Latest news with #JamesQuincey
Yahoo
22-05-2025
- Business
- Yahoo
This Warren Buffett Dividend Stock Looks Attractive for a Recession-Proof Portfolio
The Coca-Cola Company (NYSE:KO) is an American multinational beverage company. It is a long-time favorite of Warren Buffett and stands as one of the most recognizable and dependable consumer staples companies in the world. Its iconic brand and loyal global customer base provide the company with significant pricing power, enabling it to grow revenues steadily, even during periods of economic uncertainty. Despite macroeconomic pressures such as weaker demand in key markets like the US and Latin America and currency-related headwinds in Q1 2025, The Coca-Cola Company (NYSE:KO) continued to deliver. The company reported a 2% increase in global sales volumes and a 6% rise in organic revenue, staying aligned with its long-term growth goals. Between 2021 and 2024, its revenue grew from $38.6 billion to $47.06 billion, while gross profit surged from $23.3 billion to $28.6 billion. In recessionary environments, The Coca-Cola Company (NYSE:KO)'s value proposition becomes even more compelling. Its products—ranging from essential bottled water to affordable treats like soft drinks—remain in demand when consumers cut back on premium spending. The company also expanded its share within the ready-to-drink beverage category, underlining its strategic execution. As CEO James Quincey noted, the company's 'all-weather strategy' continues to deliver resilient results despite economic and geopolitical uncertainties. From a shareholder perspective, The Coca-Cola Company (NYSE:KO) is a powerhouse. The company has increased its dividend for 63 consecutive years, which is an extraordinary record that it held firm through the Great Recession and the COVID-19 pandemic. In FY2024, it generated $6.8 billion in operating cash flow and $4.7 billion in free cash flow, returning $9.4 billion to shareholders in dividends alone. While the current dividend yield of 2.85% might not be the highest on the market, it reflects remarkable consistency. For Warren Buffett, whose Berkshire Hathaway owns 400 million shares, that translates to approximately $800 million in annual dividend income. His long-term confidence in The Coca-Cola Company (NYSE:KO) stems not just from brand strength but from its proven ability to generate and return cash, regardless of external conditions. In an uncertain market, Coca-Cola's stability, consistent cash flow, and long history of dividend growth make it a strong candidate for any income-focused portfolio. While we acknowledge the potential of NOC as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than NOC but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ MORE: and Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
This Warren Buffett Dividend Stock Looks Attractive for a Recession-Proof Portfolio
The Coca-Cola Company (NYSE:KO) is an American multinational beverage company. It is a long-time favorite of Warren Buffett and stands as one of the most recognizable and dependable consumer staples companies in the world. Its iconic brand and loyal global customer base provide the company with significant pricing power, enabling it to grow revenues steadily, even during periods of economic uncertainty. Despite macroeconomic pressures such as weaker demand in key markets like the US and Latin America and currency-related headwinds in Q1 2025, The Coca-Cola Company (NYSE:KO) continued to deliver. The company reported a 2% increase in global sales volumes and a 6% rise in organic revenue, staying aligned with its long-term growth goals. Between 2021 and 2024, its revenue grew from $38.6 billion to $47.06 billion, while gross profit surged from $23.3 billion to $28.6 billion. In recessionary environments, The Coca-Cola Company (NYSE:KO)'s value proposition becomes even more compelling. Its products—ranging from essential bottled water to affordable treats like soft drinks—remain in demand when consumers cut back on premium spending. The company also expanded its share within the ready-to-drink beverage category, underlining its strategic execution. As CEO James Quincey noted, the company's 'all-weather strategy' continues to deliver resilient results despite economic and geopolitical uncertainties. From a shareholder perspective, The Coca-Cola Company (NYSE:KO) is a powerhouse. The company has increased its dividend for 63 consecutive years, which is an extraordinary record that it held firm through the Great Recession and the COVID-19 pandemic. In FY2024, it generated $6.8 billion in operating cash flow and $4.7 billion in free cash flow, returning $9.4 billion to shareholders in dividends alone. While the current dividend yield of 2.85% might not be the highest on the market, it reflects remarkable consistency. For Warren Buffett, whose Berkshire Hathaway owns 400 million shares, that translates to approximately $800 million in annual dividend income. His long-term confidence in The Coca-Cola Company (NYSE:KO) stems not just from brand strength but from its proven ability to generate and return cash, regardless of external conditions. In an uncertain market, Coca-Cola's stability, consistent cash flow, and long history of dividend growth make it a strong candidate for any income-focused portfolio. While we acknowledge the potential of NOC as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than NOC but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ MORE: and Disclosure. None.
