Coca-Cola Surges Ahead of Rival PepsiCo with 84% Five-Year Return

Coca-Cola's second-quarter earnings report showcased a stark contrast to its rival PepsiCo. Over five years, Coca-Cola shares have returned a remarkable 84.09%, whereas PepsiCo has gained only 3.08%. This significant disparity can be attributed to the structural differences between the two companies.

In its latest quarterly results, Coca-Cola posted adjusted earnings of $0.97 per share on revenue of $13.38 billion, up 6.7% year over year. The company's global unit case volume rose 5%, with a notable increase in Coca-Cola Zero Sugar sales across every segment.

PepsiCo, on the other hand, reported revenue of $24.181 billion, up 6.4% year over year, but its Foods North America unit fell 2% due to weaker net pricing. International segments were a bright spot for PepsiCo, with Latin America Foods up 15% and the EMEA region up 10%.

The gross margin difference between Coca-Cola and PepsiCo is substantial, with Coca-Cola boasting a gross margin of 61.6%. In contrast, PepsiCo's combined food and beverage operation yields a gross margin of 54.1% and an operating margin of 14.4%.