Coca-Cola (NYSE: KO) stock underperformed the market again last year, declining 7% in 2023 compared to a 24% rally in the S 500. That decline was enough to make the beverage giant among the weakest performers in the Dow Jones Industrial Average, which rose 14% on the year.

Coke had some good news for investors throughout the year, yet Wall Street was more concerned about its relatively weak growth compared to companies that operate outside of the consumer essentials niche.

Coca-Cola's operating trends have been mostly positive around sales and earnings growth, Yet the biggest knock against the business is soft sales volumes. Coke reported flat case volume in Q2 and logged just a 2% uptick in the most recent quarter. A year ago, the Q2 and Q3 growth figures were much stronger at 8% and 4%, respectively. Investors don't like to see soft volume because it implies difficulty ahead in aiming to accelerate growth.

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Source Fool.com