NEW YORK ( TheStreet) -- TheStreet's Jim Cramer and Debra Borchardt discussed the latest earnings results from Coca-Cola ( KO), which reported on Tuesday.

While sales in North America did decline, the company is making some changes to its marketing and product packaging to change that, Borchardt said.

Cramer added that CEO Muhtar Kent was not the kind of leader to be content with these results. As for the rally in the stock, according to Cramer, it had traded down too much ahead of earnings. When the results weren't that bad, the stock moved rose today.

He suggested that Coca-Cola split in two, with a domestic segment and an international segment. The domestic business would have a high, solid dividend, while the international unit would provide good growth.

The company has a solid share buyback program and a dividend that is consistently increased. While "no one ever got hurt buying Coca-Cola," Cramer said, he's not so sure he'd be a buyer right now. But in the event of a U.S. default, the stock should hold up well.

He also added that he likes Pepsico ( PEP) but the stock may have run up too much, too fast ahead of its earnings report later this week.

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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