Assetmark Inc. increased its stake in shares of Keurig Dr Pepper, Inc (NASDAQ:KDP – Free Report) by 26.7% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 100,797 shares of the company’s stock after buying an additional 21,210 shares during the quarter. Assetmark Inc.’s holdings in Keurig Dr Pepper were worth $2,654,000 at the end of the most recent quarter.
Several other institutional investors have also recently added to or reduced their stakes in KDP. T. Rowe Price Investment Management Inc. acquired a new position in shares of Keurig Dr Pepper during the 4th quarter worth $727,667,000. Norges Bank purchased a new position in shares of Keurig Dr Pepper in the fourth quarter valued at $568,361,000. Capital International Investors increased its holdings in Keurig Dr Pepper by 1,987.4% during the 4th quarter. Capital International Investors now owns 16,858,031 shares of the company’s stock valued at $472,193,000 after acquiring an additional 16,050,437 shares in the last quarter. Wellington Management Group LLP increased its position in Keurig Dr Pepper by 37.0% during the fourth quarter. Wellington Management Group LLP now owns 57,003,344 shares of the company’s stock worth $1,596,664,000 after buying an additional 15,393,753 shares in the last quarter. Finally, AQR Capital Management LLC increased its position in Keurig Dr Pepper by 285.3% during the fourth quarter. AQR Capital Management LLC now owns 11,636,027 shares of the company’s stock worth $325,925,000 after buying an additional 8,615,869 shares in the last quarter. Institutional investors and hedge funds own 93.99% of the company’s stock.
Analyst Upgrades and Downgrades A number of analysts recently issued reports on the stock. JPMorgan Chase & Co. raised their target price on shares of Keurig Dr Pepper from $33.00 to $38.00 and gave the stock an “overweight” rating in a research report on Thursday. Weiss Ratings upgraded Keurig Dr Pepper from a “hold (c-)” rating to a “hold (c)” rating in a report on Monday, May 11th. Zacks Research lowered Keurig Dr Pepper from a “strong-buy” rating to a “hold” rating in a research note on Monday, May 18th. BNP Paribas Exane raised shares of Keurig Dr Pepper from an “underperform” rating to a “neutral” rating and set a $28.00 price objective for the company in a research report on Wednesday, April 22nd. Finally, Sanford C. Bernstein set a $39.00 target price on Keurig Dr Pepper in a research note on Wednesday, July 8th. Eight investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Keurig Dr Pepper currently has a consensus rating of “Hold” and an average target price of $33.40.
Check Out Our Latest Stock Analysis on Keurig Dr Pepper
Keurig Dr Pepper Stock Performance Keurig Dr Pepper stock opened at $29.67 on Friday. The company has a debt-to-equity ratio of 0.72, a current ratio of 2.31 and a quick ratio of 2.12. Keurig Dr Pepper, Inc has a 12 month low of $24.88 and a 12 month high of $35.94. The company has a fifty day moving average price of $30.88 and a two-hundred day moving average price of $28.90. The company has a market cap of $40.37 billion, a PE ratio of 21.98, a P/E/G ratio of 1.38 and a beta of 0.40.
Keurig Dr Pepper (NASDAQ:KDP – Get Free Report) last posted its quarterly earnings results on Thursday, April 23rd. The company reported $0.39 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.37 by $0.02. The company had revenue of $3.98 billion for the quarter, compared to the consensus estimate of $7.23 billion. Keurig Dr Pepper had a net margin of 10.81% and a return on equity of 10.51%. The company’s revenue for the quarter was up 9.4% on a year-over-year basis. During the same period last year, the firm posted $0.42 EPS. Research analysts expect that Keurig Dr Pepper, Inc will post 2.29 earnings per share for the current year.
Keurig Dr Pepper Dividend Announcement The business also recently disclosed a quarterly dividend, which was paid on Friday, July 10th. Investors of record on Friday, June 26th were paid a dividend of $0.23 per share. This represents a $0.92 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date was Friday, June 26th. Keurig Dr Pepper’s payout ratio is currently 68.15%.
Keurig Dr Pepper Profile (Free Report)
Keurig Dr Pepper (NASDAQ: KDP) is a North American beverage company formed in July 2018 through the combination of Keurig Green Mountain and Dr Pepper Snapple Group. The company designs, manufactures, markets and distributes a wide range of hot and cold beverages and related equipment, combining Keurig’s single‑serve coffee systems with a large portfolio of carbonated and noncarbonated drink brands. It operates a network of manufacturing, packaging and distribution facilities to supply retail, foodservice and e-commerce channels across its served markets.
The company’s product mix includes single‑serve coffee brewers and coffee pods under the Keurig brand as well as a broad assortment of branded beverages.
Further Reading Five stocks we like better than Keurig Dr Pepper Premium Retail’s Stress Test Is Separating Winners From Losers D-Wave Quantum or a Quantum ETF: Which Is the Better Bet? GE Vernova Just Sent a Mixed AI Signal to Investors Alphabet Crushed Earnings, But One Number Spooked the Market Want to see what other hedge funds are holding KDP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Keurig Dr Pepper, Inc (NASDAQ:KDP – Free Report).
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California Public Employees Retirement System trimmed its holdings in Keurig Dr Pepper, Inc (NASDAQ:KDP – Free Report) by 11.3% in the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 2,961,193 shares of the company’s stock after selling 375,964 shares during the period. California Public Employees Retirement System owned 0.22% of Keurig Dr Pepper worth $77,968,000 at the end of the most recent quarter.
A number of other institutional investors have also made changes to their positions in KDP. Salomon & Ludwin LLC bought a new stake in Keurig Dr Pepper in the 4th quarter valued at $26,000. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main boosted its position in Keurig Dr Pepper by 102,300.0% during the second quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 1,024 shares of the company’s stock worth $34,000 after purchasing an additional 1,023 shares during the period. Rossby Financial LCC boosted its position in Keurig Dr Pepper by 45.1% during the fourth quarter. Rossby Financial LCC now owns 1,090 shares of the company’s stock worth $31,000 after purchasing an additional 339 shares during the period. Activest Wealth Management increased its holdings in shares of Keurig Dr Pepper by 5,642.1% in the fourth quarter. Activest Wealth Management now owns 1,091 shares of the company’s stock valued at $31,000 after purchasing an additional 1,072 shares during the last quarter. Finally, Washington Trust Advisors Inc. bought a new position in shares of Keurig Dr Pepper in the fourth quarter valued at about $31,000. 93.99% of the stock is owned by institutional investors and hedge funds.
Analysts Set New Price Targets A number of analysts have recently issued reports on KDP shares. JPMorgan Chase & Co. raised their target price on shares of Keurig Dr Pepper from $32.00 to $33.00 and gave the stock an “overweight” rating in a research note on Friday, April 24th. UBS Group upped their price target on shares of Keurig Dr Pepper from $34.00 to $38.00 and gave the company a “buy” rating in a research note on Thursday. Sanford C. Bernstein set a $39.00 price target on shares of Keurig Dr Pepper in a report on Wednesday, July 8th. Zacks Research downgraded shares of Keurig Dr Pepper from a “strong-buy” rating to a “hold” rating in a research report on Monday, May 18th. Finally, Wells Fargo & Company set a $37.00 price objective on Keurig Dr Pepper in a report on Wednesday, July 1st. Eight analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $33.07.
Get Our Latest Stock Analysis on KDP
Keurig Dr Pepper Price Performance Shares of KDP opened at $30.91 on Monday. The company has a current ratio of 2.31, a quick ratio of 2.12 and a debt-to-equity ratio of 0.72. Keurig Dr Pepper, Inc has a 12 month low of $24.88 and a 12 month high of $35.94. The firm’s 50 day moving average is $30.79 and its 200-day moving average is $28.84. The stock has a market capitalization of $42.05 billion, a PE ratio of 22.90, a P/E/G ratio of 1.41 and a beta of 0.40.
Keurig Dr Pepper (NASDAQ:KDP – Get Free Report) last issued its quarterly earnings results on Thursday, April 23rd. The company reported $0.39 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.37 by $0.02. The business had revenue of $3.98 billion during the quarter, compared to analysts’ expectations of $7.23 billion. Keurig Dr Pepper had a return on equity of 10.51% and a net margin of 10.81%.The firm’s revenue for the quarter was up 9.4% compared to the same quarter last year. During the same period in the previous year, the company posted $0.42 earnings per share. Equities research analysts forecast that Keurig Dr Pepper, Inc will post 2.29 EPS for the current year.
Keurig Dr Pepper Announces Dividend The business also recently disclosed a quarterly dividend, which was paid on Friday, July 10th. Shareholders of record on Friday, June 26th were issued a $0.23 dividend. The ex-dividend date of this dividend was Friday, June 26th. This represents a $0.92 annualized dividend and a yield of 3.0%. Keurig Dr Pepper’s payout ratio is currently 68.15%.
Keurig Dr Pepper Profile (Free Report)
Keurig Dr Pepper (NASDAQ: KDP) is a North American beverage company formed in July 2018 through the combination of Keurig Green Mountain and Dr Pepper Snapple Group. The company designs, manufactures, markets and distributes a wide range of hot and cold beverages and related equipment, combining Keurig’s single‑serve coffee systems with a large portfolio of carbonated and noncarbonated drink brands. It operates a network of manufacturing, packaging and distribution facilities to supply retail, foodservice and e-commerce channels across its served markets.
The company’s product mix includes single‑serve coffee brewers and coffee pods under the Keurig brand as well as a broad assortment of branded beverages.
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Keurig Dr Pepper (NASDAQ: KDP | KDP Price Prediction) and Coca-Cola (NYSE: KO) both delivered Q1 2026 beats, but the businesses are moving in opposite directions. KDP just absorbed JDE Peet’s on April 1, 2026 and is preparing to split in two. Coke is defending a fortress.
Cold Beverages Carry KDP. Zero Sugar Carries Coke. Keurig Dr Pepper posted $3.98 billion in revenue, up 9.4% YoY, with adjusted EPS of $0.39. U.S. Refreshment Beverages grew 11.9% on Dr Pepper, GHOST energy, and sports hydration share gains. U.S. Coffee volume fell 8.2%, which is why management wants to isolate it in a separate coffee company.
Coca-Cola pulled $12.47 billion in revenue, +12.1% YoY, and EPS of $0.86, its fourth straight beat. Coca-Cola Zero Sugar grew volume 13% across every geography, and comparable operating margin expanded 70 bps to 34.5%. Global unit case volume rose only 3%, and Q1 benefited from six extra calendar days.
Business Driver KDP KO Main growth engine Cold beverages, GHOST energy Zero Sugar, premium packaging Weakest link U.S. Coffee volume (-8.2%) Asia Pacific OI (-17%) Forward P/E 14 26 Transformation Story Versus Fortress Story KDP is the more interesting business right now. CEO Tim Cofer called the quarter a milestone toward “standing up two pure-play companies”, backed by roughly $400M in projected cost savings. Principal debt sits at $25.9B, with interest expense nearly doubling to $281M. Any integration stumble bites hard.
Coke is executing what it already knows. Fairlife is accelerating, innocent and Santa Clara just joined the billion-dollar club, and 2025 marked the 63rd consecutive year of dividend increases. Trefis flagged a concern: management is shifting from aggressive pricing to a “balanced” approach, hinting that pricing power has a ceiling. The CFO also warned that consumers earning under $50K-$60K are strained.
What Decides the Next Six Months For KDP, watch GHOST-driven energy share (currently 8%, targeting 10%+) and whether the coffee spin timeline stays clean. Barclays flagged a potential 40% undervaluation post-financing. For Coke, the swing factor is volume in China and India holding up while the ~4% M&A headwind from the Africa divestiture flows through.
Why KDP Screens Better Than Coke Right Now Paying 14 times forward earnings for a business shedding its weakest segment and guiding to low-double-digit constant currency EPS growth looks like better math than paying 26 times for Coke’s 8-9% guided EPS growth. KDP is up 21.76% YTD, roughly matching KO’s 21.97%, so the discount has not closed yet. For investors seeking structural alpha at a cheaper multiple, KDP screens more favorably on valuation, provided the debt load behaves.
