Looking back on beverages, alcohol, and tobacco stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including MGP Ingredients (NASDAQ: MGPI) and its peers.

These companies' performance is influenced by brand strength, marketing strategies, and shifts in consumer preferences. Changing consumption patterns are particularly relevant and can be seen in the rise of cannabis, craft beer, and vaping or the steady decline of soda and cigarettes. Companies that spend on innovation to meet consumers where they are with regards to trends can reap huge demand benefits while those who ignore trends can see stagnant volumes. Finally, with the advent of the social media, the cost of starting a brand from scratch is much lower, meaning that new entrants can chip away at the market shares of established players.

The 16 beverages, alcohol, and tobacco stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

MGP Ingredients (NASDAQ: MGPI)

Headquartered in Atchison, Kansas, MGP Ingredients (NASDAQ: MGPI) is a leading supplier of high-quality ingredients to the food and beverage industry

MGP Ingredients reported revenues of $130.9 million, down 18.9% year on year. This print exceeded analysts’ expectations by 2.1%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

MGP Ingredients delivered the slowest revenue growth and weakest full-year guidance update of the whole group. Interestingly, the stock is up 4.2% since reporting and currently trades at $24.66.

Is now the time to buy MGP Ingredients? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Celsius (NASDAQ: CELH)

With its proprietary MetaPlus formula as the basis for key products, Celsius (NASDAQ: CELH) offers energy drinks that feature natural ingredients to help in fitness and weight management.

Celsius reported revenues of $725.1 million, up 173% year on year, outperforming analysts’ expectations by 1.2%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Celsius scored the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 31.3% since reporting. It currently trades at $41.68.

Is now the time to buy Celsius? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Altria (NYSE: MO)

Best known for its Marlboro brand of cigarettes, Altria (NYSE: MO) offers tobacco and nicotine products.

Altria reported revenues of $5.25 billion, down 1.7% year on year, falling short of analysts’ expectations by 1.3%. It was a slower quarter as it posted a significant miss of analysts’ gross margin and revenue estimates.

As expected, the stock is down 5.6% since the results and currently trades at $58.52.

Read our full analysis of Altria’s results here.

Coca-Cola (NYSE: KO)

A pioneer and behemoth in carbonated soft drinks, Coca-Cola (NYSE: KO) is a storied beverage company best known for its flagship soda.

Coca-Cola reported revenues of $12.41 billion, up 3.9% year on year. This result met analysts’ expectations. Overall, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ organic revenue estimates.

The stock is up 2.7% since reporting and currently trades at $70.41.

Read our full, actionable report on Coca-Cola here, it’s free for active Edge members.

PepsiCo (NASDAQ: PEP)

With a history that goes back more than a century, PepsiCo (NASDAQ: PEP) is a household name in food and beverages today and best known for its flagship soda.

PepsiCo reported revenues of $23.94 billion, up 2.7% year on year. This number was in line with analysts’ expectations. Zooming out, it was a mixed quarter as it also recorded revenue in line with analysts’ estimates but a slight miss of analysts’ organic revenue estimates.

The stock is up 7.5% since reporting and currently trades at $149.26.

Read our full, actionable report on PepsiCo here, it’s free for active Edge members.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

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