Beverage Battle Rages On

Coca-Cola is pulling ahead of PepsiCo in the stock market, thanks to its focus on beverages and efficient business model. The Atlanta-based company has seen its shares soar to near-record highs. Meanwhile, PepsiCo's stock has taken a hit, dropping nearly 30% since its peak in 2023.

The gap between the two companies is clear in their financials. Coca-Cola reported a 35% operating margin in the first quarter, while PepsiCo's operating margin was less than half of that.

PepsiCo's struggles come mainly from its snack division, which generated 58% of its revenue in 2025. However, aggressive price increases during the pandemic have hurt demand. Consumers are opting for cheaper store brands to save money.

In North America, snack food revenue fell 2% in the second quarter compared to the previous year. PepsiCo's CEO attributed the slowing snack sales to high gasoline prices.

Coca-Cola, on the other hand, has driven growth with its beverage products and kept costs low by franchising most of its bottling operations. This approach has helped the company stay ahead of PepsiCo in the market.

Shares of Coca-Cola rose in midday trading, continuing to widen the financial gap with PepsiCo. The company's stock continues to hover near its 52-week high. Meanwhile, shares of PepsiCo were down slightly, lingering closer to its 52-week low.