The stock rose 2.32% to $55.04 Friday after the earnings print.
Before we dive into the particulars of the quarter, here were the results:
Coca-Cola beat met Wall Street's estimates on earnings per share, posting a 56 cent result on an adjusted basis. EPS grew 37%, which included several one-time items. Revenue was $9.5 billion, beating analysts expectations of $9.4 billion. Organic revenue growth was 5%.
But here's what drove the results, and what that tells us about Coke's product strategy.
Coke said it saw double-digit percentage growth in Coke Zero, a zero sugar version of Coke. The company mentioned, as it has in the recent past, that it's also selling beverages in smaller packages and cans. Meanwhile, pricing mix grew 6%, indicating consumers are paying more for fewer calories, another micro trend that has showed up in earlier 2019 results for Coke.
Healthier and smaller portions have been a trend of late in consumer packaged goods, one that Pepsi (PEP) - Get Report has also been focusing on. Pepsi said on is July earnings report it is focusing on healthier snacks and beverages of late.
Consumer packaged goods companies who have not fully captured the healthier consumer, which is becoming more prevalent, such as Campbell's Soup (CPB) - Get Report or Kraft-Heinz (KHC) - Get Report have not performed well in the past several years. Campbell's stock is down 23% since early 2017. Kraft-Heinz is down 71% since that time (Kraft-Heinz has several other problems).
Meanwhile, Coke and Pepsi have enjoyed 32% and 30% runs since early 2017.
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