Coca-Cola's market cap has passed $400 billion after a 34% year-to-date rally to record highs, moving within sight of Costco's $440 billion. The author argues Coca-Cola's growth is limited by a saturated drinks market, and with a forward yield of about 2.3% and dividends consuming roughly half of profits, reaching $1 trillion by 2035 would require a 250% gain, which is unlikely. Costco, by contrast, posted revenue growth of just over 10% last fiscal year, a 6.6% rise in same-store sales, 84.1 million paid members and renewal rates around 90%, and it still has room to expand with 647 domestic and 292 international stores plus 28 planned openings this fiscal year. Reaching $1 trillion by 2036 would require Costco to gain about 8.5% per year from its current market cap, which the author considers achievable but no small feat.
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