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
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 InBev SA/NV Today
BUD
Anheuser-Busch InBev SA/NV
$64.72
+0.51(+0.79%)
(As of 01:03 PM ET)
- 52-Week Range
- $51.66
▼
$66.24 - Dividend Yield
- 1.00%
- P/E Ratio
- 27.19
- Price Target
- $71.70
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.
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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Should you invest $1,000 in Anheuser-Busch InBev SA/NV right now?
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FAQs
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. In 2023, the company was ranked 72nd in the Forbes Global 2000.
Will Bud Light recover? ›
CEO Michel Doukeris said the recovery of Bud Light has not been at “the fast pace that we were expecting”. Anheuser-Busch InBev (AB InBev) is still set to see the effects of its Bud Light controversy from last year going into 2024, according to the CEO.
How many Americans are employed by Anheuser-Busch? ›
We employ more than 19,000 employees nationwide, all united by a deep passion for brewing great beer and an unwavering commitment to supporting the communities we call home.
Does the Busch family own Budweiser? ›
The Busch family fully controlled the company through the generations until Anheuser-Busch's sale to InBev in 2008.
Did Budweiser sell to China? ›
Budweiser is licensed, produced and distributed in Canada by Labatt Brewing Company (also owned by AB InBev). Of the 15 Anheuser-Busch breweries outside of the United States, 14 of them are positioned in China. Budweiser is the fourth leading brand in the Chinese beer market.
Is Budweiser still American owned? ›
Budweiser: Budweiser is a brand of beer that is owned by Anheuser-Busch InBev, one of the world's largest brewing companies. Anheuser-Busch InBev is a Belgian-Brazilian multinational corporation that owns a wide range of beer brands, including Budweiser, Bud Light, and many others.
What is the number one selling beer in America? ›
Bottles of Modelo Especial beer are displayed for sale in a grocery store on June 14, in Los Angeles. Modelo Especial is now officially America's best-selling beer, dethroning Bud Light from the top spot it has largely held for the past two decades.
Will Bud stock recover? ›
BUD Stock 12 Month Forecast
Based on 5 Wall Street analysts offering 12 month price targets for Anheuser-Busch Inbev Sa in the last 3 months. The average price target is $74.88 with a high forecast of $80.00 and a low forecast of $68.50. The average price target represents a 13.40% change from the last price of $66.03.
How much did Bud Light pay Peyton Manning? ›
Budweiser claimed that they were “surprised and delighted” that Manning mentioned them on TV, but said they did not pay him to do so.
Does Budweiser own Coors? ›
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.
In 2020, Forbes estimated the Busch family fortune at $17.6 billion, ranking 16th nationally for family wealth. No individual members of the Busch family are on the Forbes 400 list of wealthiest Americans, where the smallest fortune is $2.9 billion.
Who is the parent company of Bud Light? ›
Since March Madness, Bud Light owned by Anheuser-Busch (AB) InBev has been plagued by the backlash against the beer brand's marketing partnership with transgender influencer Dylan Mulvaney.
Did Busch want to buy back Bud Light? ›
"I urge that company, InBev, if they don't want that brand any longer, sell it back to the Busch family. Sell it to me. I'll be the first in line to buy that brand back from you. And we'll make that brand great again," he said during Tomi Lahren's show "Fearless."
Who is the heir to the Anheuser-Busch fortune? ›
Anheuser-Busch heir Billy Busch joins 'Varney & Co. ' to break down his latest offer to buy back Bud Light as the company continues to struggle following the Dylan Mulvaney controversy. Anheuser-Busch heir Billy Busch is doubling down on his "serious" offer to buy back his family's struggling brewing dynasty.
How did the Busch family lose Budweiser? ›
In 2008, after many decades of Busch family ownership, a company called InBev, the largest beer company in the world — owner of some 400 beer brands today — bought the Anheuser-Busch Company in a hostile takeover for a whopping $52 billion, making the surviving Busch family members even wealthier.
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).
Who currently owns Bud Light? ›
Anheuser-Busch to sell 8 beverage brands to cannabis company, report says. WASHINGTON (TND) — Anheuser-Busch, the owner of Bud Light, is selling eight of its beverage brands, The Wall Street Journal reported Tuesday.
What percent of beer is owned by Anheuser-Busch? ›
Anheuser-Busch, a wholly owned subsidiary of Anheuser-Busch InBev SA/NV, is the largest brewing company in the United States, with a market share of 45 percent in 2016.
Are Budweiser and Miller owned by the same company? ›
By Madison.com
Anheuser-Busch InBev (NYSE: BUD) completed its acquisition of SABMiller last month, giving the megabrewer even greater global reach, but the real winner from this merger will actually be Molson Coors (NYSE: TAP), which acquired the other half of MillerCoors it didn't already own.
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. 
