This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Pepsi, Coke Battle Commodity Costs

PURCHASE, N.Y. ( TheStreet) -- PepsiCo (PEP - Get Report) feels the sting of rising commodity costs more than rivals Coca-Cola (KO - Get Report) and Dr Pepper Snapple (DPS - Get Report), but so far the food and beverage giant has been able to manage the risk.

PepsiCo beat profit expectations Thursday and reaffirmed its outlook despite what it called "high global commodity cost inflation ."

PepsiCo said it expects commodity cost inflation of $1.4 billion to $1.6 billion this year.

In its recent quarter, PepsiCo's cost of goods sold soared 22% to $5.45 billion, though the figure took up a smaller percentage of total revenue year-over-year.

PepsiCo turned to improved operational efficiencies and price increases to help offset those costs, but CFO Hugh Johnston conceded that pricing in the first half of the year "has not been what we would have liked or expected."

Coca-Cola, which posted a weaker-than-expected 18% profit increase last quarter , reported that its cost of goods sold was up 55% year over year to $3.95 billion, or 37.5% of total revenue. In the year-earlier period, cost of goods sold was $2.54 billion, or 33.7% of total revenue.

In late March, Dr Pepper Snapple said that costs for plastic bottles and fuel to transport beverages had been rising as oil prices marched higher.
1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CCE $50.44 0.29%
DPS $91.63 2.10%
KO $42.88 0.61%
PEP $101.06 0.90%
AAPL $117.34 -0.81%


Chart of I:DJI
DOW 17,888.35 +168.43 0.95%
S&P 500 2,102.63 +22.22 1.07%
NASDAQ 5,156.3060 +47.64 0.93%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs