Food and Beverage Sector Ideas

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Pepsico - >>> 5 Top Stocks to Buy in January

Snack on this stock

Motley Fool

Jan 5, 2025


https://finance.yahoo.com/news/5-top-stocks-buy-january-114500102.html


Demitri Kalogeropoulos (PepsiCo): It's a new year, making it an ideal time to take a fresh look at your portfolio. That's especially true following two fantastic years for broader stock market returns. If you do, you might find that PepsiCo fits as one of your first purchases of 2025.

The beverage and snack foods giant underperformed the S&P 500 by a wide margin in 2024. That's partly because Wall Street was more interested in tech giants and companies engaged in the AI space. But Pepsi also reported some sluggish sales figures as its core consumer pulled back their spending to save cash. Organic sales growth was just 2% through the first three quarters of the year, management revealed in early October. Compare that to the 10% spike investors saw in 2023 and the 14% surge in the prior year, and it's easy to see why some investors have been disappointed.

But Pepsi is still a cash- and profit-generating machine, which means there's a good chance at a rebound for this business -- and for its stock returns -- over the next several years. CEO Ramon Laguarta and his team are projecting a bit less than 4% organic sales growth for the 2024 year and 8% higher earnings per share in that period. Investors will learn the exact figures, plus Pepsi's initial outlook for 2025, when the company announces Q4 results on Feb. 4.

In the meantime, there's every reason for shareholders to expect ample direct cash returns from this business as Pepsi sells more snack foods and beverages. For 2024, expected returns of cash to shareholders were billed at $8.2 billion, mainly through dividend payments.

Speaking of dividends, Pepsi's yield is back above 3.5%, a rate investors haven't seen since the early days of the pandemic. That unusually high payout, along with Pepsi's solid earnings generation, should help cushion returns while investors wait for a growth rebound. The timing of any sales recovery is a big question mark. But Pepsi's dividend payment is not. The Dividend King has hiked its payout in each of the last 51 consecutive years, and it's almost certain that shareholders will benefit from another increase in 2025.

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>>> Coke, PepsiCo Lobby to Keep Sugary Sodas in Food-Stamp Program


The Wall Street Journal

by Laura Cooper and Kristina Peterson

December 23, 2024


https://finance.yahoo.com/news/coke-pepsico-lobby-keep-sugary-103000968.html


Lawmakers have tried unsuccessfully for decades to restrict soda, desserts and candy from food-assistance programs.

Robert F. Kennedy Jr. wants to take sugary drinks out of the shopping carts of food-stamp recipients. Coca-Cola, PepsiCo and Keurig Dr Pepper are mobilizing to stop him.

Kennedy, the president-elect’s nominee to run the Health and Human Services Department, aims to remove soda and processed foods from federal programs such as the Supplemental Nutrition Assistance Program, also known as food stamps. The move could have big repercussions for the beverage industry.

Lobbyists for Coke and its biggest rivals are pressing their case on Capitol Hill, highlighting the fact that the soda companies are selling more zero-sugar drinks. These, combined with clear calorie labels on beverages, allow consumers to make healthier choices, they say. Soda lobbyists also point to anti-hunger advocacy groups such as Share Our Strength, which argues that instead of restricting SNAP recipients’ options, Congress should fund programs that help low-income families access healthier foods. Coke and PepsiCo are corporate sponsors for Share Our Strength’s No Kid Hungry campaign.

Coke is looking to hire additional lobbyists from among a small and exclusive group who have close relationships with Trump, according to a person familiar with the matter. Lobbyists for the big soda companies are also trying to get in front of people close to Kennedy and Brooke Rollins, Trump’s nominee to head the Agriculture Department, which administers SNAP benefits. Rollins hasn’t endorsed Kennedy’s agenda, and it is unclear where she stands on the idea of making sugary drinks and foods ineligible for food stamps.

The American Beverage Association, an industry group that represents Coke, PepsiCo and Keurig Dr Pepper, plans to donate money to Trump’s inauguration, as it has for past presidents, said Kevin Keane, chief executive of the group.

Coca-Cola “is always active in engaging on policies important to our business,” a company spokeswoman said. PepsiCo and Keurig referred questions to the beverage association.

SNAP is a federally funded food-benefits program that provides money for low-income families to buy groceries. In fiscal year 2023, an average of 42.1 million people a month, or 12.6% of Americans, used the benefit, according to data from the Agriculture Department. Federal spending for the program was $112.8 billion and benefits averaged $211.93 per participant a month, the data show. The USDA said it doesn’t have national data on how much of that is spent on soft drinks.

Lawmakers have tried unsuccessfully for decades to restrict soda, desserts and candy from food-assistance programs. They have argued that government funds shouldn’t be used to buy unhealthy foods and that the inclusion of these foods in benefits programs has contributed to higher rates of obesity and diabetes.

In 2023, Sen. Marco Rubio (R., Fla.) co-sponsored legislation with Rep. Josh Brecheen (R., Okla.) to make soda, prepared desserts and other sugary foods ineligible for SNAP benefits. Brecheen said he plans to reintroduce the legislation in January, and is counting on help from Trump and Kennedy to get it passed. The food-stamp program shouldn’t pay for sugary drinks that increase the risk of obesity and diabetes, he said.

Soda companies are more concerned now about the prospect of a restriction on SNAP benefits because Trump has adopted Kennedy’s “Make America Healthy Again” agenda. Kennedy also has argued for restricting consumption of high-fructose corn syrup and certain dyes.

“It’s nonsensical for U.S. taxpayers to spend tens of billions of dollars subsidizing junk that harms the health of low-income Americans,” Kennedy wrote in an opinion piece published in The Wall Street Journal.

If the Trump administration does pursue changes to the food-stamp program, it wouldn’t happen overnight. It could take years to implement new restrictions, industry analysts said.

“Congress can push a lot of things, but when the [executive branch is] already on board, it makes it a lot easier to get things done,” Rubio said in an interview, speaking about renewed efforts to remove junk food from the food-aid program. “But there will be resistance.”

The Republican Party has long been divided over policing what people on food stamps eat. Some GOP lawmakers favor consumer choice.

“I believe in educating consumers on what is in their best interest,” said Rep. Frank Lucas (R., Okla.), a senior member of the House Agriculture Committee. “I’ve always had a hard time telling people what they cannot have.”

As consumers shift away from full-sugar sodas, Coke and other beverage makers are selling more low- and no-sugar drink options, including seltzers, sports drinks, bottled waters and teas. The American Beverage Association in conversations with lawmakers is highlighting this shift, saying zero- or low-calorie drinks represent 60% of nonalcoholic packaged and fountain drinks sold in the U.S. by volume.

“No other industry is doing what we are doing in terms of offering choice in zero-sugar products,” said Keane from the beverage association.

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Celsius - >>> 1 Growth Stock Down 64% to Buy Right Now


by James Brumley

Motley Fool

Sep 21, 2024


https://finance.yahoo.com/news/1-growth-stock-down-64-105500499.html


There's no getting around the fact that Celsius (NASDAQ: CELH) stock has been tough to own for the past several weeks. Share prices are down a hefty 64% from May's peak -- and for good reason as sales growth is slowing. But that slowdown was to be expected given this up-and-comer's meteoric penetration of its market. And that's the crux of the buying opportunity created by the pullback.

While the mathematical top-line growth may be slowing, it's still impressive growth, and the Celsius story is still a compelling one. The stock's simply suffering some predictable (but temporary) growing pains. Here's why it's a buy right now.

Celsius was punished for flying too far, too fast

On the off chance you're reading this and aren't familiar, Celsius is an energy drinks company in the same vein as Monster Beverage or Red Bull. It's distinctly different from the industry's two dominant players, however. Whereas Red Bull and Monster have been around for years and have established roots within the extreme-sports and casual energy-craving crowd, (relatively) latecomer Celsius largely aims at the fitness-minded market. It promotes itself as "the better-for-you, zero-sugar alternative to traditional energy drinks."

This tack has proven successful since the company turned up the heat on its marketing efforts in early 2018 when current CEO John Fieldly took the helm. Since then, annual sales have soared from around $400 million to $1.5 billion, en route to more than $2 billion in 2026. Fieldly clearly has his finger on the pulse of the business; a distribution partnership with PepsiCo certainly seems to have helped as well.

Celsius stock, however, has been run through the same predictable ringer most stocks of young, high-potential companies are regularly pushed through: dizzying euphoria followed by a head-on collision with reality.

What gives?

As it turns out, although Celsius' products bring an exciting alternative to the energy drinks market, its (much) bigger competitors aren't simply going to roll over. Monster, for instance, recently doubled down on social media marketing; the decision seems to be paying off. Celsius' red-hot growth rates of the recent past are also just plain tough to maintain, falling from a year-earlier clip of 112% to year-over-year growth of 23% for the second quarter ending in June. Investors weren't quite sure how to process such a sudden and sweeping change. In fact, they panicked.

As is so often the case with such an emotionally charged scenario, the sellers overshot their target.

Celsius is gaining traction

Oh, don't misread the message. Even if it's oversold, stepping into Celsius' stock isn't for the faint of heart. The company is still finding its footing. Shares are still volatile as a result.

For speculators who can stomach the risk, however, Celsius is exactly where it should be at this point in time, having finally proven it's a contender.

Chief among the bullish clues is the fact that the company is now consistently profitable ... a corner turned in earnest early last year. It's increasingly profitable, too, and should continue to grow its bottom line at an even faster rate than its top line is improving.

Celsius Holdings' top and bottom lines are expected to continue growing at least through 2026. And this growth runway is longer than most investors might realize.

To date, the company has almost exclusively focused on the U.S. market. Now that it's getting real domestic traction (growing its U.S. grocery- and convenience-store market share from less than 5% a year ago to more than 10% now), it's setting its sights overseas. Celsius debuted in six countries other than the United States just this year. These include Canada and the U.K. Australia and France are next, with launches expected in both before the end of the year.

This expansion plugs the company into more of the global energy drink market, which is expected to grow at a strong, single-digit pace for the next several years as more consumers shun sugary sodas in favor of more functional beverages. This shift could be particularly pronounced within the United States, according to market research outfit GlobalData, which notes that Celsius already has a strong foothold by offering the market something unique within the functional drinks arena.

Then there are the "adjacent categories" of products Fieldly is considering, like food and bottled water. The company currently has no entry into these consumer-goods categories -- and may never. It's certainly an interesting growth prospect though, leveraging its differentiated brand name.

Celsius stock isn't for everyone, but...

Again, this ticker may not be a great fit for everyone's portfolio. While arguably undervalued, the company is also a work in progress. It's difficult to break into a market dominated by a well-established duopoly, even if Celsius is clearly winning at least some market share.

To the extent stories and trajectories and differentiation count, however, Celsius Holdings offers promise to risk-tolerant investors. The big pullback since May was largely driven by shock. Once more investors recognize the company is still making good forward progress, the underlying pessimism should return to reasoned optimism.

This might help: Despite several weeks' worth of steady selling, the analyst crowd keeping tabs on this stock isn't deterred. The vast majority of them still rate it as a strong buy, collectively sporting a consensus price target of $50.36. That's nearly 50% better than the stock's present price, which isn't a bad place to enter a new trade.

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>>> Hershey is turning its candy into energy drinks and protein powders with C4


CNN Business

by Jordan Valinsky

Sep 18, 2024


https://finance.yahoo.com/news/hershey-turning-candy-energy-drinks-130019084.html


With its line-up of sweet snacks, Hershey isn’t known as a purveyor of diet foods. However, the company’s newest products are made specifically for those on a fitness kick.

As the use of weight-loss drugs — notably Ozempic and Wegovy — grows, the 130-year-old confectionery company is adjusting to this new era by pushing further into the wellness category with protein powders and energy drinks in popular candy flavors.

The Hershey Company (HSY) has struck a deal with C4 Energy, a top-selling supplement brand that has gained popularity as people have looked to build muscle and work out more following the pandemic. Hershey’s namesake milk chocolate and Reese’s peanut butter and chocolate will soon be sold as protein powders and its Jolly Rancher candies will be turned into bubbly energy drinks.

“What’s great about this partnership is that we get to tap into these brands that are more than 125 years old and are very nostalgic,” said Doss Cunningham, CEO of C4’s parent company Nutrabolt. “On the flip side, this is a great opportunity for us to reach new audiences.”

The partnership should help C4, the fourth-best-selling energy drink brand in the United States, differentiate itself in a $21 billion market dominated by trendy up-and-comers, like Celsius and Ghost, but also older companies that remain popular, notably Red Bull and Monster. Energy drinks, which are most often bought by millennial and Gen Z customers, have “a lot of affinity” with Hershey’s products, Cunningham told CNN.

Rolling out this week across major US retailers, including HEB, Amazon and C4’s website, the new canned energy drinks are based on three popular Jolly Rancher flavors: blue raspberry, green apple and watermelon. A 12-pack costs $27.99.

The deal then expands in October when whey protein powder, in Hershey’s milk chocolate and Reese’s peanut butter and chocolate flavors, hits shelves, with prices starting at $29.99 for the smallest size. A pre-workout powder based off of Bubble Yum gum will also be introduced.

C4 has already had success with using flavors from Skittles, Starburst and Popsicle for its other energy drinks.

“We can reach new consumers that are perhaps new to the sports nutrition space or the energy drink category that can discover C4 through one of their beloved brands,” Cunningham said.

