Group 1 - The article emphasizes a long-term investment strategy focused on companies with strong fundamentals that are undervalued due to short-term challenges [1] - It suggests that the market tends to overreact to short-term issues, leading to mispricing of quality companies, which presents investment opportunities [1] Group 2 - There is a mention of a potential long position in COKE, indicating an interest in initiating a beneficial investment in the near future [2] - The article is authored independently, with no compensation received from companies mentioned, ensuring an unbiased perspective [2]

[Executive Summary](index=1&type=section&id=Executive%20Summary) The company reported solid Q2 2025 results with net sales up 3.3% and operating income growing 5.0%, despite a slight decline in H1 operating income [Key Financial and Operational Highlights](index=1&type=section&id=Key%20Financial%20and%20Operational%20Highlights) This section presents a consolidated overview of key financial metrics for Q2 and H1 2025, highlighting sales, profit, and operational performance Table: Key Financial and Operational Highlights (in millions, except percentages) | Metric (in millions) | Second Quarter 2025 | Second Quarter 2024 | Change | First Half 2025 | First Half 2024 | Change | | :------------------ | :------------------ | :------------------ | :----- | :-------------- | :-------------- | :----- | | Volume | 90.7 | 91.5 | (0.8)% | 167.4 | 173.6 | (3.5)% | | Net sales | $1,855.5 | $1,795.9 | 3.3% | $3,435.5 | $3,387.6 | 1.4% | | Gross profit | $742.5 | $716.7 | 3.6% | $1,369.6 | $1,357.3 | 0.9% | | Gross margin | 40.0% | 39.9% | +0.1% | 39.9% | 40.1% | -0.2% | | Income from operations | $272.1 | $259.1 | 5.0% | $461.9 | $474.5 | (2.7)% | | Operating margin | 14.7% | 14.4% | +0.3% | 13.4% | 14.0% | -0.6% | - **Second quarter 2025 net sales increased 3%** versus the second quarter of 2024[4](index=4&type=chunk) - **Gross profit in Q2 2025 was $742 million**, an increase of **4%** versus Q2 2024, with **gross margin increasing 10 basis points to 40.0%**[4](index=4&type=chunk) - **Income from operations for Q2 2025 was $272 million**, an increase of **$13 million, or 5%**, versus Q2 2024, with **operating margin increasing 30 basis points to 14.7%**[4](index=4&type=chunk) - For the first half of 2025, **income from operations was $462 million**, a decrease of **$13 million, or 3%**[4](index=4&type=chunk) [Second Quarter and First Half 2025 Review](index=2&type=section&id=Second%20Quarter%20and%20First%20Half%202025%20Review) This section provides a detailed analysis of the company's performance in the second quarter and first half of 2025, covering management insights, volume, sales, profit, and expense trends [Management Commentary](index=2&type=section&id=Management%20Commentary) Management expressed satisfaction with solid second-quarter results, attributing success to strong marketplace execution, focus on top-line growth, and margin management. They highlighted investments in teammates and successful navigation of a demanding retail environment by prioritizing value and leveraging supply chain capabilities - Chairman and CEO J. Frank Harrison, III, reported "**very solid second quarter results**" driven by strong marketplace execution and focus on top-line growth and margin management[6](index=6&type=chunk) - The company made **investments in its teammates** to improve retention and in-store execution[6](index=6&type=chunk) - President and COO Dave Katz noted successful navigation of a demanding retail environment by anticipating consumer need for **value-conscious packages and prices**[9](index=9&type=chunk) - **Steady investments in supply chain capabilities** enabled high responsiveness to the evolving marketplace[9](index=9&type=chunk) [Volume Analysis](index=2&type=section&id=Volume%20Analysis) Overall volume declined in Q2 and H1 2025, with the first half impacted by fewer selling days and mixed performance across sparkling and still beverage categories Table: Volume Analysis (in millions) | Metric | Second Quarter 2025 | Second Quarter 2024 | Change | First Half 2025 | First Half 2024 | Change | | :----- | :------------------ | :------------------ | :----- | :-------------- | :-------------- | :----- | | Volume | 90.7 | 91.5 | (0.8)% | 167.4 | 173.6 | (3.5)% | - The first half of 2025 had **two fewer selling days**, accounting for