Keurig Dr Pepper (KDP) — Company Research
Last Updated: 26 June 2026
Keurig Dr Pepper (NASDAQ: KDP) is one of North America’s largest beverage companies, built from the 2018 merger of Keurig Green Mountain and Dr Pepper Snapple. It sells carbonated soft drinks, water, juice, mixers and energy alongside the Keurig single-serve coffee system. The story right now is transformation: on 1 April 2026 KDP closed its roughly US$18.3 billion acquisition of Dutch coffee group JDE Peet’s, and management intends to split the enlarged business into two independent public companies — a refreshment-beverage player (“Beverage Co.”) and a global coffee champion (“Global Coffee Co.”). This report covers the company as reported for full-year 2025 and the first quarter of 2026, before the JDE Peet’s results were consolidated. You can follow the live price on our Live Charts page.
1. Company Snapshot
| Field | Value |
|---|---|
| Ticker / Exchange | KDP (NASDAQ) |
| Sector | Consumer & Retail — Beverages |
| CEO | Tim Cofer (Chief Executive Officer) |
| CFO | Anthony DiSilvestro |
| Headquarters | Burlington, Massachusetts & Frisco, Texas, USA |
| Employees | More than 50,000 (pre-JDE Peet’s; materially higher post-close) |
| Share price (Jun 2026) | $31.40 |
| Market cap (Jun 2026) | ~$43.9 billion |
| Revenue (FY2025) | $16.60 billion |
| GAAP net income (FY2025) | $2.08 billion |
| GAAP diluted EPS (FY2025) | $1.53 |
| Adjusted diluted EPS (FY2025) | $2.05 |
| Dividend / yield | $0.92 per share annual / ~2.9% |
| Fiscal year end | 31 December |
2. Bull and Bear Case
Bull Case
- Resilient cold-beverage engine: U.S. Refreshment Beverages grew net sales 11.9% in Q1 2026, with Dr Pepper having overtaken Pepsi to become the No. 2 carbonated soft drink in the United States, supported by GHOST, Core Hydration and other recent additions.
- Transformational coffee scale: the JDE Peet’s acquisition unites Keurig’s leading North American single-serve system with JDE Peet’s near-300-year, 100-plus-market coffee portfolio (Peet’s, L’OR, Jacobs), creating a global coffee leader.
- Value-unlocking separation: management plans to split into two focused public companies, which can give investors cleaner exposure to a steady beverage cash-compounder and a global coffee growth story, with about US$400 million of targeted cost synergies over three years.
- Consistent execution and pricing power: KDP delivered four consecutive quarters of year-over-year EPS growth in 2025 and full-year net sales up 8.2%, showing the brand portfolio can pass through cost inflation.
- Reliable shareholder returns: a ~2.9% dividend yield backed by strong, if currently pressured, free cash flow gives a cushion while the transformation plays out.
Bear Case
- Balance-sheet leverage: the ~US$18.3 billion JDE Peet’s deal was funded with substantial new debt, preferred stock and a non-controlling-interest sale, materially raising leverage and complicating the capital structure ahead of the split.
- Execution and integration risk: simultaneously integrating JDE Peet’s and separating into two companies is a complex, multi-year undertaking that diverts management attention and carries significant one-off costs.
- Coffee softness: U.S. Coffee net sales fell 2.3% in Q1 2026 with volume/mix down 8.2%, and elevated green-coffee costs continue to pressure that segment’s margins.
- Margin compression: Q1 2026 adjusted operating margin fell to 21.1% from 23.3% a year earlier on inflation and higher marketing spend, and GAAP EPS dropped 47.8% on transaction costs.
- Mature core categories: much of the legacy portfolio sits in low-single-digit-growth U.S. soft-drink and water categories that depend on continued pricing and share gains.
3. Business Segments
For full-year 2025 (before JDE Peet’s consolidation) KDP reported three segments. Percentages are share of FY2025 total net sales of $16.60 billion.
| Segment | % of revenue | What it is |
|---|---|---|
| U.S. Refreshment Beverages | ~63% ($10.4bn) | Carbonated soft drinks, water, juice, mixers and energy — Dr Pepper, 7UP, Canada Dry, Snapple, Mott’s, A&W, GHOST, Core Hydration. |
| U.S. Coffee | ~24% ($4.0bn) | The Keurig single-serve brewing system, K-Cup pods and brewers across the U.S. and Canada. |
| International | ~13% ($2.2bn) | Beverages and coffee outside the U.S., led by Mexico (Peñafiel, mineral water) and Canada. |
4. Business Model
KDP makes money by manufacturing, marketing and distributing branded beverages and coffee, earning the spread between what consumers and retailers pay for its products and the cost of ingredients, packaging, manufacturing and route-to-market.
