PepsiCo. Inc. (NYSE:PEP) is encroaching on Coca-Cola Co.'s (NYSE:KO) turf at McDonald's Corp. (NYSE:MCD).
Some McDonald's restaurants are selling Pepsi's Gatorade, Propel Fitness Water, Lipton Iced Tea, Tropicana orange juice, and Mountain Dew, according to the Associated Press. McDonald's had sold Coke's products exclusively since 1955, the AP said.
This is obviously a huge win for Pepsi. Demand for non-carbonated beverages is rising at a much faster pace than soda. It's the latest front in the cola wars. This will certainly help Pepsi over the long term.
Investors, though, continue to bet on Coke. Its shares have jumped 12 percent this year compared with 5 percent for Pepsi. Going forward, it's a different story.
Fourteen out of 16 analysts rate Pepsi shares either a buy or a strong buy. Two rate it a hold. Their median price target is $73 about $10 above were it currently trades.
Analysts are expecting on average for Coke to hit $53 in the next year, about $5 above its current price. Twelve out of 17 analysts rate Coke either a buy or strong buy and five consider it a hold.











Reader Comments (Page 1 of 8)
3-14-2007 @ 12:06AM
N said...
I'm interested in knowing what other readers think about this development.
With 10 being a strong chance and 1 being a low chance I'd like readers to comment on whether or not they think Pepsico will gain a stronghold in McDonald's USA or any other country.
Give a rating out of 10 that they will.
Thanks
3-13-2007 @ 11:56PM
N said...
I'm interested in knowing what other readers think about this development.
With 10 being a strong chance and 1 being a low chance I'd like readers to comment on whether or not they think Pepsico will gain a stronghold in McDonald's USA or any other country.
Give a rating out of 10 that they will.
Thanks
3-14-2007 @ 7:41AM
Sarah said...
i think a nice cold coke and a burger from mickey d's go hand and hand. I give it a 2, not a chance pepsicos goona win out.
3-14-2007 @ 7:41AM
McD Coke addict said...
Just hope McDonalds never loses Coke. There's nothing like a McDonalds Coke- especially in Russia!
3-14-2007 @ 7:40AM
jessica275 said...
The only mcdonalds that I know of that sells pepsi product are the ones required to. In my town we have a mcdonalds in the student union of the university and they, the university, sell only pepsi products on campus therefore the mcdonalds is required to sell pepsi. I don't think mcdonalds will go away from coke anytime soon.
3-14-2007 @ 7:39AM
Theresa said...
I would absolutely quit going to McDonald's if they started serving Pepsi. We're Coke drinkers in our family and there is NO other place in town that has coke as good as McDonald's.
3-14-2007 @ 7:38AM
Kat said...
Pepsi is the better soda in my opinion, it does not taste flat and has a better flavor overall. I still go to McD's but get Sprite instead, but would much rather have my Pepsi, I would not mind the take over!! I don't understand the reaction to stop going someplace b/c it does not serve Coke, If you still love the food, why not sacrifice a little on the beverage?
3-14-2007 @ 7:39AM
faye said...
I don't know about McDonald's but the Wendy's in our area has switched from Pepsi to Coke. Maybe they are just getting even...lol.
3-14-2007 @ 8:21AM
Melissa Chaffee said...
I wish they could serve both. I am a very loyal Coke drinker but my husband feels the same for Pepsi. We buy both for home. This would be wonderful for when we are eating out.
3-14-2007 @ 8:21AM
Raelene said...
I personally prefer Pepsi over Coke bc Coke is too sweet. I think that non-carb drinks will be the wave at restaurants bc of the health awareness among citizens today.
3-14-2007 @ 8:22AM
Nanette said...
I believed coca cola "coke" no one can bet the product it's delicious and it's been theire forever and I don't believe on diet or anything else. Please don't change the flavore regular coke is the best of the best in the market.Specially in a glass bottle . I buy it by case.
3-14-2007 @ 8:20AM
Lori said...
I hope mcD's stays with coke; I am definately not a pepsi person.
I'm curious tho; I dislike pepsi because it is too sweet and under carbonated...most other coke people I have asked say the same thing. Whats odd is that pepsi people have the exact same complaint about coke. Why is that?
3-14-2007 @ 8:22AM
P.McCracken said...
#3 This not about the soda. It is about the non-soda drinks, the other soft drinks. Maybe Coke does not have the other affordable healthy drinks? Both produce the high-end fruit cocktails. But those are not cheap.
3-14-2007 @ 8:23AM
robert said...
the way the current CEO at McD's is,anything is possible.I forget where they got the current CEO(off another major fast-food place--i'm thinking BK.)
If i wanted fried chicken(chicken selects),pepsi, or calorie laden,grease dripping burgers i'd go to BK or Wendy's,but since i don't want that,i go to McD's.the current CEO is making McD's into Mickey K's(K as in BK).McD's management should stop worrying about compensation for the C-E-O and start worrying about the c-u-s-t-o-m-e-r-s.
3-14-2007 @ 8:22AM
L Wallace said...
If McDonalds quits serving Coke and starts serving Pepsi, I will never go to McDonalds again! Their coke is the best in the world, it has the right amounts of everything and I go no where else for a fountain drink, as a matter of fact I will go way out of my way for a MCDONALDS COKE! Keep doing what you are doing McDonalds don't cave in to Pepsi products! Signed a McDonalds Coca-Cola lover from Michigan!
3-14-2007 @ 8:23AM
sandra said...
As far as Colas go I drink Pepsi I do not like the taste of Coke ,or Diet Coke, but I enjoy other coke products .
3-14-2007 @ 8:23AM
joanne said...
i hope they dont change. pepsi sucks. they changed the taste of the fries and now if they change soda i guess i wont be going there for my fast food. Maybe that is a good thing
3-14-2007 @ 8:26AM
robert said...
also,coke makes powerade,which isn't like pepsi's gluey gatorade.
my only major gripe w/ coke is dasani tastes like crap.they need to make it more like pepsi's aquafina.
3-14-2007 @ 8:39AM
Dave said...
Who cares? I don't. Never been able to taste a difference between the two of them anyway.
Dave
3-14-2007 @ 8:38AM
Larry said...
Pepsi offers many good drinks such as Mountain Dew, and at one point in time Blue Pepsi. Do you think Pepsi will ever bring back the Blue Pepsi? How can I get someone to bring it back, I am addicted to it!However I enjoy the refreshing taste of a Coca Cola and Diet Coke. As for their other products, I think I will stick with Pepsi. As far as McD's is concerned, they should stick with Coca Cola, they compliment each other and make life more pleasant.