The Kansas City Chiefs won’t be the only winners of Super Bowl LVIII.
In the coming weeks, many public companies who are corporate sponsors, advertisers, and NFL partners will release their earnings report that could receive a post Super Bowl boost. Given the record-breaking statistics of this year’s game in Las Vegas, investors have expectations for a potentially strong earnings beat.
The Chiefs-49ers overtime thriller attracted over 200 million viewers, not only making it the most-watched Super Bowl but also the most-watched telecast in American TV history. Setting aside the Taylor Swift effect, this resulted in a vast audience watching on televisions and streaming devices on February 11th.
One would assume that consumer-facing brands may have disproportionately benefited from the exposure. A record $17.3 billion was estimated to be spent on Super Bowl-related items this year, ranging from food and drinks to apparel.
Investors will soon discover how much companies benefited from the Super Bowl marketing machine. With 2023 fourth quarter reports winding down, the market’s attention will shift towards first quarter earnings.
Below are several companies expected to attribute Super Bowl 58 as a key contributor to their Q1 financial results.
Super Bowl Stock #1: Pepsi (PEP)
A recent survey found that 77% of under-40 guests consider food and beverage offerings to be the deciding factor in which Super Bowl party they attend. This is great news for global snack and drink powerhouse Pepsi.
As usual, Pepsi had heavy Super Bowl ad exposure. The company launched its ‘Taste of Super Bowl’ campaign with a TV spot showcasing Rob Gronkowski, Marshawn Lynch, and Troy Polamalu, with confetti erupting from Lay’s, Cheetos, and Tostitos baags. At the Vegas venue itself, an immersive fan experience (‘Frito-Lay Chip Strip’) reminded consumers of snacking essentials. Pepsi rolled out several more campaigns around the game including a Pepsi Wild Cherry “Get Wild” promo with content from the world’s most followed TikToker Khaby Lame.
When Pepsi reports Q1 financial next month, look for another consensus-topping release. The company is a consistent earnings outperformer — and Wall Street’s projection of just 1% EPS growth could be overly conservative.
Super Bowl Stock #2: DraftKings (DKNG)
According to the American Gaming Association, a record 68 million Americans (one out of every four adults) planned to wager $23.1 billion on this year’s Super Bowl. Boosted by the game’s location, Super Bowl 58 lived up to the hype smashing sports betting records.
Digital sports betting and daily fantasy sports leader DraftKings should be a major beneficiary of these trends. Having raised its 2024 revenue guidance last month, the company is well-positioned as it approaches its Q1 earnings report in May 2024. The debut of its online sportsbook in Vermont, marking its 26th state, alongside the Super Bowl, bodes well for the continuing rise in DraftKings stock that is up 33% since the start of the year.
Super Bowl Stock #3: Constellation Brands (STZ)
Leading beer, wine, and spirits producer Constellation Brands could also emerge as a Super Bowl winner. Ironically, the company could benefit from doing nothing. In contrast to Anheuser-Busch, which used its Budweiser Clydesdales to improve its image after the Dylan Mulvaney marketing fiasco, Constellation Brands chose not to invest $7 million in a 30-second ad.
The decision could prove wise when it comes to Q1 profits, especially with Modelo enjoying its new title as America’s best-selling beer. Effective marketing, strong support from retailers, and eye-catching packaging have beer shoppers shifting to the Mexican lager. As a result, Constellation Brands could be a Super Bowl earnings winner — without even playing the game.
