings ratio of 17.09X, which is below the industry's average of 18.47X [9] - Earnings estimates indicate a year-over-year decline of 3.6% for 2025, followed by a projected increase of 5.3% in 2026, with recent estimates remaining unchanged [10]