Partnering with food makers that have perfected flavorful recipes is becoming popular among nutrition companies because “it’s a way to help entice consumers to try them with flavors that they are comfortable or accustomed to, considering a lot of these powders are notorious for having a weird and unpleasant taste,” Andrea Hernández, founder of Snaxshot, a food and beverage insights platform, told CNN.

For Hershey, moving further into nutrition might help offset falling sales in its candy business, which reported a 17% drop in revenue in its most recent earnings report. In 2019, Hershey bought One Brands, which makes low-sugar, high-protein nutrition bars, for $400 million. And its rivals are adjusting as well — for example, Mars, which bought snacking giant Kellanova to expand its portfolio beyond sugary treats.

Whether it’s moving into nutrition or making big acquisitions, Hernández said candy companies are exploring new ways to be relevant, like Hershey’s approach, which “can ultimately help Hershey’s get a healthy halo of sorts.”

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Hershey - >>> 3 Reasons to Buy Hershey Stock Like There's No Tomorrow


by Reuben Gregg Brewer

Motley Fool

September 15, 2024


https://finance.yahoo.com/news/3-reasons-buy-hershey-stock-114500118.html


When you can purchase a great company at a fair price, it is often a good time to buy. When the price tag looks cheap, it can be a great time to buy.

Confectioner Hershey (NYSE: HSY) looks somewhere between fairly priced and cheap. Don't miss the chance to buy it because of a little near-term uncertainty. Here are three big reasons to jump at the chance to own the stock today.

1. Hershey looks like a bargain

Every business rides along a sine curve, with good times followed by bad ones, and vice versa. Right now, Hershey is dealing with a few problems (more on that below), and investors are downbeat on the stock. If you are a dividend investor who thinks in terms of decades and not days, this is an opportunity. Some numbers will help prove that out.

Hershey's price-to-sales ratio (P/S) is currently around 3.8. The five-year average for that valuation metric is 4.1. The company's price-to-earnings ratio (P/E) is 22.5, versus a five-year average of 25.5. Clearly, based on more-traditional metrics, the stock looks attractively priced.

But don't stop there: Its dividend yield is around 2.7%, which happens to be notably higher than its five-year average of 2%. If you have ever looked at Hershey stock and thought, "If only it were cheaper," well, it is cheaper right now.

2. Hershey's business is getting better even if its earnings are hard to read

One of the things that is interesting with Hershey today is that it has been making upgrades to its distribution system. But these come with risks, particularly for the company's retailers, which rely on it for products.

If the rollout of the new system doesn't go well, customers could end up without the inventory they need. Thus, retailers built up inventories ahead of the switch over to the new system, which boosted sales. The new system is working fine, but retailers are working down the inventory they previously built up, and that's now depressing sales.

This isn't exactly good news, but neither is it really bad news. It's more of a necessary blip in the process of improving the business over the long term. In other words, don't read too much into the company's earnings right now even though sales fell over 16% year over year in the second quarter.

There's another wrinkle in that number. About 9 percentage points of the drop were related to the system upgrade. The other 7 percentage points were tied to the seasonality of Hershey's business. Confection sales are heavily influenced by holidays, which can shift between quarters. So the numbers look extra ugly with the double hit, but there's likely no reason to be worried.

3. The biggest headwind is cocoa

The one negative that investors should monitor closely is the price of cocoa, a key ingredient for chocolate. There's an element of general inflation to the massive price spike that has taken place, but there are also fundamental reasons why cocoa prices might have stepped into a higher range (including aging crops and plant disease). This will affect Hershey's earnings. Just how bad is it? Cocoa is trading near all-time highs.

But people love chocolate and have historically been amenable to paying higher prices for this relatively low-cost luxury. Over the near term, Hershey believes it will be able to pass through price increases of around 6% to 7%.

That said, the plan isn't to pass through all of the cost increase right away. Instead, management wants to take it slowly, accepting a temporary hit to margins as it eases in price increases over time. That seems like a prudent way to deal with the issue.

Given the company's long and successful history, it seems logical to give management the benefit of the doubt and view the concern here as yet another reason to take a contrarian stance with the stock.

Out-of-favor Hershey could be a tasty treat

If Hershey were firing on all cylinders today, it wouldn't be on the sale rack. But if you can look at the long-term history of the business and its stock and recognize that this downturn is likely to be temporary, then now is the time to jump aboard. That's particularly true if your time horizon is long.

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>>> Celsius Holdings, Inc. (CELH): A Bull Case Theory


Insider Monkey

by Ricardo Pillai

September 17, 2024


https://finance.yahoo.com/news/celsius-holdings-inc-celh-bull-163806873.html


We came across a bullish thesis on Celsius Holdings, Inc. (CELH) on Make Money, Make Time’s Substack by Oliver | MMMT Wealth. In this article we will summarize the bulls’ thesis on CELH. CELH Technologies, Inc. shares were trading at $33.18 as of Sept 16th.

Celsius Holdings (CELH) presents a compelling investment opportunity despite its recent stock price decline to $33.50, down from a 52-week high of $96.11. The company, headquartered in Boca Raton, Florida, boasts a market cap of $8.54 billion and has faced a significant drop in stock value, attributed primarily to revenue growth contraction and broader market challenges in the energy drink sector. Despite these headwinds, CELH’s performance remains robust, particularly in online sales and international markets, positioning it well for future growth.

CELH has experienced a reduction in revenue growth rates from triple-digit figures, which has affected investor sentiment. However, this slowdown should not overshadow the company's continued market strength. CELH’s online dominance is notable, with a 22.1% share on Amazon, surpassing competitors such as Monster and Red Bull. This strong performance indicates a loyal customer base and significant market presence, especially in e-commerce.

In the U.S. multi-outlet convenience store segment, CELH has shown a solid 36.5% growth this year. While this growth is promising, it is also potentially understated due to delays in store resets and promotional activities. Despite the broader energy drink market's slower growth, CELH's contribution to category expansion is evident. Management emphasizes that their focus is on driving category growth and attracting new consumers rather than directly competing for market share with established players like Red Bull and Monster.

Internationally, CELH's revenue is currently modest at $20 million but is growing at a strong 30% year-over-year. Notable progress has been made in Canada, with promising prospects in the UK, Ireland, Australia, and France. The company’s international strategy and expansion into new markets are poised to enhance revenue growth over the long term.

Looking ahead, CELH has plans to diversify its product offerings, including potential entries into water and food products like protein bars by 2025. These new product lines and international expansion present significant growth opportunities. While revenue growth rates may stabilize around 20% in the near term, CELH is expected to experience strong growth over a five-year horizon. The current stock price, given the company’s growth potential and strategic initiatives, represents an attractive entry point for investors.

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>>> Why Celsius Stock Suddenly Plunged Today


by Jon Quast

Motley Fool

Sep 4, 2024


https://finance.yahoo.com/news/why-celsius-stock-suddenly-plunged-192700604.html


It started out as a calm morning for shares of Celsius Holdings. But around noon, management made an appearance at Barclays' 17th Annual Global Consumer Staples Conference. During the chat, management said something that sparked fear in investors: In the current quarter, sales to PepsiCo are down $100 million to $120 million compared to last year.

Investors took action, and that's why Celsius stock was down a painful 12% as of 3:15 p.m. ET.

How does Celsius generate revenue?

Pepsi became the primary distribution partner for Celsius in August 2022. For Celsius, it now recognizes revenue when it delivers inventory to Pepsi. From there, Pepsi distributes it to retail channels where it's purchased by consumers. And for this reason, there's a difference between when Celsius generates revenue and when its products actually sell in stores.

In 2023, Celsius' revenue was up an impressive 102% year over year and well ahead of expectations from analysts. But it's now clear that this outperformance was because Pepsi ordered too much product. It's a misstep that Pepsi is now correcting by ordering less from Celsius while it sells inventory it has on hand.

For the current third quarter of 2024, Celsius management estimates that Pepsi will order between $100 million and $120 million less than it ordered in the third quarter of 2023. To be sure, this will be a huge drag on Q3 results and it's why the stock plunged today.

What should investors do now?

There are cases where the financials don't clearly reflect the health of the business, and I believe this is one of those cases. During its chat today, Celsius management pointed out that Q3 sales for its products are up 10% so far. This won't be reflected in its revenue, because it generates revenue when it supplies inventory to Pepsi. But sales to consumers are growing nevertheless.

Moreover, Celsius management believes it's gained another whole point of market share in the energy drink space. And market share is huge for a beverage stock.

I'll stop short of calling the bottom for Celsius stock. But I believe the explanation of what's happening with the business is reasonable. And I consequently believe that investors are overreacting to today's news.

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Celsius Holdings - >>> 4 Reasons to Buy Celsius Stock Like There's No Tomorrow


by Leo Sun

Motley Fool

Aug 27, 2024


https://finance.yahoo.com/news/4-reasons-buy-celsius-stock-092000173.html


Celsius' (NASDAQ: CELH) stock is down nearly 60% since it hit its record high this March. The energy drink maker's stock fizzled out as investors fretted over its slowing sales growth, declining domestic market share, and some big inventory reductions at its distribution partner PepsiCo. It also struggled to maintain its high valuations in a high interest rate environment.

Nevertheless, now could be the right time to buy Celsius' stock. There are four simple reasons why.

1. Celsius is still one of the fastest-growing beverage makers

Celsius carved out a niche by selling sugar-free energy drinks made from all-natural ingredients like green tea, ginger, and taurine. That strategy attracted a lot of attention from younger health-conscious consumers, and Celsius' annual revenue more than doubled in each of the past three years.

That's why the bulls were disappointed when Celsius' revenue only rose 29% year over year in the first half of 2024. However, that slowdown wasn't too surprising because fully lapped its new domestic distribution deal with PepsiCo, which started in August 2022 and significantly boosted its sales throughout 2022 and 2023.

Analysts expect its revenue to only rise 19% this year, but they expect it to continue growing at a compound annual growth rate (CAGR) of 25% from 2024 to 2026. That would still make it one of the fastest-growing beverage makers in the world. Its larger competitor, Monster Beverage, is only expected to grow at a CAGR of 8.5% from 2023 to 2026.

2. Celsius' near-term headwinds aren't that severe

On May 28, Nielsen reported that Celsius' U.S. market share had dipped 30 basis points on a weekly basis to 10.5%. By the week ending on Aug. 10, its share had slipped to 9.6%. That ongoing decline might seem like a red flag since Celsius still generated 95% of its revenue from North America in the first half of 2024.

However, Nielsen's latest data showed that Celsius actually grew faster year over year than all of its domestic competitors in the four weeks leading up to Aug. 10. Celsius' sales rose 8.8% year over year, which outpaced Red Bull's 1.8% growth and Monster's 3.5% decline (excluding its acquisition of Bang energy drinks from Vital Pharmaceuticals last year). On its own, Bang grew 6%. In other words, Celsius is still growing even as the energy drink market gets more crowded.

The expansion of Celsius' fledgling international business could also offset the slower growth of its North American business. It recently signed a new distribution deal with the Japanese beverage giant Suntory to sell its drinks in the U.K., Ireland, and Canada, and its domestic partnership with PepsiCo could eventually evolve into an international one. It's also selling a lot more products on Amazon, which contributed 10% to its second-quarter sales.

PepsiCo's recent inventory reductions also don't necessarily mean the domestic market's demand for Celsius drinks is drying up. It's fairly common for a distribution partner to reduce its inventories of a new drink as a deal matures, and Nielsen's latest data indicates Celsius' U.S. sales are still increasing despite the inventory reductions. It also wouldn't make sense for PepsiCo to intentionally throttle Celsius' growth when it already owns an 8.5% stake in the company.

3. Celsius' margins are still expanding

If Celsius were in trouble, we would have seen its gross and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margins shrivel. But this is what actually happened over the past four and half years:

For 2024, analysts expect Celsius' adjusted EBITDA to rise 11% and lift its adjusted EBITDA margin to 29.5%. From 2024 to 2026, they expect its adjusted EBITDA to grow at a CAGR of 12%. That rosy outlook implies that economies of scale are kicking in.

4. Celsius stock looks reasonably valued

With an enterprise value of $9 billion, Celsius is valued at 6 times this year's sales and 25 times its adjusted EBITDA. Those valuations are reasonable relative to its growth rates and its industry peers. Monster, which is growing at a much slower rate, trades at 6 times this year's sales and 20 times its adjusted EBITDA.

Celsius might not be a hypergrowth stock anymore, but it still has plenty of upside potential. Its stock price could remain volatile, but it should stabilize and rally back toward its all-time high as the company overcomes its near-term challenges.

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>>> Coca-Cola (NYSE:KO), an iconic brand with a century-long history, is a staple income stock. Known for its robust and diversified product lineup, Coca-Cola has consistently delivered strong financial performance. Business tycoon and investment guru Warren Buffett considers Coca-Cola his "Secret Sauce," referring to its dividend prowess, as Berkshire Hathaway generates millions annually in payouts.

https://finance.yahoo.com/news/3-must-dividend-stocks-according-180056727.html

Coca-Cola currently pays $1.94 in dividends annually, yielding 2.85% on the current price. The company has raised its dividends for 63 years, making it a Dividend King.

Citigroup gave Coca-Cola a Buy rating with a price target of $75 last month, indicating a potential upside of over 10%. Argus Research also gave the company a Buy rating with a price target of $72, indicating a potential upside of nearly 6%.

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>>> CosMc’s: McDonald’s finally reveals menu, details about spinoff restaurant


Today

by Joseph Lamour

Aug 8, 2024


https://finance.yahoo.com/news/cosmc-mcdonald-finally-reveals-menu-040943806.html


For its latest venture, McDonald’s is thinking outside the box — and into outerspace.

