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Coca-Cola Consolidated – Top Beverage Stocks To Invest In

Coca-Cola Consolidated has always been among the top beverage stocks to invest in. The company is the largest independent bottler for Coca-Cola and a seller of well-known brands like Dasani, Dr Pepper, and Monster. The company reported its third-quarter 2020 earnings earlier in October this year. Net revenues were down 9% year-on-year to $8.7 billion. However, operating margins held up, touching 26.6% as compared to 26.3% in the third quarter of 2019. Earnings per share also declined 33% year-on-year to $0.4.

The Environment Is Improving For The Best Beverage Stocks To Buy Right Now

As business establishments across the US reopen, the business environment for beverage companies like Coca-Cola Consolidated seems to be improving. According to John Murphy, CFO, Coca-Cola Consolidated, “We saw a strong sequential improvement in many of our equity stakes as our bottlers have quickly moved to adapt to the changes. Therefore, third-quarter comparable EPS of $0.55 declined 2% year over year. This was better than our internal expectations given stronger-than-anticipated volume trends in September and the improved equity income. While the pandemic has weighed on our cash from operations year to date, we saw significant sequential improvement in the third quarter and remain intensely focused on the free cash flow opportunities ahead.”

The Uncertainty Has Not Gone Yet

Amidst an economic rebound and rising stock markets, the uncertainty surrounding the pandemic still hasn’t vanished. Coca-Cola Consolidated’s company management expressed this lack of clarity in its conference call. The management mentioned that various countries around the world are in different stages of the pandemic outbreak. Some are still dealing with the first wave, some others are taking precautions for the second wave, while some are in the middle of the second wave. This uncertainty has led the company to hold off on providing guidance on future performance. Coca-Cola Consolidated stock closed at $268.34 on 18th November 2020.


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