Will Coke and Pepsi Earnings Boost Consumer Staples ETFs?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 22 2025
0mins
Should l Buy KO?
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 rise
14 Analyst Rating
13 Buy
1 Hold
0 Sell
Strong Buy
Current: 78.660
Low
71.00
Averages
79.33
High
85.00
Current: 78.660
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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- Low-Risk Investment Characteristics: With only 11% of its holdings in tech stocks and stable sectors like consumer staples, healthcare, and energy accounting for 16% to 20%, this ETF demonstrates low-risk investment traits, making it suitable for investors seeking stable returns.
- Fee and Yield Advantages: The Schwab fund boasts an expense ratio of just 0.06%, while its dividend yield is approximately 3.3%, which is three times the S&P 500's yield of 1.1%, making it highly attractive.
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- Historical Lessons: Even the smartest individuals in history have faced significant losses in stock investing, highlighting that market volatility is an unavoidable risk in investing, necessitating investors to be psychologically prepared to handle such fluctuations.
- Amazon Case Study: Taking Amazon as an example, the company has experienced substantial stock price volatility throughout its development, and investors who can endure short-term fluctuations may have the opportunity for long-term capital appreciation, leading to wealth growth.
- Coca-Cola Analysis: Coca-Cola's stock price has also undergone multiple fluctuations; however, its brand value and market position have allowed long-term holders to achieve substantial returns, emphasizing the importance of patience and long-term investment.
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- Inflation-Protected Bonds: Investing in Treasury Inflation-Protected Securities (TIPS), which adjust interest payments based on the Consumer Price Index (CPI), offers a way to safeguard purchasing power despite lower interest rates, particularly during inflationary periods.
- Cash Reserve Management: Maintaining a substantial cash reserve to meet unforeseen needs during economic uncertainty is crucial, while opting for money market accounts yielding up to 4% can maximize the efficiency of cash holdings.
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- Reasonable Valuation: With a forward-looking P/E ratio of 22, close to its five-year average of 21, Berkshire Hathaway presents a reasonable valuation in the current market environment, attracting long-term investors' interest.
- Strong Growth Outlook: The stock has averaged a 10.3% annual growth over the past five years, and it is expected to maintain similar growth in the next five years, potentially increasing its price from $476 to around $767, showcasing robust investment potential.
- Diversified Business Strength: Berkshire's numerous defensive subsidiaries, such as those in insurance and energy, can maintain stability during economic downturns, while its substantial stock portfolio (including Coca-Cola and Apple) continues to provide steady cash flow for the company.
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- High Yield from PepsiCo: PepsiCo achieved an 8.5% net revenue growth and a 27% increase in earnings per share in Q1 2026, with a payout ratio of 89.3%, yet its 4.1% dividend yield surpasses Coca-Cola, showcasing its competitive edge in the beverage market.
- Robust Growth of T. Rowe Price: T. Rowe Price's revenue grew by 5.3% to $1.85 billion in Q1 2026, maintaining a net profit margin of 29.53%, and with a 4.9% dividend yield and a low payout ratio of 54.77%, it stands as an ideal long-term investment choice.
- Investment Portfolio Potential: Combining Vici Properties, PepsiCo, and T. Rowe Price creates a solid dividend investment portfolio that offers investors stable cash flow and long-term growth potential.
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