Core Viewpoint - Doubling an investment in Coca-Cola within five years is challenging but not impossible, with dividend stocks providing a reliable income stream regardless of stock price fluctuations [1]. Group 1: Dividend Stocks and Stability - Dividend Kings, companies that have increased their annual dividends for at least 50 years, offer more stability due to their proven financial resilience [2]. - There are approximately 55 Dividend Kings, showcasing an elite group that has survived significant historical events while maintaining dividend increases [3]. Group 2: Coca-Cola's Investment Potential - Coca-Cola is a prominent Dividend King with 63 years of dividend increases, making it a historically strong investment [5]. - To double an investment in Coca-Cola over five years, the stock would need to achieve an average annual return of 14.4% [5]. - Coca-Cola's business model, which focuses on selling concentrates and licensing while relying on bottling partners, allows it to maintain higher margins compared to competitors [7]. Group 3: Dividend Yield and Growth - Coca-Cola's average dividend yield is just over 3%, which reduces the reliance on stock price appreciation for achieving investment growth [8]. - If the dividend yield remains around 3%, Coca-Cola's stock would need to average 11.4% annual growth over five years to double the investment [9]. Group 4: Challenges and Risks - Recent performance for Coca-Cola has been driven by pricing power rather than volume growth, with a 1% revenue increase but a 1% decline in global unit case volume in Q2 [10]. - Potential headwinds include new tariffs on aluminum and higher taxes on sugary products, which could impact Coca-Cola's business and investor sentiment [11]. Group 5: Investment Outlook - Achieving 14.4% annual returns is difficult for a mature business like Coca-Cola, which has not maintained such a five-year average since 2009-2013 [12]. - Current investment in Coca-Cola is unlikely to double in five years, but it remains a solid choice for consistent income, suggesting a long-term investment approach [13].

Core Insights - NRSInsights reported a 5.8% year-over-year increase in same-store sales for July 2025, marking the highest growth rate in over a year [6][10] - The NRS retail network includes approximately 37,200 active terminals across 32,100 independent retailers, primarily serving urban consumers [2][14] - The data reflects a total of $2.1 billion in sales processed through NRS POS terminals in July 2025, an 18% increase year-over-year [14] Sales Performance - Same-store sales increased 5.8% year-over-year and 0.3% month-over-month compared to June 2025 [6] - For the three months ending July 31, 2025, same-store sales rose 4.2% compared to the same period last year [6] - Units sold increased by 3.2% year-over-year but decreased by 1.5% compared to June 2025 [6] Transaction Metrics - The number of baskets (transactions) per store increased by 1.5% year-over-year but decreased by 0.4% compared to June 2025 [6] - The average price of the top 500 items purchased rose by 2.9% year-over-year, slightly higher than the 2.7% increase recorded in June 2025 [6] Comparative Analysis - Over the past twelve months, the U.S. Commerce Department's Advance Monthly Retail Trade data, excluding food services, outpaced the NRS network's three-month moving average same-store sales by 0.2% on average [8] - In June, the NRS network's three-month rolling average increase exceeded the U.S. Commerce Department's by 0.9% [8] Consumer Behavior Insights - Beverage categories, including energy drinks and soft drinks, contributed significantly to sales growth, while certain snack categories faced challenges [11] - Shifts in consumer behavior have led to increased demand for prepared cocktails and nutrition shakes [11] Transaction Volume - Same-store data comparisons for July 2025 were based on approximately 226 million transactions processed through about 23,000 stores [12] - For the three months ending July 31, 2025, comparisons were derived from approximately 649 million scanned transactions [13]

