Coca-Cola's past growth

It's the beginning of a new era at Coca-Cola.

Long-term CEO James Quincey handed off the CEO job to Henrique Braun on March 31st 2026.

More on that when I get to the leadership step of my analysis, but it's important to note that Mr. Quincey will remain on as Chairman of the board.

Past Growth

Looking at our usual numbers:

• Revenue 9/5/1: 0.8%/7.7%/1.9%

• Net Income 9/5/1: 6%/11.1%/23.1%(!)

• Total Equity: 9/5/1: 2.3%/10.8%/29.4%

• FCF 9/5/1: -4%/-9.4%/11.7%

Holy Cow Inflation is important to Coke

2022 and 2023 organic beats were inflation, not strength. Pricing in markets like Argentina was running double-digit and showed up as a "currency-neutral" tailwind. Management itself has consistently described those years as "impact of a number of markets experiencing intense inflation."

2025 was the first year the algorithm actually got tested in a non-inflationary setting, and KO landed at the bottom of guidance for organic revenue (5% vs. 5-6%) while still beating on EPS through margin expansion and tax rate. Quincey's last full year as CEO landed in-algorithm but without the upside surprises of '22-'24. (not great)

Pricing power

Real demand for Coke products globally has grown 1-3% per year since

But since 2020, Net Income has grown from $7.75B to $13.11B...

How?

PRICING POWER!

The average price of 12-packs and 2-liter bottles effectively doubled between 2020 and 2025, according to one analysis of Bureau of Labor Statistics data, far outpacing the national inflation rate.

This is terrific to see, and definitely seems like a sign of pricing power.

Sentiment: Bullish