approximately **1.0% of the volume decline** during the first half[6](index=6&type=chunk) - **Sparkling category volume declined slightly by 0.3% in Q2 2025 and 2.6% in H1 2025**, negatively impacted by shifts in consumer demand for Coca-Cola Original taste, but balanced by solid growth in other Sparkling portfolio offerings[6](index=6&type=chunk) - **Still volume declined 2.4% in Q2 and 6.3% in H1 2025**; excluding Dasani, Still category volume increased by **2.0% in Q2 and 0.3% in H1 2025**, driven by solid growth in enhanced water, energy, and protein products[6](index=6&type=chunk) [Net Sales Analysis](index=2&type=section&id=Net%20Sales%20Analysis) Net sales increased in both Q2 and H1 2025, driven by pricing and growth in specific sparkling and still categories, with strong performance in value channels Table: Net Sales Analysis (in millions) | Metric (in millions) | Second Quarter 2025 | Second Quarter 2024 | Change | First Half 2025 | First Half 2024 | Change | | :------------------- | :------------------ | :------------------ | :----- | :-------------- | :-------------- | :----- | | Net sales | $1,855.5 | $1,795.9 | 3.3% | $3,435.5 | $3,387.6 | 1.4% | | Sparkling bottle/can | $1,080.0 | $1,048.9 | 3.0% | $2,013.8 | $1,996.4 | 0.9% | | Still bottle/can | $626.1 | $597.5 | 4.8% | $1,135.2 | $1,108.4 | 2.4% | - Sales within **supermarkets, club stores, and value channels were strong** as consumers sought value in take-home packages, while sales slowed in small store convenience outlets and eating and drinking on-premise locations[7](index=7&type=chunk) - **Sparkling category sales increase was driven by pricing realization** and solid growth within zero-sugar and other flavor offerings, partially offset by softness in Coca-Cola Original taste[7](index=7&type=chunk) - **Still category sales increase was concentrated in Monster Energy, Core Power, Topo Chico, and smartwater brands**[7](index=7&type=chunk) [Gross Profit and Margin Analysis](index=2&type=section&id=Gross%20Profit%20and%20Margin%20Analysis) Gross profit and margin improved in Q2 2025, primarily due to pricing realization, while first-half gross profit saw a modest increase Table: Gross Profit and Margin Analysis (in millions, except percentages) | Metric (in millions) | Second Quarter 2025 | Second Quarter 2024 | Change | First Half 2025 | First Half 2024 | Change | | :------------------- | :------------------ | :------------------ | :----- | :-------------- | :-------------- | :----- | | Gross profit | $742.5 | $716.7 | 3.6% | $1,369.6 | $1,357.3 | 0.9% | | Gross margin | 40.0% | 39.9% | +0.1% | 39.9% | 40.1% | -0.2% | - **Pricing realization** associated with the annual price increase in the first quarter of 2025 contributed to the modest gross margin expansion[8](index=8&type=chunk) [Selling, Delivery and Administrative Expenses (SD&A)](index=3&type=section&id=Selling%2C%20Delivery%20and%20Administrative%20Expenses) SD&A expenses increased by 2.8% in both the second quarter and first half of 2025, primarily due to annual wage adjustments. As a percentage of net sales, SD&A decreased 10 basis points to 25.4% in Q2 but increased 30 basis points to 26.4% in H1 Table: Selling, Delivery and Administrative Expenses (in millions, except percentages) | Metric (in millions) | Second Quarter 2025 | Second Quarter 2024 | Change | First Half 2025 | First Half 2024 | Change | | :------------------- | :------------------ | :------------------ | :----- | :-------------- | :-------------- | :----- | | SD&A expenses | $470.4 | $457.6 | 2.8% | $907.7 | $882.7 | 2.8% | | SD&A as % of net sales | 25.4% | 25.5% | -0.1% | 26.4% | 26.1% | +0.3% | - The increase in SD&A expenses was primarily driven by an increase in **labor costs related to annual wage adjustments**[9](index=9&type=chunk) [Operating Income Analysis](index=3&type=section&id=Operating%20Income%20Analysis) Operating income increased in Q2 2025 with margin expansion, while H1 operating income declined, partly due to fewer selling days Table: Operating Income Analysis (in millions, except percentages) | Metric (in millions) | Second Quarter 2025 | Second Quarter 2024 | Change | First Half 2025 | First Half 2024 | Change | | :------------------- | :------------------ | :------------------ | :----- | :-------------- | :-------------- | :----- | | Income from operations | $272.1 | $259.1 | 5.0% | $461.9 | $474.5 | (2.7)% | | Operating margin | 14.7% | 14.4% | +0.3% | 13.4% | 14.0% | -0.6% | - The **two fewer selling days in the first half of 2025** accounted for approximately **$10 million of the decrease in income from operations**[10](index=10&type=chunk) [Net Income and Cash Flow Analysis](index=3&type=section&id=Net%20Income%20and%20Cash%20Flow%20Analysis) Q2 2025 saw an increase in net income, while H1 net income declined due to non-cash adjustments, with operating cash flow at $406.2 million and projected capital expenditures of $300 million Table: Net Income Analysis (in millions, except percentages and per share data) | Metric (in millions) | Second Quarter 2025 | Second Quarter 2024 | Change | First Half 2025 | First Half 2024 | Change | | :------------------- | :------------------ | :------------------ | :----- | :-------------- | :-------------- | :----- | | GAAP Net income | $187.4 | $172.8 | 8.4% | $291.0 | $338.6 | (14.0)% | | Adjusted Net income | $195.2 | $192.8 | 1.2% | $331.4 | $355.2 | (6.7)% | | Income tax expense | $65.6 | $59.4 | 10.4% | $101.5 | $116.5 | (13.0)% | | Effective tax rate | 26% | 26% | 0% | 26% | 26% | 0% | - **Net income for the first half of 2025 was adversely impacted by routine, non-cash fair value adjustments** to the acquisition related contingent consideration liability[11](index=11&type=chunk) Table: Cash Flow Analysis (in millions) | Metric (in millions) | First Half 2025 | First Half 2024 | Change | | :------------------- | :-------------- | :-------------- | :----- | | Cash flows from operations | $406.2 | $437.1 | (7.1)% | | Capital expenditures | $157 | $159.4 | (1.5)% | - **Expected capital expenditures for fiscal year 2025 are approximately $300 million**[12](index=12&type=chunk) [Company Information](index=4&type=section&id=Company%20Information) This section provides an overview of Coca-Cola Consolidated, Inc., including its business scope, purpose, and key contact information [About Coca-Cola Consolidated, Inc.](index=4&type=section&id=About%20Coca-Cola%20Consolidated%2C%20Inc.) Coca-Cola Consolidated, Inc. is the largest Coca-Cola bottler in the United States, headquartered in Charlotte, N.C. The company manufactures, sells, and distributes over 300 brands and flavors across 14 states and D.C., serving approximately 60 million consumers. Its purpose is to honor God, serve others, pursue excellence, and grow profitably - **Coca-Cola Consolidated (NASDAQ: COKE) is the largest Coca-Cola bottler in the United States**[14](index=14&type=chunk) - The company makes, sells, and distributes beverages of The Coca-Cola Company and other partner companies in **more than 300 brands and flavors across 14 states and the District of Columbia**, serving approximately **60 million consumers**[14](index=14&type=chunk) - The company's Purpose is to honor God in all they do, to serve others, to pursue excellence, and to grow profitably[14](index=14&type=chunk) [Contacts](index=4&type=section&id=Contacts) Contact information for media inquiries is provided for Brian K. Little, Vice President, Corporate Communications Officer, and for investor inquiries, Matt Blickley, Executive Vice President, Chief Financial Officer and Chief Accounting Officer - Media Contact: **Brian K. Little, Vice President, Corporate Communications Officer**, (980) 378-5537, Brian.Little@cokeconsolidated.com[14](index=14&type=chunk) - Investor Contact: **Matt Blickley, Executive Vice President, Chief Financial Officer and Chief Accounting Officer**, (704) 557-4910, Matt.Blickley@cokeconsolidated.com[14](index=14&type=chunk) [Legal Disclosures](index=5&type=section&id=Legal%20Disclosures) This section outlines important legal disclaimers, particularly regarding forward-looking statements and the inherent risks and uncertainties [Cautionary Note Regarding Forward-Looking Statements](index=5&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from projections. Key factors include increased costs, changes in consumer perception and regulations, reliance on external sources, marketing support changes, governance entity failures, and various economic, operational, and environmental risks - Statements in the news release are "**forward-looking statements**" subject to risks and uncertainties that may impact business, financial condition, and results of operations[16](index=16&type=chunk) - Factors that might cause actual results to differ include **increased costs** (inflation, raw materials, fuel), **reliance on purchased finished products**, changes in public and consumer perception (product safety, sustainability, brand reputation, obesity), and **changes in government regulations**[16](index=16&type=chunk) - Other risks include **decreased marketing funding support** from The Coca-Cola Company, failures in Coca-Cola system governance, changes in acquisition related contingent consideration liability, technology failures or cyberattacks, unfavorable changes in the general economy, and concentration risks among customers and suppliers[16](index=16&type=chunk) [Financial Statements (Unaudited)](index=6&type=section&id=Financial%20Statements%20%28Unaudited%29) This section presents the unaudited condensed consolidated financial statements, including statements of operations, balance sheets, and cash flows [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The unaudited Condensed Consolidated Statements of Operations present the company's financial performance for the second quarter and first half of 2025 compared to 2024, detailing net sales, cost of sales, gross profit, operating expenses, and net income, including basic and diluted earnings per share Table: Condensed Consolidated Statements of Operations (in thousands, except per share data) | (in thousands, except per share data) | 2025 (Q2) | 2024 (Q2) | 2025 (H1) | 2024 (H1) | | :------------------------------------ | :-------- | :-------- | :-------- | :-------- | | Net sales | $1,855,519 | $1,795,943 | $3,435,496 | $3,387,569 | | Cost of sales | 1,113,023 | 1,079,233 | 2,065,896 | 2,030,300 | | Gross profit | 742,496 | 716,710 | 1,369,600 | 1,357,269 | | Selling, delivery and administrative expenses | 470,412 | 457,570 | 907,696 | 882,723 | | Income from operations | 272,084 | 259,140 | 461,904 | 474,546 | | Interest expense (income), net | 5,948 | (1,620) | 12,822 | (4,336) | | Other expense, net | 13,144 | 28,535 | 56,617 | 23,822 | | Income before taxes | 252,992 | 232,225 | 392,465 | 455,060 | | Income tax expense | 65,605 | 59,413 | 101,467 | 116,507 | | Net income | $187,387 | $172,812 | $290,998 | $338,553 | | Basic net income per share: Common Stock | $2.15 | $1.86 | $3.34 | $3.63 | | Diluted net income per share: Common Stock | $2.15 | $1.85 | $3.34 | $3.62 | - All share or per share amounts have been **retroactively adjusted to reflect a 10-for-1 forward stock split** executed during the second quarter of 2025[19](index=19&type=chunk) [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The unaudited Condensed Consolidated Balance Sheets provide a snapshot of the company's financial position as of June 27, 2025, compared to December 31, 2024, detailing assets, liabilities, and equity Table: Condensed Consolidated Balance Sheets (in thousands) | (in thousands) | June 27, 2025 | December 31, 2024 | | :------------- | :------------ | :---------------- | | **ASSETS** | | | | Cash and cash equivalents | $1,219,925 | $1,135,824 | | Total current assets | 2,731,239 | 2,547,302 | | Property, plant and equipment, net | 1,552,369 | 1,505,267 | | Goodwill | 165,903 | 165,903 | | Total assets | $5,541,491 | $5,313,139 | | **LIABILITIES AND EQUITY** | | | | Total current liabilities | 1,339,192 | 1,313,169 | | Long-term debt | 1,437,806 | 1,436,649 | | Total liabilities | 3,911,272 | 3,895,528 | | Stockholders' equity | 1,630,219 | 1,417,611 | | Total liabilities and equity | $5,541,491 | $5,313,139 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The unaudited Condensed Consolidated Statements of Cash Flows outline the cash inflows and outflows from operating, investing, and financing activities for the first half of 2025 compared to 2024, showing the net increase in cash and cash equivalents Table: Condensed Consolidated Statements of Cash Flows (in thousands) | (in thousands) | First Half 2025 | First Half 2024 | | :------------- | :-------------- | :-------------- | | **Cash Flows from Operating Activities:** | | | | Net income | $290,998 | $338,553 | | Net cash provided by operating activities | $406,221 | $437,131 | | **Cash Flows from Investing Activities:** | | | | Additions to property, plant and equipment | $(157,383) | $(159,400) | | Net cash used in investing activities | $(207,359) | $(362,179) | | **Cash Flows from Financing Activities:** | | | | Cash dividends paid | $(43,589) | $(159,353) | | Net