Go Woke, Go Broke? Not If You're ABI

Did you notice Anheuser-Busch's earnings report?  Yes, its sales were down a bit,. that to the Dylon Malvaney controversy.  But its earnings were up.  

That's partially a result of its sheer size globally, of the number of brands it has, of its pricing power.  The same thing is true, notes analysts at Quad 7 Capital, of Chick-fil-A.  There are groups that are very vocal against it, and "it grows like wildfire."

As for Bud Light, sales are still falling, but, says Quad 7 Capital, the degree of the decline has stalled.

ABI's volumes were down, but revenue was up, as was profit.  

We think the bottom line when it comes to backlash for taking stands that are out of fashion, these things will blow over.  Sure, some people may decide to never buy another Bud Light, and some people will never enter a Chick-fil-A store.  But other people may decide to buy a product or enter a store just because they do support the things the company has stood for.

The situation is quite different, however, when you're caught up in a broad political pushback, such as is occurring in Florida. Since Gov. Ron DeSantis attacked the Walt Disney Co. last year, Walt Disney World isn't as crowded, but neither are hotels and restaurants throughout the state.  The Fort Lauderdale visitors bureau reported a couple of weeks ago that two convention with a total of 2,800 hotel rooms had cancelled reservations and moved to other states.