Coca-Cola Outperforms Peers Despite Cyberattack
Coca-Cola delivered one of its strongest quarters in years, posting adjusted earnings per share above expectations and a revenue increase to $13.4 billion. The results came despite an eleven-day production shutdown at Fairlife due to a ransomware attack. Investors responded positively, sending shares up over 7% on the day of the report. Morgan Stanley raised its price target for Coca-Cola (KO) from $89 to $100 and maintained it as their top beverage sector pick. The firm highlighted structural advantages such as organic sales growth outpacing expectations by nearly double, with unit case volume growing 5%. Scanner data also showed consistent U.S. market share gains over rivals like PepsiCo (PEP) and Keurig Dr Pepper (KDP). Fairlife’s resilience was a key highlight—despite the cyberattack halting production for two weeks, sales still rose by 18% year-over-year. Analysts believe this demonstrates long-term growth potential as capacity constraints ease.
Topics: Coca-Cola cyberattack Keurig Dr Pepper Morgan Stanley PepsiCo