Americans Swap $5 Burgers For $1,000 Weight Loss Drugs — Is Soda Getting Left Behind Too?
Portfolio Pulse from Aaron Bry
Eli Lilly's (LLY) recent earnings report showed a beat on EPS estimates and an increase in 2024 revenue guidance, attributed to the success of its weight-loss drug Mounjaro, contrasting with McDonald's (MCD) and Coca-Cola (KO) reporting underwhelming quarters. The rise in weight-loss drug prescriptions, such as Ozempic, Wegovy, and Mounjaro, to over 8 million last year suggests a shift in American consumption habits, potentially impacting fast food and soda sales.
April 30, 2024 | 7:22 pm
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POSITIVE IMPACT
Eli Lilly's positive earnings report and raised 2024 revenue guidance, driven by the success of Mounjaro, indicate strong performance and growth prospects.
Eli Lilly's success with Mounjaro directly contributes to its positive financial outlook, likely leading to increased investor confidence and potential stock price appreciation in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 90
NEGATIVE IMPACT
Coca-Cola's underwhelming quarter might be influenced by a shift in consumption habits due to the popularity of weight-loss drugs, possibly reducing soda intake.
As weight-loss drugs become more popular, consumers may cut down on calorie intake, including soda, potentially affecting Coca-Cola's sales and stock price negatively in the short term.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 75
NEGATIVE IMPACT
McDonald's reported underwhelming quarters, potentially impacted by the growing adoption of weight-loss drugs reducing fast-food consumption.
The adoption of weight-loss drugs may lead to reduced consumption of fast food, potentially impacting McDonald's sales and stock performance negatively in the short term.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 75