Key Takeaways PEP's PBNA posted high-single-digit away-from-home growth and gained share in no-sugar colas and Gatorade.PBNA division's focus on innovation, affordability and functional hydration products drives consumer demand.Frito-Lay faces volume challenges, with Lay's lagging amid progress in Cheetos, Doritos and other snacks.PepsiCo, Inc. (PEP) enters the third quarter of 2025 with strong momentum in the PepsiCo Beverages North America division (PBNA), which delivered high-single-digit growth in away- ...

Core Insights - The Coca-Cola Company has demonstrated effective marketing strategies leading to 5% organic revenue growth in Q2 2025, despite a 1% decline in unit case volume [1][9] - The company's targeted brand activations and campaigns have resulted in value share gains for 17 consecutive quarters [1][9] - Coca-Cola's earnings per share (EPS) grew by 4% to $0.87, overcoming challenges such as currency fluctuations and increased taxes [1] Regional Performance - In Europe, digital marketing efforts significantly boosted sales of Coke Zero Sugar, Sprite, and Fuze Tea [2] - Latin America experienced growth through refillable products and premium single-serve packs [2] - In India, marketing linked to food and festivals helped mitigate summer disruptions, while in Africa, bold campaigns and expanded cold drink equipment enhanced sales [2] Strategic Approach - Coca-Cola's strategy of balancing affordability with premiumization, supported by localized marketing, is effective in both developed and emerging markets [3] - The company's innovative product offerings, such as Sprite+Tea, have contributed to its success in the U.S. market, making Sprite the 3 sparkling soft drink [3] Overall Growth Drivers - Tailoring campaigns to local consumer needs while leveraging global scale is a key factor in Coca-Cola's revenue growth trajectory in 2025 [4] - The company's shares have increased by 12.6% year-to-date, outperforming the industry growth of 6.6% [8] Valuation and Earnings Estimates - Coca-Cola's forward price-to-earnings ratio stands at 22.38X, higher than the industry's 18.08X [10] - The Zacks Consensus Estimate indicates year-over-year earnings growth of 3.1% for 2025 and 8.4% for 2026, with estimates remaining unchanged over the past week [12]

Key Takeaways PepsiCo generated $37B in international sales, 40% of revenues, with strength in snacks and zero-sugar drinks.PEP expects to return $8.6B to shareholders in 2025 through dividends and buybacks despite cost pressures.KDP Q2 net sales rose 7%, with Dr Pepper gaining share, but tariffs and coffee softness weigh on margins.In the sparkling world of beverages, few rivalries capture investor attention like PepsiCo Inc. (PEP) and Keurig Dr Pepper Inc. (KDP) . Both companies command strong positions i ...

Group 1 - PepsiCo will release its third-quarter 2025 financial results on October 9, 2025 [1] - In 2024, PepsiCo generated nearly $92 billion in net revenue, supported by a diverse portfolio of beverages and convenient foods [2] - PepsiCo's product portfolio includes iconic brands that each generate over $1 billion in estimated annual retail sales [2] Group 2 - PepsiCo's vision is to be the global leader in beverages and convenient foods, guided by its pep+ strategy focused on sustainability and human capital [3] - The company aims to create value and growth while operating within planetary boundaries [3] - For further information, PepsiCo encourages following its social media channels [3] Group 3 - The financial results will be accompanied by prepared management remarks and a live Q&A session for analysts [5] - The press release and 10-Q will be available at approximately 6:00 a.m. EDT on the release date [5] - The live Q&A session will feature the Chairman and CEO, Ramon Laguarta, and the EVP and CFO, Jamie Caulfield, at 8:15 a.m. EDT [5]

