Is Coca-Cola Going Back to Being a Market-Beating Stock?

Core Insights - Coca-Cola has been trailing the market for over 30 years but may be returning to market-beating status, having surpassed the S&P 500 return over the past three years and being competitive in 2024 [1] Company Performance - Coca-Cola is the world's largest beverage company with $46.5 billion in trailing-12-month sales and owns several $1 billion brands like Sprite, Dasani, and Minute Maid [2] - Revenue had been declining before the pandemic until CEO James Quincey took over in 2018, after which strategic decisions were made to improve the company's position [2][3] Strategic Decisions - The company reduced its brand count from 400 to 200, focusing on core global brands and cutting out small local names that contributed minimally to volume and sales [3] - Coca-Cola continues to acquire new brands, such as Bodyarmor, which enhances revenue and profit margins by leveraging its global distribution systems [3] Market Position - Coca-Cola is back in growth mode, demonstrating its strength as a beverage superpower, with potential for continued expansion and brand acquisitions [4] - The company pays a reliable dividend that yields more than double the S&P 500 average, providing security and stability for investors [5] Future Outlook - With renewed growth potential and a revitalized economy, Coca-Cola may continue to outperform the market, although there are no guarantees [6]