The Coca-Cola Company (KO): Here’s Why This Stock Is So Refreshing Today

Coca-Cola Company (NYSE:KO)’s most notable report, though this was already known since last week, was its intent to expand its relationship with independent U.S. bottling companies in a franchise-type model. The company will expand the territories available to five regional bottlers, reducing its control of the U.S. bottling business by about 5% down to 74.5%. Coke CEO Muhtar Kent has indicated that the company might ultimately franchise out the territories completely. This is likely to improve margins, which should keep Coke investors happy as the company runs up against the limits of its customers’ stomachs. Will it justify continued share-price growth? Probably not — but that’s what international expansion is for.

The article Here’s Why Coca-Cola’s Stock Is So Refreshing Today originally appeared on Fool.com is written by Alex Planes.

Fool contributor Alex Planes holds no financial position in any company mentioned here. Add him on Google+ or follow him on Twitter @TMFBiggles for more insight into markets, history, and technology.The Motley Fool recommends Coca-Cola.

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