Once again, Anheuser-Busch
The company posted second-quarter earnings of $0.75 per share yesterday, up 14% year over year. Top-line revenue grew 4%, while both gross and operating margins also increased.
CEO Patrick Stokes told investors he's confident of achieving consistent double-digit earnings growth over the long term. That's a tough objective, but one of the reasons he must be taken seriously is the power of Anheuser-Busch's brands. Names like Budweiser, Bud Light, Michelob, Busch, and Bacardi have extremely loyal customers.
That loyalty will allow management to institute another price increase later this year "tailored to specific markets, brands and packages." Few companies enjoy that kind of pricing power, especially in a down economy.
Fellow brewer Adolph Coors'
For now, at least, the King of Beers is worthy of its name.
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