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Memorandum

Autor:   •  September 14, 2016  •  Essay  •  1,060 Words (5 Pages)  •  663 Views

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MEMORANDUM

TO:         Manager  

FROM:      Qifan Yao, Yaran Yang, Analysts

DATE:       Oct 7, 2015

SUBJECT:    Recommendation of Selling BUD

My manager has asked me to prepare a memo comparing and contrasting Anheuser-Busch InBev NV (BUD) with its industry competitors. I picked Dr Pepper Snapple Group, Inc. (DPS), Boston Beer Co. Inc. (SAM), and Coca-Cola Co/The (KO) as competitors of BUD. As a result of my research, I recommend selling all InBev’s stocks.

The following chart contains data that I will refer to in this memo.

Anheuser-Busch InBev NV

Dr Pepper Snapple Group, Inc.

Boston Beer Co. Inc. (craft brewing)

Coca-Cola Co/The

Ticker

BUD

DPS

SAM

KO

Stock Price(10/7/15)

110.96

83.11

222.17

41.52

Sales(Jun 30, 2015)

11,052,000

1,655,000

252,204

12,156,000

Sales(March 31, 2015)

10,453,000

1,451,000

199,503

10,711,000

Sales growth(Qrtly)

5.73%

14.06%

26.42%

13.49%

Net Income(Jun 30, 2015)

2,263,000

220,000

29,932

3,108,000

Net Income(March 31, 2015)

3,098,000

157,000

13,743

1,557,000

Net Income Growth(Qrtly)

-26.95%

40.13%

117.80%

99.61%

Trailing P/E

19.20

22.66

30.12

24.31

ROA

6.38%

9.16%

16.66%

7.10%

Chart 1

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