With U.S. markets returning after the Christmas Day closure, The Coca-Cola Company (NYSE: KO) heads into the Friday, December 26, 2025 session with investors weighing a mix of leadership news, portfolio headlines, product strategy updates, and the next set of earnings expectations.
KO last traded at about $70.11 (last trade timestamp in data: Dec. 24, 2025), which is normal given the holiday break.
Below is what matters most before the bell—based on the latest company filings, major outlet reporting, and widely followed analyst consensus snapshots.
KO stock snapshot heading into Dec. 26: defensive name, busy headline tape
Coca-Cola remains a classic consumer-staples “defensive” holding for many portfolios: steady demand, global distribution, and a long dividend history. But “defensive” doesn’t mean “quiet”—and December delivered real catalysts that can shape 2026 expectations.
On price action, the latest available quote shows KO around $70.11 into the holiday reopen, after last trading on Dec. 24.
On income, Coca-Cola’s board raised its regular quarterly dividend to $0.51 per share (annualized $2.04 in 2025), continuing what the company described as its 63rd consecutive annual increase. [1] That works out to a yield in the neighborhood of ~3% at current prices (yield will vary with price). [2]
Dividend timing note: the most recent quarterly dividend reflected an ex-dividend date of Dec. 1, 2025 and a pay date of Dec. 15, 2025 (so the next KO dividend catalyst is now “future,” not immediate). [3]
Biggest leadership catalyst: Coca-Cola’s CEO succession plan is now set
The headline that most directly affects long-term narrative is Coca-Cola’s planned CEO transition.
- Coca-Cola disclosed that Henrique Braun will become Chief Executive Officer effective March 31, 2026, while current CEO James Quincey will move into the role of Executive Chairman. [4]
- Reuters framed the move as part of a broader wave of executive changes across consumer companies adapting to shifting demand (healthier options, value sensitivity) and noted Braun’s operational background and global leadership roles inside Coke. [5]
Why investors care: CEO transitions at mega-cap staples firms are often “low drama,” but they still matter because they can signal whether the next chapter emphasizes portfolio reshaping, bottler strategy, capital allocation discipline, or cost structure.
Reuters also highlighted valuation context—KO’s forward P/E was cited as higher than key beverage peers at the time of reporting (using LSEG-compiled data), reinforcing that expectations are already meaningful and execution matters. [6]
Portfolio moves in focus: Costa Coffee sale talks and an Africa bottling reshuffle
1) Costa Coffee: “last-ditch talks” headline risk
One of the most market-relevant “watch this space” items is Costa Coffee.
Reuters reported that Coca-Cola was holding last-ditch talks to try to salvage a potential Costa Coffee sale, citing a Financial Times report and describing a scenario where the proposed sale was at risk of collapsing. [7]
Why this matters for KO stock:
- Costa was a major strategic push into hot beverages/coffee.
- Any sale outcome can affect capital allocation optics (did Coke unlock value or crystallize a loss) and the story around “what stays core” in the total beverage portfolio.
2) Bottling strategy: CCBA deal and a Q4 impairment charge headline
Bottling refranchising isn’t glamorous, but it can move numbers—and earnings optics.
Reuters reported Coca-Cola expects to take an impairment charge of about $1 billion in Q4 2025 related to selling part of its interest in African bottling operations (Coca-Cola Beverages Africa, CCBA). [8]
This connects directly to Coca-Cola’s broader bottler strategy:
- In its Q3 2025 results, Coca-Cola highlighted a definitive agreement for Coca-Cola HBC to acquire a controlling interest in CCBA, describing it as a refranchising step intended to set up the next growth phase. [9]
For investors heading into the next earnings cycle, this is important because it can:
- create GAAP vs. non-GAAP headline noise,
- influence perceptions of execution in emerging markets,
- and affect modeling around bottler equity income / bottling investments.
Product and packaging strategy: mini cans, cane sugar glass bottles, and “total beverage” momentum
Coca-Cola’s recent updates show a company still leaning into two powerful levers: price/pack architecture (how it sells affordability and portions) and portfolio mix (zero sugar, premium, adjacent categories).
