Coca-Cola and Ketchup might be on opposite ends of the taste palette, but they’re on the same wavelength when it comes to earnings season. Coca-Cola (K) saw net sales for Q3 rise by 16% to $10b. Coke’s success comes in the midst of a large push from the company in the advertising department — the firm’s marketing budget doubled this year. On the condiments side, the Ketchup-maker Kraft Heinz Company (KHC) saw a decrease in net sales, though still managed to achieve a 23% YoY jump in net income.
The F&B sector seems to be stringing along despite major companies raising food prices due to supply-chain issues. McDonald’s (MCD), another F&B giant, also came out with strong earnings as its sales grew by 13% for the quarter. Ketchup, Coke, and a Big Mac sound like a good trio, but we’ll have to wait and see whether the F&B lucky charm continues as future earnings trickle in.
why it matters
Coca-Cola and McDonald’s stocks were up by 1.9% and 2.7% at market close yesterday, but Kraft closed off at a 0.1% drop (possibly due to its net sales decrease). All in all, strong F&B earnings give investors some hope that issues like supply-chain disruptions and inflation are not spilling over — at least for now.