Core Insights - PepsiCo, Inc. reported strong second-quarter 2025 results with revenues and earnings per share (EPS) exceeding the Zacks Consensus Estimate, although EPS declined year over year [1][3] - The company experienced accelerated net revenue growth compared to the previous quarter, demonstrating its ability to navigate a challenging environment [1] - International momentum remained robust, while North America showed improved execution and competitiveness across key subcategories and channels [2] Financial Performance - Core EPS for Q2 was $2.12, beating the Zacks Consensus Estimate of $2.03, but reflecting a 7% decline year over year; reported EPS was 92 cents, down 59.1% year over year [3][6] - Net revenues reached $22.73 billion, a 1% increase year over year, surpassing the Zacks Consensus Estimate of $22.39 billion; unit volume declined 1.5% in convenient food and was flat in beverages [4][6] - Organic revenue growth was 2.1% in Q2, driven by a 4% increase in effective net pricing, offset by a 1.5% decline in organic volume [7] Profitability Metrics - Reported gross profit decreased 1.3% year over year to $12.4 billion, with core gross profit down 0.4% to $12.5 million; gross margins contracted [8] - Operating income fell 55.8% year over year to $1.8 billion, while core operating income declined 5.1% to $3.9 billion; operating margins contracted significantly [9] Segment Performance - Revenue growth was observed across most operating segments, with reported revenues rising 1% in PFNA, 8% in EMEA, and 3% in IB Franchise, but flat in PBNA and down 7% in LatAm Foods [11] - Organic revenues improved in most segments, with PBNA up 1%, IB Franchise up 5%, EMEA up 7%, and LatAm Foods up 6%, while PFNA saw a 2% decline [12] Financial Stability - As of Q2 2025, PepsiCo had cash and cash equivalents of $7.6 billion, long-term debt of $39.3 billion, and shareholders' equity of $18.4 billion [13] - Net cash provided by operating activities was $996 million, down from $1.3 billion year over year [13] Future Outlook - PepsiCo reaffirmed its 2025 revenue guidance, expecting low-single-digit organic revenue growth, while core constant-currency EPS outlook improved due to moderating foreign exchange headwinds [14][15] - The company anticipates core EPS to decline 1.5% year over year in 2025, with currency headwinds expected to impact revenues and core EPS by 1.5 percentage points [16] - PepsiCo plans to return $8.6 billion to shareholders in 2025, including $7.6 billion in dividends and $1 billion in share repurchases [17]

Earnings Report - PepsiCo is set to release its second-quarter earnings results on July 17, with analysts expecting earnings of $2.03 per share, down from $2.28 per share in the previous year [1] - Projected quarterly revenue is $22.3 billion, a slight decrease from $22.5 billion a year earlier [1] Strategic Collaboration - PepsiCo and Cargill announced a strategic collaboration aimed at advancing regenerative agriculture practices across 240,000 acres from 2025 through 2030 [2] Stock Performance - PepsiCo shares increased by 1.2%, closing at $135.35 on Wednesday [3] Analyst Ratings - B of A Securities analyst Bryan Spillane maintained a Neutral rating and reduced the price target from $150 to $145 [7] - Wells Fargo analyst Chris Carey kept an Equal-Weight rating and cut the price target from $150 to $140 [7] - Morgan Stanley analyst Dara Mohsenian maintained an Equal-Weight rating and lowered the price target from $168 to $153 [7] - Deutsche Bank analyst Steve Powers maintained a Buy rating but reduced the price target from $184 to $178 [7] - TD Cowen analyst Robert Moskow maintained a Hold rating and decreased the price target from $183 to $160 [7]

Group 1 - Coca-Cola's stock closed at $69.74, reflecting a 1.31% increase, outperforming the S&P 500's 0.96% gain on the same day [1] - Over the past month, Coca-Cola shares have decreased by 4.08%, underperforming the Consumer Staples sector's loss of 1.5% and the S&P 500's gain of 0.5% [1] Group 2 - Coca-Cola is expected to report earnings of $0.83 per share on July 22, 2025, indicating a year-over-year decline of 1.19%, while projected revenue is $12.61 billion, a 1.99% increase from the same quarter last year [2] - For the full year, earnings are projected at $2.97 per share and revenue at $48.25 billion, reflecting increases of 3.13% and 2.54% respectively from the previous year [3] Group 3 - Recent changes to analyst estimates for Coca-Cola are linked to stock price performance, with positive revisions indicating optimism about the business outlook [3][4] - The Zacks Rank system, which assesses estimated changes, currently ranks Coca-Cola at 3 (Hold) [5] Group 4 - Coca-Cola has a Forward P/E ratio of 23.22, which is higher than the industry average of 19.39, and a PEG ratio of 3.61 compared to the industry average of 2.61 [6] - The Beverages - Soft drinks industry, part of the Consumer Staples sector, holds a Zacks Industry Rank of 91, placing it in the top 37% of over 250 industries [7]

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].

