Anheuser-Busch Continues Its Push to Retake the Crown (2024)

Key Points

  • Anheuser-Busch stock is higher after reporting revenue and earnings that beat analysts' expectations.
  • The company believes this will be the last quarter it will face volume impacts from the controversy surrounding its Bud Light brand.
  • However, that light at the end of the tunnel may be the headlight of inflation, which is wearing down on its core consumers.
  • 5 stocks we like better than Anheuser-Busch InBev SA/NV

Anheuser-Busch Continues Its Push to Retake the Crown (1)Once known as the home of "The King of Beers," Anheuser-Busch InBev NYSE: BUD has been less than royal lately. Shares of BUD stock are down 23.86% over the past five years. And it's important to note that four of those years had nothing to do with a social media controversy surrounding the company's Bud Light brand.

Nevertheless, let's give the consumer staples stock its due. BUD shares climbed more than 7% during the week the company reported earnings. The company's revenue and earnings exceeded expectations, and it guided higher for the full year with the belief that the worst of the backlash was behind it.

The Real Story Is Pricing Power

Anheuser-Busch's growth is truly driven by its pricing power. The company is reporting revenue growth of 3% at a time when worldwide volumes are down 1%. And much of that volume decline is in North America and not just due to Bud Light. The company acknowledges that the entire beer industry is undergoing a massive transformation. Consumers aren't drinking less beer; they just have more options, especially with the popularity of craft beer.

Is the Consumer Tapped Out?

Anheuser-Busch cited the social media backlash and boycott of its Bud Light brand as a reason for its declining revenue and earnings. In May 2023, Bud Light lost its title of best-selling light beer to Modelo, which is under the Constellation Brands Inc. NYSE: STZ umbrella. But the bigger issue was the loss of shelf space for Bud Light. The company has math on its side, and if the volume is dropping, the volume is dropping.

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There is some commentary that investors should be bullish now that the tough comparisons to 2023 are over. Here's where investors should take the advice, as the kids say, "Don't get it twisted."

The company's overall revenue throughout its portfolio was higher year-over-year in all but one of the last four quarters. The same can be said of earnings per share (EPS). That's because Anheuser-Busch's other brands, particularly Corona, are picking up the slack from Bud Light.

The company has fallen short of analysts' estimates in those four quarters. But revenue and earnings that have grown year-over-year don't make the case that the tough comps are behind the company.

In fact, with the consumer showing signs of pulling back, you can make an opposite argument. Perhaps the tougher quarters are still to come. Supporting that thought is the fact that analysts are calling for revenue growth of around 5% in the coming year. That's not bullish. On the other hand, Anheuser-Busch may benefit if consumers decide to trade down.

Can Resistance Become Support?

BUD stock hit its 52-week high in January 2024 at $66.24. Since then, the stock has failed to hit that level on two other occasions. The spike in the stock price has lifted the share price over $64. Investors will want to see if the third time is the charm.

Anheuser-Busch Continues Its Push to Retake the Crown (6)

If it is, then investors can start looking at the analysts' consensus price target of $71 as a new level of resistance.

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Anheuser-Busch Continues Its Push to Retake the Crown (8)

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Anheuser-Busch Continues Its Push to Retake the Crown (2024)

FAQs

What country owns Anheuser-Busch? ›

Anheuser-Busch InBev SA/NV, commonly known as AB InBev, is a Belgian multinational drink and brewing company based in Leuven, Belgium and is the largest brewer in the world.

How did Budweiser go woke? ›

The protests are part of a conservative reaction to the brand's seeming support for transgender influencer Dylan Mulvaney, who had shown off a personalised can of the beer in a social media post sponsored by the company.

Are Bud Light and Coors the same company? ›

Coors Light's primary competitors are Miller Lite and Keystone Light, both also owned by Molson Coors, and Bud Light, owned by AB InBev, Molson Coors's rival and fellow global beer giant.