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Key Takeaways KDP says Dr Pepper's core lines gained share, backed by demand-generation and in-store execution.Creamy Coconut is back as KDP taps dirty soda trends and aims to drive summer growth.Zero Sugar posted double-digit growth as KDP sharpened promotions, marketing and distribution. Keurig Dr Pepper (KDP - Free Report) continues to demonstrate that innovation remains a key pillar of its growth strategy rather than simply a tool for generating short-lived demand spikes. Although the brand faced a difficult year-over-year comparison in the first quarter after the successful Blackberry launch in the prior year, management emphasized that the underlying business remained strong. Its three core product lines — regular, Diet Dr Pepper and Dr Pepper Zero Sugar — collectively gained market share during the quarter, supported by effective demand-generation initiatives and strong in-store execution. This suggests that the brand's momentum is increasingly being driven by sustained consumer demand rather than relying solely on new product introductions.
Innovation, however, remains central to expanding the brand’s reach and keeping consumer interest high. KDP recently relaunched the limited-time Dr Pepper Creamy Coconut flavor, a product that previously generated strong consumer engagement. Management expects the offering to build on its earlier success by tapping into the growing popularity of "dirty sodas," a trend that continues to resonate with younger consumers. The company views innovation as an important contributor to growth throughout the remainder of 2026, complementing the strength of the core portfolio rather than replacing it.
Beyond flavor innovation, KDP is strengthening Dr Pepper through a broader portfolio and commercial initiatives. The company continues to expand its zero-sugar offerings, which delivered double-digit growth during the quarter, while refining promotional strategies to provide attractive price points without sacrificing pricing discipline. At the same time, enhanced precision marketing, targeted consumer engagement and strong direct-store-delivery execution are helping improve shelf presence and product availability. These initiatives allow the company to capture both value-conscious shoppers and consumers seeking lower-sugar beverage alternatives.
Management remains confident that Dr Pepper will continue to outperform through the balance of 2026. The company expects Creamy Coconut to become a meaningful contributor during the summer season, while continued distribution gains, expanding Zero Sugar penetration and personalized marketing campaigns support additional share growth. Rather than depending on one blockbuster launch, KDP is building a repeatable innovation pipeline supported by disciplined commercial execution, positioning Dr Pepper to sustain its competitive strength within the carbonated soft drink category.
Keurig Dr Pepper’s Zacks Rank & Share Price PerformanceShares of this Zacks Rank #3 (Hold) company have gained 30.8% in the past three months, outperforming both the industry and the broader Consumer Staples sector, which have grown 9.2% and 7.8%, respectively.
KDP Stock's Past Three-Month Performance
Image Source: Zacks Investment Research
Is KDP a Value Play Stock?Keurig Dr Pepper currently trades at a forward 12-month P/E ratio of 13.79X, lower than the industry average of 19.67X and the sector average of 16.64X. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.
KDP P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
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The Zacks Consensus Estimate for Darling Ingredients’ current fiscal-year sales and earnings indicates growth of 12.3% and 588.2%, respectively, from the prior-year reported levels. DAR delivered a trailing four-quarter earnings surprise of 16.1%, on average.
United Natural Foods, Inc. (UNFI - Free Report) distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural carries a Zacks Rank of 2 (Buy).
The consensus estimate for United Natural’s current fiscal-year earnings implies growth of 254.9% from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.
Mama's Creations, Inc. (MAMA - Free Report) manufactures and markets fresh deli-prepared foods in the United States. At present, MAMA has a Zacks Rank of 2.
The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 30% and 73.3%, respectively, from the year-ago figures. MAMA delivered a trailing four-quarter earnings surprise of 129.2%, on average.
SummaryKDP is downgraded to Hold due to unattractive risk-reward and underperformance versus peers.KDP's operating margin declined 190 bps despite high single-digit revenue growth, contrasting with KO's margin improvement.The U.S. Coffee segment continues to struggle, with modest profit declines expected through 2026 and separation targeted for early 2027.While KDP trades at a valuation discount, limited upside and weak business momentum justify a cautious stance. MF3d/iStock via Getty Images
I've only covered Keurig Dr Pepper Inc. (KDP) once since I started writing for Seeking Alpha. And that's been a tough period. What happened since then? I see that Keurig Dr Pepper underperformed the broad index. By
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of KDP, KO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
The information, opinions, and thoughts included in this article do not constitute an investment recommendation or any form of investment advice.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
, /PRNewswire/ -- Keurig Dr Pepper Inc. (NASDAQ: KDP) will release its financial results for the second quarter ended June 30, 2026 before the market opens on Thursday, August 6, 2026. The Company will also hold a conference call on Thursday, August 6, 2026 at 8:00 AM (ET) to discuss the results, which will be hosted by Tim Cofer, Chief Executive Officer, and Anthony DiSilvestro, Chief Financial Officer.
Investors and analysts may access the call by dialing (833) 629-0615 within the United States or Canada and (412) 317-1824 internationally and referencing the Keurig Dr Pepper call. A replay of the call will be available, beginning August 6, 2026 at approximately 11:00 AM (ET) until August 20, 2026 by dialing (855) 669-9658 or (412) 317-0088 and referencing the conference ID: 2855514.
Access to a live audio webcast and replay of the event will be available in the Investors section of the Company's corporate website, www.keurigdrpepper.com.
Investors:
Investor Relations
Keurig Dr Pepper
T: 888-340-5287 / [email protected]
Media:
Katie Gilroy
Keurig Dr Pepper
T: 781-418-3345 / [email protected]
ABOUT KEURIG DR PEPPER
Keurig Dr Pepper (Nasdaq: KDP) is a leading beverage company with more than 150 owned, licensed and partner brands that meet a wide range of needs and occasions. Our North American refreshment beverage business holds leadership positions across carbonated soft drinks, water, juice and mixers with a portfolio of iconic brands such as Dr Pepper®, Canada Dry®, Mott's®, A&W®, Peñafiel®, GHOST®, 7UP®, Snapple®, Clamato® and Core Hydration®. Our global coffee business spans more than 100 markets and includes the leading Keurig® single‑serve brewing system in the U.S. and Canada, along with powerhouse brands such as Peet's, L'OR and Jacobs, and other regional coffee leaders. Our more than 50,000 employees aim to enhance the experience of every beverage and coffee occasion while making a positive impact for people, communities and the planet. Learn more at www.keurigdrpepper.com and follow us @KeurigDrPepper on LinkedIn and Instagram.
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FRISCO, Texas and BURLINGTON, Mass., June 23, 2026 /PRNewswire/ -- Keurig Dr Pepper Inc. (NASDAQ: KDP) today announced leadership updates as the Company advances preparations for its planned separation into Beverage Co. and Global Coffee Co., which is targeted for early 2027.
Keurig Dr Pepper, Inc (KDP - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
As such, the Zacks rating upgrade for Keurig Dr Pepper is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
For Keurig Dr Pepper, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Keurig Dr PepperFor the fiscal year ending December 2026, this company is expected to earn $2.29 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for Keurig Dr Pepper. Over the past three months, the Zacks Consensus Estimate for the company has increased 1.2%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Keurig Dr Pepper to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
On June 17, 2026, Keurig Dr Pepper Inc KDP shares fell 3.5% today, bringing the current price to $30.89. Over the last 52 weeks, the stock has traded between a high of $35.94 and a low of $24.88.
GF Value™ verdict: KDP is currently priced at $30.89, which is 28.0% below the GF Value™ of $42.93.GF Score™: 82/100, indicating a strong performance across various financial metrics.Most notable signal: No insider transactions in the last 3 months suggest a lack of activity among company executives. Is KDP Overvalued or Undervalued? Keurig Dr Pepper Inc KDP is currently trading at $30.89, which represents a significant discount when compared to its GF Value™ of $42.93, suggesting that the stock is undervalued by 28.0%. This margin of safety offers a potential opportunity for long-term investors looking for equities that may appreciate in value. According to the GF Valuation label, KDP is classified as modestly undervalued, which indicates that there may be a reasonable prospect for price correction towards its intrinsic value over time. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
While the undervaluation presents an opportunity, it is important to consider the risks associated with investing in KDP. Factors such as its financial strength score of 4/10 indicate that the company's ability to withstand financial distress is somewhat limited, which could impact its future performance. Therefore, while the stock may be undervalued, potential investors should exercise caution and conduct thorough research.
How Does KDP's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)22.9x25.2x Forward P/E13.5xN/A KDP's current P/E ratio of 22.9x is below its 5-year median P/E of 25.2x, indicating that the stock is trading at a lower valuation compared to its historical performance. Moreover, the forward P/E of 13.5x suggests a favorable outlook for earnings, potentially aligning with the GF Value™ verdict that KDP is undervalued. This P/E analysis supports the notion that KDP may provide value relative to its historical earnings multiple.
What Does KDP's GF Score™ Tell Us? MetricRating GF Score™82 Financial Strength4/10 Profitability7/10 Growth9/10 Valuation8/10 Momentum4/10 The GF Score™ of 82/100 reflects KDP's overall strong performance, particularly in Growth (ranked 9/10) and Valuation (ranked 8/10). However, the company shows weaknesses in Financial Strength (4/10) and Momentum (4/10), indicating potential challenges in maintaining its current trajectory. The strong growth and valuation scores suggest that KDP may have good potential for future earnings, but the lower financial strength ranking implies caution regarding its stability.
What Are Insiders Doing with KDP Stock? In the last three months, there have been no insider transactions related to Keurig Dr Pepper Inc KDP . This lack of activity could suggest that insiders are not currently confident about the stock's immediate prospects, or they may be awaiting a more favorable market condition before making transactions. Generally, insider buying can signal confidence in a company's future performance, while a lack of activity may raise questions about its near-term outlook.
What This Means for Investors Based on the GF Value™ assessment, Keurig Dr Pepper Inc KDP is currently undervalued, presenting a potential opportunity for long-term investors. However, caution is advised due to its relatively low financial strength score and the absence of recent insider activity.
For the complete analysis, visit the Keurig Dr Pepper Inc KDP stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is KDP's GF Score™?
KDP's GF Score™ is 82/100, indicating a strong overall performance across key financial metrics and suggesting potential for long-term returns.
Is KDP overvalued or undervalued?
KDP is currently undervalued, with a GF Value™ of $42.93 compared to its market price of $30.89.
What is KDP's P/E ratio?
KDP's P/E TTM is 22.9x, which is below its 5-year median P/E of 25.2x, indicating it is trading at a lower valuation compared to its historical levels.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways KDP's Q1 net sales rose 8.1%, with volume/mix adding 2.6% and pricing contributing 5.5%.U.S. Refreshment Beverages sales grew 11.9%, led by 7.2% volume/mix growth and 4.7% pricing.Innovation, distribution gains and marketing are supporting demand across beverages and energy products. Keurig Dr Pepper (KDP - Free Report) delivered an encouraging start to 2026, with first-quarter results highlighting resilient consumer demand across several key categories. While pricing remained an important contributor to growth amid an inflationary environment, the company also benefited from healthy volume/mix trends, particularly in its U.S. Refreshment Beverages business. The performance raises an important question for investors: Is KDP's growth increasingly being driven by underlying demand rather than pricing actions alone?
The numbers suggest that demand is playing a meaningful role. First-quarter net sales increased 8.1% year over year, with net price realization contributing 5.5% and volume/mix contributing 2.6% to growth. The standout performer was the U.S. Refreshment Beverages segment, where net sales grew 11.9%, supported by 7.2% volume/mix growth and 4.7% growth from pricing actions. Management highlighted strong momentum in carbonated soft drinks, energy drinks and sports hydration products. Meanwhile, Dr Pepper's regular, diet and zero-sugar offerings collectively gained market share during the quarter, underscoring healthy underlying consumer demand.
KDP's ability to generate volume growth despite higher prices reflects the strength of its brand portfolio and innovation pipeline. Products such as Canada Dry Fruit Splash, Dr Pepper Creamy Coconut, Bloom Pop prebiotic sodas and the company's expanding energy portfolio led by GHOST and Bloom are helping attract new consumers and drive incremental purchases. Distribution gains, effective point-of-sale execution and increased marketing investments are also supporting demand. Notably, management indicated that SNAP-related impacts have remained manageable, while category volumes across carbonated soft drinks and broader liquid refreshment beverages have stayed positive.
Looking ahead, KDP expects pricing to remain a contributor, but management believes strong consumer engagement, innovation and distribution expansion will continue supporting healthy volume trends. Although overall sales growth may moderate from the elevated first-quarter level, the company expects U.S. Refreshment Beverages to remain an outsized growth driver throughout 2026. If KDP can sustain positive volume/mix growth while maintaining pricing discipline, it could signal that the company's growth story is increasingly rooted in demand strength rather than inflation-driven price increases alone.