cash (used in) provided by financing activities | $(114,761) | $989,067 | | Net increase in cash and cash equivalents during period | $84,101 | $1,064,019 | | Cash and cash equivalents at end of period | $1,219,925 | $1,699,288 | [Comparable and Non-GAAP Financial Measures](index=9&type=section&id=Comparable%20and%20Non-GAAP%20Financial%20Measures) This section provides reconciliations of GAAP reported results to comparable and adjusted non-GAAP financial measures for a clearer view of underlying performance [Second Quarter Non-GAAP Reconciliation](index=9&type=section&id=Second%20Quarter%20Non-GAAP%20Reconciliation) This section reconciles GAAP reported results to comparable and adjusted non-GAAP results for the second quarter of 2025 and 2024. Adjustments primarily include fair value adjustments of acquisition-related contingent consideration and commodity derivative instruments, providing a clearer view of ongoing performance Table: Second Quarter Non-GAAP Reconciliation (in thousands, except per share data) | (in thousands, except per share data) | Gross profit | SD&A expenses | Income from operations | Income before taxes | Net income | Basic net income per share | | :------------------------------------ | :----------- | :------------ | :--------------------- | :------------------ | :--------- | :------------------------- | | **Second Quarter 2025** | | | | | | | | Reported results (GAAP) | $742,496 | $470,412 | $272,084 | $252,992 | $187,387 | $2.15 | | Total reconciling items | (1,320) | 689 | (2,009) | 10,381 | 7,764 | 0.09 | | Adjusted results (non-GAAP) | $741,176 | $471,101 | $270,075 | $263,373 | $195,151 | $2.24 | | Adjusted % Change vs. Second Quarter 2024 | 3.6% | 2.9% | 4.8% | | | | | **Second Quarter 2024** | | | | | | | | Reported results (GAAP) | $716,710 | $457,570 | $259,140 | $232,225 | $172,812 | $1.86 | | Total reconciling items | (1,075) | 254 | (1,329) | 26,497 | 19,949 | 0.21 | | Adjusted results (non-GAAP) | $715,635 | $457,824 | $257,811 | $258,722 | $192,761 | $2.07 | - **Comparable volume for the first half of 2025 was 167.4 million**, a **(2.5)% change** from 171.8 million in the first half of 2024, after excluding the estimated impact of two additional selling days in H1 2024[25](index=25&type=chunk) [First Half Non-GAAP Reconciliation](index=10&type=section&id=First%20Half%20Non-GAAP%20Reconciliation) This section provides the reconciliation of GAAP to adjusted non-GAAP financial measures for the first half of 2025 and 2024. These adjustments, including fair value changes for contingent consideration and commodity derivatives, are presented to offer additional meaningful financial information for assessing the company's ongoing performance Table: First Half Non-GAAP Reconciliation (in thousands, except per share data) | (in thousands, except per share data) | Gross profit | SD&A expenses | Income from operations | Income before taxes | Net income | Basic net income per share | | :------------------------------------ | :----------- | :------------ | :--------------------- | :------------------ | :--------- | :------------------------- | | **First Half 2025** | | | | | | | | Reported results (GAAP) | $1,369,600 | $907,696 | $461,904 | $392,465 | $290,998 | $3.34 | | Total reconciling items | 854 | (521) | (1,375) | 53,743 | 40,415 | 0.47 | | Adjusted results (non-GAAP) | $1,369,079 | $908,550 | $460,529 | $446,208 | $331,413 | $3.81 | | Adjusted % Change vs. First Half 2024 | 2.9% | 0.9% | (2.9)% | | | | | **First Half 2024** | | | | | | | | Reported results (GAAP) | $1,357,269 | $882,723 | $474,546 | $455,060 | $338,553 | $3.63 | | Total reconciling items | 81 | 211 | (130) | 22,155 | 16,680 | 0.18 | | Adjusted results (non-GAAP) | $1,357,350 | $882,934 | $474,416 | $477,215 | $355,233 | $3.81 | - Management uses non-GAAP financial measures in making financial, operating, and planning decisions and in evaluating the Company's performance, viewing them as **additional, meaningful financial information**[26](index=26&type=chunk)

