Challenges for McDonald’s, Coca-Cola, and PepsiCo
The current market situation presents a challenging phase for McDonald’s, Coca-Cola, and PepsiCo. Several factors are affecting these companies and could impact both their business results and stock prices.
1. Rising Raw Material Prices
Higher costs for ingredients such as sugar, grain, coffee, or packaging materials are putting pressure on the companies’ margins. The increased prices can only be partially passed on to end customers without risking a drop in demand. This leads to increased cost pressure on the operational business.
2. Changing Consumer Habits
Consumers are increasingly focused on healthy eating and are reducing their consumption of fast food and sugary drinks. New medications like Ozempic or Wegovy could change buying behavior regarding snacks and soft drinks in the long term. Although many users return to their old habits after discontinuing the medications, the risk of a lasting decline in demand remains. More and more customers also prefer sustainable products and demand transparency in the supply chain.
3. Operational Weaknesses & Forecasts
In the first quarter of 2025, global snack sales for PepsiCo declined by 3%, while beverage sales stagnated. Particularly in North America, revenues were declining. The company revised its annual outlook downward: Earnings per share are now expected to remain stable, with low single-digit revenue growth. In contrast, Coca-Cola expects earnings growth of over 24% in 2025 compared to the previous year, but also faces challenges from rising costs and changing consumption patterns. Similarly, McDonald’s struggles with higher input costs and a possible shift from traditional fast food to healthier alternatives.
Impact on Stock Prices & Industry
| Company | Challenges | Current Development/Outlook |
|---|---|---|
| McDonald’s | Raw Material Prices, Health Wave | Pressure on Margins, Uncertain Demand |
| Coca-Cola | Raw Material Prices, Health Wave | Strong Profits (2025: +24%), but Risks from New Trends |
| PepsiCo | Raw Material Prices, Health Wave | Decline in Snack Segment (-3%), Stagnating Beverage Sales; Annual Outlook Downgraded |
The combination of rising raw material prices and changing consumer preferences is putting pressure on McDonald’s, as well as Coca-Cola and PepsiCo. While particularly PepsiCo is already experiencing noticeable losses, Coca-Cola is still benefiting from strong profits.