Keurig Dr Pepper’s Zacks Rank & Share Price PerformanceShares of this Zacks Rank #3 (Hold) company have gained 15.7% in the past three months, outperforming both the industry and the broader Consumer Staples sector, which have grown 7.8% and 5%, respectively.
KDP Stock's Past Three-Month Performance
Image Source: Zacks Investment Research
Is KDP a Value Play Stock?Keurig Dr Pepper currently trades at a forward 12-month P/E ratio of 12.80X, lower than the industry average of 19.06X and the sector average of 16.64X. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.
KDP P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Stocks to ConsiderThe Chef's Warehouse, Inc. (CHEF - Free Report) , a specialty food distributor serving restaurants, hotels and hospitality customers, sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for The Chef's Warehouse’s current financial-year sales and earnings indicates growth of 8.3% and 24.7%, respectively, from the prior-year reported levels. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.
Vita Coco Company (COCO - Free Report) is a leading beverage company best known for its Vita Coco brand, with a portfolio that also includes hydration, energy and protein-based beverages. COCO currently sports a Zacks Rank #1.
The Zacks Consensus Estimate for Vita Coco’s current financial-year sales and earnings calls for year-over-year growth of 21.4% and 47.9%, respectively. COCO delivered a trailing four-quarter earnings surprise of 11.7%, on average.
The Coca-Cola Company (KO - Free Report) , a global beverage giant, currently carries a Zacks Rank #2 (Buy). KO delivered a trailing four-quarter earnings surprise of 4.5%, on average.
The Zacks Consensus Estimate for Coca-Cola’s current fiscal-year sales and earnings suggests a year-over-year increase of almost 3% and 8.7%, respectively.
Key Takeaways KDP is leveraging its single-serve coffee leadership, brewer ecosystem and K-Cup demand to support growth.Keurig Dr Pepper is investing in innovation, premium offerings and productivity to boost margins.KDP is expanding into energy and functional beverages while strengthening omnichannel reach. Keurig Dr Pepper (KDP - Free Report) is well-positioned for growth, supported by its strong brand portfolio, continuous innovation and strategic initiatives. The company maintains a leading position in the single-serve coffee market, benefiting from a loyal consumer base, a broad portfolio of owned and licensed coffee brands and the recurring demand for K-Cup pods. Its expanding ecosystem of brewers and beverages continues to strengthen customer engagement and support long-term sales growth.
KDP remains focused on product innovation by introducing new brewers, premium coffee offerings and specialty beverages that cater to evolving consumer preferences. Keurig Dr Pepper is also leveraging strategic partnerships with leading coffee brands to expand consumer choice and reinforce the appeal of its brewing system. At the same time, the company is emphasizing premiumization, helping improve product mix and support higher margins.
The company’s growth reflects a strategic mix of innovation, brand activity and strong commercial execution, bolstered by its ongoing focus on cost efficiency, productivity and disciplined capital management. Strength in its brand portfolio and in-market execution, along with elasticity across most categories, has been aiding KDP’s revenues. In addition, Keurig Dr Pepper continues to invest in productivity initiatives, supply-chain optimization and cost-saving measures to enhance operational efficiency and offset inflationary pressures.
Continued strength in the Refreshment Beverages segment for a while has been aiding KDP’s overall performance. Robust sales and a favorable mix of products, along with contributions from Electrolit, have been bolstering the segment’s performance. The continuation of this trend has been bolstering the top line. KDP’s consumer-focused innovation model, household penetration and loyalty have been driving its market share across key categories like liquid refreshment beverages, K-Cup pods and brewers across its major markets.
The company is strengthening its omnichannel distribution capabilities while expanding its retail presence and selectively pursuing international growth opportunities. These strategic actions, combined with Keurig’s strong brand equity and leadership in the at-home coffee market, are expected to support sustainable revenue growth and profitability over the long term, despite ongoing macroeconomic and competitive challenges. Keurig continues to strengthen its portfolio with a clear focus on faster-growing categories, including energy, sports hydration and functional beverages. All the aforesaid factors will continue to ignite the momentum.
KDP’s Price Performance, Valuation and EstimatesShares of Keurig have gained 15.7% in the past three months compared with the industry’s growth of 7.8%.
Image Source: Zacks Investment Research
From a valuation standpoint, KDP trades at a forward price-to-earnings ratio of 12.8X compared with the industry’s average of 19.09X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KDP’s 2026 and 2027 earnings per share (EPS) implies a year-over-year increase of 11.7% and 10.5%, respectively. The estimates for the aforesaid years have increased in the past 30 days.
Image Source: Zacks Investment Research
Keurig stock currently carries a Zacks Rank #3 (Hold).
Stocks to Consider in the Consumer Staples SpaceThe Chefs' Warehouse, Inc. (CHEF - Free Report) , which is a distributor of specialty food products in the United States, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Chefs' Warehouse current financial-year sales indicates growth of 8.3% from the prior-year level. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.
Nomad Foods Limited (NOMD - Free Report) , which manufactures and distributes frozen foods, currently carries a Zacks Rank #2 (Buy).
The consensus estimate for Nomad Foods’ current financial-year sales is expected to rise 0.5% from the year-ago reported figure. NOMD delivered a trailing four-quarter earnings surprise of 8.6%, on average.
Medifast, Inc. (MED - Free Report) , which is a leading manufacturer and distributor of clinically-proven healthy living products and programs, currently carries a Zacks Rank of 2. MED delivered an average earnings surprise of 65.5% in the last reported quarter.
The Zacks Consensus Estimate for Medifast’s current financial-year sales indicates a decline of 26% from the year-ago number.
In 2026, the market has been a test of patience. Last year, tariffs raised the average U.S. consumer goods price by more than 3% into this year. Consumer sentiment has stayed stuck near its lowest levels since the pandemic. The Federal Reserve won't cut rates until inflation proves it's gone, and every strong jobs report is treated like a threat.
If you have $1,000 sitting on the sidelines right now, that uncertainty is not a reason to stay out of the market. It's a reason to be deliberate about where you go in.
These consumer companies are simple businesses that sell products people buy, regardless of what the Fed does -- items like toothpaste, snacks, energy drinks, and Tylenol. That kind of predictability is exactly what $1,000 should be doing right now.
Image source: Getty Images.
1. Church & Dwight Church & Dwight (CHD 1.83%) is one of the most quietly durable consumer staples companies in the market. Its brand portfolio -- Arm & Hammer, OxiClean, Waterpik, TheraBreath, and Trojan -- spans categories that face virtually no trade-down risk.
The company beat its first quarter 2026 guidance, posting organic sales growth of 5% against a forecast of 3%, driven entirely by volume rather than price increases. That distinction matters when the noise is all about tariff-driven inflation. Church & Dwight grew by selling more, not by charging more.
In May, Church & Dwight acquired Miss Mouth's Messy Eater -- a fast-growing stain-removal brand -- for $325 million, continuing a decade-long pattern of bolt-on acquisitions that expand market share without over-leveraging the balance sheet.
The risk here is that the stock rarely looks cheap. Church & Dwight trades at a premium valuation that assumes consistent execution, and any organic growth slowdown is punished. But for a $1,000 allocation into an uncertain market, a company that compounds through volume growth is a reasonable foundation.
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2. Keurig Dr Pepper Keurig Dr Pepper (KDP 0.42%) has one of the stranger market stories of 2026. The stock is down nearly 29% from its 2025 peak despite the company beating revenue estimates in four straight quarters.
The noise around Keurig Dr Pepper is that the coffee platform is mature and the core soda business is slow. What's getting missed is the energy drink portfolio. The company now owns Ghost, C4, Venom, and Black Rifle Energy -- a collection of high-growth, Gen Z-targeted brands that are taking shares from competitors.
The company expects well over $1 billion in annual retail sales from that energy portfolio and reaffirmed its 2026 guidance for low-double-digit adjusted earnings growth despite macro noise. The dividend yield near current prices is also meaningful, giving investors something to collect while they wait.
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3. Kenvue Kenvue (KVUE +0.61%) is the consumer health spinoff from Johnson & Johnson that most retail investors still treat as an afterthought. That's changing. Its skin health and beauty division grew 8.4% in Q1 2026, bringing quarterly sales to $1 billion. Brands like Neutrogena, Aveeno, Listerine, and Tylenol are the kinds of products that recessions don't eliminate -- they're medicine-cabinet staples that consumers buy on autopilot.
The larger story is the pending combination with Kimberly-Clark (KMB +1.07%), expected to close in the second half of 2026. That merger will create one of the largest consumer health and personal care platforms in the world.
The noise is that integration risk exists, and the valuation reflects uncertainty about the deal. That's fair. But the underlying brands are sound, and the combined entity will have pricing power and distribution scale that neither company has on its own.
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None of these three companies will double in a year. That's not really the point. But, when the market is uncertain, the goal of a $1,000 allocation isn't to swing for the fences -- it's to own businesses that keep running while everyone else panics. These do that.
Key Takeaways Coca-Cola wins the beverage stock face-off on scale, brand power, execution and cash-flow strength.Keurig offers lower valuation and strong beverage growth but faces coffee costs, tariffs and leverage risks.Coca-Cola posted 3% volume growth, 10% organic revenue growth and 18% comparable EPS growth in Q1. The non-alcoholic beverage industry has long rewarded companies with strong brands, broad distribution and resilient consumer demand. The Coca-Cola Company (KO - Free Report) and Keurig Dr Pepper Inc. (KDP - Free Report) both fit that description, but they compete from very different positions.
Coca-Cola is the global heavyweight, with a vast portfolio spanning sparkling drinks, water, juices, sports drinks, coffee and tea. Its unmatched international reach and dominant market share in carbonated soft drinks give it a powerful competitive edge.
Keurig is smaller but highly distinctive, with a strong North American footprint, a diversified cold-beverage lineup and a leading single-serve coffee platform. Its business blends beverage brands with the Keurig ecosystem, giving it exposure to both at-home coffee consumption and packaged drinks.
For investors, this face-off is about scale versus specialization. Which company offers a stronger mix of market position, brand power and growth potential today?
The Case for KOCoca-Cola’s investment appeal starts with its unmatched scale and market leadership in the global non-alcoholic ready-to-drink beverage industry. The company reported 3% volume growth across all operating segments in first-quarter 2026 and extended its streak of overall value-share gains to 20 consecutive quarters, underscoring the strength of its competitive position.
Management highlighted that Coca-Cola has been operating in an expanding industry while benefiting from an “unmatched system reach” that enables broad consumer access across geographies. Its portfolio remains one of the strongest in consumer staples, anchored by the iconic Coca-Cola trademark and supported by brands such as Sprite, Fanta, Powerade, Dasani, smartwater, Minute Maid and Fuze Tea.
A key pillar of Coca-Cola’s strategy is becoming more consumer-centric through its “4 I’s” framework — Insights, Innovation, Intimacy and Integrated Execution. The company is leveraging digital tools, connected packaging and consumer data to deepen engagement, personalize marketing and improve execution. Recent innovations such as Coca-Cola Zero Zero, Coca-Cola Cherry Float, Sprite Prebiotic and localized offerings across emerging markets demonstrate its ability to adapt to changing consumer preferences.
Meanwhile, Coca-Cola expanded distribution by adding more than 600,000 outlets and deploying more than 340,000 cold-drink equipment units, strengthening its leadership position and ability to reach consumers wherever they choose to drink beverages.
Coca-Cola continues to deliver the consistency investors value. First-quarter organic revenues rose 10%, while comparable EPS increased 18% year over year to 86 cents. The free cash flow reached $1.8 billion and net leverage remained a conservative 1.6X EBITDA, providing flexibility for reinvestment and shareholder returns.
Management’s updated outlook calls for 4-5% organic revenue growth and 8-9% comparable EPS growth in 2026. Combined with its portfolio of multi-billion-dollar brands, powerful distribution network and growing digital capabilities, Coca-Cola remains well-positioned to sustain market leadership and generate attractive long-term shareholder value.
The Case for KDPKeurig offers investors exposure to a unique combination of fast-growing beverages and leading coffee franchises. The company is positioning its future Beverage Co. as a challenger in the $300-billion North American refreshment beverage market, leveraging iconic brands such as Dr Pepper, Canada Dry, 7UP, A&W, GHOST, C4 and Electrolit.
