Coca-Cola vs. Starbucks: Earnings Battle Sparks Investor Interest

Tuesday’s earnings report features a showdown between Coca-Cola Co KO and Starbucks Corp SBUX. Investors are closely watching: will the fizzy drinks or coffee reign supreme?

Coca-Cola: Positive Trends in 2023

Optimism surrounds Coca-Cola, with shares rising 16% year-to-date. Trends indicate that KO is leaning more towards positive sentiment.

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Despite some selling pressure, KO stock shows multiple bullish signals against its 20-day, 50-day, and 200-day moving averages. Furthermore, Warren Buffett’s Berkshire Hathaway maintains a strong 9.3% position in the company, marking it as the fourth-largest holding in Buffett’s portfolio. As Coca-Cola prepares to unveil its first-quarter earnings, analysts expect earnings per share (EPS) of $0.72 and revenue of $11.14 billion.

Adding to the excitement, Coca-Cola is relaunching its well-known “Share a Coke” campaign, targeting Gen Z to merge nostalgia with viral marketing. “The iconic Share a Coke is back and supercharged at a global level,” stated Islam ElDessouky, Global VP of Creative at Coca-Cola. This campaign aims to foster real-world connections, believing that personalized cans can win back consumer loyalty.

Starbucks Faces Sales Concerns

On the other hand, Starbucks is facing challenges amid declining performance. Shares have fallen over 9% in 2023 and dropped 14% just this month.

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Though there are signs of buying pressure, SBUX stock remains technically bearish against longer-term averages. Analysts anticipate an EPS of $0.50 and revenue of $8.86 billion in the company’s upcoming report.

New CFO Rachel Ruggeri aims to initiate a turnaround following a period of declining sales. “It’s about getting real-world moments, amplified,” remarked Starbucks leadership, but shareholders are questioning whether new management can rejuvenate the brand before it loses its customer base completely.

In the competition between Coke and Coffee, one stock appears set to rise, while the other seeks a stronger boost.

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