Coca-Cola Consolidated, Inc. returned to sales volume growth in Q3 after a previous boycott-related hiccup in early 2025 in the Coca-Cola brand. The forward outlook remains healthy with Coca-Cola's stabilization, Monster's and Powerade's growth, and Keurig Dr. Pepper's market share gains. COKE has maintained strong pricing power.
Coca-Cola Consolidated leverages its exclusive Coca-Cola partnership and elite brand to drive strong pricing power and consistent revenue growth, even amid volume declines. The company boasts a superior balance sheet, low leverage, and robust capital returns through buybacks and dividends. My DCF analysis shows COKE is 17% undervalued, with conservative assumptions supporting a significant margin of safety for investors.
Investors are likely underappreciating the cash generation optionality within the company. There is a good chance investors will see substantial returns over and above the ordinary dividend, in the form of special dividends and buybacks. The share has re-rated, however the company fundamentals may warrant even further re-rating.
| Beverages Industry | Consumer Staples Sector | J. Frank Harrison III CEO | XSTU Exchange | US1910981026 ISIN |
| US Country | 15,000 Employees | 24 Oct 2025 Last Dividend | 21 Mar 1984 Last Split | 26 Mar 1990 IPO Date |
Coca-Cola Consolidated, Inc., together with its subsidiaries, is the largest Coca-Cola bottler in the United States. The company is primarily engaged in the manufacturing, marketing, and distribution of nonalcoholic beverages under the banner of The Coca-Cola Company. Offering a wide array of sparkling and still beverages, Coca-Cola Consolidated, Inc. caters to a diverse market across the U.S. Additionally, the company handles products from renowned brands like Dr Pepper and Monster Energy, further expanding its offerings beyond the Coca-Cola roster. Originally known as Coca-Cola Bottling Co. Consolidated, the company underwent a name change to Coca-Cola Consolidated, Inc. in January 2019. With its corporate headquarters in Charlotte, North Carolina, the corporation was established in 1980, showcasing a long history of partnership with The Coca-Cola Company and commitment to beverage distribution and innovation.
The product portfolio of Coca-Cola Consolidated, Inc. is extensive, encompassing both sparkling and still beverage options designed to suit a variety of consumer tastes and occasions. Here is an overview of the main categories:
In addition to manufacturing and distributing a wide array of beverages, Coca-Cola Consolidated, Inc. oversees direct sales and distribution to various types of retailers and venues across its territory. This includes grocery stores, mass merchandise stores, club stores, convenience stores, drug stores, restaurants, schools, amusement parks, recreational facilities, and vending machine outlets, ensuring Coca-Cola products are readily available to consumers in numerous consumer touchpoints.