In first-quarter 2026, U.S. Refreshment Beverages delivered 11.9% net sales growth and 9.8% operating income growth, driven by strong demand in carbonated soft drinks, energy drinks and sports hydration. Dr Pepper continued to gain market share, while GHOST and Bloom ranked among the fastest-growing energy brands.
KDP’s strategy centers on portfolio diversification, innovation and digital engagement. The company is targeting value-conscious consumers through refined pricing strategies while capitalizing on wellness trends via zero-sugar sodas, prebiotic beverages and energy drinks. Management is also investing aggressively in precision marketing, digital capabilities and distribution expansion to strengthen brand relevance among younger consumers and high-growth demographics.
KDP generated $3.98 billion in quarterly revenues, up 8.1%, supported by pricing power and healthy beverage demand. The company reaffirmed its outlook for low-double-digit EPS growth and expects $2.5 billion in free cash flow for 2026.
However, investors should monitor headwinds, including elevated green coffee costs, tariff-related pressures, commodity inflation, the Mexico beverage tax and leverage associated with the JDE Peet’s acquisition, all of which could weigh on margins in the near term.
Price Performance & Valuation of KO & KDPIn the past year, shares of Coca-Cola have risen 16.2% against Keurig’s decline of 3.3%. Coca-Cola has demonstrated resilience amid a challenging consumer backdrop, reflecting investor confidence in its defensive business models and global brand strength.
Image Source: Zacks Investment Research
From a valuation standpoint, KDP currently trades at a lower forward price-to-earnings (P/E) multiple of 13.23X compared with Coca-Cola’s 24.05X, making it more attractively priced.
Image Source: Zacks Investment Research
How Does Zacks Consensus Estimate Compare for KO & KDP?Coca-Cola’s EPS estimates for 2026 and 2027 have been unchanged in the past 30 days. KO’s 2026 revenues and EPS are expected to increase 3% and 8.7% year over year, respectively.
Image Source: Zacks Investment Research
Keurig’s EPS estimates for 2026 and 2027 have also been unchanged in the past 30 days. KDP’s 2026 revenues and EPS are projected to increase 57.8% and 11.7% year over year, respectively.
Image Source: Zacks Investment Research
KO vs. KDP: Which Stock Has the Edge?Both Coca-Cola and Keurig have strong investment cases, but KO emerges as the winner in this beverage market face-off. KDP offers a compelling mix of carbonated drinks, energy beverages, sports hydration and coffee, along with a lower valuation and solid growth prospects. However, it faces near-term challenges from coffee cost inflation, tariff pressures, commodity costs, integration risks tied to JDE Peet’s and elevated leverage.
Coca-Cola stands apart with unmatched global scale, dominant brand equity, broad distribution and consistent execution. Its portfolio of billion-dollar brands, steady market-share gains, digital innovation and strong cash-flow generation reinforce its leadership in the non-alcoholic beverage industry.
With KO shares rising in the past year against KDP’s decline, investor confidence clearly favors Coca-Cola. Backed by solid earnings growth prospects and a resilient business model, KO looks better-positioned for long-term shareholder returns.
KO currently carries a Zacks Rank #2 (Buy), whereas KDP has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SummaryKeurig Dr Pepper is rated Strong Buy, trading at a significant discount after a knee-jerk selloff tied to the JDE Peet’s acquisition.I expect robust EPS and revenue growth in 2026, driven by the JDE Peet’s deal and subsequent coffee business spin-off, with double-digit EPS gains forecast.Despite 2025 margin pressures and higher debt, KDP’s dividend yield of 3.2% is attractive, with annual increases expected to outpace inflation.Post-split, both the beverage and coffee entities should unlock greater operational focus, efficiency, and market competitiveness, supporting a compelling total return outlook.Looking for a helping hand in the market? Members of Friedrich Global Research get exclusive ideas and guidance to navigate any climate. Learn More »Sitewide Sale 2026: Get 20% Off cbarnesphotography/iStock Unreleased via Getty Images
My Investing Philosophy I like quality companies that pay rising dividends. I also like to find companies that fit these definitions that are out of favor and selling at a discount to their respective fair values.
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of KDP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
DISCLAIMER: This analysis is not advice to buy or sell this or any stock; it is just pointing out an objective observation of unique patterns that developed from our research. Factual material is obtained from sources believed to be reliable, but the poster is not responsible for any errors or omissions, or for the results of actions taken based on information contained herein. Nothing herein should be construed as an offer to buy or sell securities or to give individual investment advice.
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Arizona State Retirement System trimmed its holdings in Keurig Dr Pepper, Inc (NASDAQ:KDP – Free Report) by 6.0% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 354,203 shares of the company’s stock after selling 22,605 shares during the quarter. Arizona State Retirement System’s holdings in Keurig Dr Pepper were worth $9,921,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. AustralianSuper Pty Ltd bought a new position in Keurig Dr Pepper in the third quarter worth approximately $1,217,000. Bank of New York Mellon Corp grew its holdings in Keurig Dr Pepper by 2.9% in the third quarter. Bank of New York Mellon Corp now owns 7,927,144 shares of the company’s stock worth $202,221,000 after purchasing an additional 223,160 shares during the last quarter. Candriam S.C.A. grew its holdings in Keurig Dr Pepper by 50.9% in the third quarter. Candriam S.C.A. now owns 377,667 shares of the company’s stock worth $9,634,000 after purchasing an additional 127,389 shares during the last quarter. Wealth Enhancement Advisory Services LLC grew its holdings in Keurig Dr Pepper by 69.9% in the third quarter. Wealth Enhancement Advisory Services LLC now owns 105,015 shares of the company’s stock worth $2,660,000 after purchasing an additional 43,223 shares during the last quarter. Finally, Elo Mutual Pension Insurance Co grew its holdings in Keurig Dr Pepper by 83.7% in the third quarter. Elo Mutual Pension Insurance Co now owns 204,935 shares of the company’s stock worth $5,228,000 after purchasing an additional 93,374 shares during the last quarter. 93.99% of the stock is owned by institutional investors and hedge funds.
Key Stories Impacting Keurig Dr Pepper Here are the key news stories impacting Keurig Dr Pepper this week:
Positive Sentiment: Q1 results topped estimates: KDP reported EPS above consensus and ~9–11% organic net sales growth led by U.S. refreshment/cold beverages, which underpins near‑term revenue momentum. PR: Q1 Results Positive Sentiment: Acquisition closed: KDP completed the JDE Peet’s deal (April 1), expanding coffee exposure and supporting long‑term revenue mix diversification. This strategic move is being viewed favorably despite near‑term integration work. MSN: Acquisition Closed Positive Sentiment: Wall Street lift: JPMorgan raised its price target to $33 and kept an Overweight rating, giving the stock additional analyst support. TickerReport: JPMorgan PT Raise Positive Sentiment: Institutional buying and option activity: Oakmark’s Bill Nygren disclosed an increased stake, and high call‑option volume suggests speculative bullish positioning that can amplify intraday moves. 247WallSt: Nygren Bought Options Activity Neutral Sentiment: Guidance reaffirmed: Management reaffirmed FY‑2026 outlook for constant‑currency net sales and adjusted EPS, which stabilizes expectations but offers limited upside surprise potential. PR: Guidance Reaffirmed Negative Sentiment: Profit pressure and execution risks: Margins were under pressure from higher costs; analysts and commentaries flag persistent inflation, integration/execution risk from JDE Peet’s and the planned company split, and at least one note saying FY sales guidance is below estimates. These are downside catalysts if costs or integration drag on results. SeekingAlpha: Guidance Below Estimates WSJ: Cost Pressure Wall Street Analyst Weigh In Several research firms have issued reports on KDP. UBS Group lifted their price target on shares of Keurig Dr Pepper from $32.00 to $34.00 and gave the stock a “buy” rating in a report on Friday. BNP Paribas Exane raised shares of Keurig Dr Pepper from an “underperform” rating to a “neutral” rating and set a $28.00 price target on the stock in a report on Wednesday. Barclays cut their price target on shares of Keurig Dr Pepper from $32.00 to $28.00 and set an “equal weight” rating on the stock in a report on Tuesday, April 14th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Keurig Dr Pepper in a report on Wednesday, January 28th. Finally, Wells Fargo & Company cut their price target on shares of Keurig Dr Pepper from $40.00 to $37.00 and set an “overweight” rating on the stock in a report on Wednesday, April 8th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and nine have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $31.43.
Get Our Latest Report on Keurig Dr Pepper
Keurig Dr Pepper Trading Up 2.4% NASDAQ KDP opened at $29.22 on Friday. The company has a market capitalization of $39.70 billion, a PE ratio of 21.64, a P/E/G ratio of 1.44 and a beta of 0.35. The company has a fifty day moving average of $27.51 and a 200 day moving average of $27.66. Keurig Dr Pepper, Inc has a 1 year low of $24.88 and a 1 year high of $35.94. The company has a debt-to-equity ratio of 0.72, a current ratio of 2.31 and a quick ratio of 0.43.
Keurig Dr Pepper (NASDAQ:KDP – Get Free Report) last posted its earnings results on Thursday, April 23rd. The company reported $0.39 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.37 by $0.02. The company had revenue of $3.98 billion during the quarter, compared to the consensus estimate of $7.23 billion. Keurig Dr Pepper had a net margin of 10.81% and a return on equity of 10.51%. The firm’s quarterly revenue was up 9.4% on a year-over-year basis. During the same period in the previous year, the firm posted $0.42 earnings per share. Research analysts forecast that Keurig Dr Pepper, Inc will post 2.27 earnings per share for the current year.
Keurig Dr Pepper Dividend Announcement The firm also recently announced a quarterly dividend, which was paid on Friday, April 10th. Investors of record on Friday, March 27th were given a dividend of $0.23 per share. The ex-dividend date was Friday, March 27th. This represents a $0.92 dividend on an annualized basis and a yield of 3.1%. Keurig Dr Pepper’s payout ratio is currently 60.13%.
Keurig Dr Pepper Company Profile (Free Report)
Keurig Dr Pepper (NASDAQ: KDP) is a North American beverage company formed in July 2018 through the combination of Keurig Green Mountain and Dr Pepper Snapple Group. The company designs, manufactures, markets and distributes a wide range of hot and cold beverages and related equipment, combining Keurig’s single‑serve coffee systems with a large portfolio of carbonated and noncarbonated drink brands. It operates a network of manufacturing, packaging and distribution facilities to supply retail, foodservice and e-commerce channels across its served markets.
The company’s product mix includes single‑serve coffee brewers and coffee pods under the Keurig brand as well as a broad assortment of branded beverages.
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Investors are watching Coca-Cola (NYSE: KO | KO Price Prediction) ahead of Q1 2026 results due before the market opens Tuesday, April 28. After Keurig Dr Pepper (NASDAQ:KDP) posted stronger-than-expected results pointing to durable beverage pricing and resilient demand, this print will test whether KO’s momentum is still intact.
Pricing Held the Line, Volume Is the Question Last quarter, KO delivered EPS of $0.58 versus $0.56 estimated, while revenue of $11.82 billion missed the $12.15 billion consensus. Underneath the headline, organic revenue still grew 5% in Q4 and for the full year, with Coca-Cola Zero Sugar volume up 13%.
Headline price/mix of 1% masked 4% underlying pricing offset by 3% unfavorable mix. Management guided FY2026 to 4% to 5% organic revenue growth and 7% to 8% comparable EPS growth, helped by a 3% currency tailwind. Shares are up 10.36% year to date, signaling that the buyside has already started rewarding the pricing-power story.
Consensus Setup Metric Q1 2025 Actual FY2025 Actual FY2026 Guide Comparable EPS $0.73 $3.00 +7% to 8% YoY Revenue $11.13B $47.94B +4% to 5% organic Organic Growth 6% 5% 4% to 5% Pricing, the Calendar, and Asia Pacific Three things will shape how I read this print. First, pricing durability. James Quincey said 2026 should move toward a 50-50 split between volume and price, with price elevated early. KDP’s beat suggests consumers are still absorbing higher absolute price points, which is exactly what KO needs to confirm.
Second, the calendar. Q1 2026 carries six additional shipping days versus Q1 2025, which will inflate reported revenue and concentrate sales. You should strip that out before judging underlying momentum.
Third, geographic recovery. Asia Pacific revenue fell 7% in Q4, with volume declines in Mexico, Thailand, and India. Quincey expects India, China, ASEAN, and Europe to bounce back through 2026, with Mexico’s new excise tax hitting hardest in Q1. I’ll be watching for early signs those drags are stabilizing.