How it sells beverages. In refreshment beverages, KDP owns a direct-store-delivery and warehouse network that places Dr Pepper and its stablemates on shelves, in coolers and at fountains nationwide. Scale in distribution, combined with strong brand equity, gives pricing power and shelf advantage, and the company has bolted on faster-growing brands such as GHOST (energy) and Core Hydration (water).
How it sells coffee. The coffee model is a razor-and-blade system: Keurig brewers seed households, and the recurring, higher-margin sales come from K-Cup pods. JDE Peet’s adds roast-and-ground, beans, instant and ready-to-drink coffee across more than 100 international markets.
Unit economics and capital return. The business is cash-generative, funding a growing dividend and bolt-on M&A. The pending separation is designed to let a steady beverage cash-compounder and a growth-oriented global coffee company each pursue their own capital-allocation strategies.
5. Financial Health
All figures below are from KDP’s earnings press releases and SEC filings. The annual table covers the five fiscal years to 31 December 2025.
| Fiscal Year | Revenue | YoY % | GAAP EPS | Adjusted EPS | Dividend/share | Long-term debt (YE) |
|---|---|---|---|---|---|---|
| FY2021 | $12.68bn | +9.2% | $1.50 | $1.60 | $0.60 | — |
| FY2022 | $14.06bn | +10.8% | $1.01 | $1.68 | $0.75 | — |
| FY2023 | $14.81bn | +5.4% | $1.55 | $1.79 | $0.80 | — |
| FY2024 | $15.35bn | +3.6% | $1.05 | $1.92 | $0.86 | $12,912m |
| FY2025 | $16.60bn | +8.2% | $1.53 | $2.05 | $0.92 | $13,036m |
Note: FY2024 GAAP EPS of $1.05 was depressed by $306m of goodwill and $412m of intangible-asset impairments. Long-term obligations were $12,912m at YE2024 and $13,036m at YE2025; the Q1 2026 figures rose sharply due to JDE Peet’s acquisition financing.
Quarterly net sales and EPS (most recent first):
| Quarter | Revenue | Adjusted EPS | GAAP EPS |
|---|---|---|---|
| Q1 2026 | $3.98bn | $0.39 | $0.20 |
| Q4 2025 | $4.50bn | $0.60 | $0.26 |
| Q3 2025 | $4.31bn | $0.54 | $0.49 |
| Q2 2025 | $4.16bn | $0.49 | $0.40 |
| Q1 2025 | $3.64bn | $0.42 | $0.38 |
| FY2025 total | $16.60bn | $2.05 | $1.53 |
For FY2025, operating cash flow was $1,991m, capital expenditure was $486m, depreciation and amortisation totalled $753m and GAAP operating income was $3,575m. At YE2025 KDP held $1,026m of cash against $13,036m of long-term obligations and $3,105m of short-term borrowings and current debt.
6. Valuation
Raw metrics, June 2026. Not opinions on whether the stock is cheap or expensive.
| Metric | Value |
|---|---|
| Market cap | ~$43.9bn (Jun 2026) |
| Trailing P/E (GAAP) | ~20.5x ($31.40 / FY2025 GAAP EPS $1.53) |
| P/E (forward) | ~13.8x ($31.40 / ~$2.28 implied FY2026 adjusted EPS, on low-double-digit guided growth from $2.05) |
| P/S (TTM) | ~2.6x (market cap ~$43.9bn / FY2025 revenue $16.60bn) |
| P/FCF | ~29x (market cap ~$43.9bn / FCF ~$1.51bn; FCF = operating CF $1,991m − capex $486m per FY2025 cash flow statement) |
| Enterprise value | ~$59.0bn (market cap ~$43.9bn + total debt ~$16.1bn − cash ~$1.0bn per YE2025 balance sheet; pre-JDE Peet’s close — post-deal net debt is materially higher) |
| EV/EBITDA (TTM) | ~13.6x (EV ~$59.0bn / EBITDA ~$4.33bn; EBITDA = operating income $3,575m + D&A $753m per FY2025 statements) |
| 52-week high | $35.94 |
| 52-week low | $24.88 |
| Short interest (% of float) | Not published in retrieved sources; KDP short interest is historically low. Verify on Finviz/MarketBeat. |
| Days to cover | Not published in retrieved sources. Verify on Finviz/MarketBeat. |
7. What They Are Building
KDP’s near-term agenda is dominated by two linked moves. First, the integration of JDE Peet’s, completed on 1 April 2026, which adds a near-300-year coffee heritage and a portfolio spanning more than 100 markets, with leading brands including Peet’s, L’OR and Jacobs. Second, the planned separation of the combined company into two independent, publicly traded businesses: a refreshment-beverage company (Beverage Co.) led by current CEO Tim Cofer, and a global coffee company (Global Coffee Co.), with Rafael Oliveira named as the future CEO of the coffee business. Management targets about US$400 million of cost synergies over three years and expects EPS accretion to begin in year one. Alongside the structural work, KDP continues to scale recently acquired growth brands such as GHOST in energy and Core Hydration in water, and to defend Dr Pepper’s newly won No. 2 position in U.S. carbonated soft drinks.
