COCA COLA CO

Business Overview

Coca-Cola is a total beverage company that began sales in the United States in 1886 and now sells branded beverages in more than 200 countries. Its major brands include Coca-Cola, Sprite, Coca-Cola Zero Sugar, Fanta, and Diet Coke, and 2.2 billion servings are consumed daily through a network of independent bottling partners and distributors along with some consolidated bottling operations. In 2025, total Coca-Cola system volume was approximately 33.68 billion unit cases, with revenue composed of 59% concentrate business and 41% finished product business (fiscal year 2025, 10-K). At the end of 2025, the company had approximately 65,900 employees, and its operating segments consist of five geographic segments: EMEA, Latin America, North America, Asia Pacific, and Bottling Investments.

Recent Earnings

Q1 2026 revenue was $12.5 billion (+11% YoY, +10% organic revenue growth) and adjusted EPS was $0.86 (+18%). Q2 2026 results, announced before market open on 2026-07-28, showed revenue of $13.38 billion (+7% YoY, +6% organic revenue growth) and adjusted EPS of $0.97, exceeding market consensus (revenue of $13.16 billion, EPS of $0.93), with worldwide unit case volume up +5%. The company raised its management-basis full-year 2026 outlook for adjusted EPS growth from 8–9% to 9–10%.

Competitive Landscape

Keurig Dr Pepper completed its acquisition of JDE Peet's in April 2026, expanding into the coffee business, and the Dr Pepper brand overtook Pepsi in 2024 to become the No. 2 U.S. carbonated soft drink brand by individual brand. PepsiCo's share price fell approximately 20% from its 52-week high in the first half of 2026, driven in part by weakness in its snacks segment, while Coca-Cola rose approximately +20% year-to-date in 2026.

Valuation

Exact, up-to-date figures for P/B ratio (price-to-book ratio) as well as shares outstanding and net debt were not obtained in this research and are left as not available.

Supply and Demand Trends

Trading volume on 2026-07-28 surged to 34,982,910 shares, roughly 2–3 times the recent typical daily average (approximately 12–16 million shares, with variation across sources), coinciding with the Q2 earnings surprise announced before market open that day. A Form 13F filed 2026-05-15 (as of 2026-03-31) reconfirmed that Berkshire Hathaway has held 400 million shares (approximately 9.29% stake) unchanged since 2020. Vanguard (approximately 371 million shares, 8.61%) and BlackRock (approximately 313 million shares, 7.28%) are also confirmed as major holders, but the direction of change from the prior quarter is unclear across sources and not available. Short interest figures vary by source from 39.23 million to 47.77 million shares, so an exact settlement-date figure is not available, and due to the nature of the U.S. market, daily net-buying data by investor type in the Korean style is not disclosed.

Governance and Shareholders

Henrique Braun took office as Chief Executive Officer effective 2026-03-31, and James Quincey, who had served for nine years, transitioned to Executive Chairman (disclosed 2025-12-10). The Board of Directors comprises 12 members (10 independent directors), and all directors were re-elected or newly elected at the 2026-04-29 annual shareholders meeting (with approval rates of 76.00%–99.84%). The Board approved a 64th consecutive annual dividend increase on 2026-02-19, raising the quarterly dividend to $0.53 (annualized $2.12), and reaffirmed the same quarterly dividend amount on 2026-07-15. Major shareholders are Berkshire Hathaway (9.29%, as of 2025-12-31), Vanguard Group (8.61%), and BlackRock (7.28%); State Street's exact stake is not available.

Macro Environment

As of July 2026, the U.S. federal funds rate remains on hold at 3.50–3.75%, and the 10-year Treasury yield trended higher during July at 4.64–4.69%. The U.S. Dollar Index (DXY) shows moderate strength at around 101.30 (2026-07-29), and the company disclosed at its 2026-07-28 earnings release that, on a hedged-position basis, foreign exchange is providing an approximately +3 percentage point favorable impact to 2026 adjusted EPS. On the commodities side, LME aluminum spot prices are up approximately +22% year-over-year, and Section 232 tariffs were expanded to 50% of tariff value effective 2026-04-06, creating upward pressure on can packaging costs, while sugar (ICE #11) has remained stable within a narrow range throughout 2026.

Risk Factors

The IRS tax litigation related to transfer pricing for fiscal years 2007–2009 is proceeding before the U.S. Court of Appeals for the Eleventh Circuit (oral arguments 2026-06-25), and depending on the appeal outcome, the exposure could exceed $20 billion. There is a possibility that demand for sugar-sweetened carbonated beverages could structurally decline due to the spread of GLP-1 class weight-loss drugs, with survey results indicating that 33% of daily drinkers have quit entirely. Changes in tariff policy (expansion of Section 232 aluminum tariffs, additional tariffs on Canadian-origin goods effective 2026-07-20) and the spread of sugar taxes and plastics regulation are also cited as cost and operational burdens. On 2026-07-16, subsidiary fairlife disclosed unauthorized access due to a ransomware incident that temporarily halted U.S. production (Canadian production was unaffected), and the 2026-03-31 CEO transition and the 2026-06-25 North America leadership vacancy (with the CFO serving as interim) are also identified as short-term factors related to organizational stability.

Recent News Timeline

• 2026-07-28: Q2 earnings announced (revenue $13.38 billion +7%, adjusted EPS $0.97), full-year outlook (management basis) raised, reports of closing price reaching an all-time high.
• 2026-07-20: New global visual identity system officially launched.
• 2026-07-20: Proclamation signed imposing an additional 50% tariff on numerous Canadian-origin goods (including alcoholic beverages); specific impact on Coca-Cola not specified.
• 2026-07-16: Subsidiary fairlife discloses unauthorized access from ransomware, temporarily halting U.S. production.
• 2026-02-19: Board of Directors approves 64th consecutive annual dividend increase.