Margins matter, too. North America operating margin hit 30% for the first time last quarter. John Murphy framed that as part of roughly 60 basis points of annual operating margin expansion over eight years, not a fluke. Polymarket traders are pricing a 92% probability of an EPS beat, consistent with eight straight quarterly beats.
First Test for the New CEO Era This is effectively the handoff quarter to CEO-elect Henrique Braun, closing a Quincey stretch that inflected comparable EPS from roughly $2 to $3. If pricing holds, currency flips positive, and Asia Pacific stops bleeding, the FY2026 algorithm looks credible. If not, the 24x forward earnings multiple needs a stronger story to defend.
On April 27, 2026, Keurig Dr Pepper Inc (KDP) shares fell 3.7% today, closing at $28.15. The stock's performance has been mixed over the past year, trading with
Shares of Coca-Cola (NYSE:KO | KO Price Prediction) are up about 6% midday Tuesday after the beverage giant posted a Q1 2026 earnings beat. The rally is pulling peers higher, with PepsiCo (NASDAQ:PEP) up 2% and Keurig Dr Pepper (NASDAQ:KDP) up 4%.
The move is unfolding against a sharply split tape. Chip stocks are sliding after a Wall Street Journal report that OpenAI missed key revenue and user growth targets, while defensive consumer staples are absorbing capital rotating out of high-multiple AI infrastructure plays.
For retail investors watching the AI trade wobble, the question is whether KO, PEP, and KDP are the cleanest places to park money. Today’s price action is making the case in real time.
Q1 Beat Powers Coca-Cola Higher Coca-Cola reported Q1 2026 EPS of $0.86 against the $0.81 consensus, with revenue of $12.47 billion, up 12% year over year (YoY). Organic revenue grew 10%, and Coca-Cola Zero Sugar volumes climbed 13% across every geographic segment.
Operating margin expanded to 35% from 33%, while free cash flow surged to $1.76 billion. Coca-Cola’s leadership lifted full-year comparable EPS growth guidance to 8% to 9%, while maintaining organic revenue growth of 4% to 5%.
New Coca-Cola CEO Henrique Braun called it “a strong start to the year”, pointing to local execution and consumer focus. KO stock is now up 14% year to date (YTD).
PepsiCo Catches the Defensive Bid PepsiCo is riding the sympathy move higher after its own Q1 beat earlier this month, with the company also reaffirming full-year guidance. PEP stock is up 10% YTD, and its 18% 1-year return tops both KO and KDP.
PepsiCo’s diversified portfolio (Frito-Lay snacks, Quaker, and beverages) gives it more cyclical handles than pure soda peers. It’s also a dividend aristocrat in the middle of another annual hike, and prediction-market composite sentiment for PEP sits at 64.58, bullish with medium confidence.
Keurig Dr Pepper’s Higher-Yield Recovery Angle Keurig Dr Pepper shares are up 3% midday and 7% over the past month, flashing recovery momentum after a rough year. KDP stock is still down 14% over 12 months, which puts a lower entry price and higher dividend yield in play for income hunters.
The company beat Q1 2026 estimates on the top and bottom line and recently closed its JDE Peet’s acquisition, expanding international coffee scale. KDP composite prediction sentiment is more cautious at 40.39, neutral, framing the setup as a value turnaround rather than a momentum trade.
The Bear Case for the Defensive Rotation The rotation thesis isn’t bulletproof for KO, PEP, or KDP. The University of Michigan Consumer Sentiment Index sits at 53.3, deep in pessimistic territory and approaching recessionary readings, which can pressure premium pricing power across the beverage shelf.
Core PCE keeps grinding higher, with the index at 128.86 in February. The longer GLP-1 weight-loss drugs stay in the headlines, the more investors will scrutinize long-term volume trends across KO and PEP.
What to Watch From Here Here’s the framework. Coca-Cola is the steady global brand king with the cleanest Q1 2026 report and a freshly raised EPS guide, PepsiCo offers diversified staples exposure with the strongest 1-year return of the group, and Keurig Dr Pepper is the higher-yielding turnaround with renewed momentum.
None of Coca-Cola, PepsiCo, or Keurig Dr Pepper screen as bargains, yet all three throw off reliable cash flow when the AI trade gets choppy. Prudent investors may want to size positions modestly and let the rotation prove itself. Readers can dig further into defensive dividend stocks worth watching as capital keeps shifting.
Watch for whether KO stock holds today’s gains into the close, and whether PEP and KDP follow through tomorrow. The bigger tell is whether capital keeps leaving chips for soda into next week’s macro data.
Key Takeaways Coca-Cola's non-carbonated drinks grew 5% y/y in Q1'26, outpacing sparkling soft drinks' 2%.Coca-Cola Zero Sugar jumped 13%, while tea rose 8% and sports drinks increased 3% in Q1'26.Juice, value-added dairy and plant-based beverages fell 1%, as higher costs and marketing spend loom. The Coca-Cola Company’s (KO - Free Report) evolving beverage portfolio underscores its transition from a traditional soda company to a broader “total beverage” player. While sparkling soft drinks still delivered 2% volume growth in first-quarter 2026, the company is increasingly leaning on faster-growing categories like water, sports drinks, coffee and tea, which collectively grew 5% in the period. This shift reflects changing consumer preferences toward healthier and more diverse beverage options.
The company’s performance highlights this balancing act. Coca-Cola Zero Sugar rose 13%, signaling strong demand for low or no-sugar alternatives within its core soda lineup. At the same time, growth in categories like tea (up 8%) and sports drinks (up 3%) indicates that non-carbonated beverages are becoming increasingly important contributors to overall volume expansion. However, not all segments are firing equally — juice, value-added dairy and plant-based beverages declined 1%, showing that diversification alone does not guarantee consistent growth.
Strategically, Coca-Cola is pairing portfolio diversification with targeted innovation and marketing. The company is leveraging premium packaging, digital engagement and localized campaigns to drive at-home and away-from-home consumption occasions, while also expanding offerings across price points. These efforts aim to attract consumers and sustain growth beyond its legacy soda base.
However, challenges remain. Higher input costs, increased marketing investments and uneven segment performance could pressure margins even as revenues rise. The key question is whether Coca-Cola’s expanding portfolio can consistently offset slowing growth in traditional categories. While early signs are encouraging, execution across diverse beverage segments will be critical to sustaining long-term growth.
KO’s Peers, PEP & KDP’s Beverage Portfolio in FocusCoca-Cola’s peers, PepsiCo Inc. (PEP - Free Report) and Keurig Dr Pepper Inc. (KDP - Free Report) , are sharpening their beverage portfolios, pivoting beyond traditional sodas to capture growth in functional, low-sugar and premium drink categories.
PepsiCo is accelerating its shift beyond soda by investing in functional and on-trend beverages. Growth in hydration brands like Gatorade and Propel, alongside expansion into energy (Alani Nu) and prebiotic drinks, highlights this pivot. While Pepsi Zero Sugar supports core soda demand, innovation in health-focused and functional offerings is driving portfolio evolution. Still, volume pressures in parts of the beverage segment show the transition remains uneven.
Keurig Dr Pepper is advancing beyond soda by expanding into high-growth beverage segments like energy, sports hydration and better-for-you offerings. Strong momentum in brands such as GHOST, Bloom and Electrolit, alongside double-digit growth in zero-sugar CSDs, reflects this shift. While carbonated drinks remain core, innovation in functional and wellness-focused beverages is driving growth. Continued investment in emerging categories positions KDP to capture evolving consumer preferences.
Zacks Rundown for Coca-ColaKO shares have risen 4.7% in the past three months compared with the industry’s growth of 2.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, Coca-Cola is trading at a forward price-to-earnings ratio of 22.83X, higher than the industry’s 18.47X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KO’s 2026 and 2027 earnings implies year-over-year growth of 7.7% and 7.3%, respectively. Earnings estimates for 2026 have declined by a penny in the past 30 days. The EPS estimate for 2027 has edged down 0.6% in the past 30 days.
Key Takeaways PEP uses productivity initiatives to offset inflation via efficiency gains, headcount cuts and SKU.PEP invests in AI logistics and digital systems to streamline operations, cut costs and support reinvestment.PEP benefits from diversification and demand, but needs pricing and growth to counter prolonged inflation. PepsiCo, Inc.’s (PEP - Free Report) performance is expected to reflect the benefits of sustained productivity initiatives, which management is leveraging as a key buffer against rising inflationary pressures. The company has implemented a multi-pronged strategy focused on cost efficiencies, supply-chain optimization and disciplined overhead management. These efforts, combined with scale advantages and hedging programs, are providing near-term visibility and helping mitigate input cost volatility, even as inflation remains uncertain.
PepsiCo’s productivity savings are emerging as a critical lever in protecting margins, with management highlighting improvements in supply-chain efficiency, reduced headcount, SKU rationalization and better operating metrics such as cases per hour. Additionally, investments in technology, AI-driven logistics and digital ordering systems are streamlining operations and lowering costs. These initiatives not only support margin resilience but also create flexibility to reinvest in growth areas like marketing, innovation and value offerings, strengthening the company’s competitive positioning.
Additionally, PepsiCo continues to benefit from its diversified portfolio and strong global demand, which provide further support in navigating inflationary headwinds. The company’s ability to drive volume growth, expand international markets and capitalize on high-growth categories like energy drinks and functional beverages enhances its resilience. This diversification, alongside disciplined execution, positions PepsiCo to better absorb cost pressures while sustaining long-term growth momentum.
However, while productivity gains provide a meaningful cushion, they are unlikely to fully offset prolonged or elevated inflation on a standalone basis. Management indicated that it will adopt a balanced approach, combining productivity, pricing actions and revenue growth to navigate cost pressures. This underscores that although productivity savings are a strong defensive tool, PepsiCo’s ability to sustain profitability will depend on effectively executing across all levers in an evolving macro environment.
Can KDP and KO Offset Inflation With Productivity Gains?Keurig Dr Pepper Inc. (KDP - Free Report) and The Coca-Cola Company (KO - Free Report) lean on cost efficiencies and pricing power to defend margins, but rising input costs keep the pressure on.
Keurig Dr Pepper’s performance are expected to reflect the benefits of ongoing productivity and cost-management initiatives, which are helping counter persistent inflationary pressures, particularly in key inputs like green coffee and packaging. The company has been focusing on pricing actions, supply-chain efficiencies and productivity programs to protect margins while maintaining growth momentum. However, elevated commodity costs, especially in the coffee segment, continue to weigh on profitability, suggesting that while productivity savings offer support, a balanced approach including pricing and mix improvements remains critical to sustaining KDP’s earnings stability.
Coca-Cola’s performance is expected to highlight the strength of its productivity-led margin management strategy in an inflationary environment. The company has been leveraging its global scale, refranchised bottling model and disciplined cost controls to drive efficiencies, while reinvesting savings into brand-building and innovation. Combined with effective pricing and a favorable mix, these productivity gains are helping Coca-Cola offset higher input and operating costs. Nonetheless, the company continues to navigate a dynamic cost landscape, indicating that sustained margin expansion will depend on its ability to balance productivity, pricing and demand elasticity.
PEP’s Price Performance, Valuation & EstimatesShares of PepsiCo have lost 6% in the past three months compared with the industry’s decline of 2.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, PEP trades at a forward price-to-earnings ratio of 17.87X, slightly above the industry’s average of 18.89X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PEP’s 2026 and 2027 earnings implies year-over-year growth of 5.1% and 3.2%, respectively. The company’s EPS estimates for 2026 and 2027 have moved northward in the past seven days.
Image Source: Zacks Investment Research
PEP stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
New findings show younger generations are reshaping the category by choosing drinks that signal identity, emotion and intent
, /PRNewswire/ -- Keurig Dr Pepper (NASDAQ: KDP) today released its State of Beverages 2026 Trend Report, highlighting how beverage consumption is evolving in an era of more choice than ever. Released in celebration of National Beverage Day, the report shows Gen Alpha and Gen Z (Gen A/Z) leading a shift toward more expressive and experience-driven beverage choices. In fact, 58% say they choose beverages that reflect their identity.
Keurig Dr Pepper 2026 State of Beverages Trend Report
Keurig Dr Pepper 2026 State of Beverages Trend Report
Keurig Dr Pepper 2026 State of Beverages Trend Report Experience the full interactive Multichannel News Release here: https://www.multivu.com/keurig-dr-pepper/9395451-en-keurig-dr-pepper-2026-state-of-beverages-trend-report
"The beverage industry has always been dynamic, but Gen Z and Gen Alpha are driving a more profound shift in the role of beverages in everyday life," said Tim Cofer, CEO of Keurig Dr Pepper. "Increasingly, beverage choices signal identity, mood and values. As a result, occasions are becoming more social and intentionally curated, with drinks helping to define experiences, express individuality and bring people together in new ways."
