In keeping with the spirit of the decades-long rivalry between the two companies, the number of votes in favor of PepsiCo and Coca-Cola were nearly evenly split, with 41.1% of the votes going to PepsiCo and 41.7% of the votes going to Coca-Cola. Dr Pepper Snapple received 17.2% of the votes. This week, both Coke and Pepsi reported better-than-expected second-quarter earnings -- which included better-than-expected outcome in the U.S. amid improvements in convenience store trends, favorable weather and aggressive Wal-Mart-funded promotions, as UBS analysts noted. Also, Pepsi's Frito-Lay North America snacks division rose 2% in revenue during the quarter. "While we do not expect this promotional environment to continue past Labor Day, we do believe the soft drink category is regaining momentum and is off to a solid third-quarter start," UBS analyst Kaumil Gajrawala wrote in an investor note. UBS analysts reiterate their buy rating and $76 and $62 price targets for both Pepsi and Coke, respectively. However, they have modified their earnings per share estimates to $4.16 vs. $4.18 previously for Pepsi due to the expectation of a foreign exchange hit; and $3.45 vs. $3.43 previously for Coke as stronger-than-expected second-quarter results are also offset by foreign currency impact. Ahead of Dr Pepper Snapple's earnings release on Jul. 29, before the market open, UBS has downgraded the stock to neutral from buy.
NEW YORK ( TheStreet) -- In the wake of earnings reports by major food and beverage giants this week, we asked readers of TheStreet, which will pop: Pepsi ( PEP), Coke ( KO) or Dr Pepper Snapple ( DPS)?
Best in Class: Pepsi's Plan for Global Domination
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