Why Coca-Cola Stock Climbed to an All-Time High Today
Shares of Coca-Cola (KO +5.20%) rose to record highs on Tuesday after the beverage titan said the World Cup boosted its sales and profits.
Image source: Getty Images.
A well-planned advertising strategy fueled Coca-Cola’s gains
Coca-Cola’s net revenue rose 7% year over year to $13.4 billion in the second quarter.
The soda king credited its global marketing campaign for the World Cup with helping to drive volumes of its trademark Coca-Cola and Powerade sports drink up by 5% and 8%, respectively. Coca-Cola Zero Sugar was a particularly strong performer, with volumes up 16%.
“We had, during the World Cup, really a great opportunity for us to shine our brands,” CEO Henrique Braun said during an interview with CNBC. “During the hydration breaks, Powerade was there.”
Today’s Change
(5.20%) $4.37
Current Price
$88.44
Key Data Points
Market Cap
Day’s Range
$86.29 – $90.21
52wk Range
$65.35 – $90.21
Volume
2.5M
Avg Vol
17.5M
Gross Margin
61.82%
Dividend Yield
2.47%
Coca-Cola’s operating income increased 9% to $4.7 billion, as its operating margin improved to 34.9% from 34.1% in the year-ago quarter.
All told, the beverage leader’s adjusted earnings jumped 11% to $0.97 per share. That exceeded Wall Street’s estimates, which had called for per-share profits of $0.93.
Raised guidance
These solid results prompted Coca-Cola to lift its full-year outlook. Management now projects organic revenue growth of roughly 5% and adjusted earnings-per-share growth of 9% to 10% in 2026.
During a conference call with analysts, Braun acknowledged that consumers are facing challenges related to ongoing inflation. Yet many still choose to purchase Coca-Cola products, which have become affordable luxuries in the current economic environment.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
