Today is the day the World Cup finally kicks off, and companies
with an international mindset will use this conveniently set stage
to advertise their wares. Savvy companies will use the opportunity
to leverage the exposure into long-term sales growth, and provide a
boost to share holders and sector-related exchange traded funds
Thomas M. Anderson for Kiplinger
specifies four companies that may come out winners in this
- Coca-Cola (NYSE:
). Coke has advertised in every World Cup since 1950. This time
around, the company is sponsoring a five-continent tour with the
World Cup trophy, launching a global ad campaign that highlights
its Powerade drink and promoting Coke products and the World Cup
in Wal-Mart (NYSE:
) stores. UBS analyst Kaumil Gajrawala is giving a "buy" signal
on Coke after the company's plans to cut costs by purchasing its
own bottling plant and growing sales numbers in the emerging
ETFs to Watch This Summer.
- Walt Disney Co. (NYSE:
). Disney's EPSN is partnering with Sony to offering World Cup
coverage in 3-D. ESPN generated 29% of $36.1 billion in revenues
for the October 2009 fiscal year and revenue from Disney's cable
company rose 9% in the last reported quarter year-over-year.
Standard & Poor's analyst Tuna Amobi rates Disney stock a buy
as the company's revenue increases on better movie sales.
- McDonald's (NYSE:
). McDonald's is featuring menu items and restaurant promotions
that are tournament themed, along with a World Cup "fantasy
Football" online game. Markets in Europe, Asia, the Middle East
and Africa - all big fans of soccer - are where the company is
seeing revenues rise. Robert W. Baird & Co. analyst David
Tarantino believes that McDonald's can maintain global sales
growth going for 2010 as economies recover. [
Restaurant ETFs Looking Mighty Tasty.
- Nike (NYSE:
). Revenue growth in football-adoring country Brazil increased by
over 60%, and Argentina, Chile, Uruguay and Paraguay each showed
sales growth of about 30%. Umbro, Nike's soccer-equipment brand,
sales more than doubled in the quarter. Argus Research analyst
Erin Smith opines that Nike will bring more earnings growth as
"other brands" divisions expands.
For more information on consumer goods, visit our
consumer discretionary category
iShares DJ US Consumer Goods (NYSEArca:
KO is 9.4%. NKE is 1.7%.
iShares S&P Global Consumer Discretionary Sector
Index Fund (NYSEArca:
DIS is 3.4%. MCD is 4.0%. NKE is 1.5%.
iShares DJ US Consumer Services (NYSEArca:
MCD is 5.2%.
PowerShares Dynamic Food & Beverage (NYSEArca:
: MCD is 2.8%.
PowerShares Dynamic Leisure & Entertainment
: MCD is 3%.
Max Chen contributed to this article.