Mini cans: a value-and-portion play into 2026
Reuters reported Coca-Cola is introducing 7.5-ounce single-serve mini cans into U.S. convenience stores early next year, targeting “cash-strapped and calorie-conscious” consumers, with a suggested retail price of $1.29. [10]
This is a quiet but potentially meaningful initiative because convenience is where a lot of on-the-go beverage decisions happen, and mini formats can:
- lower the “ticket” for trial,
- support premium per-ounce pricing,
- and address portion/health concerns without abandoning core brands.
Cane sugar glass bottles: niche demand, big brand conversation
In the same Reuters report, Coca-Cola’s North America commercial leadership said Coke planned to introduce glass bottles of Coca-Cola sweetened with cane sugar (rather than high fructose corn syrup) later in the year, noting the long-running consumer interest in “Mexican Coke”-style offerings. [11]
Coca-Cola’s own Q2 2025 materials also referenced a cane sugar offering planned for Fall 2025. [12]
Whether or not this becomes financially material, it’s clearly positioned to create:
- brand heat,
- incremental premium mix opportunities,
- and another “choice” lever in sparkling beverages.
Earnings reality check: what Coca-Cola just delivered—and what comes next
The latest quarter investors will be modeling from: Q3 2025
Coca-Cola’s Q3 2025 report provides the clearest фундаментals baseline for going into year-end and early 2026 positioning.
Key Q3 highlights the company reported:
- Global unit case volume +1% [13]
- Net revenues +5% to $12.5 billion [14]
- Organic revenues (non-GAAP) +6% [15]
- EPS +30% to $0.86; Comparable EPS (non-GAAP) +6% to $0.82 [16]
- The company also broke out the demand engine under the hood: Coca-Cola Zero Sugar grew 14% in the quarter. [17]
- On pricing power: price/mix +6% in Q3 (a reminder that a meaningful portion of growth still comes from pricing and mix, not just volume). [18]
Cash flow headline investors should understand: the fairlife payment distortion
Coca-Cola’s Q3 release also underlined that year-to-date cash flow metrics were heavily affected by a $6.1 billion contingent consideration payment tied to the earlier fairlife acquisition. [19]
That matters because KO is often evaluated as a “steady compounder,” and big one-off cash items can temporarily distort:
- free cash flow optics,
- leverage/capital allocation debates,
- and dividend coverage discussions (even if the underlying cash generation is intact).
Forecasts and Wall Street expectations: earnings, targets, and timing
What analysts are projecting for KO’s next results
Consensus snapshots vary by data vendor, but one widely used summary (Yahoo Finance “Analysis”) shows for the current quarter (ending Dec. 2025):
- Average EPS estimate: 0.529
- Average revenue estimate: $10.55B [20]
Investors typically watch whether Coke can keep delivering:
- resilient volume in key markets,
- price/mix without demand destruction,
- and continued mix shift toward zero sugar and premium categories.
Price targets and ratings
MarketBeat’s consensus snapshot shows:
- Consensus rating: “Buy” based on 16 analyst ratings (MarketBeat reports 15 “buy” and 1 “strong buy” in its normalization)
- Average 12‑month price target: $79.08 (range shown: $75 to $83) [21]
This kind of target range also implies that a lot of upside expectations depend on continued execution—especially given the premium valuation framing that Reuters highlighted versus peers. [22]
Next earnings date: likely February, but not “official” yet
Market calendars are not perfectly aligned on the exact date, and some vendors explicitly mark it as an estimate. For example:
- MarketBeat lists Coca-Cola’s next earnings date as an estimate around Tuesday, Feb. 10, 2026, based on historical schedules. [23]
- Nasdaq also shows an estimated earnings date around Feb. 10, 2026, noting it is algorithm-derived and subject to change. [24]
Best practice: treat February timing as a window until Coca-Cola posts an official “announces timing of earnings release” notice on its IR site (often published weeks ahead).
