For anyone concerned that the recent E. coli outbreak at fast food chain McDonald’s (MCD) might hit Coca-Cola (KO) beverage sales, do not be alarmed. Coca-Cola CEO James Quincey says he is not concerned about the matter.
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Specifically, Quincey said the outbreak has nothing to do with Coca-Cola. While there may be some knock-on effects from people staying out of McDonald’s, at least for a while, Quincey said that, “…at this stage it’s not going to be a large, significant impact to the business.”
McDonald’s is Coca-Cola’s single largest restaurant customer with a relationship going back 70 years. Fortunately, there are other items on McDonald’s menu that have no issues and any issues that are found should be corrected quickly. Losses connected to McDonald’s should be temporary.
Secret Message in the Coke Logo?
In other news, a new meme is making the rounds and giving Coca-Cola some extra word-of-mouth marketing. Reports from the Irish Star claim that the Coca-Cola logo contains a “hidden message that stirs subconscious feelings.” The unusual tail on the first C is supposed to be representative of a smile, the reports says , which in turn should make buyers feel happy about their purchase.
Not everyone is so sure. Creative Bloq states that the elongated tail was mostly likely a design choice. After all, in 2013, the logo was slightly modified for the “Open Happiness” campaign, so any messaging would not have been that secret.
Is Coca-Cola Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on KO stock based on 12 Buys and six Holds assigned in the past three months, as indicated by the graphic below. After a 8.65% rally in its share price over the past year, the average KO price target of $74.12 per share implies 8.62% upside potential.