Core Insights - PepsiCo, Inc. is strategically positioned to capture a significant share in the expanding functional beverage market through health-conscious innovations, brand strength, and distribution reach [1][3] - The company is focusing on no-sugar colas, Gatorade, and functional hydration platforms like Propel, with plans to enter the liquid protein market in late 2025 and early 2026 [1][8] - PepsiCo's competitive advantage lies in integrating functionality into established beverage lines and leveraging partnerships to meet diverse consumer needs [2][6] Company Strategy - The company is investing in cleaner labels, affordability, and a broader portfolio transformation to enhance its market positioning [3] - PepsiCo's approach includes a combination of owned brands, joint ventures, and partnerships, which allows it to address various consumer demands effectively [2][6] Competitive Landscape - Competitors like Coca-Cola and Keurig Dr Pepper are also making strategic moves in the functional beverage market, with Coca-Cola focusing on energy, hydration, and wellness categories [4][5] - Keurig Dr Pepper is expanding into enhanced hydration and wellness categories, benefiting from strategic partnerships to capture growth in the energy drink market [6] Financial Performance - PepsiCo's shares have decreased by approximately 4.5% year-to-date, while the industry has grown by 6% [7] - The company trades at a forward price-to-earnings ratio of 17.57X, slightly below the industry average of 18.03X [9] - The Zacks Consensus Estimate indicates a projected decline of 1.8% in 2025 earnings, with a subsequent growth of 5.2% in 2026 [10]

Core Viewpoint - Consumer staple companies may benefit from higher inflation due to their ability to pass on cost increases to customers, but consumer resistance to price hikes is a concern [2]. Group 1: PepsiCo - PepsiCo's second-quarter revenue increased by 2%, driven entirely by higher prices, which contributed 4 percentage points, while lower volume subtracted about 1.5 percentage points [5]. - Adjusted operating income for PepsiCo fell by 3%, indicating that price hikes were insufficient to offset rising costs [5]. - PepsiCo's share price dropped by 16.9% over the past year, contrasting with a 16.8% gain in the S&P 500 index during the same period [6]. - The price-to-earnings (P/E) ratio for PepsiCo increased from 19 to 26, which is still lower than the S&P 500's P/E of 30, suggesting potential for patient investors [7]. Group 2: Procter & Gamble - Procter & Gamble's fiscal third-quarter adjusted sales grew by only 1%, with higher prices accounting for the entire increase and volumes remaining flat [9]. - In the fourth quarter, adjusted sales increased by 2%, with higher prices and mix each contributing 1 percentage point, while volume remained constant [10]. - Procter & Gamble's stock price decreased by 7.9% over the past year, and its P/E multiple contracted from 28 to less than 25 [10].

Key Takeaways PEP is expanding beyond colas into no-sugar, energy, hydration and liquid protein beverages.Strong Gatorade and Propel sales highlight growing demand for premium, health-driven drinks.PEP's Celsius deal and clean-label focus aim to lift margins and support global beverage growth.PepsiCo, Inc. (PEP) is sharpening its competitive edge in the beverage category by doubling down on premium and functional drinks, aiming to ride the wave of evolving consumer preferences. As demand shifts toward healt ...

Core Insights - Coca-Cola's entry into the energy drink market is gradually showing positive results, with brands like BODYARMOR and Powerade contributing to its 17th consecutive quarter of value share growth [1][8] - The company's innovation strategy, including the launch of hybrid beverages like Sprite+Tea, reflects its adaptability to changing consumer preferences [2][8] - Although Coca-Cola has not yet matched the market presence of leaders like Monster Beverage and Red Bull, its strong brand and distribution capabilities position it for long-term growth in the energy drink sector [3] Company Developments - Coca-Cola's diversified portfolio is gaining traction, with volume growth in BODYARMOR and Powerade aiding its market share objectives [1][8] - The company is focusing on innovation in functional beverages, which aligns with consumer trends towards healthier options [2][8] - Coca-Cola's current forward price-to-earnings ratio stands at 22.04X, higher than the industry average of 17.64X, indicating a premium valuation [9] Competitive Landscape - PepsiCo is enhancing its energy drink strategy through acquisitions and partnerships, aiming for sustained growth in the energy and wellness drink segment [5] - Monster Beverage maintains a strong market position with a diverse product lineup and ongoing global expansion efforts [6] - The rivalry in the energy drink market is intensifying, with Coca-Cola's expansion prompting competitors like PepsiCo and Monster to adapt their strategies [4]

