Coca-Cola Earnings Expected to Outperform PepsiCo Amidst Fast Food Sales Decline, Analyst Forecasts 6%-7% Revenue Growth for 2024 Despite Foreign Exchange Headwinds

Coca-Cola is set to release its first-quarter earnings results before the opening bell on Tuesday. According to analyst estimates compiled by LSEG, Coke’s financial performance in Q1 will outperform that of PepsiCo which reported a 5% dip in volumes for its North American beverage division during last week’s results. Analyst expectations are higher as it appears that demand is stronger for the range of drinks produced by Coca-Cola, including namesake soda, Fairlife and Topo Chico. However, there could potentially be a negative impact on sales due to a reduction in spending at fast food outlets – roughly half of Coke’s revenue comes from away-from-home locations such as sports stadiums, movie theatres and restaurants; whereas PepsiCo is more reliant upon consumer demand for products consumed within households. For 2024, Coca-Cola has forecast organic revenue growth to be between 6% and 7%, alongside a comparable earnings per share increase of 4%. However, foreign exchange rates are expected to have an adverse effect on both the company’s revenues and profit margins throughout this year. Despite falling by over three percent during the previous twelve months (as at present), Coca-Cola still holds a market value in excess of $267 billion.