The Coca‑Cola Company’s (KO) Digital Transformation Pays Off in Operating-Margin Boost

The Coca‑Cola Company (NYSE:KO) is one of the Best Stagflation Stocks to Buy Now. Now, the company is undergoing a quiet digital transformation — one that’s already paying off. Roughly 65% of its marketing spend has shifted to digital channels, supported by AI-driven personalization at scale. On the operational side, AI tools have helped cut downtime by 20% through predictive maintenance, while route optimization has shaved off 8% in fuel use.

These digital efficiencies contributed to a 140 basis point boost in operating margin last quarter, generating over $550 million in free cash flow, clear signs that Coca-Cola is adapting its legacy machinery to the 21st century.

The Coca‑Cola Company's (KO) Digital Transformation Pays Off in Operating-Margin Boost

But legacy doesn’t mean immune to disruption. In June, a Coca-Cola bottling plant in Brazil was temporarily shut down over suspected coolant contamination. Though no health incidents were reported, production was paused pending safety checks. The swift response underscored Coke’s operational vigilance and strong regulatory compliance, reminding investors that while the company embraces tech, it remains grounded in execution and global risk control.

Coca-Cola (NYSE: KO) is one of the most iconic consumer staples globally, offering a wide beverage portfolio ranging from Coke and Sprite to Minute Maid and Smartwater. Known for its global scale and brand power, Coca-Cola has long been considered a reliable defensive stock in uncertain markets.

While we acknowledge the potential of KO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than KO and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.