Coca-Cola: A Potential Case Of Margin Expansion With A Highly Insulated Business Model

  • In 1Q25, Coca-Cola's revenue fell by 1.51% to $11.13 billion. However, operating efficiency improved tremendously. Operating margin expanded to 32.88% from 18.95% in the same period last year. Due to macroeconomic uncertainty and poor consumer sentiment, the Company is expected to see revenue headwinds from end demand destruction. It is important to note that KO has a highly insulated, localized business model. Moreover, the company is still poised to further expand margins.