The fast-food chain officially announced its universe is expanding with CosMc’s, a new, small-format, space-themed, beverage- and breakfast-focused restaurant concept. McDonald’s CEO Chris Kempczinsk announced the news of the spinoff restaurant chain during its investor day on Dec. 6.

CosMc’s is based on McDonald’s beloved, extraterrestrial mascot from the ’80s and ’90s. CosMc is known for its zippy personality, which makes the menu, which features energy-boosting beverages and unique treats, perfectly fitting.

CosMc’s locations

The first location, which opened in December, is located in Bolingbrook, Illinois and is part of a limited test run.

In 2024, so far, McDonald’s has opened four more locations, all in Texas: Arlington, Dallas, Watauga and, most recently, San Antonio. See details on all the locations here.

CosMc’s has a pretty extensive menu, focusing heavily on breakfast and featuring more than 10 new beverages never before seen on a McDonald’s menu.

McDonald’s says CosMc’s menu is “rooted in beverage exploration, with bold and unexpected flavor combinations, vibrant colors and functional boosts.”

What this means is a broad range of drinks, from lemonades and coffees to energy-boosting beverages like Sour Cherry Energy Slush, Tropical Spiceade and S’mores Cold Brew. Patrons can customize their drinks by adding fruity boba, flavor syrups, energy shots and more.

As far as food goes, CosMc’s Spicy Queso Sandwich and Creamy Avocado Tomatillo Sandwich are its sandwich options, but there are many more sweet and savory snacks to pick and choose from.

On the savory side, CosMc’s offers Savory Hash Brown Bites and Pretzel Bites, and on the sweet side, it’s got a Blueberry Lemon Cookie Sundae, Caramel Fudge Brownie and more.

And yes, you can expect to find a few McDonald’s classics on the menu — but no combo meals.

CosMc’s is set to offer what McDonald’s calls a “seamless digital and Drive Thru experience,” where customers can use a dynamic menu board and cashless payment devices to “breeze through” ordering and payment processes. Drive-thru pickup windows will be assigned once your order is ready.

CosMc’s history

For those unfamiliar with CosMc, according to the McDonald’s Wiki, he was featured in a series of McDonald’s commercials and print ads from 1986 to 1992.

In one 1987 commercial, CosMc lands in McDonaldland, only to be discovered by Ronald McDonald, Grimace and the Professor (another character that has since faded into obscurity). The ragtag group’s initial interaction with the character introduces the alien as one who likes to trade, though without permission at first, so it’s less interplanetary commerce and more robbery with a parting gift.

After some hijinks, CosMc and the crew enjoy a meal together, where the alien calls McDonald’s grub “deliciously awesome,” the alien turtle-shells back into his space suit — which also functions as his spaceship — and zooms away.

McDonald’s CEO Chris Kempczinski first revealed it would be launching the spinoff restaurant chain on July 27 in a Q2 conference call.

News of CosMc being plucked from McDonald’s past comes after the extremely successful revival of Grimace. This summer, the big purple blob had his super viral moment in the sun with the release of the Grimace Shake, which led to a darkly humorous TikTok trend with nearly 4 billion views to date.

“This quarter, if I’m being honest, the theme was Grimace,” Kempczinski said on the call.

Q1, McDonald’s hopes, will be out of this world.

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Pepsico - >>> People won't stop buying groceries

https://finance.yahoo.com/news/3-soaring-stocks-hold-next-131700831.html

Food and beverages are a no-brainer for long-term investors. Companies like PepsiCo (NASDAQ: PEP) may not set the world ablaze with growth, but slow-and-steady expansion has fueled durable investment returns for decades. PepsiCo sells its namesake soda but, in reality, is a conglomerate of food and beverage brands, including Mountain Dew, Gatorade, Quaker, Frito Lay, Doritos, Cheetos, and many more. You'll find PepsiCo's products throughout grocery stores worldwide, which makes it hard for the company to have a down year.

Given that context, it's no shocker that PepsiCo is a magnificent dividend stock. PepsiCo is a Dividend King, with over five decades of consecutive dividend growth. The stock offers an excellent combination of income and upside due to its current 3% yield and five-year annualized dividend growth rate between 6% and 7%. PepsiCo pays about 66% of its earnings out as dividends, leaving enough cushion for PepsiCo to invest in growth or endure an unexpected slump.

While PepsiCo is recession-resistant, management has noted that consumers have resisted price increases. As a result, the stock has dipped to a price-to-earnings (P/E) ratio under 22 versus its five-year average of 26. The stock seems fairly valued today (not too expensive, but not cheap). Investors looking for a long-term stalwart that can deliver slow and steady growth should consider PepsiCo a stock they can trust.

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Mondelez - >>> 1 Magnificent S&P 500 Dividend Stock Down 10% to Buy Right Now While Its Dividend Yield Is at a Once-in-a-Decade High


Motley Fool

by Josh Kohn-Lindquist

Aug 6, 2024


https://finance.yahoo.com/news/1-magnificent-p-500-dividend-004200366.html


Global snacking juggernaut Mondelez International (NASDAQ: MDLZ) is home to a wide array of recognizable brands, including Oreo, Ritz, CLIF Bar, Chips Ahoy!, Triscuit, Toblerone, and Sour Patch Kids. Since its spinoff from Kraft Heinz in 2012, Mondelez has delivered consistent 10% annualized total returns.

While these returns have slightly lagged the S&P 500 index's 14% yearly increase over those 12 years, the company's returns have matched the index's historical annualized return of 10% over the last century.

So what makes Mondelez a magnificent dividend stock to buy, considering it has only matched the market's historical returns?

Perhaps the most compelling reason to own the company is that it can deliver market-matching returns in a less stressful manner. Currently, Mondelez has a five-year beta of just 0.5. Betas measure the systemic risk of an investment, and when this figure is below 1, it indicates that the stock is less volatile than the overall market. And Mondelez certainly fits that billing.

Over the very long haul, the company may lag in bull markets, but it should win in bear markets — all while providing the stability some investors need from blue chip dividend stocks.

Best yet for investors, despite benefiting from these stable operations and consistent returns, Mondelez's growth story could be far from over.

Mondelez is writing the next chapter of its growth story

While Mondelez is known as a snacking juggernaut, generally speaking, it considers chocolate, biscuits, and baked snacks to be its "priority categories." Laser-focused on growing these most important products, Mondelez has grown these core categories from 59% of sales in 2012 to around 80% today and hopes to reach 90% over the long term.

One reason the company focuses on these priority snacks is that they are the fastest-growing category, delivering annualized 10% growth in the United States over the last four years.

Mondelez's priority snacks have grown by 9.7% in the United States between 2020 and 2023. This is the fastest growing category beating the broader snack industry's 8.3%, deli's 8.1%, beverages 8%, shelf stable food's 7.1%, dairy's 5.1%, and frozen's 4.1% growth rates.

In addition to these priority snacks growing at a faster rate, Mondelez holds the No. 1 market share globally in biscuits, the No. 2 share in chocolate, and the No. 3 share in cakes, pastries, and snack bars. Additionally, the company is the market leader in key markets such as chocolate in India and the United Kingdom, and biscuits in China, Europe, and the U.S. Mondelez generates 39% of its sales from emerging markets, including 73% of its revenue from outside the U.S., making it a truly global enterprise.

Powered by the massive distribution network needed to be a global snacking powerhouse, Mondelez loves to grow through acquisitions in adjacent verticals or new geographies. Since 2018, the company has spent roughly $3 billion on nine acquisitions. Today, these purchases generate around $2.8 billion annually in sales and grow by high single digits.

A perfect example of the opportunity these acquisitions bring is the company's $1.3 billion purchase of Mexican confectioner Ricolino from Grupo Bimbo. Not only did this immediately make Mondelez the largest confectioner in a quickly growing snacks market, but it tripled the coverage area for Oreos and biscuits in Mexico, bringing in 500,000 new direct points of sale.

Most importantly for investors, the company's return on capital employed (ROCE) has been steadily improving alongside its rising sales since these acquisitions were made.

Comparing the rising 12% ROCE with the company's 6% weighted average cost of capital (WACC) shows that Mondelez is starting to hit its stride when it comes to generating outsize profits from the capital it deploys on acquisitions.

Eyeing further expansion into Latin America — its fastest-growing geography — while monitoring the M&A market for better-for-you snacking options, Mondelez will likely keep up its streak of being a serial acquirer.

A once-in-a-decade dividend yield at a fair price

As promising as the company's past sales growth and improving ROCE have been, the stock has struggled lately. Revenue dipped 2% in the company's most recent quarter, and profitability continues to be weighed down, with cocoa prices remaining near all-time highs.

These temporary struggles have left Mondelez trading at its lowest price-to-sales (P/S) ratio since 2018.

Thanks to this discounted valuation, the company's 2.5% dividend yield is now at a once-in-a-decade high. Best yet, despite raising this dividend for 10 consecutive years — during which it grew by 9% annually — the company only uses 57% of its net income to fund its payments. This percentage indicates that the dividend is well funded and should be able to continue rising higher, especially as Mondelez restarts its growth story.

The cherry on top for investors?

In addition to the company's dividend yield being at a decade-long high, management has repurchased 2.3% of its outstanding shares annually since the spinoff.

Thanks to these shareholder-friendly cash returns, the company's discounted valuation, its elevated dividend yield, and a safe but steadily growing business, Mondelez is a magnificent S&P 500 dividend stock to buy and hold forever.

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>>> Scientists Found Heavy Metals Like Lead In Many Chocolate Bars. Should Consumers Be Worried?


Forbes

by Robert Hart

7-31-24


https://www.msn.com/en-us/health/nutrition/scientists-found-heavy-metals-like-lead-in-many-chocolate-bars-should-consumers-be-worried/ar-BB1qYHlw?ocid=BingNewsSerp


Many dark chocolate and cocoa products sold across the country contain levels of toxic heavy metals that exceed food safety guidelines, according to new research published Wednesday—and while the food industry and researchers involved said the findings should not stop people from eating chocolate, experts said it warrants further scrutiny.

Key Facts

Researchers from George Washington University and ConsumerLab, a company that tests foods and supplements, examined the amount of lead, cadmium and arsenic in more than 70 dark chocolate and cocoa products purchased from retailers including Amazon, GNC and Whole Foods Market over 8 years.

Their results, published in the peer reviewed journal Frontiers of Nutrition, revealed 43% of products exceeded acceptable levels of lead per serving and 35% exceeded acceptable levels of cadmium, according to California’s stringent food guidelines.

The state’s guidelines are often used by researchers as a conservative safety benchmark when investigating heavy metal contamination in foods, as the Food and Drug Administration does not set limits for toxins including cadmium and arsenic and for others like lead may only do so for specific products like candy or baby food.

None of the products tested exceeded California’s maximum level for arsenic and almost all products—70 out of 72, or 97%—had levels of lead that fell below FDA limits for the metal.

The researchers said the heavy metals found in the chocolate are unlikely to “pose any appreciable risk” when consumed as a single serving but could be “potentially problematic” if multiple servings are consumed or they are eaten with other products that may contain heavy metals such as teas or spices.

The study is the latest research to suggest some popular chocolate brands contain heavy metals, including studies by Consumer Reports.

In an emailed statement, the National Confectioners Association told Forbes “chocolate and cocoa are safe to eat and can be enjoyed as treats as they have been for centuries,” adding that “food safety and product quality remain” the organization’s “highest priorities.”

What Brands Of Chocolate Contain Heavy Metals?

It’s not clear what brands of dark chocolate and cocoa products had what levels of heavy metals in the study as the researchers intentionally left the information out of the study. The products tested are likely to be well known to consumers, however, and the researchers said their aim was to assess heavy metal contamination in “the most popular cocoa-containing consumer products each year for several years to assess trends,” using consumer surveys to assess popularity.

Should I Stop Eating Chocolate?

In short, no. According to the researchers, the amount of heavy metals found in the chocolate studied is unlikely to be “biologically significant” on its own, especially as most people are likely to consume the products relatively infrequently and in small amounts. The findings do suggest a need for better food standards and guidelines when it comes to heavy metal contamination, they said. “Enhanced surveillance may be warranted,” as well, the researchers added, particularly given the presence of outliers in the study with particularly high levels of contamination. Further research into the potential impact of multiple streams of food contamination should also be conducted, the researchers said, as it’s possible there may be “additive exposure” that is problematic from multiple food sources.

Can I Avoid Heavy Metal Exposure In Food?

Also no. “You actually cannot avoid exposure to heavy metals in the diet,” Leigh Frame, the study’s lead author and director of integrative medicine at George Washington University School of Medicine and Health Sciences, told NBC News. Heavy metals can naturally enter foods from soil and water in the growing process or at various points during packaging, drying, processing and transportation. Cocoa, rice, cereals, potatoes and tobacco can take up cadmium from the soil, for example, and lead can be introduced in the production of cocoa products. Small levels are not always dangerous and can be excreted from the body such as through sweat and urine but high levels can become concentrated in the body where they can cause damage. Cadmium is a carcinogen at high levels—it can cause cancer—and can damage most of the body’s systems, including the lungs, bones and kidneys. The CDC says there are no safe levels of lead in the blood for children and the metal can interfere with the developing brain and damage the nervous system. However, “it’s really not about avoiding them; it’s about making sure you’re not getting too much,” Frame said. Eating a diverse diet is one way of avoiding exposure, as is limiting consumption of products known to contain relatively high levels. Frame added that “better quality control practices during harvesting and manufacturing may help eliminate the problem” too, as well as better surveillance.