The data also reveals that younger consumers are rotating across more flavors, functions and categories, reflecting greater exploration and higher expectations for beverages that meet different emotional and functional needs.
"Younger consumers don't think in terms of a single 'go to' drink anymore," said Katie Webb, Senior Vice President of Marketing Transformation, Innovation & Insights at Keurig Dr Pepper. "Younger generations are exploring more unique flavors, switching between beverages throughout the day and seeking options that can balance both function and feel-good."
The report highlights these five big trends in beverages:
Drinks as Self-Expression
For younger consumers, what's in their cup is becoming a statement of identity. Nearly six in ten Gen A/Z consumers say their drink reflects who they are (58% vs. 41% of Millennials+), and they're twice as likely to choose brands that signal something about them. That's fueling a surge in exploration, with strong interest from younger generations in unexpected flavors (58%), globally inspired options (57%) and limited-edition drops (56%). Drinks Are Setting the Mood
Beverages are no longer just part of the moment – they're helping define it. Gen A/Z consumers are 58% more likely to choose drinks based on mood or occasion. Their moments are more social and on-the-go, with Gen A/Z more likely than Millennials+ to enjoy beverages with food (65% vs. 57%), with others (59% vs. 50%) and away from home (42% vs. 30%). As beverages increasingly shape the moment, 63% of Gen A/Z want beverages that feel entertaining or inspiring (vs. 54% Millennials+). Go-To Drinks Are Out. Rotation Is In.
One go-drink no longer does it all. Gen A/Z have more emotional and functional needs per drink occasion (5 vs. 4 Millennials+) and rotate across more categories each week (6 vs. 5). Flavor is a major draw, with strong preferences from younger generations for fruity or juicy options (81%), sweet or indulgent choices (75%), citrus-forward flavors (72%) and bold profiles (64%). Even coffee is evolving, with nearly three-quarters of Gen A/Z coffee occasions including flavor – almost double that of older generations. A New Definition of Wellness
Among Gen A/Z, wellness is less about restriction and more about what drinks can deliver, with 71% looking for function-forward beverages. By contrast, Millennials+ are 48% more focused on reducing sugar and 51% more focused on managing intake. Younger generations are especially drawn to options that support mental focus and sustained energy and over-index across functional and performance categories, including being 60% more likely to consume enhanced water in the past day, 50% more likely to consume protein beverages weekly, 2x more likely to consume energy drinks weekly and 75% more likely to consume sports drinks weekly compared with Millennials+. Social Media Is the New Beverage Aisle
Digital channels are playing a larger role in trial and discovery. 63% of Gen A/Z say what they see friends, creators and social feeds drinking influences their choices (vs. 48% Millennials+). They're also nearly twice as likely to buy from brands that personalize recommendations (51% vs. 29% Millennials+), signaling rising expectations for curated, algorithm-driven choices. Cofer continued: "At KDP, we're not just tracking the evolution of the category, we're helping define it. That means designing brands that invite expression, fuel discovery, expand the idea of wellness beyond health claims and show up in moments that go far beyond the physical shelf."
Methodology
The KDP State of Beverages 2026 Trend Report was derived from a variety of quantitative and qualitative data sources, including national surveys from YouGov, Ipsos and Morning Consult, as well as KDP's own proprietary data. For the purposes of this report, generations are grouped as Gen A/Z (ages 13–29) and Millennials+ (ages 30+).
Explore the Full Report
Discover the full findings, including additional data, insights and detailed methodology, here: https://www.keurigdrpepper.com/state-of-beverages.
About Keurig Dr Pepper
Keurig Dr Pepper (Nasdaq: KDP) is a leading beverage company with more than 150 owned, licensed and partner brands that meet a wide range of needs and occasions. Our North American refreshment beverage business holds leadership positions across carbonated soft drinks, water, juice and mixers with a portfolio of iconic brands such as Dr Pepper®, Canada Dry®, Mott's®, A&W®, Peñafiel®, GHOST®, 7UP®, Snapple®, Clamato® and Core Hydration®. Our global coffee business spans more than 100 markets and includes the leading Keurig® single-serve brewing system in the U.S. and Canada, along with powerhouse brands such as Peet's, L'OR and Jacobs, and other regional coffee leaders. Our more than 50,000 employees aim to enhance the experience of every beverage and coffee occasion while making a positive impact for people, communities and the planet. Learn more at www.keurigdrpepper.com and follow us @KeurigDrPepper on LinkedIn and Instagram.
Contacts:
Investors:
Keurig Dr Pepper
Investor Relations
T: 888-340-5287 / [email protected]
Media:
Keurig Dr Pepper
Katie Gilroy
T: 781-418-3345 / [email protected]
There's a reshuffling happening in the consumer sector. Market volatility, tariff pressure, and a cash-strapped consumer that's becoming more deliberate about spending have created a unique window. Companies with durable brands and pricing power are trading at levels that may not last.
Here are four stocks worth a serious look right now, this month, in May.
1. Coca-Cola When a company operating in nearly every country on earth beats revenue and earnings per share (EPS) estimates and raises its full-year guidance, that's worth noting and potentially buying. Coca-Cola (KO 0.57%) reported first-quarter 2026 results on April 28. It posted revenue of $12.47 billion, up 11.2% year over year, and comparable EPS of $0.86, beating consensus by 5.9%.The company then raised its full-year comparable EPS growth guidance to 8% to 9%, up from a prior range of 7% to 8%.
Image source: Getty Images.
What's driving it isn't just price hikes. Unit case volume grew 3% globally -- meaning actual demand, not just dollar math, is expanding. For newer investors, unit case volume is the metric that proves pricing hasn't chased away customers. Coca-Cola also gained value share across sparkling beverages, water, sports drinks, coffee, and tea -- a rare broad sweep. Coca-Cola is a solid, slow buy that will only go higher over time.
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2. Walmart Walmart (WMT 0.61%) is somewhat of a tariff paradox to me. The company reports its fiscal Q1 2027 results on May 21, and the setup is unusually compelling. Here's the counterintuitive thesis: Tariff anxiety, which has spooked markets broadly, may actually be Walmart's ally. When people feel economic pressure, they trade down -- and they trade down to Walmart. High-income households (those earning over $100,000 annually) have been contributing meaningfully to Walmart's comparable sales gains, shifting from specialty grocers to its private-label brands. That trend is likely to continue as tariff costs seep into everyday prices across retail categories.
Over the last year or so, Walmart has also committed to keeping grocery prices "as low as [it] can," explicitly refusing to let tariff pressure on general merchandise flow through to food. This positioning directly targets the most frequency-driven category in retail.
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3. McCormick McCormick (MKC 0.57%) announced in late March that it will merge with Unilever's (UL +0.83%) foods business -- the division that owns Hellmann's, Knorr, and related brands -- creating a combined company with approximately $20 billion in annual revenue. The deal is expected to be accretive to McCormick's EPS in the first full year, with $600 million in expected annual run rate cost synergies. It significantly expands McCormick's footprint in emerging markets, including Brazil, China, and Europe. McCormick will retain its name, Maryland headquarters, and NYSE listing post-merger.
For a retail investor like me, this sounds kind of boring, but it is a sign that this stock was already inexpensive before the announcement and has now taken on a transformational catalyst that won't close until mid-2027. That timing creates a window. If you look at the stock's one-year price chart, it's not pretty right now, which is why I think now is a good time to start accumulating the stock.
There is a risk here of deal execution. Integrating a food division of this scale is complicated, and leverage will rise temporarily. But the long-term strategic logic -- dominant global spice and condiment brands under one roof -- is hard to argue with.
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4. Keurig Dr Pepper Keurig Dr Pepper (KDP +0.77%) closed its acquisition of JDE Peet's on April 1, creating a global coffee powerhouse spanning brands like Peet's, Jacobs, L'Oréal, and Keurig across more than 100 markets. More importantly for investors, the company has announced plans to separate into two independent, U.S.-listed businesses: A North American refreshment beverages company and a pure-play global coffee company, with the coffee spinoff planned for operational readiness by year-end 2026.
The Q1 2026 earnings report, released April 23, beat on both EPS and revenue, and the company reaffirmed full-year guidance for low-double-digit adjusted EPS growth in constant currency. The JDE Peet's deal is expected to be approximately 10% EPS accretive in its first full year. The separation is where the real value unlock lives: Two focused businesses, each with a distinct capital allocation story, attracting different investor bases.
Key Takeaways KDP's U.S. Refreshment Beverages sales rose 11.9% in Q1, led by CSDs, energy and sports hydration.U.S. Coffee sales fell 2.3%, but management expects profitability to improve in the second half of 2026.JDE Peet's deal and a planned split aim to sharpen focus and unlock about $400 million in synergies. Keurig Dr Pepper’s (KDP - Free Report) strong momentum in beverages is helping offset temporary weakness in its coffee business, positioning the company for steady growth in 2026. KDP’s U.S. Refreshment Beverages segment continued to deliver robust results in the first quarter, supported by strong demand for carbonated soft drinks, energy drinks and sports hydration products. Management also highlighted healthy category trends, market-share gains and strong consumer response to innovation launches like Canada Dry Fruit Splash and Dr Pepper Creamy Coconut.
KDP’s beverage segment delivered impressive numbers in first-quarter 2026. U.S. Refreshment Beverages’ net sales jumped 11.9%, while operating income increased 9.8%. Volume/mix contributed 7.2 percentage points to sales growth, reflecting strong consumer demand and distribution gains. The company’s energy portfolio, including GHOST and Bloom, continued gaining market share, while zero-sugar beverages posted double-digit growth. Overall company sales rose 8.1% year over year to $3.98 billion, beating expectations.
Meanwhile, the coffee business remains under pressure due to elevated green coffee costs, tariffs and temporary trade inventory adjustments. U.S. Coffee segment sales declined 2.3%, while operating income fell 21.3% in the quarter. However, management believes these pressures are temporary and expects profitability trends to improve meaningfully in the second half of 2026 as commodity costs moderate and innovation initiatives gain traction. KDP is also investing heavily in long-term coffee growth through launches like Keurig Coffee Collective and the upcoming Keurig Alta system.
Importantly, KDP’s transformation strategy could strengthen its long-term outlook. The recently completed JDE Peet’s acquisition expands the company’s global coffee presence and is expected to generate roughly $400 million in synergies over time. At the same time, KDP plans to separate its beverage and coffee operations into two independent companies, allowing sharper strategic focus. With strong beverage momentum, improving coffee visibility and multiple growth initiatives underway, KDP appears well-positioned to navigate near-term headwinds while building long-term shareholder value.
Keurig Dr Pepper’s Zacks Rank & Share Price PerformanceShares of this Zacks Rank #3 (Hold) company have dropped 2% in the past three months compared with both the industry and the broader Consumer Staples sector, which fell 2.3% and 5.8%, respectively. However, the stock lagged the S&P 500, which rose 9.9% in the same time period.
KDP Stock's Past Three-Month Performance
Image Source: Zacks Investment Research
Is KDP a Value Play Stock?Keurig Dr Pepper currently trades at a forward 12-month P/E ratio of 12.22X, lower than the industry average of 19.03X and the sector average of 16.81X. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.
KDP P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Stocks to ConsiderWe have highlighted three better-ranked stocks from the Consumer Staples sector, namely Vita Coco Company (COCO - Free Report) , B&G Foods (BGS - Free Report) and Krispy Kreme, Inc. (DNUT - Free Report) .
Vita Coco develops, manufactures, markets and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa and the Asia Pacific. The company currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for COCO’s 2026 sales and EPS indicates growth of 21.4% and 47.9% from the previous year’s reported figures. Vita Coco delivered a trailing four-quarter average earnings surprise of 11.7%.
B&G Foods manufactures, sells and distributes a portfolio of shelf-stable and frozen foods and household products in the United States, Canada and Puerto Rico. It presently carries a Zacks Rank #2.
The Zacks Consensus Estimate for B&G Foods’ current fiscal-year earnings implies growth of 5.9% from the year-ago actuals. BGS delivered a trailing four-quarter negative earnings surprise of 1.6%, on average.
