Coca-Cola Consolidated's Third-Quarter Sales Growth Cools

The Tip Desk · November 5, 2026 · 3 min read

Net sales rose 5.4% to $1.99 billion as volume growth slowed to 1.4% and operating margin expanded 60 basis points to 13.7%.

Coca-Cola Consolidated, Inc. (COKE), the largest Coca-Cola bottler in the United States, reported third-quarter net sales of $1.99 billion, a 5.4% increase from a year earlier, as volume growth cooled sharply from the first two quarters of 2026.

The Charlotte-based bottler said volume rose 1.4% in the quarter ended October 2, 2026, after 7.6% growth in the second quarter and 13.4% in the first. The company estimated that a shift in the timing of the Fourth of July holiday reduced total volume by about 1.0% versus the year-ago quarter.

Sparkling bottle/can sales were $1.13 billion and Still bottle/can sales were $687.2 million. Sparkling volume increased 1.5% and Still volume increased 1.2%. The company said Sparkling volume growth was led by zero-sugar and flavor offerings, and that Still volume growth was driven primarily by Energy and Protein products. Sparkling sales were driven primarily by multi-pack, take-home aluminum cans in large store, club and value channels. Still sales were especially strong in convenience and value stores.

Net sales growth was primarily the result of annual pricing actions, with additional contribution from higher volumes, the company said.

Gross profit was $771.6 million. Gross margin compressed 80 basis points to 38.8% from 39.6% a year earlier, after a 210-basis-point drop to 37.9% in the second quarter. The company said annual price increases had helped offset higher commodity and supply-chain costs, but that growth in aluminum and fuel costs had outpaced those increases, and that a shift in sales mix also weighed on gross margin.

Income from operations was $271.6 million, up 10.1% from $246.6 million a year earlier. Operating margin expanded 60 basis points to 13.7% from 13.1%, reversing a 150-basis-point decline in the second quarter. On an adjusted basis, income from operations was $262.9 million and adjusted operating margin was 13.2%.

Selling, delivery and administrative expenses were $500.0 million. SD&A as a percentage of net sales fell to 25.1% from 26.6% a year earlier, including about a $6 million favorable non-cash fair-value adjustment on fuel hedges. On an adjusted basis the ratio declined to 25.4%. The company said the change reflected higher labor costs from annual wage adjustments and employee benefits, offset by the hedge adjustment.

Net income was $175.9 million, or $2.64 a share, compared with $142.3 million, or $1.64 a share, a year earlier. The company said third-quarter 2025 net income had been adversely affected by non-cash fair-value adjustments to acquisition-related contingent consideration. Adjusted net income was $175.3 million, or $2.63 a share.

Chairman and Chief Executive Officer J. Frank Harrison, III, said the company remains committed to investing for the long term, including a new glass bottle production line in Indianapolis, and that through October 2026 it had reduced debt by $450 million. Long-term debt was $2.41 billion at October 2, 2026, compared with $2.69 billion at year-end 2025. Cash and cash equivalents were $311.9 million.

For the first nine months of 2026, net sales were $5.89 billion, volume was 278.8 million cases, and income from operations was $780.5 million. The period included six additional days versus the year-ago nine months. Cash from operations was $664.8 million. Capital expenditures were about $219 million in the nine months; the company expects fiscal 2026 capital expenditures of approximately $300 million. The fourth quarter of 2026 will include six fewer days than the fourth quarter of 2025.