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Recent Articles
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Dividend Increases/Decreases for the Week of October 11
Oct 11, 2024
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Let's take a look at firms raising/lowering their dividends this week.
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Domino’s Pizza Remains an Attractive Long-Term Story
Oct 10, 2024
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Image: Domino’s core values.
Looking to 2024, Domino’s expects approximately 6% annual global retail sales growth and approximately 8% annual income from operations growth as it seeks to expand global net store count by 800 to 850. For 2025, Domino’s expects a similar pace of expansion for annual global retail sales growth and annual income from operations growth. Its long-term guidance (2026-2028) calls for 7%+ annual global retail sales growth and 8%+ annual income from operations growth. The company ended the quarter with $4.98 billion in total debt and $189.1 million in cash and cash equivalents. Though Domino’s has a lofty net debt position, we like its long-term growth story, and the company remains a core idea in the portfolio of the Best Ideas Newsletter.
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PepsiCo Experiencing Subdued Growth, Business Disruptions Due to Geopolitical Tensions
Oct 8, 2024
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Image: PepsiCo has traded sideways for most of the past couple years.
For 2024, PepsiCo expects a low-single-digit increase in organic revenue (was previously approximately 4% in organic revenue growth) and at least an 8% increase in core constant currency earnings per share. PepsiCo is targeting total cash returns to shareholders of $8.2 billion for the year, comprising $7.2 billion in dividends and the balance in share repurchases. As it relates to core earnings per share, management is targeting at least $8.15, a 7% increase compared to 2023 core earnings per share of $7.62. Though PepsiCo’s results weren’t great with subdued category trends in North America and business disruptions from geopolitical tensions, we still like shares as a key diversifier in the portfolio of the Best Ideas Newsletter.
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Constellation Brands’ Beer Business Continues to Propel Results
Oct 4, 2024
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Image Source: Constellation Brands.
Looking to fiscal 2025 guidance, Constellation Brands expects net sales growth of 4%-6% led by Beer net sales growth of 6%-8%, offset in part by net sales declines of 4%-6% for Wine and Spirits. Operating cash flow is targeted at $2.8-$3 billion, while capital spending is expected in the range of $1.4-$1.5 billion, including major investments in its Mexico beer operations. Free cash flow is expected at $1.4-$1.5 billion. On a comparable basis, management is targeting earnings per share at $13.60-$13.80 for the fiscal year versus $12.38 in fiscal 2024.
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