Dr Pepper’s management also works hard at expanding the company’s presence in the beverage world. In its 2012 Annual Report, management talks about expanding store shelf space in convenience and dollar stores.
Another beverage company, homemade soda system maker, Sodastream International Ltd (NASDAQ:SODA) showed strong growth in 2012. The company’s management plans to stay for the long haul as evidenced from its Super Bowl ads. Revenue and net income increased 51% and 60% respectively. It showed the highest amount of revenue in its “Americas” segment growing 96% in the fourth quarter.
Health and environmental awareness fuel this company’s growth and market penetration. SodaStream’s finished beverages contain fewer calories and its recyclable containers mean fewer plastic bottles in the landfills.
Currently, SodaStream leans on inefficient methods of manufacturing and distribution and it plans on building a facility in its home country of Israel to counteract this problem, according to its latest earnings call (sign-in required).
Apparel retailer Body Central Corp (NASDAQ:BODY) and its shareholders suffered through a terrible time in 2012. Excessive markdowns in inventory brought on by out of fashion merchandise drove comparable store sales (sales of stores open longer than a year) and operating income down 8.1% and 39% respectively for the year.
On Feb. 5, the company announced a new CEO, a new merchandising team, and the resignation of the merchandising executive responsible for its inventory mishaps. According to Body Central’s latest earnings call, a Senior Vice President in charge of trend and design stationed in New York City will keep this company apprised of new fashion trends.
After clearing out the old inventory, management plans to turn around the company with new store layouts and new fashionable merchandise translating into better results starting with the final quarter of 2013. The turnaround, if positive, will fully present itself in 2014.
Wal-Mart Stores, Inc. (NYSE:WMT) challenger
Discount retailer Wal-Mart Stores, Inc. (NYSE:WMT) rules the retailing world as a go to place for low priced merchandise and groceries. However, No.2 chain Target Corporation (NYSE:TGT) wants to challenge Wal-Mart’s status by remodeling 100 stores with a grocery section according to its latest earnings call (sign in required).
While Target did warn that in the short term company sales could suffer due to increased payroll taxes and increases in the cost of living in general, remodeling stores and adding groceries will steal some of the grocery customers away from Wal-Mart Stores, Inc. (NYSE:WMT) and add to potential shareholder gains.
In 2012, Target’s revenue and net income increased 5% and 2% respectively; however, profitability declined 2% in the 4th quarter stemming from tight consumer spending.
In summary, the grand plans these companies have in place are worth watching. Riskier plans, if they work, can translate into better potential for rewards but they also leave the potential for great losses. If the plans come to fruition and management remains diligent the companies will prevail to the benefit of shareholders.
The article 5 Companies With Big Plans to Watch originally appeared on Fool.com and is written by William Bias.
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