This Super Bowl weekend, investors' attention won't just be on football, but food and beverage stocks for portfolio opportunities.
In notes to clients and conversations with Yahoo Finance, analysts shared their thoughts on the companies that will be serving drinks and snacks at parties across the U.S. this Sunday.
According to market research firm Numerator, the most popular beverage at Super Bowl celebrations will start with soda, leading to a battle between PepsiCo (PEP), Coca-Cola (KO) and Keurig Dr. Pepper (KDP). .
However, Morningstar analyst Dan Hsu said these two well-known brands would be the best choices, predicting that Coke and PepsiCo will have a long-term competitive advantage over their rivals over the next 20 years. are doing.
Analyst Brian Spillane told Yahoo Finance that Bank of America also has “buy” ratings on Coca-Cola and PepsiCo.
Investors are looking for “increased sales and volumes” in this sector, and Spillane said it is likely that Coca-Cola's sales will surpass PepsiCo's in 2024, although the competition is likely to be close. expected.
According to Molecule, half of Super Bowl viewers will buy a soda before the game, while another 37% will stock up on beer and 22% will stock up on spirits.
The beer industry is going to have its ups and downs in 2023, and the three major manufacturers – AB InBev (BUD), Molson Coors (TAP) and Constellation Brands (STZ) – are looking to go on the offensive.
“It's just this dynamic of these three guys colliding in the Super Bowl,” Spillane said. Molson Coors is trying to preserve the profits it made during the Bud Light boycott. Meanwhile, bad maker AB InBev is aiming for a comeback with an ad campaign starring NFL Hall of Famers Peyton Manning and Emmitt Smith.
But Constellation Brands may already have won the battle, Spillane said, as imported beers from Mexico continue to grow in popularity.
Bump Williams of Bump Williams Consulting said the beverage giant and other companies with Mexican imported brands could make further progress this year.
“We’ve already seen retailers giving more shelf space to these brands in this segment in the second half of 2020,” Williams told Yahoo Finance. “We'll probably see that expand further as spring sets come out in March and April.” [2024]. ”
For those looking at a different area of the liquor shelf, tequila is getting a moment's attention.
Robert Ottenstein, an analyst at Evercore ISI, said in a note to clients that the alcoholic beverage has seen “remarkable” 7.2% year-over-year volume growth. Diageo (DEO), which owns Casamigos and Don Julio, led the pack with a 15.7% volume increase.
What's a game without chip-and-dip? John Baumgartner, managing director of Mizuho Securities, told Yahoo Finance that people are “not going to buy private label” at this momentous occasion. , said big brands are likely to benefit.
Baumgartner's top picks include Kraft Heinz (KHC), which offers “luxury snacks,” and Mondelez International (MDLZ), which offers cookies and crackers.
Kraft Heinz also named Bank of America analyst Peter Garbo. One big reason is Belvita. (Have you tried Belvita at Rotel? This reporter hasn't tried it yet, but plans to go this Super Bowl).
Wings fans should check out Pilgrim's Pride (PPC), Garbo said.
“It's the second largest chicken company in the United States. Like Tyson, it produces a lot of chicken wings, but historically Pilgrim's Pride has had better management and better fundamentals.” he said.
The Super Bowl won't bring big profits to retailers, but Costco (COST) and Walmart (WMT) are good bets as consumers look for value in 2024.
“Walmart and Costco are two companies that are well-positioned to benefit over the next 12 to 18 months,” Jefferies analyst Corey Tarlow told Yahoo Finance.
Would you like to order? Morningstar's Sean Dunlop suggested, “Delicious!” Brands (YUM), which owns KFC, Pizza Hut, and Taco Bell, is the best among pizza and wing chains.
“Chipotle has historically had surprisingly strong Super Bowl business,” Dunlop said, because Chipotle's takeout and delivery business lends itself to group parties.
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Brooke DiPalma is a senior reporter at Yahoo Finance. Follow her on Twitter @brooke di palma Or email bdipalma@yahoofinance.com.
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