Risks to monitor before the bell: taxes, litigation, and regulation
1) The IRS tax dispute remains a real overhang
Coca-Cola has an ongoing tax case with the U.S. Internal Revenue Service. In an August 2024 company update, Coca-Cola said the U.S. Tax Court entered a decision reflecting a liability of approximately $2.7 billion, and that with interest the total amount was anticipated to be approximately $6.0 billion, while the company said it planned to move forward with an appeal. [25]
Separately, Coca-Cola’s Q3 2025 materials flagged that its underlying effective tax rate (non-GAAP) is estimated at 20.7% vs. 18.6% in 2024, reflecting (among other things) countries enacting global minimum tax rules—and it explicitly noted this does not include the impact of the IRS litigation “if the company were not to prevail.” [26]
2) New legal headline: Johnny Cash estate lawsuit
Reuters reported that the estate of Johnny Cash sued Coca-Cola over an alleged soundalike used in an ad, seeking an injunction and damages. [27]
In most scenarios this is unlikely to be financially material to Coca-Cola’s core earnings power, but it can create:
- reputational headlines,
- potential settlement costs,
- and a reminder of how brand execution intersects with legal risk.
3) Regulatory and consumer preference pressure
Reuters also framed Coca-Cola’s leadership change against a tougher U.S. regulatory environment and shifting consumer preferences toward healthier and more affordable options. [28]
For KO, the big picture is that management has to keep balancing:
- “better-for-you” demand (zero sugar, lower calories),
- affordability optics (mini cans, pack architecture),
- and growth in emerging markets where local tastes and “trade down” behavior can change quickly.
What to watch before the market opens on Dec. 26, 2025
If you’re scanning KO ahead of the open, these are the practical “checkpoints” most likely to matter:
- Any follow-through headlines on Costa Coffee (deal/no-deal narrative can influence sentiment around portfolio discipline). [29]
- CEO transition framing: additional context from analysts and media on whether Braun signals continuity or sharper portfolio moves. [30]
- Earnings positioning: traders may keep anchoring to Q3’s mix—price/mix +6%, organic revenue +6%, and Zero Sugar growth—as the “base case” until Q4 results arrive. [31]
- Accounting optics for Q4: watch how the market handicaps the $1B impairment charge tied to the Africa bottling stake sale (headline vs. underlying). [32]
- Dividend expectations: the last quarterly dividend has already paid (Dec. 15), so the next dividend catalyst is later—useful for income investors but unlikely to move the stock immediately on Dec. 26. [33]
- Consensus drift: whether quarter EPS/revenue expectations and target prices move meaningfully from current snapshots. [34]
Bottom line: KO heads into the post‑holiday session with “steady business” fundamentals—and real catalysts on the edges
Coca-Cola’s most recent quarter showed the familiar strengths investors pay for: modest volume growth, strong price/mix, and ongoing zero-sugar momentum, while cash flow optics were temporarily distorted by the fairlife contingent payment. [35]
But into the Dec. 26 open, KO isn’t just a “set it and forget it” staple story. The market is also pricing and debating:
- a major CEO transition (continuity vs. new playbook), [36]
- potential portfolio reshaping (Costa Coffee), [37]
- and headline earnings noise from bottler-related charges in Q4. [38]
For long-term holders, the question is whether Coke keeps executing well enough to justify a premium staple multiple—especially as it navigates taxes, regulation, and shifting consumer behavior in 2026. [39]
References
1. www.sec.gov, 2. www.sec.gov, 3. stockanalysis.com, 4. investors.coca-colacompany.com, 5. www.reuters.com, 6. www.reuters.com, 7. www.reuters.com, 8. www.reuters.com, 9. investors.coca-colacompany.com, 10. www.reuters.com, 11. www.reuters.com, 12. www.coca-colacompany.com, 13. investors.coca-colacompany.com, 14. investors.coca-colacompany.com, 15. investors.coca-colacompany.com, 16. investors.coca-colacompany.com, 17. investors.coca-colacompany.com, 18. investors.coca-colacompany.com, 19. investors.coca-colacompany.com, 20. finance.yahoo.com, 21. www.marketbeat.com, 22. www.reuters.com, 23. www.marketbeat.com, 24. www.nasdaq.com, 25. www.coca-colacompany.com, 26. www.coca-colacompany.com, 27. www.reuters.com, 28. www.reuters.com, 29. www.reuters.com, 30. www.reuters.com, 31. investors.coca-colacompany.com, 32. www.reuters.com, 33. stockanalysis.com, 34. finance.yahoo.com, 35. investors.coca-colacompany.com, 36. www.reuters.com, 37. www.reuters.com, 38. www.reuters.com, 39. www.reuters.com