Core Insights - Coca-Cola Consolidated, Inc. reported solid second quarter results with a focus on top-line growth and margin management, leading to steady profit growth and substantial cash flow [2][3] - The company experienced a volume decline of 0.8% in Q2 2025 and 3.5% in the first half of 2025, attributed to two fewer selling days compared to the previous year [3][4] - Net sales increased by 3.3% to $1.9 billion in Q2 2025 and by 1.4% to $3.4 billion in the first half of 2025, driven by growth in both Sparkling and Still beverage categories [4][5] Financial Performance - Gross profit for Q2 2025 was $742.5 million, a 3.6% increase from Q2 2024, with a gross margin of 40.0% [4][6] - Income from operations in Q2 2025 rose to $272.1 million, a 5.0% increase year-over-year, while the operating margin improved to 14.7% [8][9] - Net income for Q2 2025 was $187.4 million, an increase of 8.4% compared to the same quarter in 2024 [9] Beverage Sales Breakdown - Sparkling beverage sales in Q2 2025 reached $1.08 billion, up 3.0% from Q2 2024, while Still beverage sales increased by 4.8% to $626.1 million [4][5] - The decline in volume was noted in Coca-Cola Original taste, while zero-sugar and flavored offerings saw solid growth [3][5] Cost Management - Selling, delivery, and administrative (SD&A) expenses increased by 2.8% in Q2 2025, primarily due to higher labor costs, but as a percentage of net sales, they decreased to 25.4% [7][8] - The company has made ongoing investments in supply chain capabilities to respond to changing consumer preferences for value [7] Cash Flow and Investments - Cash flows from operations for the first half of 2025 were $406.2 million, down from $437.1 million in the same period of 2024 [11] - The company invested approximately $157 million in capital expenditures in the first half of 2025, with expectations of around $300 million for the fiscal year [11]

Core Viewpoint - Coca-Cola Consolidated, Inc. will announce its operating results for the second quarter and the first half of fiscal 2025 on July 24, 2025, after market close [1] Company Overview - Coca-Cola Consolidated, Inc. is the largest Coca-Cola bottler in the United States, headquartered in Charlotte, N.C. [2] - The company distributes beverages from The Coca-Cola Company and other partners, offering over 300 brands and flavors across 14 states and the District of Columbia, serving approximately 60 million consumers [2] - The company has a commitment to consumers, customers, and communities, with a purpose centered on honoring God, serving others, pursuing excellence, and growing profitably [2]

Company Overview - Coca-Cola Consolidated is the largest Coca-Cola bottler in the United States, headquartered in Charlotte, N.C. [1] - The company produces, sells, and distributes beverages for The Coca-Cola Company and other partner companies, offering over 300 brands and flavors across 14 states [1] Analyst Background - The article mentions an equities analyst based in South Africa with ten years of experience at three prominent South African fund managers [1] - The analyst is a CFA Charterholder, indicating a professional level of expertise in investment analysis [1]

Group 1 - The article highlights a surprising double-digit return opportunity found in Coca-Cola, a well-established blue-chip company [1] - Triba Research aims to identify high-quality businesses with sustainable, long-term double-digit returns, focusing on companies with competitive advantages, low debt, and skilled management [2] - The firm operates with a concentrated portfolio strategy, selecting 10 to 15 carefully chosen securities to generate alpha [2]

Core Viewpoint - Coca-Cola Consolidated, Inc. has received stockholder approval for a 10-for-1 stock split, which is expected to enhance stock accessibility for a wider range of investors [1][2]. Group 1: Stock Split Details - The 10-for-1 stock split will result in stockholders receiving nine additional shares for each share of Common Stock or Class B Common Stock held, with trading on a split-adjusted basis expected to begin on or about May 27, 2025 [1]. - The stock split was contingent upon stockholder approval of an amendment to the Company's Restated Certificate of Incorporation, which was successfully approved at the Annual Meeting of Stockholders on May 13, 2025 [2]. Group 2: Company Overview - Coca-Cola Consolidated, Inc. is the largest Coca-Cola bottler in the United States, serving approximately 60 million consumers across 14 states and the District of Columbia with a portfolio of over 300 brands and flavors [5]. - The company has a long-standing commitment to its consumers, customers, and communities, emphasizing its purpose to honor God, serve others, pursue excellence, and grow profitably [5].

