Anheuser-Busch Attempts Apology?!

Anheuser-Busch has attempted to ‘apologize’ to shareholders following the fallout from the Mulvaney PR disaster.

In an effort to placate investors, Anheuser-Busch has announced that it will be buying back $1 billion in stocks over the next year.

Additionally, the company has announced that it will pay off $3 billion in bonds to make the enterprise more enticing to would-be investors.

Still no word on an actual apology to the customers of Anheuser-Busch and their flagship product Bud Light though.

It baffles me that the company is choosing to engage in stock buybacks instead of addressing the core reason for their sales slump—they completely alienated their core audience.

Until this problem is solved the revenue problem won’t. Here’s what we currently know:

Bud Light is winning back some bidders this morning after Anheuser stock gains on mixed results.

Rev: $15.57B vs $15.71B est.
EPS: $0.86 vs $0.83 est.$BUD +3.20% in pre-market trading. pic.twitter.com/hmCBCJ02zn

— Stocktwits (@Stocktwits) October 31, 2023

This morning, Anheuser-Busch, the parent company of BudLight, reported a staggering -13.5% decline in U.S. revenue in the third quarter

Despite the news, its stock is up +5% today

— Cheddar Flow (@CheddarFlow) October 31, 2023

According to Investopedia:

AB InBev said the board has approved a $1 billion share repurchase plan over the next 12 months. In addition, the company will execute a cash tender offer for up to $3 billion of outstanding bonds as it focuses on deleveraging.

Despite Tuesday’s gains, ADRs of Anheuser Busch InBev remained in negative territory for the year to date.

Newsmax explained: “Anheuser-Busch said Tuesday revenue growth in most of its global regions was offset by a drop in North American sales, in a sign of continuing fallout from a promotion with a transgender influencer that cost it sales.”

BUD LIGHT BACKLASH: Anheuser-Busch said Tuesday revenue growth in most of its global regions was offset by a drop in North American sales, in a sign of continuing fallout from a promotion with a transgender influencer that cost it sales. MORE: https://t.co/BOTKQL1lz1 pic.twitter.com/r11iXIXne8

— NEWSMAX (@NEWSMAX) October 31, 2023

Anheuser’s stock has managed to regain some ground after plummeting to ~$52, down from the most recent high of ~$67 per share and is currently in a consolidation phase.

While this is not investing advice, a return to the downside is likely given the current chart pattern.

Newsmax presented the latest sales data:

U.S. dollar sales of Bud Light were down 29% in the four weeks ending Oct. 21 compared to same period a year ago, according to Nielsen data compiled by Bump Williams Consulting.

They are down nearly 19% for the year to date.