For one, the conversion of in-house operations to outsourced partnerships continues. That's the power of outsourcing most of the production and distribution to a global network of partners and subsidiaries:įurthermore, I see Coca-Cola as a more innovative company than any of its chief rivals. Despite its skinnier revenue streams, Coca-Cola's leaner business model generates far wider profit margins and free cash flows in the end. As a result, Coke's stock has lagged behind Pepsi in the coronavirus era.īut that's not the whole story. Some bearish investors argue that Pepsi's more diverse product mix is a healthier business platform than Coca-Cola's sharp focus on various beverages. The soft drink giant's sales took a harder hit from the COVID-19 crisis than archrival PepsiCo (NASDAQ: PEP), since Pepsi's large portfolio of snack foods softened that company's fall.

Coke's turnaround recipe: Innovation, outsourcing, and AIĪnders Bylund (Coca-Cola Bull): Like any other company, Coke has its shortcomings.

Bull games with red flag