Coca-Cola demand rises in fourth quarter but shares slide on tepid outlook

Core Insights - Coca-Cola experienced stronger U.S. demand in Q4, with global unit case volumes growing by 1% driven by the U.S., Japan, and Brazil [1] - The company raised prices by 4% in North America and 1% globally during the quarter, with Coca-Cola Zero Sugar sales increasing by 13% [2] - Revenue for the October-December period rose by 2% to $11.8 billion, which was below Wall Street expectations of $12.05 billion [4] Demand and Consumer Trends - There is a divergence in consumer behavior in North America and Europe, with higher-income consumers favoring premium brands while lower-income consumers face more pressure [3] - The introduction of 7.5-ounce mini cans aims to make soft drinks more affordable for consumers [3] Financial Performance - Net income increased by 3% to $2.3 billion, with adjusted earnings per share at 58 cents, exceeding Wall Street's expectations by 2 cents [4] - The company anticipates organic revenue growth of 4% to 5% in 2026, following a 5% growth last year [4] Leadership Changes - Henrique Braun, the current COO, will become CEO on March 31, with James Quincey transitioning to executive chairman [5]