Aug. 5 at 9:00 PM
$COKE gross margin continues to roll downward, now to ~38% from 40% last year, with net income now declining YOY. While EPS is up because of their large levered share repurchase, EBITDA declined ~7%. A large source of operating leverage has been abnormally high YoY volume due to the timing of easter and July 4 (Adj volume of 6.1% vs the reported 10.3% for 1H) and lower volume trends will hit them over the next four quarters so EBITDA likely sees declines accelerate
So ~24x EPS and 13x declining EBITDA. Cash flow now also declining
