Coca-Cola Bottling Co. Consolidated COKE expects to release its financial results for the first quarter of 2015 on May 5, 2015. The company is the largest independent bottler of products of The Coca-Cola Company KO in the United States.
Last quarter, Coca-Cola Bottling posted a year-over-year earnings increase of 42.2%.
Revenue management, distribution cost management, product innovation and beverage portfolio expansion have remained Coca-Cola Bottling Co.’s strengths over the past many quarters. We believe these growth initiatives will contribute toward the financial results in the first quarter of 2015.
Meanwhile, the company continues to focus on pricing and volume increase. Also favorable cost trends of raw materials are expected to drive results in the upcoming quarter. However, the cost of acquisition and transition of new distribution territories is hurting the company results.
On May 1, Coca-Cola Bottling closed its agreement with Coca-Cola Refreshments USA, Inc. (CCR), a Lexington based wholly-owned subsidiary of The Coca-Cola Company, to expand its distribution territory in Paducah and Pikeville, KY. Coca-Cola Bottling will also exchange its franchise territory in Jackson, TN for CCR’s territory in Lexington, KY. In Oct 2014, Coca-Cola Bottling Co. closed its agreement with The Coca-Cola Company to expand its franchise territory to include Knoxville, TN.
These transactions are a part of the franchise territory expansion agreement between the company and The Coca-Cola Company.
The Coca-Cola Company has been re-franchising the majority of its company-owned North American bottling territories to create a more efficient system.
Expansion of franchise territories is expected to boost Coca-Cola Bottling’s sales and profits in the upcoming quarters.
Other Stocks to Consider
Some stocks in the consumer staples sector worth considering include Monster Beverage Corp. MNST and Dr Pepper Snapple Group, Inc. DPS, both carrying a Zacks Rank #2 (Buy).
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