The Biggest Threat to The Coca-Cola Company (KO) Earnings

Page 2 of 2

Coca-Cola is also fighting against health concerns about its products. It joined PepsiCo, Inc. (NYSE:PEP) in offering a lower-calorie soft drink with a combination of regular and non-caloric sweeteners. With the help of CEO Indra Nooyi, PepsiCo, Inc. (NYSE:PEP) has done a good job of leading the health-conscious fight, with its snacks division also seeking ways to improve on the healthfulness of its products. Coke responded in May, announcing its global anti-obesity campaign that will combine low-calorie drinks with program sponsorships to encourage physical activity.

In the Coca-Cola earnings report, be sure to watch for signs of how the company is dealing with the macroeconomic stresses it faces across the world. With dollar strength potentially weighing on its earnings, look past those figures at volume growth and other important considerations to figure out whether Coca-Cola can get its earnings growing quickly enough to justify its somewhat rich valuation.

The article The Biggest Threat to Coca-Cola Earnings originally appeared on Fool.com.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Burger King Worldwide, Coca-Cola, PepsiCo, and SodaStream. The Motley Fool owns shares of PepsiCo and SodaStream.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2