"Coca-Cola (NYSE:KO) closed Friday at $78.67, down 0.5% for the week but up 12.5% year-to-date. That crushes both the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) (flat YTD) and is close to the Consumer Staples Select Sector SPDR Fund (NYSEARCA:XLP) (up 15.2% YTD). Three storylines drove the action: Q4 earnings sparked analyst upgrades, incoming CEO Henrique Braun outlined aggressive innovation priorities, and portfolio moves signal where it's betting for growth."
"Coca-Cola reported Q4 results on February 10 that beat on earnings but missed on revenue. EPS of $0.58 beat estimates of $.56, while revenue of $11.8 billion came in light. The real story was organic revenue growth of 5% and unit volume up 1%, showing demand holds despite consumer spending pressure. UBS raised its price target from $82 to $87 on February 12, citing "stability of Coca-Cola's core business fundamentals.""
"Braun said current innovation efforts are "not meeting required standards" and committed to faster product launches and better consumer engagement. The company is creating a Chief Digital Officer role and establishing regional excellence hubs to push decision-making closer to local markets. Braun's billion-dollar brand strategy focuses on identifying emerging local brands and scaling them globally, similar to how Santa Clara dairy crossed the $1 billion threshold."
Coca-Cola closed at $78.67, up 12.5% year-to-date and outperforming the S&P 500 while nearing consumer staples peers. Q4 EPS of $0.58 beat estimates but revenue of $11.8 billion missed, with organic revenue up 5% and unit volume up 1%. Analysts raised targets and maintained buy ratings, citing margin expansion potential and Coca-Cola Zero Sugar's 13% volume growth. Management guided to 4-5% organic revenue growth and 7-8% EPS growth for 2026. Incoming CEO Henrique Braun signaled faster innovation, added a Chief Digital Officer role, established regional hubs, and pursued a billion-dollar brand scaling strategy.
Read at 24/7 Wall St.
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