Company Reports

Coca-Cola's organic revenue rose 6% in the second quarter, driven by 2% growth in price/mix and a 4% increase in concentrate sales. Comparable operating profit grew 9%, as margin expanded 90 basis points to 35.6%, and comparable earnings per share grew 11% to $0.97.

We believe Coca-Cola has a wide economic moat. Its brand intangibles and the scale benefits from a massive global system should reinforce its competitive standing in nonalcoholic beverages and drive excess returns for more than 20 years.

Coca-Cola's organic revenue rose 10% in the first quarter, driven by 2% growth in price/mix and an 8% increase in volume. Comparable operating profit grew 12%, as margin expanded 70 basis points to 33.8% and comparable earnings per share grew 18% to $0.86.

We believe Coca-Cola deserves a wide moat rating. Its brand intangibles and the scale benefits from a massive global system should reinforce its competitive standing in nonalcoholic beverages and drive excess returns for more than 20 years.

We believe Coca-Cola deserves a wide moat rating. Its brand intangibles and the scale benefits from a massive global system should reinforce its competitive standing in nonalcoholic beverages and drive excess returns for more than 20 years.

Coca-Cola's organic revenue rose 5% in 2025, driven by 4% growth in price/mix and a 1% volume increase. Adjusted operating profit grew 6.6%, as margin expanded 120 basis points to 31.2%, and adjusted earnings per share grew 4.2% to $3.00.

On Dec. 10, Coca-Cola named Chief Operating Officer Henrique Braun, a 30-year company veteran, as its next chief executive officer effective March 2026. He held senior executive roles overseeing international operations over the past decade. James Quincey will stay on as executive chairman.

We believe Coca-Cola deserves a wide moat rating. Its brand intangibles and the scale benefits from a massive global system should reinforce its competitive standing in nonalcoholic beverages and drive excess returns for more than 20 years.

Coca-Cola's third-quarter organic sales rose 6% and adjusted operating profit grew 8% as margins widened 120 basis points to 31.9%. The firm kept its 2025 outlook for 5%-6% organic sales growth and 3% adjusted earnings per share growth but raised its adjusted free cash flow estimate by 3%.

We believe Coca-Cola deserves a wide moat rating. Its brand intangibles and the scale benefits from a massive global system should reinforce its competitive position in nonalcoholic beverages and drive excess returns for more than 20 years.

We believe Coca-Cola deserves a wide moat rating, and expect its brand portfolio underpinning pricing power and close retailer relations, coupled with scale benefits stemming from a massive global system, to reinforce its competitive position in nonalcoholic beverages and drive excess investment returns for more than two decades.

Coca-Cola increased organic sales by 5% in the first quarter as a 6% price mix more than offset a 1% volume fall. Adjusted operating profit rose 15% as operating margin expanded 190 basis points to 34.7%.

We award a wide economic moat rating to Coca-Cola and expect its brand portfolio underpinning pricing power and close retailer relations, coupled with scale benefits stemming from a massive global system, to reinforce its competitive position in nonalcoholic beverages and drive excess investment returns for more than two decades.

Coca-Cola posted 6% organic sales growth in the first quarter on a 5% price mix increase. Adjusted operating margin widened 140 basis points to 33.8%.

We award a wide economic moat rating to Coca-Cola and expect its brand portfolio underpinning pricing power and close retailer relations, coupled with scale benefits stemming from a massive global system, to reinforce its competitive position in nonalcoholic beverages and drive excess investment returns for more than 20 years.

Wide-moat Coca-Cola delivered strong 2024 results, including increases of 12% and 7%, respectively, in organic sales and comparable EPS. Notably, global unit case volume expanded 1% for the year despite consumer pullback and geopolitical uncertainties. This resilient performance reaffirmed our investment thesis for Coke that is underpinned by its total beverage portfolio approach, steadfast commitment to product innovations and brand investments, and strong in-market execution. For 2025, we think management's outlook for organic sales growth of 5%-6% looks achievable on a balanced blend of volume and price increases, but we plan to trim our adjusted EPS estimate, before the earnings call, of $3.04 by a low-single-digit percentage to incorporate higher foreign currency headwinds. We don't plan any material changes to our $64 fair value estimate, and we view shares as fully valued.

Despite headwinds from consumer belt-tightening and geopolitical uncertainties, wide-moat Coca Cola delivered solid third-quarter results, including 9% and 5% growth in organic sales and comparable earnings per share, respectively. The resilient performance reaffirmed our constructive view on Coke’s long-term growth outlook underpinned by its total beverage portfolio strategy and unwavering commitment to product innovation and brand investment. We plan to maintain our 2024 sales and adjusted EPS forecasts of $46 billion and $2.86, respectively, which align with management's outlook, and our 10-year forecasts for mid-single-digit annual sales growth and low 30s operating margins. We maintain our $64 fair value estimate, and shares look fully valued.

We award a wide economic moat rating to Coca-Cola and expect its brand portfolio underpinning pricing power and close retailer relations, coupled with scale benefits stemming from a massive global system, to reinforce its competitive position in nonalcoholic beverages and drive excess investment returns for more than 20 years.

Wide-moat Coca-Cola issued a statement on Aug. 2 confirming that the US Tax Court has ruled to support the position of the US Internal Revenue Service that the beverage giant owes $2.7 billion in taxes ($6 billion including interests) relating to the 2007-09 period. However, the market appeared unfazed, with shares up 1% in trading. We think the absence of material price movements on the news is at least partly due to Coke’s detailed disclosure regarding the ongoing tax case in recent filings that eased investor angst. We also think that the market appears to side with Coke’s own assessment of the tax situation, with the firm’s tax reserve related to the dispute at a more modest $450 million.

We plan to raise our $60 per share fair value estimate for wide-moat Coca-Cola by a low-single-digit percentage after digesting its strong second-quarter results and updated outlook. However, we view the stock as fully valued even after the planned increase in intrinsic valuation. Organic sales rose 15%, led by innovations, digital initiatives, and deft in-market executions, and adjusted earnings per share were up 7%. This was with a softer consumer backdrop in the US and continued instability and macro challenges across Europe, Latin America, and Asia. Coke remains poised to fuel volume and pricing growth, aided by its total beverage portfolio approach, steadfast investments in product innovation, and brand marketing. We plan to tick up our 2024 sales and adjusted EPS estimates by low-single-digit percentages to align with management’s raised guidance, while our 10-year projection for mid-single-digit sales growth and a low-30s average operating margin remains in place.