Coca-Cola's Prospects Bubbling
About The Coca-Cola Co.
What does the company do? Manufacturer, distributor of beverages, concentrates and syrups
2009 Financial report:
Q. How will changes at The Coca-Cola Co. affect my stock? I'm a long-time shareholder. -- J.K., via the Internet
A. The world's largest soft-drink maker has been ranked the most valuable global brand for the past 11 years by the
This giant company selling 3,300 products in more than 200 countries was recently the beneficiary of a major transaction that provides advantages:
-- It acquired North American operations of
-- The deal is expected to bring savings of
-- In return, the European company received
Coca-Cola Co. (KO) stock is up 7 percent this year following last year's 30 percent increase. The company intends to buy back about
While the popularity of carbonated drinks has declined, the firm's introduction of Coca-Cola Zero proved highly successful. The firm also produces non-carbonated drinks such as Dasani, Powerade,
Almost three-fourths of revenues are generated outside the U.S. For example, the firm most recently said its sales in
However, its business can be affected by commodity price increases for raw materials, plus currency and political risks for its overseas businesses. There's also potential negative publicity regarding health risks of those drinks that are high in sugar content. The firm remains in excellent financial shape even though the purchase of the North American bottling business was costly.
Earnings are expected to increase 13 percent this year versus the 69 percent growth rate expected for the beverage industry. Next year's projected 9 percent rise compared to 12 percent industry-wide. The five-year annualized return forecast is 9 percent versus 14 percent for its peers.
Coke introduced its PlantBottle plastic bottles made partially from plants a year ago and has a goal of producing 2 billion of the bottles by the end of this year. The bottles are 100 percent recyclable.
Available at Amazon.com:
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Investing - Coca-Cola's Prospects Bubbling | Coca-Cola NYSE:KO
(c) 2010 Andrew Leckey