Why Coca-Cola Stock Popped 12% Higher Last Month

Core Insights - Coca-Cola's shares increased by 12.1% in February 2025, driven by a strong Q4 earnings report and a dividend increase [1][4] - Q4 sales rose 6.4% year over year to $11.5 billion, surpassing analyst expectations of $10.7 billion [2] - Organic sales grew by 14% year over year, despite currency fluctuations and higher ingredient costs [3] Financial Performance - Adjusted earnings per share rose 12% to $0.55, exceeding the analyst consensus of $0.52 [4] - The company generated $3.2 billion in free cash flow, with 64% allocated to dividends [4] - The quarterly dividend was increased from $0.485 to $0.51 per share, marking a continuous annual increase since 1962 [5][6] Business Strategy - Coca-Cola is expanding its cold drink equipment by adding 250,000 net new stores and nearly 600,000 new beverage coolers, enhancing its distribution network [8] - The company's robust product portfolio and distribution capabilities help mitigate currency effects and maintain competitive advantages [7] Stock Valuation - Coca-Cola shares trade at 28 times trailing earnings and 6.5 times sales, offering a dividend yield of 2.9% [9]