Krispy Kreme produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan, and internationally. At present, DNUT has a Zacks Rank of 2.
The Zacks Consensus Estimate for DNUT’s current fiscal-year sales implies a decline of 14%, and the same for earnings implies growth of 80% from the year-ago reported figures. DNUT delivered a trailing negative four-quarter earnings surprise of 6.3%, on average.
, /PRNewswire/ -- Keurig Dr Pepper (NASDAQ: KDP) announced today that its Board of Directors has declared a regular quarterly cash dividend of $0.23 per share, payable in U.S. dollars, on the Company's common stock. The regular quarterly dividend will be paid on July 10, 2026 to shareholders of record on June 26, 2026.
Media Contact:
Katie Gilroy
T: 781-418-3345 / [email protected]
ABOUT KEURIG DR PEPPER
Keurig Dr Pepper (Nasdaq: KDP) is a leading beverage company with more than 150 owned, licensed and partner brands that meet a wide range of needs and occasions. Our North American refreshment beverage business holds leadership positions across carbonated soft drinks, water, juice and mixers with a portfolio of iconic brands such as Dr Pepper®, Canada Dry®, Mott's®, A&W®, Peñafiel®, GHOST®, 7UP®, Snapple®, Clamato® and Core Hydration®. Our global coffee business spans more than 100 markets and includes the leading Keurig® single‑serve brewing system in the U.S. and Canada, along with powerhouse brands such as Peet's, L'OR and Jacobs, and other regional coffee leaders. Our more than 50,000 employees aim to enhance the experience of every beverage and coffee occasion while making a positive impact for people, communities and the planet. Learn more at www.keurigdrpepper.com and follow us @KeurigDrPepper on LinkedIn and Instagram.
, /PRNewswire/ --Keurig Dr Pepper Inc. (NASDAQ: KDP) today announced that Tim Cofer, Chief Executive Officer, and Anthony DiSilvestro, Chief Financial Officer, will present at the Deutsche Bank dbAccess Global Consumer Conference on June 3, 2026 at 5:15 AM ET.
Access to a live webcast and replay of the event will be available in the Investors section of the Company's corporate website, www.keurigdrpepper.com.
Investors:
Investor Relations
Keurig Dr Pepper
T: 888-340-5287 / [email protected]
Media:
Katie Gilroy
Keurig Dr Pepper
T: 781-418-3345 / [email protected]
ABOUT KEURIG DR PEPPER
Keurig Dr Pepper (Nasdaq: KDP) is a leading beverage company with more than 150 owned, licensed and partner brands that meet a wide range of needs and occasions. Our North American refreshment beverage business holds leadership positions across carbonated soft drinks, water, juice and mixers with a portfolio of iconic brands such as Dr Pepper®, Canada Dry®, Mott's®, A&W®, Peñafiel®, GHOST®, 7UP®, Snapple®, Clamato® and Core Hydration®. Our global coffee business spans more than 100 markets and includes the leading Keurig® single‑serve brewing system in the U.S. and Canada, along with powerhouse brands such as Peet's, L'OR and Jacobs, and other regional coffee leaders. Our more than 50,000 employees aim to enhance the experience of every beverage and coffee occasion while making a positive impact for people, communities and the planet. Learn more at www.keurigdrpepper.com and follow us @KeurigDrPepper on LinkedIn and Instagram.
Should you choose the legendary stability of Coca-Cola (KO 0.57%) or the explosive growth potential of Celsius (CELH +0.60%) for your portfolio? This comparison examines which beverage giant is better positioned for 2026.
Coca-Cola dominates the global market through a massive distribution network and iconic brands, appealing to conservative income seekers. Celsius focuses on functional energy drinks and younger demographics, prioritizing rapid market share expansion. While they operate in the same aisles, their financial profiles and growth trajectories suggest very different roles for an investor's long-term strategy.
Image source: Getty Images.
The case for Coca-ColaCoca-Cola sells a portfolio of over 200 brands, including soft drinks, waters, coffees, and teas, to consumers in more than 200 countries. The business operates through several segments, including North America, EMEA, and Asia Pacific, relying on a complex network of bottling partners to reach local markets. For the year ended Dec. 31, 2025, one specific bottler accounted for roughly 10% of total operating revenues. Customer concentration like this adds a layer of risk to the business, as the company depends on these partners for volume and execution.
In FY 2025, revenue reached nearly $47.9 billion, showing a steady rise from approximately $47.1 billion the prior year. Net income for the period was close to $13.1 billion, resulting in a net margin of roughly 27.3%. This level of profitability is a hallmark of major players among beverage stocks worldwide. The growth reflects the company's ability to pass on price increases even as global volume trends fluctuate.
As of its December 2025 balance sheet, Coca-Cola reported a debt-to-equity ratio of nearly 1.4x, which measures total debt against the value of shareholder equity. This indicates that the company uses a moderate amount of borrowed capital to finance its global operations. The current ratio stands at approximately 1.5x, which measures the company's ability to cover its short-term liabilities with short-term assets. Free cash flow, which is cash from operations minus capital expenditures, was approximately $5.3 billion during the fiscal year.
The case for CelsiusCelsius operates as a functional beverage company with a portfolio that includes Celsius and Alani Nu. The business model relies heavily on strategic partnerships for distribution, particularly in international markets like the Nordics and Australia. In FY 2025, sales to distribution partner PepsiCo (PEP 0.38%) accounted for approximately 43.2% of total net revenue, which indicates a significant level of customer concentration risk. This partnership provides Celsius with the massive logistics scale needed to compete with established global brands.
Financial performance in FY 2025 showed revenue reaching approximately $2.5 billion, representing a significant growth rate of roughly 85.5% compared to the previous year. Despite this rapid top-line expansion, net income was roughly $108.0 million, leading to a net margin of approximately 4.3%. The company is currently focused on capturing market share and expanding its footprint rather than maximizing bottom-line profits. This strategy has allowed it to penetrate new demographics and retail channels quickly.
As of the December 2025 balance sheet, Celsius maintained a debt-to-equity ratio of approximately 0.2x. This low level suggests the company relies almost entirely on its own equity rather than borrowed funds to support its growth. The current ratio was roughly 1.7x, indicating a healthy cushion to meet near-term financial obligations. Free cash flow for the period reached $323.4 million, demonstrating that the company is generating positive cash from its operations while funding its expansion.
Risk profile comparisonCoca-Cola faces intense competition from global players such as PepsiCo and Nestlé, which may force price reductions or higher marketing spend. The company is also vulnerable to supply chain disruptions and volatility in the costs of raw materials like sucrose and aluminum. Furthermore, reliance on a vast digital infrastructure exposes the business to cybersecurity incidents and data privacy failures. Changes in the retail landscape, including the growth of e-commerce, require constant adaptation to maintain market share.
Celsius carries substantial risk due to its extreme reliance on its primary distributor for nearly half of its revenue. Because PepsiCo manages such a high percentage of the company's volume, any disagreement or failure to execute by the distributor could materially harm financial results. The company must also defend its shelf space against established competitors like Monster Beverage (MNST +0.13%) and Keurig Dr Pepper (KDP +0.77%). Rapid expansion into international markets also introduces risks related to foreign regulations and differing consumer preferences.
Valuation comparisonCelsius offers a lower valuation on a forward-looking basis compared to Coca-Cola, despite its significantly higher revenue growth rate.
MetricCoca-ColaCelsiusSector BenchmarkForward P/E24.9x17.4x25.5xP/S ratio7.3x2.9x3.2Sector benchmark uses the SPDR XLP sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Celsius and Coke appeal to very different investors.
Coca-Cola is a mature veteran, running a global cash machine and a generous dividend program. You won’t see it posting incredible sales growth, but you can rely on its rock-solid execution.Celsius is a much younger business, showing hypergrowth financials but limited profits. Generally speaking, you may prefer this stock if you don’t mind taking some risk to get a shot at beating the broader market over the next few years.There are no wrong answers here, since the two beverage stocks offer radically different investment theses.
That being said, Coca-Cola strikes me as the better buy right now. Sales and shipping volumes are rising, bottom-line profits are up even in this challenging economy, and new CEO Henrique Braun has embarked on a data-driven strategy.
You may not think of Coke as a play on AI and Big Data, but that’s the story, and it’s a smart shift. With a new line of sight to refreshed growth, Coca-Cola looks undervalued in 2026.
Key Takeaways KO Q1 revenues grew 11% y/y and EPS rose 18% amid inflation, geopolitical uncertainty and shifting spending.Coca-Cola generated $1.8B in Q1 free cash flow; net debt leverage was 1.6X EBITDA, well below target.Coca-Cola raised quarterly dividend to 53 cents, its 64th straight annual hike; payout ratio is 68%. The Coca-Cola Company (KO - Free Report) remains one of the most dependable dividend stocks in the market, and its latest earnings results reinforce that reputation. In the first quarter of 2026, the company delivered strong financial performance despite a challenging macroeconomic backdrop, marked by inflation, geopolitical uncertainty and shifting consumer spending patterns. Revenues grew 11% year over year, while comparable earnings per share increased 18%, reflecting the strength of Coca-Cola’s global brand portfolio and pricing power.
Perhaps most important for dividend investors, Coca-Cola generated $1.8 billion in free cash flow in the quarter, an increase from the prior year. Management also highlighted the company’s strong balance sheet, with net debt leverage of just 1.6X EBITDA, well below its target range. This financial flexibility allows Coca-Cola to continue investing in growth initiatives while maintaining its commitment to returning capital to shareholders.
Management emphasized confidence in the company’s long-term cash flow generation and reiterated its capital allocation strategy of balancing business reinvestment with shareholder returns.
Coca-Cola recently raised its quarterly dividend to 53 cents per share, or $2.12 annualized, marking its 64th consecutive annual dividend increase. Its next listed payment is July 1, 2026, for shareholders of record as of June 15, 2026. The annual dividend implies a payout ratio of 68% — high, but still reasonable for a mature, cash-generative consumer staples company.
The company also raised its 2026 earnings outlook. It expects comparable EPS of $3.24-$3.27, implying a 8-9% growth in 2026, providing support for future dividend sustainability.
While commodity inflation and geopolitical risks remain factors to watch, Coca-Cola’s diversified operations, strong brand equity and proven ability to navigate economic cycles position it well for continued cash generation. For income-focused investors, Coca-Cola continues to offer a compelling combination of stability, dividend reliability and moderate growth potential. The latest quarter suggests that KO remains a dependable income play in an uncertain market environment.
KO’s Peers: PEP & KDP’s Dividend PlaybookWhen evaluating Coca-Cola’s dividend appeal, investors should also consider key beverage rivals PepsiCo Inc. (PEP - Free Report) and Keurig Dr Pepper Inc. (KDP - Free Report) , both of which have built shareholder-friendly capital return strategies centered on consistent dividend growth, strong cash generation and resilient consumer demand.
PepsiCo remains a dependable income stock, supported by strong cash generation and a long history of rewarding shareholders. In its first-quarter 2026 earnings update, the company reaffirmed its commitment to disciplined capital allocation, a strong balance sheet and shareholder returns. PepsiCo expects total cash returns of $8.9 billion for 2026, including $7.9 billion in dividends. The company also announced a 4% increase in its annualized dividend, marking its 54th consecutive annual dividend hike. The annual dividend implies a payout ratio of 69%. With management projecting free cash flow conversion of at least 80% and core EPS growth of 5-7%, PepsiCo’s dividend appears well supported, reinforcing its appeal as a reliable income play despite a more uncertain macroeconomic environment.
Keurig Dr Pepper remains an attractive income stock, backed by solid cash generation and a commitment to shareholder returns. On its first-quarter 2026 earnings call, management reaffirmed expectations for $2.5 billion in free cash flow this year. The annual dividend implies a payout ratio of 46%. It highlighted that cash generation will support dividends while enabling debt reduction following the JDE Peet’s acquisition. The company also emphasized disciplined capital allocation and long-term financial flexibility. While leverage remains elevated after the acquisition, KDP’s stable beverage portfolio, strong cash flows and focus on shareholder value support its position as a reliable dividend play.
Zacks Rundown for Coca-ColaKO shares have risen 13% in the year-to-date period compared with the industry’s growth of 10%.
Image Source: Zacks Investment Research
From a valuation standpoint, Coca-Cola is trading at a forward price-to-earnings ratio of 23.56X, higher than the industry’s 19X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KO’s 2026 and 2027 earnings implies year-over-year growth of 8.7% and 7%, respectively. Earnings estimates for both 2026 and 2027 have moved up by a penny in the past 30 days.
