Capital Protection Certificate on Coca-Cola Co and McDonald’s Corp

Recently US rates increased giving the opportunity to consider capital protection structured products. The following instrument has only two stocks in the basket with participation coefficient 100% and no cap on the equity price growth in three years.

Both companies represent consumer sector and could be considered as protective assets during recession periods. Additionally, for the last 10 years, annual returns of both stocks were between 7-8%. Moreover, for the past 10 years Coca-Cola stock has delivered positive 3-year trailing returns around 90% of rolling 3-year windows. McDonald’s stock has delivered positive 3-year trailing returns over 85% of rolling 3-year windows for the past 10 years.

COCA-COLA CO/THE [Internal score 64/100] is the world’s largest soft drink producer. The company sells its products in more than 200 countries, and its portfolio includes over 30 brands. Coca-Cola business is divided into three main categories: Trademark Coca-Cola & Flavors, Sport drinks, Coffee and Juices. Company has the following business drivers, which are Pricing Power, Zero-sugar segment and digital B2B distribution channels. Should be noted that Coca-Cola products have recession resilience meaning that their products would be purchased during any economic cycle.

In the 2nd quarter of 2026, Coca-Cola’s revenue grew 6% year-on-year up to $13.4B, and net profit grew 11% year-on-year to the level of $4.2B. EBITDA exceeded $5B with margin equal to 38%. Free Cash Flow is stable and positive. For the last quarter it exceeded $5.1B – the largest value for the last 6 years.

MCDONALD’S CORP [Internal score 76/100] is the world’s largest fast-food restaurant chain. The company operates an iconic global system comprising more than 41,000 locations across over 100 countries. Revenue of McDonald’s could be divided into the following proportions: franchised revenues are almost 60%, and the rest (40%) is generated by company-operated stores. Company focuses on affordable food and generates predictable rental income from franchisees even during a global economic slowdown.

In the 2nd quarter of 2026, McDonald’s Corp revenue grew 4% year-on-year up to $7B, net profit remained stable and slightly exceeded $2.37B vs 2.35B in the 2nd quarter of 2025. EBITDA for the quarter was equal to $3.9B with margin equal to 55%. Free Cash Flow is stable and positive. For the last quarter it exceeded $1.9B.

The timing is supported by the Fed’s first rate hike in three years, with policymakers signalling that further tightening may still be needed as inflation remains high. Oil has eased from its recent peak but remains above $100, keeping inflation and rate risks elevated, while Treasury yields are still near multi-year highs. This keeps the economics of capital protection attractive while making relatively defensive consumer exposure useful if tighter financial conditions start to weigh on growth.