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Cola Wars Continue: Coke and Pepsi in 2006 MGMT 495 Summer 2011. Financial Analysis:. Coca cola . Pepsi. Forward P/E Ratio (by 12/25/12) 14.18 EBITDA 10.68. Forward P/E Ratio (by 12/31/12) 15.43 EBITDA 15.04.
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Cola Wars Continue: Coke and Pepsi in 2006 MGMT 495 Summer 2011
Financial Analysis: Coca cola Pepsi Forward P/E Ratio (by 12/25/12) 14.18 EBITDA 10.68 • Forward P/E Ratio (by 12/31/12) • 15.43 • EBITDA • 15.04 • Coca Cola has a higher earnings before interest, taxes, depreciation and amortization , which means it has a greater ability to service its debt. • Coca Cola has a higher Forward Price-Earnings Ratio, which means it is expected to yield higher earnings growth in the future.
Financial Analysis Continued: • U.S. Non-Alcoholic Beverage Domestic Competition Market Share http://www.wikinvest.com/stock/Coca-Cola_Company_%28KO%29
External Analysis • Concentrate Producers • Promotion and market share • Agreements with nationwide retailers (Wal-Mart) • Fountain Sales • Coke – Burger King, McDonalds, Subway, Wendy’s • Pepsi – Pizza Hut, Taco Bell, KFC, Quiznos • New products: Diet, Zero, One… • Dr Pepper, Canada Dry, Philip Morris, Cadbury Schweppes • Bottlers • Bottling and canning (100 plants needed) • Master Bottle Contract 1899, 1987 • Bottlers input: packaging, and sweeteners • Bottling refranchising: Coca-Cola Enterprises • Overseas bottlers
Recomendatiotions • Maintain quality relations with suppliers and competitors • Entering new markets: health oriented
External Analysis • Retailers • Supermarkets 32.9% • Fountain outlets 23.4% • Vending machines 14.5% • Mass merchandisers 11.8% • Convenience stores and gas stations 7.9% • Other 9.5%
External Analysis • Market Environment • Price wars • Bottlers relations • Deflationary market of CSD • Obesity • International Market • Coke • Western Europe • Latin America • Pepsi • Middle East • Southeast Asia • Soviet bloc