Miami Herald
14-05-2025
- Entertainment
- Miami Herald
Coca-Cola brings viral take on iconic soda to stores
Just because something becomes of viral sensation does not mean it needs to cross over into the real world. Remember when everyone was taking instant coffee and whipping it into a sort of cream? That was a viral fad that did not need to become something sold in stores. Related: AMC announces generous offer to win back customers There are cases however, we're viral trends, make it into reality. Starbucks, for example, has brought many items from its so-called secret menu onto its real menu. This happened somewhat organically. Customers were ordering these items which did not have an official recipe. By adding them to the menu, the chain gave its workers. The tools needed to make them successfully. These situations rarely happen. But when they do happen, they can be very big. Dirty sodas, for example, moved from social media and reality TV into a growing trend. A number of coffee chains now offer some version of a dirty soda with a few chains, leaning into it heavily. Don't miss the move: Subscribe to TheStreet's free daily newsletter Even McDonald's has brought items from its secret menu and offered them to fans. It's a smart strategy because many people want to try these, but don't know exactly how to order them. Now, Coca-Cola has jumped on this trend and is bringing a viral hit into stores later this month. Coca-Cola has not been shy about trying to have viral success. It has partnered with celebrities like the DJ Marshmello to create new flavors. It has also used artificial intelligence to create a flavor and seems very willing to introduce novelty sodas just to get some attention Coca-Cola's latest flavor, however, may be based on a viral trend, but it's not a novelty. It seems like a product that has an actual chance for long range success. Sprite Tea sounds like an unlikely combination. This isn't something that Coca-Cola (KO) invented, but a trend that truly spread online. People took a 20-ounce bottle of Sprite and dropped in two black tea tea bags allowing it to steep for 10 minutes. The combination actually brings out the best in both, tempering the carbonation and sweetness of the Sprite while accenting the tea with the soda's lemon-lime flavor. Media & Entertainment: Disney makes major theme park announcement after startling lossComcast raises red flag about unexpected customer behaviorDisney CEO offers unexpected response to tariff concerns This flavor has been long in the making as it was first introduced by Coca-Cola at an industry event in Oct. 2024 for a May 2025 release. Sprite and Tea will hit store shelves on May 20. It will be sold in 20-ounce bottles, cans, and in 12-ounce can 12-packs. The cans will offer both sugar and sugar-free options while the bottles will be sugar only. Consumers have mixed opinions on soda and have been looking for healthier alternatives in some cases. That has created challenges for Coca-Cola, which CEO James Quincey talked about during its first-quarter earnings call. "In North America, we grew revenue and profit and won value share, but we were not satisfied with our volume performance. In addition to challenges with severe weather and calendar shift, volume was impacted by weakening consumer sentiment as the quarter progressed, particularly among Hispanic consumers," he shared. There are some bright spots which also show why its important that Sprite Tea is being offered in a zero sugar variety. "Bright spots include continued volume growth for Coca-Cola Zero Sugar, another good quarter for fairlife and Topo Chico Sabores, and continued traction with food service customer renewals and new accounts. Our system has quickly pivoted to prioritize the most impactful investment opportunities and is emphasizing faster decision making and greater agility to accelerate volume growth," he added. Related: Another fast-food, casual dining chain files Chapter 11 bankruptcy New flavors and brands are also drivers for the company. "In the U.S., Coca-Cola Orange Cream is off to a good start with approximately $50 million in retail sales during the quarter. At the end of February, we launched Simply Pop, our first prebiotic soda in select locations and channels across the country. We're excited about our ability to test and learn and scale successes over time," he shared. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
13-05-2025
- Business
- Yahoo
KO Q1 Earnings Call: Coca-Cola Delivers Flat Sales, Highlights Margin Gains and Local Strategies