Is Coors owned by Anheuser-Busch? ›

Budweiser is owned by Anheuser Busch a division of Inbev of Belgium. Coors is self owned by Coors/Molson who also have owned Miller since 2015.

Is Budweiser still American owned? ›

Budweiser is produced by Anheuser-Busch LLC. Anheuser-Busch is an American brewing company, headquartered in St Louis, Missouri. Anheuser-Busch is an international company, headquartered in Leuven, Belgium.

When did China buy Anheuser-Busch? ›

On November 18, 2008, the hostile takeover was completed, and the parent corporation was renamed Anheuser-Busch InBev; Anheuser-Busch became a wholly owned subsidiary of the new corporation, controlled within the North America zone unit of AB InBev.

What is the ethnicity of Budweiser beer? ›

The name Budweiser is a German derivative adjective, meaning "of Budweis". Beer has been brewed in Budweis, Bohemia (now České Budějovice, Czech Republic) since it was founded in 1265.

Who is Bud Lights' target audience? ›

Beer wasn't dead by any means, but enthusiasts were gravitating toward smaller craft breweries rather than mass-produced national brands. This left Bud Light with a quandary. Their main target audience was men between 21 and 34 who enjoy sports, humor, and socializing.

Is Budweiser no longer the king of beers? ›

The king of beers has officially been dethroned. Budweiser no longer is among the top three best-selling beers in the U.S., according to Beer Marketer's Insights, as people drink less beer or switch to craft brews, wine or spirits. Miller Lite has supplanted Budweiser as the No.

Who owns Yuengling? ›

Dick Yuengling

Dick serves as Chief Executive Officer for D.G. Yuengling & Son, Inc. He is fifth generation of the family brewing legacy. Dick purchased the brewery from his father Richard, Sr. in 1985 after running his own beer distributorship.

Is Corona owned by Anheuser? ›

The Mexican lager known as “Corona”, is a variation of beer that is brewed all across Mexico by its largest brewer Grupo Modelo, owned by Belgian company Anheuser-Busch InBev, and is exported to over 150 countries worldwide.

What is the nickname for the Coors Light? ›

Its nickname is "the Silver Bullet."

Bill Coors stripped the color from the Coors Light can and let the natural aluminum shine through. Before you knew it, everybody was calling it "the Silver Bullet."

Does Anheuser-Busch own Yuengling? ›

Of course, it's not lost on Yuengling that Missouri is home to the headquarters of Anheuser-Busch, which was founded in St. Louis only 23 years after a young David Gottlieb Yuengling started his brewery in Pottsville. Anheuser-Busch is now owned by AB InBev, which is based in Belgium; Yuengling remains family-owned.

How many brands are under Anheuser-Busch? ›

We are the proud makers of more than 500 iconic brands, from time-honored classics enjoyed globally to new local favorites.

What beer is not owned by Anheuser-Busch? ›

International Beers
BreweryCountryNotable Beers
GuinnessIrelandGuinness Stout, Harp Lager
SapporoJapanSapporo Premium Beer
HeinekenNetherlandsHeineken Lager
Jan 30, 2024

Is Anheuser-Busch owned by a Brazilian company? ›

InBev (/ˈɪnbɛv/) was a brewing company that resulted from the merger between Belgium-based company Interbrew and Brazilian brewer AmBev which took place in 2004. It existed independently until the acquisition of Anheuser-Busch in 2008, which formed Anheuser-Busch InBev (abbreviated AB InBev).

What German company bought Anheuser-Busch? ›

The firm diversified into such industries as aluminum recycling, real estate development, turf farming, label printing, and the processing of raw materials such as rice and malt. But the biggest change would come in July 2008, when Anheuser-Busch agreed to be purchased by InBev for approximately $52 billion.

Who owns Pabst Blue Ribbon? ›

Pabst is headquartered in San Antonio, Texas. On March 16, 2021, it was announced that Blue Ribbon Partners, an investment platform led by American beer and beverage entrepreneur Eugene Kashper, owns 100% of Pabst Brewing Company.

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