BUD Stock Jumps Despite Bud Light Boycott Denting U.S. Sales

Analysts had expected AB InBev to earn 68 cents a share on revenue of $15.38 billion.

Revenue was up 7.2% but total volumes declined by 1.4%. Revenue in the U.S. declined by 10.5% as AB InBev’s flagship American brand Bud Light is facing a conservative boycott over its marketing partnership with transgender influencer Dylan Mulvaney.

AB InBev reiterated that it expects its 2023 earnings before interest, taxes, depreciation, and amortization to grow in line with its medium-term outlook of between 4% to 8% and revenue to grow ahead of Ebitda.

The results demonstrate that while the Bud Light imbroglio remains a flashpoint in the U.S., that brand’s woes come at a time when the majority of its other products across the globe—which account for the majority of the company’s business—continue to perform well, more than offsetting lost U.S. volume.”

Given Bud Light’s travails this is an impressive demonstration of AB InBev’s resilience and diversification,” writes RBC Capital Markets analyst James Edwardes Jones.

American depositary receipts of AB InBev were up 3.3% in premarket trading. They had fallen 6.4% this year so far as of Wednesday’s close, and about 16% since the start of April, all stemming from a rapid decline in sales for its Bud Light brand. Formerly America’s top-selling beer, it’s been in the crosshairs of conservative consumers and investors after its marketing partnership with transgender influencer Dylan Mulvaney and subsequent management response.

Bud Light’s dented sales have been a boon to rivals and source of concern for analysts, who have lowered second-quarter earnings-per-share estimates by 12.5% in the past three months, according to

In May, the company reported a better-than-expected first quarter, and addressed the controversy on its conference call.

Nonetheless, while Bud Light’s missteps have grabbed headlines, bulls have been quick to point out that AB InBev gets nearly three-quarters of its business from outside the U.S., where the issue is moot. Moreover, the worst of Bud Light’s sales declines may finally be over, and some believe that the permanent damage will be relatively minor. Just over 60% of the 29 analysts covering AB InBev have a Buy rating or the equivalent on the shares, according to data from FactSet, with an average price target of $67.32, about 20% above today’s levels.

CFRA analyst Garrett Nelson kept a Hold rating on the shares Thursday following the results, but notes that “some may see opportunity, believing that Bud Light concerns are overblown and the company’s global product diversification is being undervalued.”

Barron’s has argued that the stock still looks worth buying following the selloff, given the global power of its brands.  

Write to Teresa Rivas at [email protected]