Consumers in the U.S. are increasingly opting for weight loss drugs and non-alcoholic beverages, leading to a slowdown in soda purchases.
Despite a challenging year, Intel has remained attractive to investors, showing resilience.
On a positive note, Coca-Cola exceeded expectations in its second-quarter earnings report, citing robust global demand for its beverages. As a result, the company has raised its full-year projections. CEO James Quincey expressed optimism about the quarter’s results, highlighting solid growth in both revenue and operating income amid a dynamic market.
However, Coca-Cola experienced a 1% decline in volume sales in North America during the quarter. Quincey attributed this drop to a downturn in away-from-home channels, which encompass water, sports drinks, coffee, tea, and sodas. This decline was somewhat balanced by the growth of its Fairlife milk brand and strong performance of Coke, which ranked highly in retail sales growth.
To counteract the downturn, Coca-Cola is collaborating with food chains to incorporate its sodas into combo meals. The company is reportedly working with McDonald’s to enhance the fast-food chain’s $5 meal deal, which comes with a soft drink.
Coca-Cola’s second-quarter revenue reached $12.4 billion, surpassing Wall Street’s predictions of $11.76 billion. The company now anticipates organic revenue growth between 9% and 10%, raising its previous estimate of 8% to 9%.
Similarly, Pepsi is facing challenges in attracting U.S. consumers who are shifting towards weight loss and healthier options. In early July, the company noted that its second-quarter results were impacted by a series of product recalls.