Core Insights - Coca-Cola is a globally recognized brand, established in 1886, symbolizing soft drinks and dividend aristocracy [1] - The company has a history of increasing its dividends, indicating a commitment to returning value to shareholders [1] Company Characteristics - The ideal investment criteria for companies include growth in revenue, earnings, and free cash flow [1] - Companies with excellent growth prospects and favorable valuations are preferred [1] - Steadily growing companies with high free cash flow margins, dividend stocks, and generous share repurchase programs are particularly attractive [1]

Investment Rating - The report initiates coverage on Anadolu Group Holding (AGHOL) with a Buy rating and a target price of TRY373 per share, implying approximately 43% upside potential [6][22][30]. Core Views - Anadolu Group Holding is a consumer conglomerate with strong exposure to the defensive FMCG sector, primarily driven by its key businesses in beer, soft drinks, and food retail, which accounted for 93% of the group's revenue and EBITDA in 2024 [2][13][36]. - The company has demonstrated solid growth execution, with revenues and EBITDA growing at a compound annual growth rate (CAGR) of approximately 11.7% and 12.2%, respectively, from 2019 to 2024 [3][48]. - The group's net debt/EBITDA ratio has significantly improved, decreasing from 2.3x in 2019 to 0.5x by the end of 2024, indicating strong deleveraging and balance sheet strength [4][18][66]. - The current NAV discount of AGHOL has narrowed from an average of 77% in 2019 to 35%, which is viewed as unjustified given the company's defensive positioning and growth potential [5][21][40]. Summary by Sections Investment Case - AGHOL's portfolio is resilient, with a strong focus on defensive FMCG sectors, which are less susceptible to macroeconomic volatility [13][36]. - The company has a leading position in the Turkish market, with significant stakes in Anadolu Efes, Coca-Cola Icecek, and Migros, all of which have strong growth prospects [2][13][36]. Financial Performance - The retail and soft drink segments are the primary growth drivers, with revenue CAGRs of approximately 14% and 13%, respectively, from 2019 to 2024 [3][14][49]. - The beer segment has faced challenges, growing at a CAGR of 7.1% over the past five years due to external factors like the COVID-19 pandemic and geopolitical tensions [55]. Balance Sheet Strength - The group's net debt has decreased significantly, with a notable improvement in cash flow generation capabilities, supporting a comfortable leverage position [4][18][66]. - The deleveraging trend is primarily driven by Migros, which has transitioned to a net cash position [70]. Dividend Profile - AGHOL has seen a substantial increase in dividends received, rising from TRY0.8 billion (USD46 million) in 2022 to TRY2.7 billion (USD81 million) in 2024, with a dividends-paid-to-received ratio reaching 52% in 2025 year-to-date [19][77][80]. Valuation - The target NAV estimate for AGHOL is TRY90.9 billion, with a 25% holding company discount applied to arrive at the target price of TRY373 per share [6][22][29].

Investment Rating - The report assigns an "Overweight" rating to Asahi Group Holdings [6] Core Views - The report suggests that the recent share price adjustment presents a buying opportunity due to strong earnings progress in the first quarter [1][2] - Asahi plans to increase soft drink prices in October, affecting approximately 70% of its products, which is expected to boost annual earnings by ¥5-8 billion [2] - Management remains committed to aggressive shareholder returns and share buyback programs despite potential M&A activities [3] Financial Overview - The price target for Asahi Group Holdings is set at ¥2,400, with the current share price at ¥1,869 [6] - Projected revenues for fiscal years ending December 2024 to December 2027 are ¥2,939.4 billion, ¥2,948.1 billion, ¥3,008.6 billion, and ¥3,077.1 billion respectively [6] - Operating profit estimates are ¥269.1 billion for FY 12/24, increasing to ¥334.2 billion by FY 12/27 [6] - Net income is projected to rise from ¥192.1 billion in FY 12/24 to ¥243.4 billion in FY 12/27 [6] Market Context - The beverage industry is viewed as "Attractive" by the report, indicating positive expectations for performance relative to the broader market [6] - The report highlights a steady recovery in on-premise sales in Australia, with expectations for improved sales channel mix as Asahi moves towards a premium product lineup [4]