Coca-Cola ConsolidatedNASDAQ: COKE

CHARLOTTE, N.C., June 21, 2024 (GLOBE NEWSWIRE) -- Coca-Cola Consolidated, Inc. (NASDAQ: COKE) (the “Company”) announced today the final results of its modified “Dutch auction” tender offer, which expired at 5:00 p.m.

Coca-Cola Consolidated has a plan to use debt to buy back roughly one-third of its shares. In the past, other companies have used debt effectively to drive shareholder returns.

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Coca-Cola Consolidated's stock has performed well, up over 90% in the past two years compared to the S&P 500's 20%. The company's cash flow remains strong, with operating income increasing by 30% in the past year. Coca-Cola Consolidated has a net cash position and is trading at less than 8 times its EBITDA, making it an attractive investment.

Coca-Cola Consolidated (COKE) is the largest bottler in the US with a 120-year history and a significant upside potential. The company has seen increases in net sales revenue, gross profit, and operational income despite a decline in case volume. COKE's strong brand strength, pricing power, and diverse product portfolio contribute to its solid fundamentals and profitability.

Coca-Cola Consolidated Inc ( COKE , Financial), a key player in the non-alcoholic beverage industry, is currently trading at $710.3 with a market cap of $6.66 billion. The company's stock price has seen a gain of 13.82% today and an impressive 11.71% over the past four weeks.

COKE has grown revenue at more than 10% p.a., as the range of brands it bottles continues to drive growth. Margins have also gradually improved, as scale economies generate accretive gains. Although we have some governance concerns, the business looks to be running well.

COKE is an attractive business in the bottling segment that I invested in over the past 24 months. Since my last article, the company has seen a beyond-impressive RoR of 40% and a market outperformance of 3-4x next to the S&P 500. I consider COKE at a "BUY" at this time, and would slightly adjust my PT to the somewhat higher direction here.