Will Coke and Pepsi Earnings Boost Consumer Staples ETFs?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 22 2025
0mins
Source: NASDAQ.COM
Coca-Cola and PepsiCo Earnings: Both Coca-Cola and PepsiCo reported strong third-quarter earnings for 2025, with Coca-Cola's EPS at 82 cents and revenues of $12.46 billion, while PepsiCo's revenues reached $23.94 billion and EPS at $2.29, surpassing estimates.
Market Trends and Consumer Behavior: Despite positive earnings, both companies noted a decline in demand, particularly among low-income consumers, leading to strategies like offering smaller, more affordable packaging to attract budget-conscious buyers.
Product Innovations: PepsiCo is revamping its snack offerings with healthier ingredients and reducing prices on multipacks to appeal to health-conscious consumers, while Coca-Cola is focusing on smaller can sizes to maintain sales.
Investment Opportunities: Investors may consider ETFs that include Coca-Cola and PepsiCo, such as the Consumer Staples Select Sector SPDR Fund and Vanguard Consumer Staples ETF, as a way to gain exposure to these major companies in the consumer staples sector.
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Analyst Views on KO
Wall Street analysts forecast KO stock price to fall
14 Analyst Rating
13 Buy
1 Hold
0 Sell
Strong Buy
Current: 81.170
Low
71.00
Averages
79.33
High
85.00
Current: 81.170
Low
71.00
Averages
79.33
High
85.00
About KO
The Coca-Cola Company is a beverage company. The Company's segments include Europe, Middle East and Africa (EMEA); Latin America; North America; Asia Pacific, and Bottling Investments. It sells multiple brands across several beverage categories worldwide. Its portfolio of sparkling soft drink brands includes Coca-Cola, Sprite and Fanta. Its water, sports, coffee and tea brands include Dasani, smartwater, vitaminwater, Topo Chico, BODYARMOR, Powerade, Costa, Georgia, Fuze Tea, Gold Peak and Ayataka. Its juice, value-added dairy and plant-based beverage brands include Minute Maid, Simply, innocent, Del Valle, fairlife and Santa Clara. It operates in two lines of business: concentrate operations and finished product operations. Its concentrate operations sell beverage concentrates, syrups, including fountain syrups, and certain finished beverages to authorized bottling operations. Its finished product operations sell sparkling soft drinks and a variety of other finished beverages.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Costco Stock Performance: Costco Wholesale trades at nearly 57 times earnings, and while its dividend yield is only 0.5%, its quarterly payouts have more than doubled over the past five years, with discussions of a potential stock split since 2000, indicating resilience and future growth potential amidst market volatility.
- International Business Expansion: Costco's international operations are rapidly growing and are expected to significantly contribute to future revenue and profit growth, with a management team that balances innovation and discipline to maintain a competitive edge in a challenging market.
- Coca-Cola's Growth Potential: Coca-Cola Consolidated, with a market cap of $11.5 billion, has outperformed its parent company over the past five years, showcasing strong competitiveness in the North American market; despite a 0.6% dividend yield, improved cash flow and debt reduction lay the groundwork for future dividend growth.
- Financial Health: Coca-Cola Consolidated's operational cash flow surged in Q1 while eliminating $150 million in debt, and if it can effectively manage selling and administrative expenses, it is poised for double-digit sales and gross profit growth, potentially rewarding investors significantly over the next five years.
See More
Walmart and Coca-Cola Maintain Dividend King Status
- Walmart Earnings Review: Walmart's fiscal Q1 2027 results did not raise guidance, leading to an 8.5% stock price drop, despite a 36% increase in advertising revenue and a 26% rise in e-commerce sales, demonstrating resilience amid economic uncertainty.
- Subscription Business Growth: Walmart's Walmart+ membership fees increased by 17.4% in the quarter, indicating success in diversifying revenue streams, which enhances its long-term profitability.
- Coca-Cola's Brand Power: Coca-Cola boasts a 63-year streak of dividend increases; while its stock price performance lags behind Walmart, its 2.6% dividend yield and low volatility make it a stable investment choice.
- Acquisition and Investment Strategy: Coca-Cola strengthens its competitive edge in emerging beverage markets through acquisition strategies, such as acquiring a 15% stake in BodyArmor in 2018, ensuring future dividend growth.
