Why Coca-Cola Consolidated Stock Plummeted Today

Coca-Cola Consolidated (NASDAQ: COKE) stock got hit with big sell-offs Thursday following the company's first-quarter earnings report. The company's share price closed out the daily session down 12% despite the backdrop of a 0.6% gain for the S&P 500.

Coca-Cola Consolidated reported its Q1 results after the market closed yesterday, and the market isn't happy with the results. While the business posted a modest sales decline, profitability saw a big drop off -- and investors are concerned about the margins picture going forward.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Coca-Cola Consolidated stock slips on softening margins

Coca-Cola Consolidated reported earnings per share of $11.87 on revenue of $1.58 billion in the quarter. Revenue was down 0.7% in the quarter, but the decline mostly stemmed from the fact that this year's quarter had two fewer sales days compared to last year's period due to holiday timing. Meanwhile, the company's gross profit margin slipped from 40.2% to 39.7% -- and gross profit declined 2% year over year. Operating income for the quarter came in at $190 million -- down 12% year over year.

What's next for Coca-Cola Consolidated?

While revenue was essentially flat in Q1, Coca-Cola Consolidated's unit volume fell 6.6% year over year in the period. Pricing increases were needed to keep revenue at roughly the same level as last year's quarter. Adjusting for the two fewer sales days in this year's quarter, volume would have been down 4.5% year over year.

Even though pricing increases effectively stabilized revenue last quarter, they weren't enough to prevent a decline for the business's gross margin. If declines for unit volume continue, that sets up an unfavorable picture for future earnings. Coca-Cola Consolidated should be able to continue delivering moderate pricing increases, but the extent of pricing increases may not be able to match declines for volume.

Should you invest $1,000 in Coca-Cola Consolidated right now?

Before you buy stock in Coca-Cola Consolidated, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Coca-Cola Consolidated wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $610,327!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $667,581!*

Now, it’s worth noting Stock Advisor’s total average return is 882% — a market-crushing outperformance compared to 161% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 28, 2025

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.