Keurig Dr Pepper Inc. (KDP)

Keurig Dr Pepper's stock has been impacted by several significant events in the past six months. KDP reported Q3 EPS of $0.54, matching analyst estimates, and revenue of $4.31 billion, surpassing the consensus, leading to a positive stock reaction. Keurig Dr Pepper announced plans to acquire JDE Peet's for approximately $18.4 billion and subsequently separate its beverage and coffee portfolios into two independent, publicly traded companies, initially causing investor concern. KDP secured a $7 billion investment co-led by Apollo and KKR to support the JDE Peet's acquisition and reduce projected net leverage, which was positively received by the market. The company delivered strong second-quarter results, with constant currency net sales increasing by 7.2% and broad-based top-line momentum. KDP reported constant currency net sales growth of 4% and adjusted diluted EPS growth of 8% for the full year 2024, consistent with its guidance. KDP acquired a 60% stake in the GHOST energy drink brand, aiming to enhance its energy drink portfolio, which contributed to volume/mix growth.

Demand for Keurig Dr Pepper's products exhibits some seasonality. Packaged beverages, such as carbonated soft drinks and juices, tend to perform strongly during periods of warmer weather and holidays. The at-home coffee segment experienced a recovery from supply constraints, but consumer mobility and reduced advertising impacted demand during the summer months. Demand for at-home coffee typically improves as the school year begins and consumer mobility returns to more normal patterns. The away-from-home coffee category also continues to improve, with further potential as return-to-office trends build.

Keurig Dr Pepper, Inc. (KDP) is a North American beverage and coffeemaker conglomerate operating in the Consumer Defensive sector, primarily in the Beverages - Non-Alcoholic industry, with a presence in appliance manufacturing. Formed in July 2018 through the merger of Keurig Green Mountain and Dr Pepper Snapple Group, KDP's product portfolio includes over 125 owned, licensed, and partner brands. Major products include coffee and brewing systems, carbonated soft drinks, juices and juice drinks, water and mixers, and other beverages.

Keurig Dr Pepper operates extensively across North America, with key operations divided into three segments: U.S. Refreshment Beverages, U.S. Coffee, and International. The company's geographic footprint primarily covers the United States, Canada, Mexico, and the Caribbean. Its Canadian business unit operates as Keurig Dr Pepper Canada, and in Mexico, it operates under the name Grupo Peñafiel.

Keurig Dr Pepper is recognized for its commitment to sustainable growth, operational excellence, and fostering innovation to meet evolving consumer demands. The company's diverse portfolio of well-known brands contributes to its strong brand equity and widespread distribution networks. The company's reputation among some investors was temporarily impacted by the August 2025 announcement of its plan to acquire JDE Peet's and subsequently split into two companies. The subsequent announcement in October 2025 of a $7 billion investment from Apollo and KKR to support the acquisition and reduce leverage was aimed at addressing these concerns and was met with a positive market reaction, helping to stabilize investor confidence.

JAB Holding Company holds a significant stake in Keurig Dr Pepper, owning 73-74% of the company. Institutional investors collectively hold a substantial portion of KDP's shares, with institutional ownership reported at 93.99%. As of October 2025, 941 institutions held shares in Keurig Dr Pepper. Activist investor Starboard Value also built a stake in the company by October 2025, following the initial investor reaction to the JDE Peet's acquisition.