Beverage company Coca-Cola (NYSE:KO) reported Q1 CY2025 results exceeding the market's revenue expectations , but sales were flat year on year at $11.22 billion. Its non-GAAP profit of $0.73 per share was 1.4% above analysts' consensus estimates. Is now the time to buy KO? Find out in our full research report (it's free). Revenue: $11.22 billion vs analyst estimates of $11.15 billion (flat year on year, 0.6% beat) Adjusted EPS: $0.73 vs analyst estimates of $0.72 (1.4% beat) Adjusted EBITDA: $4.05 billion vs analyst estimates of $4.06 billion (36.1% margin, in line) Operating Margin: 32.6%, up from 19.1% in the same quarter last year Free Cash Flow was -$5.51 billion, down from $158 million in the same quarter last year Organic Revenue rose 6% year on year (11% in the same quarter last year) Sales Volumes rose 2% year on year (1% in the same quarter last year) Market Capitalization: $299.3 billion Coca-Cola's first quarter results were shaped by region-specific demand shifts, ongoing margin expansion, and targeted investments in brand relevance. CEO James Quincey pointed to volume growth across global beverage categories, but acknowledged challenges in North America and Mexico, particularly among Hispanic consumers, where weaker sentiment and a misleading viral video weighed on flagship brand performance. The company emphasized agility in responding to market-specific headwinds, with bright spots in products like Coca-Cola Zero Sugar and Fairlife. Looking ahead, management reiterated its confidence in the company's strategy as it navigates uneven consumer trends and macroeconomic uncertainty. The outlook is supported by Coca-Cola's focus on affordability, local production, and continued innovation, including the return of the Share a Coke campaign and expansion in functional beverages. CFO John Murphy noted, "We are being prudent to not get flow through" on currency guidance and remain committed to long-term growth targets, while preparing for potentially choppy conditions in coming quarters. Coca-Cola's management attributed the quarter's results to a mix of geographic and product-specific dynamics, with particular attention to regional consumer sentiment and brand performance outside core markets. Deviation from consensus expectations came mainly from stronger-than-expected operating margin expansion, driven by cost management, and continued focus on local execution rather than headline growth rates. North America softness: The company cited weakening consumer sentiment, especially among Hispanic consumers, and the impact of a false viral video affecting Coca-Cola Original sales in Southern states. Management responded by increasing focus on affordability options and tailored promotions. Mexico volume pressures: Softer performance in Mexico was attributed to cycling strong growth in the prior year, calendar shifts, and macro uncertainty following local elections. The company launched the Hecho en Mexico campaign and emphasized value packaging to regain momentum. Asia-Pacific and India growth: Volume gains in Asia-Pacific were led by strong execution in India and a recovery in China, where marketing activations during Lunar New Year and portfolio rationalization helped drive demand. Fairlife's continued expansion: Fairlife remained the leading contributor to retail dollar growth in the beverage industry. Management expects growth to moderate as the brand's size increases, with new production capacity scheduled to come online later in the year. Margin improvement levers: Operating margin expansion was supported by productivity initiatives, bottler refranchising, and targeted cost management. Management noted some timing benefits in the quarter but reiterated a focus on sustainable long-term margin gains. Management expects the next quarter and the full year to be influenced by local consumer dynamics, continued marketing investment, and the company's ability to adapt to external volatility, such as shifting trade policies and currency fluctuations. Affordability and local relevance: Coca-Cola is prioritizing affordable product packages and emphasizing the local production of global brands to build resilience and maintain relevance amid economic and geopolitical uncertainties. Innovation and marketing: The return of the Share a Coke campaign and expansion into functional beverages, like prebiotic sodas, are expected to drive consumer engagement, particularly among younger demographics. Productivity and margin focus: Management believes ongoing cost optimization and supply chain enhancements will help offset external pressures, supporting long-term operating margin targets even as revenue growth moderates in certain regions. Dara Mohsenian (Morgan Stanley): Asked about maintaining guidance despite a strong quarter, with management citing prudence due to early-year uncertainties and anticipated tougher comparisons ahead. Bryan Spillane (Bank of America): Probed on Mexico's soft performance; CEO James Quincey highlighted macro uncertainty, calendar shifts, and the company's focus on affordability and local campaigns to restore growth. Lauren Lieberman (Barclays): Questioned responses to anti-brand sentiment in the U.S.; Quincey explained efforts to reinforce local economic impact and regain affected consumer demographics. Chris Carey (Wells Fargo): Sought clarity on sustainability of margin gains; CFO John Murphy pointed to timing benefits this quarter but expressed confidence in long-term productivity levers and investment in growth. Robert Ottenstein (Evercore): Inquired about