CHARLOTTE, N.C. - Coca-Cola (NYSE:KO) Consolidated, Inc. (NASDAQ: COKE), the largest bottler of Coca-Cola products in the United States, announced a significant increase in its quarterly dividend and the initiation of a substantial share repurchase program. The company's Board of Directors has raised the quarterly dividend from $0.50 to $2.50 per share, with the new dividend payable on November 8, 2024, to stockholders of record as of October 25, 2024.
In addition to the dividend increase, the Board has approved a $1.0 billion share repurchase program. The repurchase of shares will be conducted at the discretion of the company's management, which will decide on the timing and amount of repurchases.
J. Frank Harrison, III, Chairman and Chief Executive Officer, commented on the financial strategies, stating, "The progress we've made improving our profitability and strengthening our balance sheet allows us to reinvest in our business and our teammates while taking steps to build long-term value for our stockholders." He further emphasized the company's commitment to returning cash to stockholders over time, supported by strong financial performance.
Coca-Cola Consolidated has a long-standing presence in the beverage industry, serving consumers, customers, and communities for over 122 years. The company distributes a wide range of beverage brands across 14 states and the District of Columbia to approximately 60 million consumers.
The company's forward-looking statements, as disclosed in the press release, are subject to various risks, uncertainties, and assumptions that could cause actual results to differ materially from those anticipated. These statements are not guarantees of future performance, and the company advises referring to its SEC filings, including the "Risk Factors" section, for a better understanding of potential risks.
The information provided in this article is based on a press release statement from Coca-Cola Consolidated, Inc.
In other recent news, Coca-Cola Consolidated has been making significant strides in its financial management. The company has declared a quarterly dividend of $0.50 per share, a testament to its long-standing practice of returning value to shareholders. Additionally, the company has terminated its existing $1.3 billion term loan facilities, reducing its aggregate commitments to zero. These developments are seen as strategic moves to manage the company's capital structure effectively.
In further efforts to return value to shareholders, Coca-Cola Consolidated has completed the repurchase of 598,619 shares of its common stock, a transaction that approximated $553.7 million. The company also launched a modified Dutch auction tender offer to repurchase up to $2.0 billion of its common stock, contingent on securing at least $2.5 billion in gross proceeds from new term loan facilities and/or note offerings.
Rothschild & Co served as an advisor for the stock buyback transaction, while Wells Fargo (NYSE:WFC) Bank, National Association, served as the administrative agent for the terminated loan facilities. These are recent developments that underline Coca-Cola Consolidated's commitment to its shareholders and its active management of its capital structure.
InvestingPro Insights
Coca-Cola Consolidated, Inc. (NASDAQ: COKE) has recently demonstrated a solid financial performance, as indicated by the latest data from InvestingPro. With a market capitalization of $11.12 billion, the company stands as a significant player in the beverage industry. One of the key metrics that stands out is the company’s Price/Earnings (P/E) ratio, which is currently at 23.54. This valuation metric suggests that the stock is trading at a premium compared to its near-term earnings growth. Despite this, Coca-Cola Consolidated has maintained a consistent track record of dividend payments for over 53 years, a testament to its financial stability and commitment to shareholder returns.
InvestingPro Tips highlight the company's strong return over the past year, with a one-year price total return of 86.95%. Additionally, the company's stock is trading near its 52-week high, at 96.96% of the peak price, reflecting investor confidence and market optimism surrounding the stock. Moreover, analysts predict that Coca-Cola Consolidated will be profitable this year, which is supported by the company's profitability over the last twelve months.
For readers interested in a deeper dive into Coca-Cola Consolidated's financials and strategic insights, InvestingPro offers a comprehensive list of additional tips. Currently, there are 14 more InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/COKE, providing valuable information for investors considering this stock.
The recent announcement of an increased quarterly dividend and a share repurchase program aligns with the company's strong financial standing and its ability to generate value for its shareholders. These strategic financial decisions are indicative of Coca-Cola Consolidated's confidence in its business model and outlook, setting a positive tone for its future endeavors in the beverage market.
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