Coca-Cola's $10 Billion Investment Plan: A Closer Look
Coca-Cola recently made headlines by announcing plans to invest $10 billion in U.S. infrastructure by 2030.
However, this figure includes spending from both Coca-Cola and its bottling partners.
The company currently plans to spend $2.2 billion on capital expenditures this year, a slight increase from last year's $2.1 billion.
If it maintained this rate for the five-year plan period, that would put total systemwide capex at around $11 billion in capex and $40 billion over the next five years.
The company confirmed that most of its planned U.S. infrastructure investment was already previously announced.
This means Coca-Cola should continue to generate strong free cash flow, with a projected $12.4 billion this year after capital spending.
This excess free cash flow will enable the company to strengthen its balance sheet and increase its dividend.