Core Insights - Coca-Cola Consolidated has announced a $90 million investment in a new 400,000-square-foot distribution and warehouse facility in Columbus, Ohio, which includes additional buildings for equipment repair and fleet maintenance [1][2] - The new facility is designed to enhance service capabilities for customers and the local community through innovative sustainability processes and technology [1][2] Investment and Economic Impact - The Columbus warehouse will manage over 16 million cases of products annually, averaging about 75,000 cases per day [2] - The investment has led to the creation of 35 new jobs, increasing total employment at the facility to 360 [3] Facility Features - The new campus includes a sales center, on-site wellness clinic, and an experiential learning center for employee training and skill development [4] - The facility incorporates advanced sustainability measures such as LED lighting, EV charging infrastructure, and recycling partnerships [5] Community Engagement - Coca-Cola Consolidated employs over 2,210 individuals across 15 facilities in Ohio, serving more than 21,000 businesses [6] - The company actively supports local non-profits, including Ronald McDonald House and Nationwide Children's Hospital [6] Company Overview - Coca-Cola Consolidated is the largest Coca-Cola bottler in the U.S., distributing over 300 brands and flavors across 14 states and the District of Columbia [7] - The company has a long-standing commitment to its consumers and communities, emphasizing excellence and profitable growth [8]

Core Viewpoint - Stock splits, while often receiving excessive attention from investors, do not fundamentally change a company's business performance. However, they can draw attention to stocks that may otherwise be overlooked, especially in uncertain market conditions [1][2]. Company Summaries Coca-Cola Consolidated - Coca-Cola Consolidated is the largest Coca-Cola bottler in the U.S., serving 14 states and the District of Columbia [3]. - The company announced a 10-for-1 stock split, pending shareholder approval on May 13, 2025, with trading on a split-adjusted basis expected to begin on May 27, 2025 [4]. - Following a 1% year-over-year decline in net sales and a 12% drop in operating income in Q1, the stock price fell, but this sell-off may present a buying opportunity amid market uncertainty [5][6]. - The decline in sales was attributed to two fewer selling days and the timing of the Easter holiday, with expectations that demand for its products will remain stable even in a struggling economy [7]. Fastenal - Fastenal is primarily known for distributing threaded fasteners but has diversified, with non-fastener products now accounting for nearly 70% of total sales [9]. - A two-for-one stock split was approved by the board, scheduled for May 21, 2025, for shares owned as of May 5, 2025 [9]. - Despite major market indexes being down year-to-date, Fastenal's share price has increased significantly, and management anticipates continued strong cash flow generation [10]. - Concerns exist regarding the stock's premium valuation, with a forward price-to-earnings ratio of 38, and indications that customers are becoming more cautious due to trade policy uncertainties [11]. O'Reilly Automotive - O'Reilly Automotive is a leading specialty retailer in the U.S. for automotive aftermarket parts, tools, and supplies [12]. - The company has seen its share price rise amid market volatility, although it trades at a high valuation of 32 times forward earnings [13]. - The anticipated 15-for-1 stock split on June 9, 2025, could attract new investors, pending shareholder approval on May 15, 2025 [14]. - Historical performance shows an average annual gain of 21% since the last stock split in 2005, suggesting potential for future growth despite economic challenges [15].

Core Viewpoint - Coca-Cola Consolidated's stock experienced a significant decline following disappointing Q1 earnings, with a 12% drop in share price despite a positive market backdrop [1][2]. Financial Performance - The company reported earnings per share of $11.87 on revenue of $1.58 billion for the quarter, with revenue down 0.7% year over year [3]. - The decline in revenue was attributed to two fewer sales days compared to the previous year, affecting overall sales performance [3]. - Gross profit margin decreased from 40.2% to 39.7%, and gross profit fell by 2% year over year [3]. - Operating income for the quarter was $190 million, reflecting a 12% year-over-year decline [3]. Volume and Pricing Dynamics - Unit volume fell by 6.6% year over year, necessitating pricing increases to maintain revenue levels [4]. - Adjusting for the two fewer sales days, the volume decline would have been 4.5% year over year [4]. - While pricing increases stabilized revenue, they were insufficient to prevent a decline in gross margin [5]. Future Outlook - Continued declines in unit volume could negatively impact future earnings, despite the potential for moderate pricing increases [5].