In this episode, Scott Becker breaks down Coca-Cola’s impressive earnings beat and stock surge, widening its lead over Pepsi.
Chapter 1: What are Coca-Cola's recent earnings results?
This is Scott Becker with the Becker Private Equity in Business podcast. Today's discussion is Coca-Cola, it's the real thing. Now, for many of you, that slogan, which is the Coca-Cola marketing slogan for a long time, will be lost on you because I am so old, and that's probably before a lot of your generation. But here's what we're saying about Coca-Cola. Coca-Cola beats on earnings.
Chapter 2: How is Coca-Cola outperforming Pepsi?
Its stock is up. It is making a mockery of its rivalry with Pepsi Cola. Uh, and it's, it's doing something that is great. You see so many firms, so many companies that just see a rise in organic growth because they hike their prices up to the bejesus at some point. That's a strategy that works at some point till customers, constituents get that gag reflex. Uh, there's a great old quote, the, um,
dildo of consequences often comes unexpected. I didn't make that quote unexpected.
Chapter 3: What are the risks of raising prices without growth?
Chapter 4: What is the famous quote about consequences in business?
dildo of consequences often comes unexpected. I didn't make that quote unexpected.
up and excuse me for using it but it's a quote that one of my friends uses all the time but it's a famous quote and what happens when companies keep on just rising their prices and don't increase their number of customers sooner or later the consequences are that they start going in the wrong direction should only raise prices for so long so i love the phrase i didn't promise my buddy that i would use it in the podcast i hope nobody's offended
The dildo of consequences only often comes unexpected. And I know that's a horrible, you know, phrase, but, but I did, it did have shock value when I first heard it. And I did think it's meaningful in some ways saying people don't always expect the consequences coming to their actions.
One of the things that we see out there in companies is constantly raising prices to meet organic growth targets, but sooner or later that comes back to haunt you. Coca-Cola, what they're doing right now is they are raising prices probably a but they're also seeing increased unit sales. Now, unit sales are up a few percent. Prices are up a lot. We'll see if they can continue it.
Their CEO seems to really know what they're doing. Coke is up 7% this year today. It'll be up a little bit more after today. Pepsi is down 16%. So right now, Coke is beating up on Pepsi. We'll talk more about some of these rivalries that are out there. Again, Apple, the Android versus the Apple phone, the Samsung versus Apple, the Verizon versus AT&Ts, and a lot more.
But thank you for listening to the Becker Private Equity and Business Podcast. If I offended you with the phrase, the dildo of consequences often comes unexpected, feel free to text me at 773-766-5322. If you're the first to text me and you're offended, I will send you a $100 Amazon gift certificate to help assuage your offense.
Thank you for listening to the Becker Private Equity and Business Podcast. Thank you very much.
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