Tue, May 5, 5:45 PM
Mon, Apr. 27, 7:44 AM
- In his "We Are Full of Bull" note this morning, Morgan Stanley's Adam Parker says the economy will accelerate in Q2 and Q3, bringing stocks along for the ride. If investors are gun-shy thanks to record levels for the averages, Parker suggests looking for names with decent long-term earnings forecasts trading at a discount to the market.
- The ten largest U.S. stocks trading at a discount, but with above-average expected growth rates: Apple (NASDAQ:AAPL), Citigroup (NYSE:C), Gilead (NASDAQ:GILD), Union Pacific (NYSE:UNP), Actavis (NYSE:ACT), Twenty-First Century Fox (NASDAQ:FOXA), Time Warner (NYSE:TWX), Ford (NYSE:F), BlackRock (NYSE:BLK).
- Conversely, one might want to avoid those stocks selling for substantial premiums. The ten largest stocks trading at a premium to the market while growing at a below-average rate: Exxon (NYSE:XOM), Procter & Gamble (NYSE:PG), Chevron (NYSE:CVX), Coca-Cola (NYSE:KO), Pepsico (NYSE:PEP), Schlumberger (NYSE:SLB), MMM, McDonald's (NYSE:MCD), UPS, Nike (NYSE:NKE).
- Source: Bloomberg
Fri, Apr. 24, 10:40 AM
- PepsiCo (PEP -1%) says it will remove aspartame from Diet Pepsi beginning in August.
- The company is making the move to adapt to consumer tastes, not out of safety concerns.
- Sucralose and acesulfame potassium will be used in the U.S. to sweeten Diet Pepsi.
- Pepsi True is a relatively new product out from the beverage seller using the natural sweetener stevia.
- PepsiCo CEO Indra Nooyi tackled the question of changing consumer dynamics during the company's earnings call yesterday (transcript).
- She noted perception on what is "good for you" has changed from diet sodas to organic non-GMO.
- Perhaps with an eye on millennials she mentions different corridors of fruit and vegetable, protein, grains, and carbs in the soda category. Rival Coca-Cola still stacks its brands under calorie counts.
Thu, Apr. 23, 7:36 AM
- PepsiCo (NYSE:PEP) reports organic revenue rose 4.4% in Q1.
- Organic volume rose 2% for Frito-Lay North America.
- Developing and emerging market organic revenue increased 10% during the quarter. On a reported basis the mark was -12% due to F/X.
- Revenue growth by segment: Frito-Lay North America +3% to $3.32B; Quaker Foods North America +1% to $639M; Latin America Foods -4% to $1.28B; PepsiCo Americas flat at $4.43B; Europe -25% to $1.48B; AMEA +2.5% to $1.07B.
- Operating profit +7% to $902M at Frito-Lay North America with no F/X overhang while Europe (-34%) and Quaker Foods North America (-38%) lagged.
- Core gross margin +150 bps.
- Total core operating margin +20 bps.
- Guidance: PepsiCo expects mid-single-digit organic revenue growth. EPS growth of 7% forecast.
- PEP -1.1% premarket
Thu, Apr. 23, 7:04 AM
Mon, Apr. 13, 1:06 PM
- Wal-Mart's (WMT) strategy to increasing pricing pressure on suppliers is likely to be felt by some consumer products giants.
- Though larger suppliers have more leverage with Wal-Mart than smaller companies, an impact on margins could still be felt.
- Listed below are the estimated annual revenue and percentage of total revenue derived from the Bentonville retail giant for some CPG firms.
- Procter & Gamble (NYSE:PG): $12B to mark 14% of total revenue.
- PepsiCo (NYSE:PEP): $8B, 12% of total revenue.
- Kraft Foods (NASDAQ:KRFT): $4.7B, 26% of total revenue.
- Kellogg (NYSE:K): $3.1B, 21% of total revenue.
- Campbell Soup (NYSE:CPB): $1.6B, 19% of total revenue.
- J.M. Smucker (NYSE:SJM): $2.35B, 30% of total revenue.
- Clorox (NYSE:CLX): $1.5B, 26% of total revenue.
- Hillshire Brands (NYSE:TSN): $1.1B, 27% of total revenue.
- Keurig Green Mountain (NASDAQ:GMCR): $799M, 17% of total revenue.
- Energizer (NYSE:ENR): $748M, 17.2% of total revenue.
- Tootsie Roll (NYSE:TR): $129M. 23.7% of total revenue.
- Data compiled by the Cincinnati Enquirer
Mon, Apr. 13, 9:17 AM| Comment!
Thu, Mar. 26, 2:57 PM
- Total soda volume in the U.S. fell for the 10th straight year, according to data from Beverage Digest.
