How Investors Are Reacting To Nestlé (SWX:NESN) U.S. Brand Shake-Up And Blue Bottle Review

• Nestlé USA’s CEO Marty Thompson has recently intensified a review of the U.S. portfolio, using blind taste tests, product reformulations and packaging changes while weighing divestments and options for Blue Bottle coffee to better match shifting consumer preferences and spending.
• This sharper focus on core brands and willingness to shed underperformers hints at a leaner, more responsive U.S. business that could influence how investors view Nestlé’s broader growth ambitions and execution efforts.
• We’ll now explore how Nestlé’s review of underperforming U.S. brands could affect its existing investment narrative and long-term positioning.

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Nestlé Investment Narrative Recap

Nestlé’s investment case rests on its global scale in food and beverage, strong brands and dependable dividends, even as growth has been modest and margins face cost pressures. The intensified review of underperforming U.S. brands, including potential changes around Blue Bottle, looks incremental rather than a near term game changer, with the bigger swing factor still being Nestlé’s ability to protect margins while consumer demand remains uneven.

The most relevant recent development alongside this U.S. review is the planned reduction of about 16,000 jobs over two years, aimed at simplifying operations and cutting costs. Together, portfolio pruning and workforce reductions sit squarely within Nestlé’s broader push for efficiency, which ties directly into the current catalyst of improving profitability while earnings guidance for 2025 remains unchanged.

Yet, while cost actions may support margins, investors should be aware of the risk that...

Read the full narrative on Nestlé (it's free!)

Nestlé’s narrative projects CHF96.0 billion revenue and CHF12.0 billion earnings by 2028. This requires 1.8% yearly revenue growth and an earnings increase of about CHF1.7 billion from CHF10.3 billion today.

Uncover how Nestlé's forecasts yield a CHF88.15 fair value, a 10% upside to its current price.

Exploring Other Perspectives

Fifteen members of the Simply Wall St Community value Nestlé between CHF 67.07 and CHF 142.81, highlighting very different expectations for future performance. You can weigh those views against current concerns about margin pressure from input costs and tariffs that could influence how the company delivers on its efficiency and portfolio reshaping efforts.

Explore 15 other fair value estimates on Nestlé - why the stock might be worth as much as 79% more than the current price!

Build Your Own Nestlé Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Nestlé research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Nestlé research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Nestlé's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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