I Predicted That Coca-Cola Would Be a Better Buffett Stock Than Domino's to Buy in 2025. Here's What Happened.

Last year, I took 2 Buffett stocks and enactment them caput to head: Coca-Cola (NYSE: KO) and Domino's Pizza (NASDAQ: DPZ). Coca-Cola is Buffett's longest-held stock, and Domino's is simply a reasonably caller addition. And portion their concern models are antithetic and they run successful antithetic industries, they're some starring user goods stocks that connection worth to investors.

I suggested that Coca-Cola was apt to beryllium the winning banal successful 2025, and I was right. Can it continue? Let's revisit the statement and spot who mightiness triumph successful 2026.

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Neither Coca-Cola nor Domino's bushed the marketplace past year, but Coke banal came beauteous close, portion Domino's remained astir flat.

When I chose it past year, I noted the company's longer way grounds of reliability and its higher dividend yield. I felt astatine the clip that those features would beryllium important to the marketplace successful 2025, arsenic it was entering a caller twelvemonth aft 2 years of double-digit gains.

In the end, maturation won out, and the marketplace delivered a 3rd consecutive twelvemonth of double-digit gains, but Coca-Cola got precocious marks anyhow for its stableness and section accumulation successful the look of rising tariffs.

Now that the marketplace is entering a caller twelvemonth aft 3 years of double-digit gains, does this thesis inactive clasp true?

Coca-Cola has been performing good implicit the past year, and its localized accumulation is earning it a thumbs-up from the market.

In the astir caller quarter, which was the 2025 3rd 4th (fourth-quarter net volition beryllium released connected Feb. 10), income accrued 5% twelvemonth implicit year, and comparable operating borderline roseate from 30.7% to 31.9% twelvemonth implicit year. The institution has pricing power, and it has been capable to support up with higher costs by raising prices arsenic good arsenic changing packaging and size. It continues to spot ways to go much businesslike and motorboat caller products, and its exemplary of acquiring planetary brands adds caller gross sources.

It besides stands retired for its dividend. Coca-Cola is simply a Dividend King, and it has raised its dividend for the past 63 years straight, rainfall oregon shine. The dividend typically yields astir 3%, but contiguous it's 2.9% due to the fact that the banal has performed truthful well.

Domino's has been reporting akin mid-single-digit income maturation recently, but the marketplace hasn't rewarded it. Global retail income accrued 6.3% twelvemonth implicit twelvemonth successful the 2025 fiscal 3rd 4th (ended Sept. 7), with comparable income up 5.2%. Restaurants successful wide person been nether unit successful the high-inflation environment, adjacent though pizza is simply a nutrient that's inexpensive and resilient. The marketplace whitethorn beryllium seeing much constricted upside for Domino's close present fixed continued pressure.