Image Source: Zacks Investment Research
Coca-Cola currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Lavazza is bringing its espresso tablets to the U.S., aiming to loosen Keurig Dr Pepper's grip on the single-serve coffee category.
The Italian coffee giant unveiled Tablì last year and launched the new brewing system first in Italy. The tablets, made of compressed ground coffee without a coating, binder or gelatin, can only be used with a Tablì coffee machine made by Lavazza. Each tablet is marked with the words "100% coffee. At launch, the tabs will come in five varieties: espresso, double espresso, decaf espresso, super crema and lungo, or a "long shot" espresso brewed with more water.
"The result that we've been able to achieve was through a very complicated industrial process in order to be able to have [the coffee tablet] very compact, to be able to deliver it without destroying it, to have it able to work in a coffee machine," Lavazza CEO Antonio Baravalle told CNBC.
Tablì is the result of Lavazza's acquisition of the Italian startup Caffemotive in 2020. The new system took five years of development, more than 15 patents and a new production facility in Gattinara, Italy, to bring it to market.
Its launch in the U.S. comes as the country becomes an increasingly important part of Lavazza's business. In 2025, the company's North American turnover — or revenue — jumped 26.9%, according to Lavazza.
"We are strongly investing in the USA because we think it is an important space for us," Baravalle said, adding that Lavazza aims to eventually have a €1 billion ($1.15 billion) business in the U.S.
"The brand is growing, in terms of equity, extremely well," Baravalle said. "We've spent a lot of money, for us, in the last two years, and we're going to do that for the next five years."
More than 130 years after its founding, the Lavazza family still privately owns the Italian company. In 2025, it reported net profit of €92 million on net revenues of €3.9 billion, according to Lavazza's latest annual report.
In the U.S., it generates more than $100 million in annual dollar sales through retailers like Target and Walmart. For context, Keurig reported annual net sales of $3.99 billion for its U.S. coffee segment in 2025.
The majority of Keurig's coffee revenue comes from its K-cups. In the U.S., Keurig has dominated the single-serve coffee market for more than a decade, although Nestle's Nespresso has won over customers in recent years. Keurig holds about half of the total U.S. market share for fresh ground coffee pods, according to data from Euromonitor International. Nespresso holds a roughly 7% share.
Of course, Lavazza sells K-cup pods in the U.S. through a partnership with Keurig.
Baravalle said he does not expect to beat Keurig or Nespresso.
"For us, it's important to find our own space, but we are talking about two giants, and one of them, we have an important contract with that we are very happy [with]," he said.
A sustainability playLavazza is betting that sustainability is still a top consideration for many coffee drinkers, although Baravalle said that can differ across countries.
For years, Keurig's pods have been dogged by questions about waste, leaving an opening for a competitor with a more environmentally-friendly product. The company previously claimed that 100% of its K-cups have been recyclable since the end of 2020.
In 2024, the Securities and Exchange Commission charged the beverage giant with making misleading statements over the recyclability of its pods. Keurig agreed to pay $1.5 million in penalties without admitting or denying the SEC's findings. The company's website now reads, "Check locally, not recycled in many communities."
Nespresso's aluminum pods are more easily recycled through the brand's free mail-back service.
As Lavazza launches a potential competitor, Keurig has its own plans for plastic- and aluminum-free coffee pods. This fall, the company plans to launch K-Rounds, which uses a plant-based coating to preserve the ground coffee inside the puck-shaped pod. The innovation is thanks to a multi-year partnership with Delica Switzerland, the maker of the CoffeeB system, which uses plastic-free coffee balls that have gained traction in parts of Europe.
Lavazza will officially launch Tablì in the U.S. in August. A $99.99 bundle that includes the machine, a 60-count variety pack of tabs and a milk frother is available now to pre-order on the company's website.
In May, Baravalle said the company was still determining its pricing strategy as it conducted consumer research to understand how much coffee drinkers were willing to pay.
"We are also waiting to see how some big, huge competitors will move in the industry, trying to offer something similar," Baravalle said. "But, for sure, Lavazza has premium positioning, and we're not going to do something different from that."
PASADENA, Calif., June 10, 2026 (GLOBE NEWSWIRE) -- Dog Haus today announced a national partnership with Keurig Dr Pepper that expands far beyond a traditional fountain agreement, creating a fully integrated beverage platform designed to transform how guests discover, experience and engage with beverages both inside and outside the restaurant.
The partnership makes Dog Haus the first restaurant brand to exclusively leverage Keurig Dr Pepper’s full beverage portfolio across fountain, premium packaged beverages, coffee, energy, bar programs, takeout and delivery.
Rather than treating beverages as a supporting menu category, Dog Haus has built a platform designed to drive traffic, increase repeat visits and give operators greater flexibility to tailor offerings to their local communities.
“At Dog Haus, we’ve never followed industry norms, but rather looked for opportunities to do things outside of the box, and better. We’ve built our brand by creating menu items and experiences that stand apart,” said Michael Montagano, CEO of Dog Haus. “We weren’t interested in simply replacing one fountain lineup with another. Partnering with Keurig Dr Pepper allows us to bring that same spirit of innovation to beverages, delivering more variety, more flexibility and ultimately a more memorable visit to Dog Haus.”
The program combines nationally recognized brands including Dr Pepper, Dr Pepper Zero Sugar, Dr Pepper Cherry, RC Cola, RC Cola Zero Sugar, 7UP, Sunkist, Hawaiian Punch and IBC Root Beer with regional favorites that can vary by market, including Big Red, Squirt, Sun Drop and Canada Dry.
At the center of the strategy is what Dog Haus calls “newstalgia” — reintroducing iconic brands and flavors consumers already know and love in ways that feel fresh, relevant and discovery-driven.
That philosophy extends throughout the platform. In select markets, guests will find premium glass-bottle offerings featuring brands such as Dr Pepper, Squirt, 7UP, IBC Root Beer and Big Red. Several of those beverages will also be incorporated into specialty cocktails and future beverage innovations across Dog Haus Biergarten locations.
Inspired by the variety, discovery and local relevance that have long defined the Dog Haus beer program, the beverage strategy is designed to give guests more reasons to explore the menu, discover new favorites and return more often.
Beyond the dining room, guests ordering takeout and delivery will have access to an expanded lineup that includes bottled soft drinks, La Colombe ready-to-drink coffee and Core Hydration. Restaurants will also feature Tractor’s organic lemonades, brewed teas, and agua fresca-inspired refreshers, adding a handcrafted, ingredient-forward dimension to the overall beverage experience.
“Dog Haus and Keurig Dr Pepper share a passion for innovation and delivering memorable guest experiences,” said Jeff Tabor, Chief Customer Officer at Keurig Dr Pepper. “The breadth of our portfolio allows Dog Haus to create a beverage strategy that is flexible, locally relevant and built for long-term growth. We’re excited to see the platform continue to evolve.”
The launch marks the beginning of a broader beverage innovation roadmap for Dog Haus, including seasonal offerings, regional rotations, specialty beverage concepts and new menu integrations designed to create fresh reasons for guests to return throughout the year.
“Our partnership with Dr. Pepper represents an innovative platform built to consistently create new reasons for guests to come back,” added Montagano.
For more information, visit DogHaus.com.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ca98c3c2-4bac-4e22-b524-44b9ed5eef41
Dog Haus and Dr Pepper Group Photo From left to right: Keurig Dr Pepper CCO Jeff Tabor, Dog Haus Co-Founder André Vener, Dog Haus CEO M...
Key Takeaways KDP partnered with Dog Haus on an exclusive beverage platform across dine-in, takeout and delivery.Dog Haus will use Keurig Dr Pepper's full beverage portfolio, from fountain drinks to coffee and energy.KDP's program blends national and regional brands, with select markets offering premium glass bottles. Keurig Dr Pepper Inc. (KDP - Free Report) has partnered with Dog Haus, creating a comprehensive beverage platform that goes well beyond a standard fountain drink agreement. The initiative is designed to enhance how customers discover and experience beverages across dine-in, takeout and delivery channels.
As part of the deal, Dog Haus becomes the first restaurant chain to exclusively utilize Keurig Dr Pepper’s entire beverage portfolio, spanning fountain drinks, packaged beverages, coffee, energy drinks and bar offerings. The program features a mix of well-known national brands, including Dr Pepper, 7UP, Sunkist, Hawaiian Punch and IBC Root Beer, alongside regional favorites such as Big Red, Squirt, Sun Drop and Canada Dry, depending on the market. This alliance brings an innovative approach to beverages, offering guests greater variety, enhanced flexibility and a more memorable dining experience.
The new beverage ecosystem is intended to create more opportunities for customers to explore the menu, discover new favorites and make repeat visits. In select markets, customers will have access to premium glass-bottled beverages, including Dr Pepper, Squirt, 7UP, IBC Root Beer and Big Red. Some of these brands will also be featured in specialty cocktails and future beverage innovations at Dog Haus Biergarten locations.
How is KDP Performing Now?Continued brand strength and pricing actions have been aiding Keurig Dr Pepper’s performance for a while. KDP’s consumer-centric innovation model, portfolio expansion into high-growth categories and robust route-to-market capabilities are encouraging. It has been experiencing strong market share gains across categories for a while now. Momentum in the company’s Refreshment Beverages segment acts as a tailwind.
The Zacks Rank #3 (Hold) company’s consistent execution, resilient brand portfolio and clear strategic direction appear encouraging. Momentum in the Refreshment Beverages segment, driven by strength in carbonated soft drinks, energy and sports hydration, continues to support top-line expansion through innovation, pricing discipline and effective in-market activation. Shares of this energy drinks and alternative beverages’ marketer have appreciated 16.4% over the past three months, outperforming the industry’s 4.1% growth.
Image Source: Zacks Investment Research
Stocks to Consider in the Consumer Staples Space The Chefs' Warehouse, Inc. (CHEF - Free Report) , which is a distributor of specialty food products in the United States, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Chefs' Warehouse current financial-year sales indicates growth of 8.3% from the prior-year level. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.
Nomad Foods Limited (NOMD - Free Report) , which manufactures and distributes frozen foods, currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Nomad Foods’ current financial-year sales is expected to rise 0.5% from the year-ago reported figure. NOMD delivered a trailing four-quarter earnings surprise of 8.6%, on average.
Medifast, Inc. (MED - Free Report) , which is a leading manufacturer and distributor of clinically-proven healthy living products and programs, currently carries a Zacks Rank of 2. MED delivered an average earnings surprise of 65.5% in the last reported quarter.
The Zacks Consensus Estimate for Medifast’s current financial-year sales indicates a decline of 26% from the year-ago number.
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LUXEMBOURG--(BUSINESS WIRE)--JAB BevCo B.V., a subsidiary of JAB Holding Company S.a.r.l. (“JAB”), today announced that it has sold its remaining stake in Keurig Dr Pepper Inc. (NASDAQ: KDP), consisting of approximately 59.1 million shares, or approximately 4.3% of KDP's outstanding common stock, through an unregistered block trade by J.P. Morgan Securities LLC. JAB remains firmly committed to its consumer investment platform and, with a team strengthened by recent senior appointments, will continue to focus its energy and patient capital on building resilient consumer businesses that deliver long-term value.
About JAB
JAB is a partner-led investment firm with more than two centuries of heritage. It invests patient capital to grow durable, resilient businesses, bringing an ownership mindset and a performance-driven culture to steward their enduring success. With more than $70 billion in assets under management, JAB focuses on long-term value creation across its portfolio of consumer and life insurance businesses.
JAB is the controlling shareholder of Coty Inc., a global leader in beauty. It is the anchor shareholder of Krispy Kreme, Inc., a global leader in freshly delivered doughnuts. Together with JAB Consumer Partners, JAB is the controlling shareholder of National Veterinary Associates, one of the world's largest animal care services platforms; Independence Pet Holdings, a leading provider of pet insurance in North America; Pinnacle Pet Group, a leading provider of pet insurance in Europe; Panera Brands Inc., one of the largest fast casual restaurant companies in the United States, which includes Panera Bread, Caribou Coffee and Einstein Bros. Bagels; Pret A Manger, a global leader in the ready-to-eat fresh food market; and Espresso House, the largest branded coffee shop chain in Scandinavia. JAB's life insurance businesses include Prosperity Life Group and Family Life, with Columbian Mutual Life Insurance Company and Utmost Life and Pensions soon to be acquired.
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