After more than 130 years of rivalry, Coca-Cola and Pepsi are in very different places in 2019.
While Coca-Cola predicts that the coming year will be "volatile," Pepsi seems more optimistic, anticipating that the year will be "favorable."
And when it comes to business strategies, the two rivals have changed a lot in the last decade. Coke is extremely optimistic about drinks, while Pepsi is getting bigger on snacks.
The best Coca-Cola brands include Dasani, Honest Tea, Minute Maid, Powerade and Costa Coffee.
Last month, Coca-Cola CEO James Quincey told FOX Business's Maria Bartiromo that "coffee is a big industry," but its biggest hurdle is by far selling coffee to another reseller.
Pepsi, meanwhile, is betting big on brands such as Gatorade, Frito-Lay, Quaker and Tropicana. In addition, last year, Pepsi acquired SodaStream, the seltzer company and Bare Foods, a dry fruit and vegetable snack company.
Both companies announced results for the fourth quarter this week. Coca-Cola shares slid – despite profit and revenue estimates exceeding expectations – but PepsiCo's shares rose after the company posted sales that exceeded estimates helped by its snack unit.
|DYNAMISM||PEPSICO INC.||115.91||3.32||+ 2.95%|
Both companies, however, expect sales growth of about 4% this year.
Hugh Johnston, chief financial officer of Pepsi, told CNN Business on Friday that he expected 2019 to be "benign and" favorable, while Quincey of Coca-Cola said Thursday. to CNBC that he thought the year would be "more volatile and uncertain than 2018".
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Here is an overview of each company's latest results and their position for the coming year.
The PepsiCo stock was up Friday after the release of results in 2018 in line with analyst estimates, and despite the forecast of a profit loss in 2019.
Pepsi also said it would increase its annual dividend rate by 3% per share from $ 3.71 to $ 3.82.
Coca-Cola shares, on the other hand, fell sharply on Thursday after revealing a disappointing outlook for 2019, despite forecasts of earnings and earnings exceeding expectations in 2018. However, the company said it expects growth organic revenue of about 4% this year, only downward. last year's point.
Thursday was Coca-Cola's worst trading day since 2008. Despite this decline, the company's market capitalization, at about $ 194 billion, remains above PepsiCo's market capitalization of $ 164 million.