On Wednesday, however, the world's largest soft drink maker finally relented, essentially admitting that it had been too optimistic. Coke's battered stock regained ground. Investors, who hate companies that miss their projections, appear to think Coke's new goals are more achievable, even if they are lower. Chairman and Chief Executive Officer Doug Daft told a relatively sedate crowd at Coke's annual meeting in Delaware that he was happy to have 2000 over, even as he talked with optimism about the future. No share owner can be more disappointed than I am about the current price of our stock.
Lower expectations can be a good thing, if they're realistic.
Long-term sales growth should be 5 percent to 6 percent, not 7 percent to 8 percent. Some analysts had constantly questioned the old numbers. With Wednesday's announcement, Coke may regain more trust from those who follow the company closely and have significant influence on Wall Street. Andrew Conway of Morgan Stanley said the move makes sense and gives Coke a reasonable target. John Sicher, editor and publisher of Beverage Digest, said Coke needed to make the change.