Core Insights - Celsius Holdings, Inc. (CELH) and PepsiCo, Inc. (PEP) are significant players in the beverage industry, with CELH focusing on functional, sugar-free energy drinks and PEP being a diversified multinational with a broad portfolio [1][2] Group 1: Celsius Holdings (CELH) - Celsius Holdings is strengthening its position in the energy beverage market, with the acquisition of Alani Nu contributing to approximately 20% of the total dollar growth in the energy drink category in Q1 2025 [3][4] - The company's strategy emphasizes sugar-free, better-for-you products, with sugar-free energy drinks accounting for 86% of the total growth in the energy category during the same period [4] - Innovation is key for CELH, as it launched new Vibe and ESSENTIALS flavors and CELSIUS HYDRATION, targeting the $1.4 billion hydration powder market [5] - Retail expansion is a growth driver, with distribution increased through over 1,800 Home Depot locations and 18,000 Subway restaurants [6] - Despite strong brand momentum, CELH faces operational and financial pressures, including rising costs and competition [7] Group 2: PepsiCo (PEP) - PepsiCo generated net revenues of $22.7 billion in Q2 2025, maintaining a strong market share in carbonated soft drinks, hydration, and sports beverages [8][9] - The company is integrating its North American businesses to enhance operational efficiency through investments in AI and unified data platforms [9][10] - PepsiCo is repositioning key brands to elevate real-food credentials, with growth in the $2 billion permissible snack segment and innovations in no-sugar colas and functional hydration platforms [11][12] - The company is targeting a return to the low end of its long-term top-line growth algorithm, supported by strong international momentum [12] Group 3: Financial Performance and Valuation - The Zacks Consensus Estimate for CELH's 2025 earnings per share (EPS) remains at 82 cents, while PEP's EPS estimate has increased by 13 cents to $8.00 [13][14] - Over the past month, CELH shares fell 0.7%, underperforming the S&P 500 Index, while PEP's stock surged 13.8% [16] - CELH trades at a forward price-to-earnings (P/E) ratio of 44.59X, compared to PEP's more modest forward P/E of 17.95X [17]

Core Insights - The Coca-Cola Company reported strong second-quarter 2025 results with 5% organic revenue growth and EPS of 87 cents, beating expectations by 3 cents despite a 1% volume decline [1][8] - A 6% increase in price/mix, primarily from pricing actions, was crucial in achieving solid revenues amid challenging market conditions [1][8] - The company's pricing strength was particularly notable in North America and Latin America, with successful performance from Coca-Cola Zero Sugar and premium innovations [1] Strategic Initiatives - Coca-Cola's management emphasized an "all-weather" strategy, showcasing rapid pivots and market-specific execution to adapt to changing dynamics [2] - The company is focusing on affordability initiatives like refillables in Mexico and digital customer platforms in India to enhance consumer engagement [2] - Strategic marketing campaigns and innovative product launches, such as Sprite + Tea, continue to drive value share, which has increased for 17 consecutive quarters [2] Financial Outlook - Coca-Cola provided refreshed guidance of 5-6% organic revenue growth and 8% EPS growth (currency-neutral), supported by strong free cash flow and margin expansion [3] - The company is well-positioned to navigate uncertainty through continued reinvestment in capabilities and AI-driven pricing tools [3] - Coca-Cola's shares have risen 11.9% year to date, outperforming the industry's growth of 6.7% [7] Competitive Landscape - Coca-Cola faces strong competition from PepsiCo and Keurig Dr Pepper, both of which are implementing strategic pricing and product innovations to protect margins and drive growth [4][5][6] - PepsiCo is focusing on premiumization and zero-sugar innovation, while Keurig Dr Pepper is leveraging portfolio diversification and digital analytics to refine pricing strategies [5][6] Valuation Metrics - Coca-Cola trades at a forward price-to-earnings ratio of 22.45X, significantly higher than the industry's 17.28X [9] - The Zacks Consensus Estimate for Coca-Cola's earnings implies year-over-year growth of 3.1% for 2025 and 8.3% for 2026, with estimates remaining unchanged over the past 30 days [10]