Surprising Fact

Organic products were more likely to have higher levels of cadmium and lead, the researchers found. “More striking, the number of trade certifications (e.g., Non-GMO, Fairtrade) did not significantly alter the levels of heavy metals found among products surveyed,” the researchers wrote.

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>>> Why Sprouts Farmers Market Stock Was Soaring Today


by Jeremy Bowman

Motley Fool

Jul 30, 2024


https://finance.yahoo.com/news/why-sprouts-farmers-market-stock-152800738.html


Shares of Sprouts Farmers Market (NASDAQ: SFM) were surging today after the supermarket chain posted strong second-quarter results last night. As a result, the stock was up 16.5% as of 10:09 a.m. ET.

Sprouts keeps looking fresher

Sprouts' business prides itself on fresh produce and a focus on wellness, and the company continues to impress Wall Street. The grocer beat estimates on both the top and bottom lines.

Comparable sales in the quarter rose 6.7%, driving revenue up 12% to $1.89 billion, which topped the consensus of $1.84 billion. Gross margin improved from 37% to 37.9%, which helped drive earnings per share up from $0.65 to $0.94, easily topping expectations of $0.78.

CEO Jack Sinclair said: "Customers are responding to our healthy product assortment and our unique in-store experience. We are excited about the opportunities ahead."

What's next for Sprouts

Sprouts' differentiated approach is clearly resonating with customers as the company is gaining market share, opening new stores, and growing comparable sales. The stock has also soared recently, up nearly 500% in the last five years, an impressive performance for any consumer staples stock, let alone a supermarket chain.

Looking ahead, the company sees comparable-sales growth of 3.5%-4.5% in the quarter and 4%-5% for the full year, up from a previous range of 2.5%-3.5%. As for earnings per share (EPS), it called for $0.71-$0.75 in the third quarter and $3.29-$3.37 for the full year, better than its earlier forecast of $3.05-$3.13. Both those figures were better than estimates, which called for $0.69 in EPS in the first quarter and $3.15 for the full year.

While Sprouts' valuation is now the highest it's been in nearly a decade, the stock could move even higher if the company continues to beat estimates and raise guidance.

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>>> McDonald's same-store sales fall for 1st time since 2020 as tapped-out customers hold on to cash


by DEE-ANN DURBIN

AP

7-29-24


https://www.msn.com/en-us/money/companies/mcdonald-s-same-store-sales-fall-for-the-1st-time-since-the-pandemic-profit-slides-12/ar-BB1qOwqW?cvid=cabd17fe3ab14ebdc9d26ba87cedda68&ei=25


They're not lovin' it.

McDonald's global same-stores fell for the first time in nearly four years in the second quarter as inflation-weary consumers skipped meals out or chose cheaper options. The company said it's working on fixes, like meal deals and new menu items, but it expects same-store sales to be down for the next few quarters.

“Consumers still recognize us as the value leader versus our key competitors, it’s clear that our value leadership gap has recently shrunk,” McDonald's Chairman, President and CEO Chris Kempczinski said Monday during a conference call with investors. “We are working to fix that with pace.”

Sales at locations open at least a year fell 1% in the April-June period, the first decline since the final quarter of 2020 when the pandemic shuttered stores and millions stayed home.

In the U.S., same-store sales fell nearly 1%. McDonald’s saw fewer customers but it said those who came spent more because of price increases. Kempczinski defended those increases, saying McDonald's costs for paper, food and labor have increased as much as 40% in some markets over the last few years.

The company also reported lower store traffic in France and the Middle East, where people have been boycotting McDonald’s because of a perception that it supports Israel in the war in Gaza. Kempczinski said weak consumer sentiment in China has customers fleeing to lower-priced rivals.

McDonald’s earnings, revenue miss estimates as consumer pullback worsens

McDonald's warned in April that more of its inflation-weary customers were seeking better value and affordability. The Chicago burger giant introduced a $5 meal deal at U.S. restaurants on June 25, which was late in this financial reporting period.

McDonald's U.S. President Joe Erlinger said Monday that $5 meal deal sales are running ahead of expectations and are getting lower-income consumers back into McDonald's stores. Erlinger said 93% of McDonald's franchisees have agreed to run the promotion through August.

Other countries like Germany and the United Kingdom are also seeing success with meal deals, the company said. But Kempczinski said McDonald's needs to be providing broader value and boosting that message with better marketing.

“Trying to move the consumer with one item or a few items is not sufficient for the context that we’re in,” he said.

New menu items are also in the works. The company is testing its value-oriented Big Arch double burger in three international markets through the end of this year, Kempczinski said.

For the second quarter, revenue was flat at $6.5 billion and just off the $6.6 billion that Wall Street was expecting, according to analysts polled by FactSet.

The company's net income fell 12% to $2 billion, or $2.80 per share. Excluding one-time items such as restructuring charges, McDonald's earned $2.97 per share. That was far from the per-share profit of $3.07 that industry analysts had forecast.

Investors appeared satisfied with McDonald's plans to reverse its slide. McDonald's shares rose 3.5% in morning trading Monday.

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>>> Big booze maker ditching wine brands as the world drinks less


CNN

by Hanna Ziady

Jul 18, 2024


https://finance.yahoo.com/news/one-world-biggest-booze-makers-134654373.html


Pernod Ricard (RI.PA) is selling most of its wine brands, as wine consumption is falling globally, and will instead focus on growing its champagne and premium spirits labels, including in the United States.

The French group — which owns Absolut Vodka, Jameson Whiskey, Olmeca Tequila and Beefeater Gin — announced the sale of seven wineries in Australia, New Zealand and Spain Wednesday, saying it would allow the company to direct more resources to its premium spirits and champagne brands, which “drive the growth of its business."

The sale to Australian Wine Holdco Limited, a consortium of international investors, will see Pernod Ricard offload 10 wine brands: Jacob’s Creek, Orlando, St Hugo, Stoneleigh, Brancott Estate, Church Road, Campo Viejo, Ysios, Tarsus, and Azpilicueta. No financial details were disclosed.

The deal comes after wine consumption globally hit a 27-year low last year, according to an estimate by the International Organisation of Vine and Wine (OIV), an industry group.

Pernod Ricard reported a 7% fall in sales for the wine brands it plans to sell in the first quarter of this year, mainly as a result of a decline in popularity of Jacob’s Creek in India and Campo Viejo in the US.

Wine drinking has been on a steady downward trajectory since 2018, driven by a decrease in consumption in China and as high inflation has eroded disposable incomes worldwide. Consumers have also been opting for beer and spirits instead, or choosing to forego alcohol altogether due to health considerations.

“The divestment (by Pernod Ricard) makes sense as the segment has been underperforming for a while now and the global wine market is still challenging,” Sarah Barrett, the executive editor of Wine & Spirits Daily, a US-based trade publication, told CNN.

Barrett said the sale followed a “wider trend” of large distillers refocusing their portfolios on premium spirits, pointing to Diageo’s sale of its wine business in 2015 to Treasury Wine Estates.

Pernod Ricard is also doubling down on American whiskey. The group announced plans last week for a new US-based company, North American Distillers, to further support its American whiskey portfolio, which includes Jefferson’s and Rabbit Hole.

“American whiskey is a dynamic spirits category, and our portfolio shows immense potential for future growth,” Richard Black, who will helm the new specialized business, said in a statement at the time.

Falling wine consumption globally has collided with severe pressures on wine production, forcing many vineyards in Europe to close their doors. Last year, wine production hit its lowest level since 1961, according to the OIV, as extreme weather and fungal disease hammered vineyards.

Waning appetite for wine worldwide has also hit Australia hard, where millions of vines are being destroyed in response to overproduction that has crushed grape prices, threatening the livelihoods of growers and wine makers.

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Pepsico - >>> Say goodbye to $6 Cheetos—snack companies finally lower prices


Fortune

by Eva Roytburg

Jul 12, 2024


https://finance.yahoo.com/news/goodbye-6-cheetos-snack-companies-191047362.html


One snack giant has finally admitted that $6 for a bag of Cheetos is crumbling consumers’ wallets.

After multiple years of raising prices for consumers, PepsiCo’s snack unit Frito-Lay is finally feeling them bite back. The company—which produces most of America’s chip favorites, including Doritos, Ruffles, and Lay's—reported a 0.5% decline in second quarter revenues Thursday. The drop comes after Frito-Lay saw its net revenues soar roughly $7 billion between 2020 and 2023.

Years of persistent inflation have created “tighter household financial conditions,” PepsiCo management said in prepared remarks. Now, as customers have become more “value-conscious,” the snack giant’s performance is “subdued.”

Upon this realization, Frito-Lay intends to cut prices for some salty snacks and expand marketing for others, PepsiCo chairman and CEO Ramon Laguarta said in a call to investors.

“There is some value to be given back to consumers after three or four years of a lot of inflation,” Laguarta added.

Frito-Lay will utilize a now familiar play to win back consumers, Laguarta said: investing in value-based deals. Multiple food retailers, from fast food to grocery stores, have begun offering deals in recent weeks to attract value-seeking customers. Like McDonald’s new $5 meal, or Whole Foods' $2 Tuesday rotisserie chickens, Frito-Lay is ready to jump on the trend of bargaining with its customers.

“It seems that customers are gravitating toward where they feel the best deal is right now,” Whole Foods CEO Jason Buechel previously told Fortune.

Laguarta, in response to multiple peppering comments from investors Thursday, agreed, admitting that “new entry points” and “new promotional kind of mechanics” would be necessary for consumers.

Some consumers might say that it’s about time. The average price of potato chips in June 2024 was $6.56—a near 30% jump from the June 2020 pandemic price of $5.09, according to Federal Reserve data.

And it’s not just potato chips—more than 80% of consumers say that overall, food prices have increased a little or a lot over the past 12 months, according to the May 2024 Consumer Food Insights Report from Purdue University. The same report found 37% of chip-loving Gen Zers and millennials say they are going into debt, or whittling away their savings, to pay for food.

Additionally, “food” was the top choice over categories like housing and childcare when consumers were asked which goods and services saw the largest year-over-year price increase.

The White House contests the impact of inflation on food prices, making the case that consumer purchasing power at grocery stores has actually increased. Grocery inflation has cooled in recent months, according to a recent White House report. And, if you narrow the scope to just the past year, at-home food prices have increased by only 1%, according to the Consumer Price Index, while wages grew by about 3.9%.

Yet, that data ignores the years of persistent price increases from compounding inflation; since 2021, groceries are about 25% more expensive.

“The reason consumers feel like prices are increasing is because they still are,” Kendall Meade, a certified financial planner at SoFi, previously told Fortune. “While inflation may be slowing down, it has not stopped and we are not seeing disinflation.”

However, falling revenues may be the wake-up call food retailers need to offer permanent price decreases, beyond promotional deals.

Over the past six months, food companies such as Conagra—which dominates the frozen meals section at grocery sections—have tried to use temporary discounts to woo customers, Bank of America analyst Peter Galbo told the Washington Post.

“But a lot of the promotional activity that they’ve put in place hasn’t really worked,” Galbo said. “So now it becomes a question of whether they need more permanent reductions on price.”

This story was originally featured on Fortune.com

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[XenaLives]

Blackrock = creeping fascism.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174726059

[XenaLives]

So how many food stamps did that cost the hungry and disabled?

[gfp927z]

Looks like Cal-Maine does have some red flags -

https://en.wikipedia.org/wiki/Cal-Maine

>>> According to the San Francisco Chronicle, in response to the COVID-19 pandemic, in the spring of 2020, Cal-Maine increased egg prices over 300% - from $1 to $3.44 per dozen. This triggered at least one lawsuit challenging the price jump as unjustified, since there hadn't been an actual supply chain interruption.[4]

In November 2023, the company was found liable in a lawsuit alleging that it colluded, along with Rose Acre Farms, United Egg Producers, and United States Egg Marketers, to reduce the supply of eggs and increase prices between 2004 and 2008.[6] The plaintiffs in the case, a group of large food manufacturers led by Kraft Foods, originally filed the long-running lawsuit in 2011, but it did not reach trial until October 2023.[7] <<<



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[XenaLives]

Cal-Maine is just freekin' scary. Farmers raise chickens but it seems that they've shut them out through monopolization of distribution channels.

Their control of the market totally explains the highway robbery that took place RE: egg prices.

[XenaLives]

Google's AI -

As of March 31, 2024, Cal-Maine Foods, Inc. (CALM) had 680 institutional owners and shareholders who held a total of 49,078,069 shares, which is 105.60% of the total shares held by institutions. Some of the largest institutional shareholders include:
BlackRock Inc. 6,423,301 shares
Vanguard Group Inc. 4,795,570 shares
Pacer Advisors, Inc. 2,759,612 shares
Dimensional Fund Advisors Lp: 2,501,016 shares
Renaissance Technologies Llc: 2,004,724 shares
State Street Corp. 1,552,058 shares

[gfp927z]

Xena, >> Cal-Maine <<

It looks like the big index funds own sizable amounts of many small caps that trade on major exchanges. At this rate Blackrock and Vanguard could eventually control the entire market. With Cal-Maine, that was once a really hot stock, but has been going sideways for years, though may be perking up.

Btw, with Hershey, I have them on my Contrarian Value list, but recently the chart re-deteriorated, so is looking considerably dicier, and needs to hold key support ~180. I'd like to own some HSY since it's such an iconic brand, but the chart needs to clarify.