Fairlife's growth trajectory and capacity expansion; Quincey detailed plans for new production capabilities and maintained that long-term opportunity remains substantial as the brand scales. In the coming quarters, the StockStory team will be monitoring (1) Coca-Cola's success in regaining volume momentum in North America and Mexico through targeted marketing and affordability initiatives, (2) the impact of capacity expansion on Fairlife's growth rate and category share, and (3) the effectiveness of the Share a Coke campaign and new functional beverage launches in attracting younger consumers. We will also track the company's ability to sustain margin improvements amidst potential trade and currency headwinds. Coca-Cola currently trades at a forward P/E ratio of 23.1×. In the wake of earnings, is it a buy or sell? See for yourself in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
11-05-2025
- Business
- Yahoo
American brands like Coke and Jim Beam are paying the price abroad for Trump's trade war
Backlash to tariffs and other US policies has hit some of the biggest American brands. Some shoppers abroad are avoiding products like Coca-Cola and Jim Beam, given their ties to the US. Not all American brands have been affected to the same degree, however. For some people abroad, a Jim Beam and Coke isn't going down as easily as it once did. Companies that make some of the biggest American brands have noted different degrees of pain as some consumers overseas avoid their products in protest of President Donald Trump's trade war. Globally, consumers are less likely to buy many major US brands than they were just a few months ago, survey data published late last month by Morning Consult found. "This suggests that overseas consumers are uniquely singling out some American brands due to their country of origin," the report says. US companies already face plenty of problems because of tariffs, mostly in the form of snarled supply chains and higher import costs. The backlash abroad points to another issue: What happens when a brand's connection with America starts becoming a liability instead of a selling point? In Mexico, for instance, the share of customers who said they were "absolutely certain" to buy a Coca-Cola product in the near future fell from 40% in January to 28% in February before rebounding to 34% in April, according to Morning Consult data. Coca-Cola CEO James Quincey said that some Latino consumers in the United States and in Mexico pulled back on their purchases of the company's products during the first quarter after videos circulating on social media in February said, without evidence, that Coke had reported some of its own employees to US immigration authorities. Quincey said that the videos were "completely false, but they impact the business" anyway. McDonald's CEO Chris Kempczinski said during an earnings call last week that the fast-food chain didn't see a hit from diners abroad pulling back in results during the first quarter. But the chain did note an uptick in anti-American sentiment generally, he said, especially in Canada and Northern Europe. "What we have seen in our survey work is that there has been an increase in people in various markets saying that they're going to be cutting back their purchase of American brands," Kempczinski said. Since the start of the year, Japan-based Suntory Holdings has been bracing for a hit to Jim Beam and Maker's Mark, two American whiskey brands it owns. Suntory expected that in 2025 American products would be "less accepted by those countries outside of the US because of first, tariffs and, second, emotion," CEO Takeshi Niinami told the Financial Times in February. Suntory did not respond to questions about how the whiskey brands have performed in recent months. Instead of buying products associated with the United States, foreign consumers could shift their spending to local brands. That's already happening in Canada, where shoppers are eschewing US products at grocery stores and other retailers in favor of Canadian-made equivalents. "The risk for US brands is that consumers' growing antagonism toward the United States resulting from an onslaught of tariffs emanating from Washington will cause them to seek out alternative goods and services provided by local and foreign (non-U.S.) brands," Morning Consult wrote in its April report. Not all big US brands that sell abroad are feeling the same pinch. Tapestry, the company that makes luxury purses and other accessories under the Coach and Kate Spade New York brands, said on Thursday that it wasn't seeing any sales slowdown due to anti-American sentiment abroad. Levi Strauss & Co., the jeans brand, said that its sales haven't been affected either. CFO Harmit Singh said on an earnings call in April that "we're entrenched with the local consumers" in other countries. He added that in some international markets, Levi Strauss has been selling jeans for several decades. "Right now, international business is fairly strong," Singh said. Read the original article on Business Insider