- Volume at Coca-Cola (KO -0.2%) was down 1.1%, while PepsiCo (PEP +0.5%) volume declined 1.4%. Both soda giants offset the soda slide in part with sales in juices, smoothie, and flavored waters.
- Dr. Pepper (DPS +2.5%) volume was flat during the year.
- Monster Beverage (MNST +0.5%) bucked the trend with a 7% rise in volume.
- Total U.S. volume in the category was down 0.9%.
Thu, Mar. 26, 12:37 PM
- Deutsche Bank thinks 3G Capital will be back in the food sector for a major acquisition faster than some other investment firms anticipate.
- 3G put itself in a stronger position to make a major purchase by not adding debt in the Kraft deal.
- Analyst Eric Katzman sees some food names trading with a premium as the 3G shadow hangs over the sector, while others have downside risk with M&A speculation not making as much sense.
- Premium on: ConAgra (NYSE:CAG), General Mills (NYSE:GIS), Mondelez International (NASDAQ:MDLZ), Pinnacle Foods (NYSE:PF), PepsiCo (NYSE:PEP).
- Premium off: Campbell Soup (NYSE:CPB), Hershey (NYSE:HSY), Hormel (NYSE:HRL), Kellogg (NYSE:K), J.M. Smucker (NYSE:SJM).
- Previously: Investors snapping up food stocks (Mar. 25 2015)
- Previously: Beer fallout from Kraft buyout (Mar. 25 2015)
- Previously: Kraft-Heinz merger has a few ETFs on the move (Mar. 25 2015)
Wed, Mar. 25, 10:45 AM
- Orange juice futures are 21% higher in a three-day rally tied to concerns over crops in Florida.
- The steep rise follow a 3-month period of falling OJ prices.
- Leading brands Tropicana (NYSE:PEP) and Minute Maid (NYSE:KO) have some pricing pressure on them already with OJ demand in decline across the U.S.
- Retail analysts think the popularity of smoothies and the unpopularity of sit-down breakfasts with younger generations have cut into sales.
- Orange Juice futures chart
Wed, Mar. 25, 8:46 AM
- There's nothing like a major merger in the food industry to turn the spotlight back on PepsiCo's (NYSE:PEP) standalone strategy.
- The company has been viewed as a candidate to mimic the split strategy of the original Kraft Foods which is now paying off shareholders generously.
- The recent addition of the former Heinz CEO, and current Trian advisor, to the company's board is seen by some as buying CEO Indra Nooyi some time to set strategy (other than a business split).
- Shares of Pepsico have trailed the return of the S&P Consumer Staples ETF over the last six months, +2.5% vs. +7.1%.
- Previously: Food sector on watch after mega-merger announced
- Previously: Kraft, Heinz announce merger
- PEP +0.2% premarket.
Tue, Mar. 24, 11:02 AM
- Beverage stocks break higher as some industry sales tracking is reported to be positive.
- The C-store channel has been vibrant for the sector recently.
- Strong gainers include Keurig Green Mountain (NASDAQ:GMCR) up 2.5% and Monster Beverage (NASDAQ:MNST) with a 2.3% increase.
- Small player Jones Soda (OTCQB:JSDA) is up 7% and Cott (NYSE:COT) continues its stellar 2015 run with a 2.2% rally.
- Even large soda sellers Pepsico (PEP +1.2%), Coca-Cola (KO +0.7%), and Dr. Pepper Snapple (DPS +0.7%) are ahead of broad market averages.
Mon, Mar. 23, 7:16 AM
Sat, Mar. 14, 10:01 AM
- PepsiCo (NYSE:PEP) has a cool $500M planned for investment in the northeast part of Africa this year after generating improved sales in Egypt last year.
- The region is attracting more foreign investment amid Egyptian President Abdel Fattah al-Sisi's efforts to instate political and economic stability.
- Gulf Arab allies have pledged close to $12B of deposits and investments at the Central Bank of Egypt, according to reports.
- Yesterday, GE announced a $200M investment in Egypt for a new facility.
- Related ETFs; EGPT, EGYP.
Fri, Mar. 13, 7:40 AM| Comment!
Tue, Mar. 10, 9:24 AM
- Burger King Worldwide (NYSE:QSR) has followed a fast-food trend of dropping soft drinks as a listed option for kids meals, reports USA Today.
- Though customers can still order as many soft drinks as they like, the trend to de-emphasize sodas with kids meals could have a marginal impact on sales for Coca-Cola (NYSE:KO), PepsiCo (NYSE:PEP), and Dr. Pepper Snapple (NYSE:DPS) over time.
- McDonald's has recently increased the exposure of Minute Maid juice products. Minute Maid is owned by Coca-Cola.
PEP vs. ETF Alternatives
PepsiCo Inc is a food, snack and beverage company. It manufactures, markets, distributes and sells convenient and enjoyable beverages, foods and snacks, serving customers and consumers in more than 200 countries and territories.
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