Btw, here are some 'Turnaround' and 'Contrarian Value' ideas (below). I recently took small LT positions in ADM, GNRC, and PFE, figuring the bottom is in. Also recently some MCD, PEP, and WINA - which have been excellent LT stocks but somewhat out of favor at the moment -


https://investorshub.advfn.com/Contrarian-Value-Ideas-30183




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[XenaLives]

Very surprised that this didn't result in more extreme stock movement. My first guess is that the BIG BOYS already control it.

Yep - Google AI agrees...

As of November 2022, institutional investors own 96.07% of Cal-Maine Foods, Inc. (CALM) shares, while insiders own 11.04%. Some of the largest institutional shareholders of CALM include:
BlackRock Inc. Owns 6,714,394 shares, or 15.20% of the company, valued at $413,942,400
Vanguard Group Inc: Owns 4,771,655 shares, or 10.80% of the company, valued at $294,172,538
Dimensional Fund Advisors LP: Owns 2,438,248 shares, or 5.52% of the company, valued at $150,317,992
Renaissance Technologies, LLC: Owns 1,982,524 shares, or 4.49% of the company, valued at $122,222,607

[XenaLives]

oops - this is a link to my reply:

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174727308

This is a link to where I would like to discuss this:

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174727311

[XenaLives]

I remember visiting the Hershey factory when I was a kid, and I wouldn't drink milk at breakfast without some Hershey's syrup in it.

So a buy and hold mid '85 at around $3.50 would be worth $182 and up x52.

But if you bought it at around $280 during the COVID pump and dump you would be down 35%.

If you factor in inflation ....
https://www.in2013dollars.com/us/inflation/1955?amount=1
(note this is a very conservative figure, in 2013 dollars)

$1 in 1955 is worth $11.72 today

Value of $1 from 1955 to 2024

https://www.in2013dollars.com/us/inflation/1955?amount=1

Wouldn't the proper evaluation be 11.72X 182 /3.50 = $609.44

No wonder market insiders have taken over the country...

Please check my math for errors - this calculation goes from disconcerting to highway robbery....

[gfp927z]

>>> PepsiCo (NASDAQ: PEP), Deere (NYSE: DE), and Chevron (NYSE: CVX) stand out as three dividend stocks that have been underperforming the S&P 500 but look like excellent buys now. Here's why.


https://finance.yahoo.com/news/high-hopes-3-dirt-cheap-121500958.html


Put some pep in the step of your passive-income stream

In her 12-year stint as PepsiCo CEO, Indra Nooyi helped improve its brand and grow profits. Since taking over as CEO in October 2018, Ramon Laguarta has done a good job navigating many unexpected challenges, including the U.S.-China trade war, the worst of the pandemic, inflation, and supply chain bottlenecks. Effective management is extremely important, since every percentage point in margin can mean hundreds of millions of dollars.

For Pepsi, growth usually comes from new product developments, strategic acquisitions, or efficiency improvements. Nooyi was instrumental in helping Pepsi acquire Quaker Oats and Gatorade. But arguably the biggest deal under Laguarta's tenure has been with the energy drink company Celsius (NASDAQ: CELH).

The company entered a partnership with the upstart beverage company in August 2022. It included a $550 million cash investment in exchange for convertible stock, an estimated 8.5% ownership in Celsius on a converted basis, and a 5% annual dividend. As with other consumer goods companies, Celsius shares have pulled back recently, but there's plenty of reason to think the deal will pay off over the long term.

Celsius also benefits from using PepsiCo's strategic distribution network. It is a complicated business -- arguably far more complicated than its peer, Coca-Cola -- because PepsiCo operates its own production facilities compared to Coke's royalty/franchise model. PepsiCo is also involved in far more product categories besides beverages, like snacks and breakfast items, whereas Coke focuses on what it does best: beverages.

Pepsi has a lower market capitalization than Coke but generates roughly double the revenue and half the operating margin. Due to its size and business model, it is a bit more vulnerable than Coke. However, the company's past management and current leadership have a track record of effective capital allocation.

Hovering around a 52-week low with a 3.3% yield, over 50 years of consecutive dividend raises, and a 24.5 price-to-earnings (P/E) ratio, PepsiCo stands out as an excellent stock to buy and hold for years to come.

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>>> 4 Reasons to Buy Celsius Stock Like There's No Tomorrow


by Josh Kohn-Lindquist

The Motley Fool

Jun 19, 2024


https://finance.yahoo.com/news/4-reasons-buy-celsius-stock-091552096.html


By disrupting the energy drink duopoly owned by Red Bull and Monster, functional energy drink upstart Celsius (NASDAQ: CELH) has grown to account for 11.5% of its industry's U.S. sales -- becoming the only new brand to reach this mark in the last decade.

Now firmly the No. 3 brand in the energy drink space, Celsius is larger than the No. 4 and No. 5 labels combined. It's grown from a mere 3.5% share of its category two years ago to its current double-digit level, and the company has seen its share price more than double since 2022.

Now, with the company's share price down 35% over the last month due to short-term worries, the time looks right to buy Celsius, thanks to these four key reasons.

1. Celsius is unlocking new opportunities with PepsiCo

After signing a massive agreement with beverage giant PepsiCo (NASDAQ: PEP) in 2022, Celsius finally gained the distribution heft it needed to launch its sales into full hypergrowth mode. It averaged triple-digit sales growth in the two years following the deal. The company has picked most of the low-hanging fruit after joining PepsiCo's network. However, there should be plenty of growth remaining in this distribution agreement.

First, building upon its land-and-expand strategy, Celsius now looks to execute the "expand" portion of this game plan by growing the display space it has in all the new stores it recently entered with PepsiCo's help. In highlighting this point in its first-quarter 2024 earnings press release, management explained: "We estimate that retailers' spring shelf resets were approximately one-third complete as of March 31st, and once concluded, we are expecting our best shelf space gains in company history."

At an investor conference on June 11, CEO John Fieldy explained that labor shortages have led to delays on these shelf resets, but that gains should be evident over the summer and fall quarters.

Second, partnering with PepsiCo has opened Celsius up to the food service channel. Case volume for this vertical grew by 186% in Q1 and already accounts for 12% of Celsius' total sales made to PepsiCo. Not only will this burgeoning channel bring sales growth, but it should also increase brand awareness for Celsius drinks as they continue to become more common across a broader array of locations.

2. Top-notch margins

What makes Celsius' incredible sales growth over the last few years all the more impressive is that it already boasts a 19% net profit margin. While this profitability is relatively new, with the company only breaking even in 2023, it already ranks favorably compared to some of its massive beverage peers -- an incredible feat considering the company's rapid growth.

This robust net profit margin is a promising sign for shareholders, as high profitability tends to indicate pricing power for brands with loyal customer bases.

In addition, reaching profitability means that Celsius is now self-sufficient regarding its growth and will have excess cash to spend on potentially rewarding shareholders or expanding internationally.

Speaking of which...

3. International growth ambitions just starting

After signing several distribution agreements with Japanese beverage giant Suntory early in 2024, Celsius plans to expand into Australia, New Zealand, the U.K., Ireland, and France. Similarly, the company recently started selling in Canada after expanding its distribution agreement with PepsiCo.

With international sales only accounting for 5% of the company's total revenue, these foreign markets could represent the next chapter of the Celsius growth story. To put the length of this growth runway for Celsius in perspective, consider that energy drink peer Monster generated 37% of its total sales from international markets in the fourth quarter of 2023.

The company generated $16 million in international sales in its latest quarter, compared to Monster's $637 million. Celsius could have decades of growth remaining in front of it should it continue to disrupt the energy drink industry globally.

4. A more reasonable valuation

With the company's share price down 35% in the last month due to short-term worries about a few weeks of sales data, the time might be right for long-term investors to reconsider adding to their Celsius position. While the company still trades at a lofty 57 times forward earnings, this is much more reasonable than the mid-80s figure it traded at one month ago.

While this is nearly three times the S&P 500's forward P/E (price-to-earnings) ratio of 21, analysts expect Celsius to grow its bottom line by 40% in 2024, compared to just 9% for the index as a whole.

Ultimately, despite its premium valuation, the four factors listed here show that Celsius still has plenty of room to run -- but investors should be ready for a turbulent ride along the way.

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>>> 'Unhealthy dose' of pesticides found in popular produce, new report reveals


Fox Business

by Daniella Genovese

4-18-24


https://www.msn.com/en-us/health/nutrition/unhealthy-dose-of-pesticides-found-in-popular-produce-new-report-reveals/ar-AA1ng5bH?cvid=be3ca3c907324f41e3c5957f5501587a&ei=46


About 20% of all fruits and vegetables examined by Consumer Reports in a new report revealed an "unhealthy dose of dangerous pesticides."

Consumer Reports published the report — its "most comprehensive review" of pesticides in food to date — after analyzing 59 common fruits and vegetables, which included fresh, canned, dried and frozen products.

"Our new results continue to raise red flags. Pesticides posed significant risks in 20 percent of the foods we examined," Consumer Reports said.

CHEMICAL FOUND IN CHEERIOS, QUAKER OATS, OTHER OAT-BASED FOODS LINKED TO POTENTIAL HEALTH ISSUES: STUDY

Bell peppers, blueberries, potatoes and strawberries were included in the report, as well as green beans, which "had residues of a pesticide that hasn’t been allowed to be used on the vegetable in the U.S. for over a decade," according to the report.

"Imported produce, especially some from Mexico, was particularly likely to carry risky levels of pesticide residues," the organization said.

CHLORMEQUAT: WHAT IS THE CHEMICAL FOUND IN CHEERIOS, QUAKER OATS?

Consumer Reports analyzed seven years of data from the Department of Agriculture, which every year tests a selection of conventional and organic produce grown in or imported to the U.S. for pesticide residues.

Certain chemicals are used by farmers to control bugs, fungi and weeds. However, some of these chemicals carry "unacceptable health risks."

Consumer Reports said that certain "notorious pesticides, such as DDT, have been banned in the U.S." but claimed that government regulators have been slow to ban others. Additionally, the outlet argued that when a dangerous chemical is removed from the market, chemical companies and growers, in some cases, start relying on "other options that may be as dangerous."

Consumer Reports said that it has been tracking the use of pesticides on produce for decades and has "seen this pattern repeat itself over and over."

On the other hand, it said pesticides "presented little to worry about in nearly two-thirds of the foods," which included nearly everything that was organic.

According to Consumer Reports' analysis, "the largest risks are caused by just a few pesticides, concentrated in a handful of foods, grown on a small fraction of U.S. farmland."

According to its analysis, about 16 of the 25 fruits and about 21 of the 34 vegetables tested showed low levels of pesticide risk. This means that kids and those who are pregnant can safely consume more than three servings a day of those foods, Consumer Reports food safety experts said.

Ten foods were of moderate risk. This means up to three servings a day were safe to consume.

A dozen foods "presented bigger concerns." This means kids and pregnant women should consume less than a serving a day of high-risk fruits and vegetables. They should also consume less than half a serving per day of very high-risk ones, Consumer Reports said.

"Everyone else should limit consumption of those foods, too," it said.

Consumer Reports created a list of six conventionally grown fruits and vegetables where pesticides pose a serious problem and possible substitutions for them.

Substitutions: organic blueberries did well and fresh domestic strawberries fared okay.

Substitutions: organic bell peppers are the best choice or to consume this food "sparingly."

Hot peppers also posed a "high risk," Consumer Reports said.

Substitutions: sweet potatoes pose a low risk.

Substitutions: snap peas pose a low risk. Organic green beans grown domestically are also a good substitute.

Substitutions: organic kale and mustard greens as well as broccoli all pose a very low risk.

Fresh spinach, which is also a better choice, poses a moderate risk.

Substitutions: organic watermelon. Cantaloupe also poses a very low risk.

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>>> Cal-Maine Foods, largest producer of eggs in US, finds bird flu in chickens at Texas plant


USA Today

by Natalie Neysa Alund

April 3, 2024


https://www.yahoo.com/news/cal-maine-foods-largest-producer-132035566.html


The largest supplier of eggs in the United States halted production after chickens at a Texas plant tested positive for the highly contagious bird flu - the latest in a spike of cases across the nation.

Cal-Maine Foods on Tuesday announced chickens at its facility in Parmer County, in the state's southwestern panhandle, tested positive for pathogenic avian influenza (HPAI) resulting in slaughter of nearly 2 million chickens - 1.6 million hens and 337,000 pullets (young hens).

The announcement less than 24 hours after the Centers for Disease Control reported a person in Texas had been infected with the virus after coming into close contact with dairy cattle and just over a week after sick dairy cattle in Texas and Kansas tested positive for the virus.

The culled Texas chickens represent about 3.6% of the company’s total flock as of Tuesday, the supplier wrote in a news release.

Production at the Texas facility temporarily ceased while the company follows the protocols prescribed by the U.S. Department of Agriculture, the company said.

Bird flu is spreading in a few states: Keeping your bird feeders clean can help

Cal-Maine Foods is largest producer of eggs in the nation

Headquartered in Ridgeland, Mississippi, Cal-Maine Foods is the largest producer and distributor of fresh shell eggs in the nation and said it sells most of its eggs in states across the Southwest, Southeast, Midwest and MidAtlantic.

The company said it "remains dedicated to robust biosecurity programs across its locations; however, no farm is immune from HPAI. HPAI is still present in the wild bird population and the extent of possible future outbreaks, with heightened risk during the migration seasons, cannot be predicted."

