Coke vs. Pepsi: Who is really winning?

By Food and BeverageFOXBusiness

Coca-Cola shares drop after posting Q4 earnings

Bullseye Brief Founder Adam Johnson discusses Coca-Cola’s fourth-quarter earnings and gives his outlook on Cisco Systems.

After more than 130-plus years of rivalry, Coca-Cola and Pepsi are in very different places rolling into 2019.

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While Coca-Cola predicts the year ahead will be “volatile,” Pepsi seems more optimistic, predicting the year will be “favorable.”

And as far as business strategies, the two rivals have changed a lot over the last decade. Coke is extremely bullish on beverages, while Pepsi is getting bigger on snacks.

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Top brands under Coke include Dasani, Honest Tea, Minute Maid, Powerade and Costa Coffee.

Last month, Coca-Cola CEO James Quincey told FOX Business’ Maria Bartiromo that “coffee is a big industry” for them, however, its biggest barrier by far is selling coffee in someone else’s outlet.

Pepsi, meanwhile, is betting big on brands such Gatorade, Frito-Lay, Quaker and Tropicana. Also, last year Pepsi acquired SodaStream, the home seltzer company and Bare Foods, a dried fruit and vegetable snack company.

Both companies reported fourth-quarter earnings this week, Coca-Cola shares slipped -- despite beating profit and revenue estimates -- but PepsiCo shares rose after the company reported sales that beat estimates helped by its snack unit.

TickerSecurityLastChange%Chg
KOCOCA-COLA COMPANY54.26-0.85-1.54%
PEPPEPSICO INC.136.44-0.85-0.62%

Both companies, however, expect sales this year to grow around 4 percent.

On Friday, Pepsi CFO Hugh Johnston told CNN Business that he expects 2019 to be “benign and “favorable” in regards to profits, while Coca-Cola's Quincey told CNBC on Thursday that he believes the year will “be more volatile and uncertain than 2018.”

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Here’s a look at each’s company’s latest results and where they stand for the year ahead.

PepsiCo

PepsiCo stock was up on Friday after reporting results in 2018 that matched analyst estimates -- and despite anticipating an earnings miss in 2019.

Pepsi also said that it will raise its annual dividend rate by 3 percent a share to $3.82 from $3.71 share.

Coca-Cola

Coca-Cola stock, on the other hand, fell hard on Thursday after revealing a disappointing 2019 outlook despite beating earnings and revenue estimates in 2018. However, the company said it expected organic revenue growth to be around 4 percent this year, only down a point from last year. 

Thursday was Coke’s worst trading day since 2008. Despite the decline, the company's market capitalization, approximately $194 billion, remains greater than PepsiCo's market capitalization of $164 million.