See More
Warren Buffett's Top Three Stocks for Lifetime Holding
- Apple's Strong Performance: In the fiscal second quarter of 2026, Apple reported a 21% year-over-year increase in iPhone sales, while its high-margin services segment grew by 17%, demonstrating its sustained competitiveness in the smartphone market and customer loyalty, thereby creating long-term wealth for shareholders.
- Coca-Cola's Resilience: As Buffett's favorite stock, Coca-Cola achieved a 12% year-over-year growth and a 19% increase in operating income in the first quarter of 2026, showcasing its strong market adaptability through pricing power and localized production to successfully navigate high inflation.
- American Express's Unique Advantages: American Express differentiates itself with its closed-loop model and membership targeting affluent clients, ensuring diverse revenue streams; under Buffett's leadership, the company has maintained its long-term investment in Amex, highlighting its stability and growth potential in the financial services sector.
- Attractive Dividend Yields: All three companies offer stable dividends, with Coca-Cola's yield at 2.5% and American Express at 1.09%, making them significantly appealing to long-term investors seeking reliable income streams.
See More
Buffett's Three Favorite Stocks Worth Holding Forever
- Apple's Ecosystem: Apple's iPhone sales surged 21% year-over-year in Q2 2026, while its high-margin services segment grew by 17%, indicating strong customer loyalty and recurring revenue streams, solidifying its status as a 'forever' stock.
- Coca-Cola's Resilience: Coca-Cola achieved a 12% year-over-year increase and a 19% rise in operating income in Q1 2026, showcasing its pricing power and product adaptability in a high-inflation environment, reinforcing its status as a 'Dividend King' with a 64-year streak of dividend increases.
- American Express's Unique Model: American Express differentiates itself with a closed-loop model and membership system targeting affluent clients, ensuring revenue stability across economic conditions, while its growing dividend and strong brand loyalty position it as a premium blue-chip stock for long-term investment.
- Buffett's Investment Philosophy: Buffett's admiration for Apple, Coca-Cola, and American Express reflects his focus on excellent management, strong cash positions, and durable competitive advantages, making these stocks valuable for long-term investment.
See More
Warren Buffett's Three Favorite Stocks Worth Holding Forever
- Apple's Sustained Growth: In the fiscal second quarter of 2026, Apple reported a 21% year-over-year increase in iPhone sales and a 17% rise in its high-margin services segment, demonstrating strong market demand and customer loyalty, thereby creating long-term wealth for shareholders.
- Coca-Cola's Resilience: Coca-Cola achieved a 12% year-over-year growth and a 19% increase in operating income in the first quarter of 2026, successfully navigating high inflation through pricing power and localized production, showcasing its stability as a 'Dividend King'.
- American Express's Unique Advantages: American Express differentiates itself with its closed-loop model and membership targeting affluent clients, ensuring diverse revenue streams and customer loyalty, while maintaining steady dividend payments under new CEO Abel, highlighting its long-term investment value.
- Buffett's Investment Philosophy: Buffett's preference for Apple, Coca-Cola, and American Express reflects his emphasis on excellent management and strong cash flow, providing strategic guidance for new CEO Abel's investment decisions and ensuring the company's continued growth in the future.
See More
Three Consumer Stocks Worth Holding Forever
- Costco's Competitive Edge: Costco (COST) leverages its membership warehouse model to attract high-income consumers, achieving significant sales growth and shareholder returns with a market cap of approximately $456 billion and a dividend yield of 0.52%, despite fierce competition.
- Philip Morris's Transformation: While cigarette use declines, Philip Morris (PM) has successfully transitioned to a leader in alternative nicotine products, with a market cap of $295 billion and a dividend yield of 3.05%, as alternative product sales accounted for 41.5% of total net sales in 2025, showcasing strong future growth potential.
- Coca-Cola's Brand Power: Coca-Cola (KO), with a market cap of $351 billion and a dividend yield of 2.53%, continues to achieve organic growth through its vast distribution network and diverse beverage portfolio, with a legendary record of 64 consecutive years of dividend increases, making it a safe choice for investors.
- Stability in Consumer Goods: These three companies demonstrate strong market positions and stable dividend-paying capabilities in the consumer goods sector, reflecting the importance of consumer spending in the U.S. economy, and long-term holding is likely to yield substantial returns for investors.
See More