Cal-Maine Foods said it was working "to secure production from other facilities" to minimize disruption to its customers.

Human case of bird flu found in Texas: Case comes on heels of outbreak of virus among cattle

Person infected with bird flu in Texas

In a separate news alert this week, the Texas Department of State Health Services reported the patient became "ill following contact with cows presumed to be infected with avian influenza" and that their primary symptom was conjunctivitis, also known as pink eye.

The person who tested positive for bird flu in Texas is only the second known human case in the United States, state and federal officials said this week.

Bird flu in dairy cattle in Kansas, Texas

Last week the USDA announced last week HPAI had been found in unpasteurized clinical samples of milk from ill cows at two dairy farms in Kansas and one in Texas, plus a swab from a dairy cow in Texas.

Wild migratory birds are believed to be the source of the infection, the USDA said, and viral testing and epidemiologic efforts remained underway.

What is bird flu?

Bird flu is a disease caused by a family of flu viruses primarily transmitted among birds.

Avian influenza viruses, according to the CDC and USDA, are classified into two groups: low pathogenic avian influenza (LPAI) (often seen in wild birds) and HPAI, found mostly in domestic poultry. According to the CDC, LPAI viruses cause mild or no disease, and HPAI cause severe disease and high mortality rates in infected birds.

Bird flu has cost the government roughly $660 million and in recent times raised the price of eggs and poultry. At least 58 million birds were slaughtered last year to limit the spread of the virus.

Bird flu spread to humans is low risk, USDA says

The first case of avian influenza in a person in the United States was reported in Colorado in April 2022.

Federal and state health authorities are investigating the outbreaks, and the USDA said the risk to the general public contracting is low as the viruses have only rarely been transmitted from person to person.

"However, people with close contact with affected animals suspected of having avian influenza A have a higher risk of infection," Texas health officials wrote in a news alert earlier this week.

Bird flu symptoms in humans

Human infection with the bird flu can happen during close contact with infected birds or when people touch sick birds or their saliva, mucus and feces, the CDC said. People contract the virus when it gets into a their eyes, nose or mouth, or when it is inhaled.

Those who contract the virus often experience mild illnesses including an eye infection and upper respiratory symptoms or no symptoms at all, while others can develop a severe sometimes fatal disease like pneumonia.

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Hershey - >>> Sweet never goes out of style.

https://finance.yahoo.com/news/2-magnificent-stocks-buy-now-120000628.html

Hershey is on a completely different end of the spectrum. It makes chocolate and salty snacks. It's not a complex business model, but that can be good.

It's the brand that makes Hershey special. There are other confectionary companies on the market, but Hershey's name goes back over a century and its brands are routinely among Americans' favorites year-round. Who doesn't love a Hershey bar, Kit Kat, Twizzlers, Heath Bar, Jolly Rancher hard candies, or a Reese's peanut butter cup?

The company's popularity means it gets prime shelf space at points of sale, much like Coca-Cola and PepsiCo do in the beverage industry. Hershey has an estimated 24% of the U.S. confectionary market, an impressive figure considering any company can make chocolate bars. It's the brand that makes the magic.

That translates to financials, too. Hershey is a simple and highly profitable business that earns an impressive 22% return on invested capital. That means that when Hershey pumps a dollar into its business, it gets $1.22 back. This signals that Hershey has pricing power, which is helping the company deal with a surge in cocoa prices that threatens to pressure its profit margins.

While that's bad news for the company, it's creating an opportunity for long-term investors. Shares have fallen to a price-to-earnings ratio of 20, below the company's long-term average.

Over time, it should adapt to the higher cocoa prices, and there's a good chance the shortage will end and prices will normalize again. In other words, use a short-term problem to buy this excellent stock and enjoy the following years of dividends and price appreciation.

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>>> Performance Food Group Company (NYSE:PFGC)

https://finance.yahoo.com/news/11-best-organic-food-farming-085134305.html

Number of Hedge Fund Holders: 34

Performance Food Group Company (NYSE:PFGC) is an American company that sells food and food-related products. The company operates through three divisions; Performance Foodservice, Vistar, and PFG Customized. Performance Food Group Company (NYSE:PFGC)’s Vistar “Good to Go” Program has more than 1800 organic, vegan, non-GMO, and gluten-free products.

For FY 23, Performance Food Group Company (NYSE:PFGC) was able to generate $57.3 billion in revenue, up 12.5% from the previous year. The company’s net income increased over 250% YoY to around $397.2 million.

Performance Food Group Company (NYSE:PFGC) is expected to report its Q1 2024 earnings on November 8. The company management is expecting its net sales to be between $14.7 billion to $15 billion, compared to the market estimates of $15.22 billion. For the full year, Performance Food Group Company (NYSE:PFGC) expects its net sales to be in the range of $59 billion to $60 billion.

General Mills, Inc. (NYSE:GIS), Corteva, Inc. (NYSE:CTVA), and The Kroger Co. (NYSE:KR) are some of the best organic food and farming stocks along with Performance Food Group Company (NYSE:PFGC).

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>>> CELSIUS® to Expand to Australia and New Zealand


PR Newswire

March 26, 2024


https://finance.yahoo.com/news/celsius-expand-australia-zealand-130700344.html


CELSIUS and Suntory Oceania enter into definitive manufacturing, sales and distribution agreement

BOCA RATON, Fla., March 26, 2024 /PRNewswire/ -- Celsius Holdings, Inc. (Nasdaq: CELH), maker of energy drink brand CELSIUS®, today announced plans to expand into new international markets, growing the company's global sales and distribution footprint to include Australia and New Zealand.

"We're pleased to introduce our refreshing, great tasting and functional CELSIUS energy drinks to consumers in Australia and New Zealand," said John Fieldly, Celsius Holdings, Inc. Chairman and CEO. "We expect to continue our international growth at a measured pace, targeting strategically important energy drink markets and employing our proven playbook to build a strong and passionate consumer base."

CELSIUS has selected Suntory Oceania as its exclusive manufacturing, sales and distribution partner in Australia and New Zealand. CELSIUS previously announced a sales and distribution agreement with Suntory Beverage & Food Great Britain and Ireland, and sales in those markets are expected to begin in the second quarter of 2024.

"We are excited to launch our strategic plan in Q4 2024 across the retail landscapes of Australia and New Zealand, and we look forward to accelerating growth in 2025," said Tony Guilfoyle, Celsius Holdings, Inc. Chief Commercial Officer.

"CELSIUS is a brand which is breaking new ground and delivering a totally different consumer experience," said Darren Fullerton, CEO of Suntory Beverage & Food Oceania. "As we build Suntory Oceania, we are delighted to be partnering with CELSIUS to evolve our portfolio and deliver new growth opportunities for all retail partners."

About Celsius Holdings, Inc.

Celsius Holdings, Inc. (Nasdaq: CELH) is the maker of energy drink brand CELSIUS®, a lifestyle energy drink born in fitness and a pioneer in the rapidly growing energy category. For more information, please visit https://www.celsius.com.

About Suntory Oceania

Underpinned by quality craftsmanship and a strong sense of purpose, Beam Suntory and Suntory Beverage & Food (TSE: 2587) are partnering to create a new multi-beverage powerhouse – Suntory Oceania. The partnership will be fully operational in Australia in mid-2025 and 2026 in New Zealand.

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>>> Where Will Celsius Holdings Stock Be in 10 Years?


by Anders Bylund

Motley Fool

March 19, 2024


https://finance.yahoo.com/news/where-celsius-holdings-stock-10-183700105.html


Energy drink stocks have been on a hypercaffeinated roll since Red Bull and Monster Beverage (NASDAQ: MNST) started dueling around the turn of the millennium. The latest serious contender is Celsius Holdings (NASDAQ: CELH), a health-focused drink designer with a global distribution deal, skyrocketing sales, and an 8% share of the convenience store and gas station market in North America.

Celsius is participating in a long and heated market battle. Known as Hansen Natural at the time, Monster brewed its first energy drink in April 2002 and has never looked back. The stock has gained a heart-stopping 144,000% since then, turning a hypothetical $350 investment into half a million dollars.

Challengers have come and gone over roughly two decades, but none have had the staying power of Monster and Red Bull. That won't stop even more rivals from entering the ring to capture a respectable slice of that ever-booming energy drink market.

Will Celsius follow in Monster's and Red Bull's red-hot footsteps? From here, Celsius and its stock can go three different ways.

The bull case for Celsius

In a perfect world, the global distribution deal with PepsiCo (NASDAQ: PEP) sets Celsius up for long-term success. Putting the unfamiliar drink brand in front of billions of consumers, the top-notch distribution network raises awareness of the company's healthier energy drinks. The worldwide interest in organic, low-salt, and vegan foods continues for years and years, further boosting Celsius' growth prospects.

In this scenario, the best is yet to come. The $8.9 billion market cap and $1.3 billion of annual sales you see today could become comparable to Monster's 2023 tally of $53 billion and $7.1 billion, respectively.

Of course, Neither Celsius nor Red Bull will sit on their hands while Celsius rises, so the third-place challenger may still have more catching up to do before truly joining the ruckus at the very top of the energy drink market. Still, history suggests that Celsius might be able to grow both its sales and market value fivefold over the next decade.

Not too shabby, right?

The bear case against Celsius

On the other hand, the bull case assumes that Celsius comes up aces in every challenge along the way. Many things could go horribly wrong instead.

Consumer habits are notoriously fickle, and the health craze could very well cool down. That would be terrible news for Celsius, whose entire existence is based on a health-conscious alternative to traditional energy drinks.

Or, the health trend could take a sharp turn in the other direction. Imagine a world where consumers turn up their noses on every kind of energy drink, no matter how health-focused it might be. And governments in key markets like the U.S. and Western Europe might consider halting the sales of caffeinated drinks not named coffee, putting up brick walls in front of every growth rocket in this category.

Monster is notoriously litigious. The company sued up-and-comer Vital Pharmaceuticals in 2018, collecting enough damages to drive the Bang Energy maker out of business. Then, Monster bought what was left at a pennies-on-the-dollar bankruptcy discount. I don't know whether Monster would have a substantial case for doing the same to Celsius -- and PepsiCo should intervene with its deep pockets and access to high-powered law firms -- but you never know.

I'm not saying that any of these extreme downturns are especially likely, but the risks are real enough. At the very least, challenges like these will probably hold Celsius' skyrocketing growth back a bit.

Realistically, the company should land between these extremes

I may share a first name with innovative physicist Anders Celsius, but that doesn't give me any special insights into our energy-drink namesake's business prospects. In my view, the company faces a promising growth market, but also a couple of powerful rivals and dominant market shares. As a result, Celsius looks like a promising growth stock with a couple of significant headwinds.

Is Celsius a buy with these 10-year prospects?

Investor enthusiasm is also running a bit hotter than I'd like, driving Celsius stock to lofty valuation ratios such as 114 times earnings and 168 times free cash flow. Monster Beverage looks like a bargain by comparison, and true value investors should consider taking part in the Celsius story by investing in distribution partner PepsiCo instead.

So Celsius Holdings is most definitely not every investor's dream stock. You may want to consider a small, speculative stake in this interesting growth story, but only as an extra-small part of a diversified portfolio. Companies heading into direct competition with Monster and Red Bull often fall short of their early goals.

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>>> Celsius: Up 64%

https://finance.yahoo.com/news/3-stocks-way-doubling-2024-123000087.html

Shares of Celsius are sparkling this year, and that's fitting since it's a fast-growing player in sparkling functional beverages. This year's initial jump isn't a fluke. The stock has more than tripled over the past year. Celsius is a five-bagger over the past three years and a jaw-dropping 63-bagger over the past five years.

Growth will inevitably slow for its product line of juice-flavored beverages that help burn fat and calories. But for now, Celsius continues to defy gravity. Bears figured the growth would end last year. They were wrong. They thought the same thing the year before. They were really wrong. This is probably a good time to point out that short interest hit at an all-time high this month.

Revenue has more than doubled for three consecutive years. The company is also profitable, with double-digit percentage beats in every single quarter of 2023.

Stateside growth will slow, but it's time for international growth to take over. Celsius announced three new international expansion markets earlier this year, something worth watching since international sales currently account for just 4% of its top-line results.

Let's close with a data point that may blow you away. Set aside the energy drink maker's tendency to blow through profit targets: The beverage stock is a 62-bagger over the past five years, and it's trading for 57 times next year's earnings. You could've bought all of Celsius five years ago for less than what it should earn next year.

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Morgan Stanley upgrades Pepsi - >>> Here's Why PepsiCo Stock Popped Today


by Jon Quast

Motley Fool

March 18, 2024


https://finance.yahoo.com/news/heres-why-pepsico-stock-popped-192623777.html


Shares of beverage and snacking giant PepsiCo (NASDAQ: PEP) popped on Monday after an analyst upgraded his outlook and raised his price target. As of 1:15 p.m. ET, Pepsi stock was up 4%, which is a big move for this usually sleepy stock.

Pepsi's most exciting opportunity

Morgan Stanley analyst Dara Mohsenian is one of the highest-rated and listened-to analysts out there and he's turning heads with his commentary on Pepsi stock today. Mohsenian reportedly is looking to Pepsi's growth in international markets and the valuation of its stock as reasons for bullishness. Accordingly, the analyst raised the price target for Pepsi stock to $190 per share, according to The Fly.

