Coors Banquet showed strong performance with 16 consecutive quarters of share growth and over 15% distribution growth in the first half of 2025.
Core power brands Coors Light, Miller Lite, and Coors Banquet collectively held a 15.2% volume share in the U.S. for the first half of 2025, up from 13.4% three years ago.
Despite the earnings downgrade, underlying free cash flow guidance remains reaffirmed at $1.3 billion, plus or minus 10%, supported by higher cash tax benefits and favorable working capital.
EMEA and APAC regions faced softness due to geopolitical and economic tensions, but premium brands like Madri and Carling remain segment leaders.
In Canada, Molson family brands posted volume share gains despite a challenging industry backdrop, with Coors Light maintaining the #1 light beer position.
Molson Coors reported a softer-than-expected U.S. beer industry performance with industry volume down around 5% in Q2, worse than the anticipated improvement to around -3%.
Net sales revenue guidance for 2025 was reduced to a decline of 3% to 4% on a constant currency basis, down from a previous low single-digit decline expectation.
The Midwest Premium aluminum cost spiked dramatically, with prices increasing over 180% since January, causing an incremental cost impact of $40 million to $55 million for the full year.
Underlying earnings per share (EPS) guidance was lowered to a decline of 7% to 10%, compared to prior expectations of low single-digit growth.
Underlying pretax income is now expected to decline 12% to 15%, a significant downgrade from the prior low single-digit decline forecast.
EPS grew 24.1% to $5.45 per diluted share, driven by higher gross margins and lower share count, partially offset by lower volumes and increased brand investments.
First half 2025 revenue grew 3.6%, gross margin was 49.1%, and EPS was $7.58, with shipments ahead of depletions.
Gross margin expanded by 380 basis points to 49.8%, benefiting from brewery efficiencies, procurement savings, price increases, and product mix, partially offset by inflation and tariffs.
In Q2 2025, depletions decreased 5% and shipments decreased 0.8% year-over-year, driven by declines in Truly Hard Seltzer and Sam Adams partially offset by growth in Sun Cruiser and Dogfish Head.
Operating cash flow exceeded $125 million in the first half, enabling $111 million in cash returns to shareholders year-to-date.
Revenue increased 1.5% due to pricing and favorable product mix despite lower volumes.
Everyday chocolate category grew 6.7%, with Hershey's everyday chocolate growing less but gaining share and growing ahead in instant consumables.
Everyday chocolate category grew 6.7%, with Hershey's everyday chocolate growing less but making progress in instant consumables by gaining share and expanding distribution.
Gross margin expansion of 500 basis points or more is expected in 2026 before partial offsets from cocoa costs and tariffs.
Pricing actions are expected to contribute about 2 points to the enterprise top line in 2025 and a mid-teens impact in 2026, with about 80% of the profit benefit flowing through in 2026.
Salty snacks segment shows strength with brands like Dot's and SkinnyPop delivering above category trends through innovation, marketing, and expanded distribution.
Salty snacks segment shows strength with brands like Dot's and SkinnyPop delivering above category trends through innovation, marketing, and expanded multipack offerings.
Tax rate challenges persist with a 250 basis point headwind expected to carry into 2026 due to tax consequences from cocoa sourcing strategies and lower tax credit availability.
Tax rate challenges persist with a 250 basis point headwind expected to carry into 2026 due to tax credit limitations and other tax consequences.
The company is experiencing top line momentum and profit recovery plans are underway despite headwinds from record high cocoa prices and tariffs.
Hanesbrands' Strategic Shift Toward Growth and Innovation
Hanesbrands is actively expanding into new categories such as loungewear and scrubs, with a focus on adjacent markets to diversify revenue streams.
The company is leveraging advanced analytics and AI to improve inventory, demand planning, and operational efficiency globally.
Management highlighted a significant transformation, making the company healthier, more focused, and more profitable, indicating a strategic pivot from past operations.
The company is creating exclusive product offerings with retailers like Urban Outfitters and expanding premium T-shirt lines in Japan, emphasizing brand elevation.
Hanesbrands is investing more than double what it did four years ago in brand development and marketing, signaling a long-term growth commitment.
Strategic Focus on Long-Term Growth Initiatives and Brand Positioning
Management has clarified their brand positioning and established four strategic priorities: team member experience, handcrafted food and beverages, WOW hospitality, and keeping BJ's atmosphere fresh.
Progress includes momentum with value platforms like the Pizookie Meal Deal, and brand relevance through innovative offerings like the Snickers Pizookie and Fryckles.
Long-term initiatives are set to roll out in the second half of 2025 and into 2026, with a focus on sustainable and profitable growth.
Applebee's First Positive Traffic in 2 Years Driven by 2 for $25
Applebee's achieved positive comparable sales of 4.9%, driven by a significant increase in traffic, the first since Q1 2023.
Traffic growth was supported by the 2 for $25 value platform, which the company is leaning into as a primary marketing message.
Introduction of new menu items each quarter, including Bourbon Street Cajun Pasta, New Skillets & Steak, and Chicken Parmesan Fettuccine, to sustain traffic and sales growth.
Operational processes for new menu rollouts are well-tested and manageable, with franchisees supporting frequent updates.
Value mix decreased slightly to 30%, but remains above historical levels, with positive guest feedback and strong traffic signals.
Strategic Shift Toward B2B and Proprietary Brands Growth
GrowGeneration is actively transforming into a leaner, more profitable, product-driven business with a focus on B2B customers.
Proprietary product sales increased to nearly 32% of total revenue in Q2 2025, up from 21.5% last year, indicating a strategic emphasis on higher-margin private label products.
The company launched its digital B2B platform, GrowGen Pro Portal, which is gaining significant traction among wholesale customers, aiming to migrate more transactions online.
Management highlighted ongoing efforts to close underperforming stores, reducing retail locations to 25 by the end of Q3, to streamline operations and improve profitability.
The focus on proprietary brands and digital transformation reflects a deliberate shift away from traditional retail toward scalable, high-margin B2B channels.
Dafinchi