Mohsenian isn't alone in his bullishness for Pepsi in international markets; CEO Roman Laguarta shares his optimism. In the earnings call for the fourth quarter of 2023, Laguarta said, "The international opportunity continues to be probably the most remarkable and exciting opportunity that we have as a company."

Considering Pepsi is a business valued at over $230 billion, that's a big deal and why the market is excited today.

Is Pepsi stock undervalued?

Regarding Pepsi's valuation, it looks pretty average to me, which differs from Mohsenian's belief that the valuation is cheap. Its current price-to-earnings (P/E) ratio is 26, which is right at its 10-year average.

That said, the reason that Laguarta is excited about Pepsi's growth in international markets is because it's now almost a $40 billion business outside of the U.S., gaining enough scale to have better profit margins. Therefore, as business grows in those markets, profits should grow at a faster pace.

In light of this, it's possible that Pepsi's profits could go up faster than what some investors expect in coming years. If that happens, then perhaps Pepsi is undervalued on a forward basis even if its valuation looks average on a trailing basis. In this case, Mohsenian's point is well taken and his price target of $190 would be easily attainable.

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>>> Celsius Holdings, Inc. (CELH) develops, processes, markets, distributes, and sells functional energy drinks and liquid supplements in the United States, Canadian, European, Middle Eastern, Asia-Pacific, and internationally. The company offers CELSIUS, a fitness drink or supplement designed to accelerate metabolism and burn body fat; various flavors and carbonated and non-carbonated functional energy drinks under the CELSIUS Originals and Vibe name, as well as functional energy drink under the CELSIUS Essentials and CELSIUS On-the-Go Powder names; and CELSIUS ready-to drink products. It distributes its products through direct-to-store delivery, distributors, supermarkets, convenience stores, drug stores, nutritional stores, and mass merchants, as well as health clubs, gyms, the military, and e-commerce websites. The company was formerly known as Vector Ventures, Inc. and changed its name to Celsius Holdings, Inc. in January 2007. Celsius Holdings, Inc. was founded in 2004 and is headquartered in Boca Raton, Florida.

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>>> Hershey Says ‘Historic’ Cocoa Inflation Could Push Prices Higher


Bloomberg

by Deena Shanker

Feb 8, 2024


https://finance.yahoo.com/news/hershey-says-historic-cocoa-inflation-145226480.html


(Bloomberg) -- Cocoa prices are climbing fast, and Hershey Co. may continue raising prices to keep up.

Prices for the all-important ingredient are reaching “historic” levels, Chief Executive Officer Michele Buck said in the company’s earnings statement Thursday. While the company says its marketing plans, innovation and productivity efforts will help soften the blow, the higher costs are “expected to limit earnings growth this year,” she said.

New York cocoa futures hit a record Thursday morning, after a year that saw prices double as West African growers got hit with extreme weather.

The Reese’s maker said its fourth-quarter confectionery sales in North America increased 2.1%, with prices up but volumes down. It expects net sales to grow 2% to 3% in 2024, mostly driven by higher prices the company has already planned. And prices could go up still more.

Commodities are seeing low-double-digit percentage inflation, Chief Financial Officer Steve Voskuil said on the call with analysts, with cocoa and sugar as the most inflationary. Noncommodity inflation, he said, is much lower, at mid-single digits, putting the average inflation rate for the company at high single digits.

“We can’t talk about future pricing,” Buck said, but added, “given where cocoa prices are, we will be using every tool in our toolbox, including pricing, as a way to manage the business.” If prices do go up, the company will see that benefit in the second half of 2024 and into 2025, she said.

Hershey shares rose as much as 5.5% in New York trading, the most since July 2020. The stock is up 4.2% this year through Wednesday, outpacing the 2.7% gain of the S&P 500 consumer-staples index.

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>>> Is Hershey Warren Buffett's Kind of Business?


Motley Fool

By Brett Schafer

Jun 30, 2021


https://www.fool.com/investing/2021/06/30/is-hershey-warren-buffetts-kind-of-business/


The Oracle of Omaha may be going after the candy giant.

Last week, a report came out that Hershey's (HSY) corporate jet recently flew to Omaha, Nebraska, where Warren Buffett's conglomerate Berkshire Hathaway (BRK.B) is headquartered. It's unknown what the jet was doing in Omaha, but analyst Don Bilson of Gordon Hackett's research team speculated that the Oracle of Omaha may be looking to acquire the chocolate company.

Bilson has been right with these reports in the past, predicting Berkshire's financing of Occidental Petroleum's takeover of Anadarko Petroleum after tracking the company's jet back in 2019. What would a Hershey deal mean for Berkshire Hathaway? Let's take a look.

What Hershey owns

Milton Hershey founded the Hershey Chocolate company more than 125 years ago. In 1900, the first Hershey bar was sold, and the company hasn't looked back since.

Hershey's still sells its famous chocolate bars around the globe but has bought and incubated many other candy and snack brands over the years. Its current portfolio includes popular brands like Hershey bars and kisses, Reese's, Twizzlers, and Ice Breakers. It also has new, health-focused brands like Skinny Pop, which have helped the company grow, as well.

The business is as steady as it comes

Chocolate and candy bars may be considered simple or even "boring" by many investors, but Hershey's stock has put up fantastic returns over the long haul. Since 1972, shares have gone up 14,000%, while the S&P 500 has "only" grown 4,000% over that time span. And those returns don't include the consistent dividend Hershey pays out to shareholders, which currently yields 1.84%.

Why has Hershey's stock done so well over the long term? There are many factors, but the main reason is that it has consistently grown its free cash flow. Before 2000, Hershey generated well below $500 million in free cash flow a year. Over the last 12 months, it generated over $1.6 billion in free cash flow. Couple that with the fact Hershey's share count has gone from 360 million in 1992 down to 206 million today, and you can see why the stock has done so well over the decades.

What it could mean for Berkshire Hathaway

Hershey has all the makings of a Berkshire Hathaway subsidiary. Buffett already owns junk-food companies like Sees Candies and Dairy Queen, while also owning large chunks of Coca-Cola and McDonald's stock. He loves businesses that are incredibly predictable like candy, which is why investors speculate he would love owning Hershey under the Berkshire umbrella. And while many governments are cracking down and regulating sugar consumption around the world, people will likely be consuming chocolate 50 years from now, just as they did 50 years ago.

On top of being a Buffett-style business, Hershey's may only have one suitor -- Berkshire. The Hershey Trust Company has over 80% of the voting rights of Hershey stock and likely doesn't want a buyer that would interfere with the business operations. Berkshire Hathaway famously has a hands-off approach with its subsidiaries, which could help in negotiations with Hershey shareholders.

One thing Buffett may not like is the price he would have to pay to acquire the Hershey company. The stock currently trades at a market cap of $36 billion, giving it a price-to-free-cash-flow (P/FCF) of 22.5. This doesn't look expensive on a trailing basis, but Buffett hates to overpay for a business and would likely need to offer a decent premium to Hershey's current market cap to convince the Hershey Trust to sell.

With over $145 billion in cash on its balance sheet, Berkshire has plenty of ammo to do a Hershey deal. Unless he can get it at a reasonable price, however, Buffett's unlikely to pull the trigger and buy the Hershey company.

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>>> Hershey (HSY) Down More Than 20% in 6 Months: Here's Why


Zacks Equity Research

January 12, 2024


https://finance.yahoo.com/news/hershey-hsy-down-more-20-184700374.html


The Hershey Company HSY appears to be in a tight spot thanks to rising expenses. The leading snacks company’s international presence keeps it exposed to risks of unfavorable currency rates. A soft macroeconomic environment is a threat to the company.

Shares of the Zacks Rank #4 (Sell) company have slumped 20.2% in the past six months compared with the industry’s 17.3% decline. The stock has underperformed the Zacks Consumer Staple sector’s 2.8% drop.

Let’s discuss this in detail.

Cost Concerns Stay

Hershey has been grappling with higher selling, marketing and administrative expenses for a while. In the third quarter of 2023, the company’s SG&A expenses rose 13.1% on increased levels of media and capability investments. Selling, marketing and administrative expenses, excluding advertising and related consumer marketing, increased 9.9% due to wage and benefits inflation, capability and technology investments.

Management had highlighted that it expects advertising spending to grow to double-digits in the fourth quarter as it continues to support the sell-through of seasonal items and starts to reactivate the Salty Snacks brands post-ERP transition. The company expects non-advertising SG&A spending to rise in low-single-digits, reflecting some increase in technology and capability investments.

Currency Headwinds

Owing to Hershey’s solid international presence, the company is exposed to unfavorable currency fluctuations. The weakening of foreign currencies against the U.S. dollar may require the company to either raise prices or contract profit margins in locations outside the country. Indeed, the volatility in exchange rates is a concern for the company.

Soft Macroeconomic Environment

Hershey is dependent on the consumer discretionary spending environment, which is affected by general macroeconomic conditions like consumer confidence and employment levels. Hershey recently highlighted that it is seeing customers cutting back on discretionary purchases, looking for deals, shopping at discount channels and buying more petite sizes. The North American food industry is exposed to shifting consumer preferences, changes in consumer dynamics, demographic shifts and a spending shift toward lower-priced products.

Wrapping Up

The company continues to invest in its brands and capabilities to drive growth. Additionally, buyouts have been adding to its portfolio strength. Effective pricing actions have been working for Hershey. However, let’s see if these upsides can help HSY stay afloat amid such hurdles.

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>>> PepsiCo Is Known for Sodas Such as Pepsi and Mountain Dew. But Almost 50% of Its Profits Comes From Something Else Entirely.


by Jon Quast

The Motley Fool

December 31, 2023


https://finance.yahoo.com/news/pepsico-known-sodas-pepsi-mountain-165723426.html


The granddaddy of the colas is The Coca-Cola Company, with the Coca-Cola brand launching in 1886. The Pepsi-Cola Company, now PepsiCo (NASDAQ: PEP), wasn't far behind with its own Pepsi-Cola drink in 1898. And the two have locked horns for cola supremacy ever since.

Neither Coke nor Pepsi was able to take down its cola competitor. So it wasn't long before these two companies upped the ante by developing comprehensive soda-brand portfolios. Nowadays, PepsiCo sells well-known sodas such as Mountain Dew, Pepsi Wild Cherry, Mug Root Beer, Crush, and Starry in addition to its eponymous Pepsi.

PepsiCo built its portfolio by making several key acquisitions. Its 1964 acquisition of Mountain Dew was especially crucial to its present-day success. In the U.S. carbonated soft-drink market, Mountain Dew had 6.6% market share in 2022, according to Statista. I'd say that buyout worked out quite well.

Pepsi's Mountain Dew acquisition was huge. But a merger the following year was even more significant for the company and its shareholders.

It has nothing to do with carbonated soft drinks. But almost half of Pepsi's profits today are derived from a source that would have shocked the beverage company's founders.

When a beverage company dreamed bigger

In 1965, Pepsi-Cola merged with Frito-Lay -- a snack company with a portfolio that today includes Lay's, Fritos, Doritos, Cheetos, Funyuns, Spitz, Cracker Jack, and more. This was a strong departure for a business formerly focused entirely on carbonated soft drinks. But it was a good move.

Through the first three quarters of 2023, PepsiCo's Frito-Lay North America business segment has generated revenue of $17.4 billion. That's nearly as big as its Beverages North America segment's revenue of $19.7 billion.

In North America, Pepsi's snack revenue nearly matches the revenue from beverages. But these snack foods actually have better profit margins. Frito-Lay's operating income of $4.9 billion is better than operating income of just $2.2 billion for beverages.

Not only is Frito-Lay's operating income higher than beverages, it's also accounted for 48% of PepsiCo's total operating income year to date. In short, if Pepsi hadn't pivoted to snacks nearly 60 years ago, it would be half the company that it is today.

Why it matters for investors

There are so many potential takeaways with an observation like this for PepsiCo. For starters, as one of the largest beverage companies in the world both then and now, Pepsi's growth would have been more limited if it had stayed completely within its core competency. Expanding outside of it into an adjacent market with robust cross-promotion opportunities made a lot of sense.

It's similar to what Hershey is doing now, extending beyond candy and into snack items such as pretzels and popcorn.

More broadly, companies that can expand beyond core competencies often make good investments; this trait is known as optionality. Many companies attempt to branch out and few do it well. But PepsiCo is one of the grand success stories.

PepsiCo's blend of beverage revenue and snack sales has an additional benefit for shareholders: It's a potentially more reliable business because it has greater diversity.

All other things being equal, I would choose PepsiCo stock over a pure-play beverage company because of this stabilizing quality. If headwinds blow in the carbonated soft-drink industry for whatever reason, PepsiCo has another part of the business that can help carry it through the challenges.

That's particularly good news for dividend investors. PepsiCo has raised its dividend for 51 consecutive years, making it a Dividend King. Many investors choose to invest in these companies for their predictable dividend payments. Having a diverse business makes it more likely that PepsiCo won't get knocked off the list by a sudden shock to its business.

And it's all possible because the management team for The Pepsi-Cola Company -- a beverage business -- had the foresight to branch into an entirely different arena when it merged with snacking company Frito-Lay.

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>>> Mondelez International, Inc. (MDLZ)


https://www.insidermonkey.com/blog/5-best-mario-gabelli-stocks-other-billionaires-are-also-piling-into-1235826/


Number of Billionaire Investors In Q3 2023: 14

Mondelez International, Inc. (NASDAQ:MDLZ) is an American confectionery company known for its well known snacks such as Oreo, Cadbury Dairy Milk, and Toblerone. The firm has beaten analyst EPS estimates in all four of its latest quarters and the shares are rated Strong Buy on average with an average share price target of $80.45.

For their Q3 2023 shareholdings, 51 out of the 910 hedge funds surveyed by Insider Monkey had bought and owned Mondelez International, Inc. (NASDAQ:MDLZ)’s shares. Brandon Haley’s Holocene Advisors was the largest shareholder due to its $278 million investment.

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>>> PepsiCo (PEP) -- In times of market turbulence, I believe it pays to have some mega-cap stalwarts in your portfolio that can weather any economic environment. In this regard, one of my favorite defensive names continues to be PepsiCo (NASDAQ:PEP). The global snacks and beverages leader once again demonstrated its resilience this quarter.


https://finance.yahoo.com/news/7-perfect-stock-picks-moody-204445345.html


PepsiCo delivered 10.4% revenue growth in Q2, surpassing expectations. Operating margins also rebounded to 11.6% from 10.1%. The company saw broad-based growth across its portfolio, with particular strength overseas. PepsiCo has incredible pricing power, managing double-digit price hikes amidst inflationary pressures. Additionally, volumes have remained resilient as customers continue to reach for PepsiCo’s diversified offerings.

Furthermore, PepsiCo anticipates 7.5% organic revenue growth for the full year. While the company does expect volumes to moderate, its scale, distribution reach, and brand equity provide confidence it can power through any economic slowdown. Notably, PepsiCo has an exceptional track record of steadily expanding earnings per share, targeting 7% annual growth.

Between its 2.9% dividend yield and frequent buybacks, PepsiCo also returns ample cash to shareholders. The stock may seem a bit pricey near 23-times forward earnings. But for a high-quality, defensive name like PepsiCo, I believe investors should pay up for the stability. This remains a core long-term holding.

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>>> Better Buy: Coca-Cola vs. PepsiCo


Motley Fool

By Stefon Walters

Sep 28, 2023


https://www.fool.com/investing/2023/09/28/better-buy-coca-cola-vs-pepsico/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


KEY POINTS

Coca-Cola's higher margins are a testament to its efficiency and pricing power.

PepsiCo's broad portfolio helps hedge against declining demand in the beverage market.

Both have increased their dividend annually for decades -- making them Dividend Kings.


Investors can't go wrong with either choice, but one stands out as the better long-term option.

When it comes to non-alcoholic beverage companies, there's Coca-Cola (KO) and PepsiCo (PEP) -- and then there's everyone else. In the U.S., the two account for around 71% of the carbonated soft drink market. The dominance of that duopoly makes them attractive investment opportunities.

For investors looking to invest in one of these companies, there's no "wrong" option to go with here. However, each company has its own unique strengths and focus areas. Let's see which offers a more compelling case for investors looking to choose one to add to their portfolio.

Coca-Cola's financials seem to be stronger

Coca-Cola is the market leader in non-alcoholic beverages, but one thing that may surprise people is just how much more revenue PepsiCo brings in. In Q2 2023, Coca-Cola made around $12 billion in revenue, more than $10 billion less than PepsiCo made.

Despite the gap in revenue, both companies are similar in net incomes, which is a testament to Coca-Cola's profit margins.

Higher profit margins are important because they give companies more financial flexibility. Higher margins generally come with more cash flow, which companies use for things like research and development, acquisitions, and paying dividends.

Coca-Cola can operate at higher margins largely because of its focus on beverages, operational efficiency, and the pricing power it has thanks to its strong brands. PepsiCo's margins aren't shabby by any means, but its broader business means it has more complexities to deal with, which can lower efficiency.

There's a difference in portfolio diversification

PepsiCo's revenue gap over Coca-Cola can be attributed to its larger portfolio that includes beverages, snacks, and nutrition products. Coca-Cola's portfolio only consists of beverages. Both have iconic brands, including, but not limited to, the following:

Coca-Cola: Coca-Cola, Sprite, Powerade, Dasani, and Minute Maid.

PepsiCo: Pepsi, Gatorade, Lay's, Doritos, and Aquafina.

PepsiCo's vast portfolio can help provide a cushion during times when beverage sales may lag or consumer preferences shift. Coca-Cola dominates the beverage segment, but PepsiCo's diverse portfolio allows it to take advantage of consumer trends across multiple categories.

A good example would be PepsiCo's introduction of products tailored to health-conscious consumers, among them Naked Juice for vegetable and fruit-based smoothies, whole grain breakfast options, and sugar-free, zero-calorie alternatives to traditional sodas.

Both companies have admirable dividends

Regarding dividends, Coca-Cola leads PepsiCo slightly. At their current share prices, Coca-Cola has a 3.2% yield compared to PepsiCo's 2.8%.

Coca-Cola has increased its dividend annually for 61 straight years while PepsiCo has a 50-year streak, so both are Dividend Kings. However, PepsiCo has been increasing its dividend by larger percentages in recent years. PepsiCo has boosted its payouts by 36% in the past five years compared to Coca-Cola's 18%.

Dividend yields fluctuate with stock price, so you don't want yield to be a determining factor in your investment thesis, but it's important nonetheless. Maybe more important, though, is the sustainability of the dividend.

Neither Coca-Cola nor PepsiCo is in danger of needing to cut their dividends, but it's worth noting how much lower Coca-Cola's 56% dividend payout ratio is than PepsiCo's 81%. Coca-Cola's lower payout ratio gives it more flexibility to reinvest in the business or potentially accelerate its dividend increases.

Which should investors go with?

For long-term investors, the better choice now seems to be Coca-Cola. The stock is more expensive, with a price-to-sales ratio of 5.6 compared to PepsiCo's 2.7, but it has the foundation to be a stable and high-yielding stock for the long haul.

Between its top-tier brand equity, impressive margins, and lucrative dividend, Coca-Cola seems to be the more appealing choice for investors looking for reliability and a shareholder-friendly company. It also passes the Warren Buffett test as it is one of his top holdings.

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[wow_happens28]

Kellogg embarks on new future, finalizing split into two businesses

https://www.fooddive.com/news/kellogg-embarks-on-new-future-finalizing-split-into-two-businesses/695335/

Sixteen months after the separation was announced, the snacking and North American cereal businesses — Kellanova and WK Kellogg Co — are trading separately on the New York Stock Exchange.

Today, Kellogg’s cereal business began trading on the New York Stock Exchange as WK Kellogg Co. The company’s broad snacks division is now trading under the name Kellanova. The split was first announced sixteen months ago.

WK Kellogg Co, began trading under the ticker symbol “KLG” while Kellanova trades under “K.” Stocks for both companies dropped today upon the announcement of the completed split, MarketWatch reported.

In a statement, Kellanova CEO Steve Cahillane said the new company name signifies a new era of ambition for the company.

“We are starting from a position of strength that is rooted in a century-old legacy as we embark on a journey to achieve our vision of becoming the world’s best performing snacks-led powerhouse,” Cahillane said.

Kellanova, which now houses snacks like Cheez-It, Rice Krispies Treats and Pringles, projects its net sales to reach between $13.4-$13.6 billion in its 2024 fiscal year. In an interview with Food Dive last year, Cahillane said the decision to focus solely on snacks will help it to grow its presence worldwide, allowing the company to better compete with giants of the category like Mondelez International and Hershey. M&A opportunities will also be a key focus, the CEO said in March.

Despite the name change, snacking and cereal products from both Kellanova and WK Kellogg Co will continue to emblazon the well-known “Kellogg’s” logo.

The split was first announced in June 2022, with Kellogg originally intending to create three separate businesses. Plans for a designated plant-based foods company were nixed earlier this year because of declining sales in the sector. Plant-based brands like MorningStar Farms now remain under Kellanova.

WK Kellogg Co is adopting the North American cereal portfolio of iconic brands — such as Froot Loops, Corn Flakes and Rice Krispies — at a time of stagnation for the staple breakfast item, while international cereal sales will continue to be handled by Kellanova.

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>>> The Hershey Company -- Halloween is just around the corner, and kids will be eager to fill their bags with candy, including some from one of the world's largest chocolate manufacturers, The Hershey Company (HSY). Despite experiencing a nearly 7% decline in 2023, Hershey's stock has delivered an impressive total return of 122% over the past five years, far outpacing the S&P 500's 68% total return.


https://www.fool.com/investing/2023/09/17/3-top-dividend-stocks-to-buy-now/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


Management recently raised its quarterly dividend by 15% to $1.192 per share, resulting in an impressive yield of 2.3%. And Hershey has raised its quarterly dividend every year since 1972, except for 2009, during the Great Recession.

In recent years, Hershey has expanded its portfolio into snacks by acquiring SkinnyPop and Dot's Homestyle Pretzels. As a result, the company's revenue and net income are hitting record highs. Management recently reaffirmed its guidance for 8% revenue growth for 2023 versus 2022, resulting in net sales of roughly $11.2 billion, compared to $10.4 billion in 2022.

Despite Hershey's strong projected revenue growth, the stock might be experiencing a sell-off because the source of this growth is primarily price increases rather than increased sales volume. The company's second-quarter results show an average price increase of 7.7% for its products, coupled with a 2.7% decrease in sales volume from a year ago.

These price hikes are a result of the historically high costs of essential ingredients such as cocoa and sugar. However, Hershey boosted its gross margins by an impressive 3.4% year over year, reaching 45.5%.

This margin expansion could indicate that Hershey is becoming more efficient in managing its cost of goods sold. If cocoa and sugar prices return to normal levels, this efficiency could lead to further margin expansion, resulting in increased profitability for the company.

In summary, Hershey faces notable inflationary pressures and a potential decrease in consumption. Nevertheless, the stock currently looks undervalued when considering its historical P/E, which has averaged 26.3 over the past five years. With a forward P/E of 22.2, Hershey presents a potential investment opportunity at an attractive valuation.

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[wow_happens28]

I just pure guessing that a service is being pain by somebody to keep the price around this current level, just a guess. I

For example, if the stock went to 50 cents and a buyout at $1.25 the buyer would look bad under the circumstances. But, $1.25 buyout and the stock in 97 cents, it would not look bad to a buyers shareholders?

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wow, Looks like a bounce for RIBT today, and also in the aftermarket it's up even more, so hopefully some good news ahead :o)

Concerning JBSS, since you are partial to the food related sectors, that was one on my radar, although I plan to do some 'sector digging' and try to unearth a few good ones in the 'food innovation' area, though those seem a lot riskier.

One traditional (junk food) stock I followed loosely for years is J+J Snack Foods (JJSF), but it's been in a sideways pattern for several years now. One I own that seems pretty solid is Flowers Foods (FLO).

Some others -- Lancaster Colony (LANC) is a fairly decent one on my watch list, and Hostess Brands (TWNK) has been looking good lately.

Otherwise mostly larger caps (Pepsico, Coke, etc).

One small cap that had been doing great for years was Calavo Growers (CVGW) in the avocado area, but they really fell apart in recent years. Cal-Maine (CALM) has had a recent resurgence (eggs), but not sure how durable the improvement will be. Hain Celestial (HAIN) bombed out a number of years ago.

I used to follow Reeds Beverages (REED) pretty closely, but looks like they may be done. Back in the day I listened to every conf call, kept track of all the numbers, but it unraveled anyway. After that I decided to institute a $500 position limit for individual stocks :o)




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[wow_happens28]

" a possible replacement idea for RIBT", RIBT is irreplaceable, hope I never see a comparison ever, LOL.

[gfp927z]

wow, I wanted to mention a food related stock - John B. Sanfilippo & Son (JBSS), as a possible replacement idea for after the RIBT saga reaches its conclusion (acquisition, merger, etc). It's a fairly small cap (1.3 bil) in the tree nut / peanut area, and they are diversifying into additional areas. I had them on my microcap watch list for years, but after several years of sideways movement it appears the stock is resuming its long term uptrend. Anyway, something to consider, and should be fairly conservative for a small cap. I was finally going to buy some yesterday (the usual $500 position), but unfortunately forgot, and now it's up 10% today, lol. They just announced a special dividend of $1.50 per share, so a mini bonanza for current shareholders, and the recent earnings report looked good also -


>>> John B. Sanfilippo & Son, Inc. (JBSS) Reports Fiscal 2023 Second Quarter Results <<<


https://investorshub.advfn.com/boards/read_msg.aspx?message_id=171772087



>>> John B. Sanfilippo & Son, Inc. (JBSS), through its subsidiary, JBSS Ventures, LLC, processes and distributes tree nuts and peanuts in the United States. The company offers raw and processed nuts, including almonds, pecans, peanuts, black walnuts, English walnuts, cashews, macadamia nuts, pistachios, pine nuts, Brazil nuts, and filberts in various styles and seasonings. It also offers peanut butter in various sizes and varieties; snack and trail mixes, salad toppings, snacks, snack bites, dried fruit, and chocolate and yogurt coated products; baking ingredients; bulk food products; sunflower kernels, pepitas, almond and cashew butter, candy and confections, corn snacks, chickpea snacks, sesame sticks, and other sesame snack products; and various toppings for ice cream and yogurt. In addition, the company operates a retail store. The company provides its products under the Fisher, Orchard Valley Harvest, Squirrel Brand, and Southern Style Nuts brands, as well as under various private brands. It serves retailers and wholesalers, and commercial ingredient and contract packaging customers through a network of independent brokers, distributors, and suppliers. John B. Sanfilippo & Son, Inc. was founded in 1922 and is headquartered in Elgin, Illinois. <<<


https://finance.yahoo.com/quote/JBSS/profile?p=JBSS


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