8. Competitive Landscape
KDP is the third-largest beverage company in North America, behind Coca-Cola and PepsiCo, and competes with global energy and coffee players. Market caps are as of June 2026.
| Peer | Market cap (Jun 2026) | Key 2025 metric |
|---|---|---|
| The Coca-Cola Company (KO) | ~$344bn | Roughly 47% U.S. carbonated soft-drink share |
| PepsiCo (PEP) | ~$211bn | ~$93.9bn trailing revenue |
| Monster Beverage (MNST) | ~$88bn | Leading U.S. energy-drink player; +43.8% one-year share gain |
| Nestlé (coffee/water) | ~$258bn | ~$108bn revenue; rival in coffee and bottled water |
9. Leadership and Ownership
Keurig Dr Pepper is led by Tim Cofer as Chief Executive Officer, with Anthony DiSilvestro as Chief Financial Officer; Rafael Oliveira has been named to lead the future Global Coffee Co. on separation. Recent Form 4 activity has been routine rather than directional: filings in March and June 2026 reflect restricted-stock-unit vesting and tax-withholding share dispositions (for example, SVP & Controller Angela A. Stephens’ RSU conversion on 1 June 2026 at $30.20), and director Robert Gamgort continued to hold roughly 1.94 million shares. There was no material insider open-market buying or selling that would signal a clear change in conviction during the period reviewed.
10. Key Risks
- Leverage and capital structure (Financial): the debt, preferred-stock and non-controlling-interest financing used for JDE Peet’s has sharply increased leverage and could constrain flexibility or pressure credit ratings.
- Integration and separation execution (Operational): combining JDE Peet’s while standing up two independent companies is complex, costly and could miss timing or synergy targets.
- Input-cost inflation (Macro): elevated green-coffee, aluminium and other commodity costs can compress margins faster than pricing can recover them.
- Coffee demand softness (Operational): declining U.S. Coffee volume/mix points to weak brewer and pod demand that may persist.
- Competitive intensity (Operational): Coca-Cola, PepsiCo, Monster and Nestlé compete aggressively on price, innovation and shelf space.
- Regulatory and tax (Regulatory): tariffs, trade restrictions and changes in tax rules could raise costs or disrupt supply chains.
11. Recent Developments
- 25 Aug 2025 — Acquisition and split announced. KDP agreed to acquire JDE Peet’s and to subsequently separate into two independent public companies, a refreshment-beverage player and a global coffee champion.
- 01 Apr 2026 — JDE Peet’s acquisition closed. KDP completed the roughly US$18.3 billion acquisition and named Rafael Oliveira as CEO of the future Global Coffee Co.
- 23 Apr 2026 — Q1 2026 results. Net sales rose 9.4% to $3.98bn; GAAP diluted EPS fell to $0.20 on transaction costs while adjusted EPS was $0.39. Full-year guidance was reaffirmed.
- 20 May 2026 — Dividend declared. The board declared a quarterly cash dividend of $0.23 per share, payable 10 July 2026 to holders of record on 26 June 2026.
12. Key Dates
- 10 Jul 2026 — Q2 2026 cash dividend payment date ($0.23 per share)
- 06 Aug 2026 — Second-quarter 2026 results and conference call (before market open)
- Expected 2026–2027 — Planned separation into Beverage Co. and Global Coffee Co.
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Disclaimer: This research is produced by ChartsView for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. All information is sourced from publicly available company filings, press releases, and official data. ChartsView does not use analyst opinions or third-party ratings. Always conduct your own due diligence and consider your personal financial situation before making investment decisions. Past performance is not indicative of future results.
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13. Thesis Verdict
The central thesis. Keurig Dr Pepper is North America’s third-largest beverage company, earning the spread on branded soft drinks, water and the Keurig single-serve coffee system. In fiscal 2025 it grew net sales 8.2% to $16.60bn with GAAP EPS of $1.53 and adjusted EPS of $2.05, and it has reaffirmed low-double-digit constant-currency adjusted EPS growth for 2026. The defining driver is the roughly $18.3bn JDE Peet’s acquisition, closed 1 April 2026, and the planned split into a refreshment-beverage company and a global coffee company.
What would confirm or break it. Confirmation would come from the cold-beverage engine sustaining double-digit segment growth and the integration delivering its roughly $400m of targeted synergies on schedule. The thesis would weaken if the deal-driven leverage strains the balance sheet or credit ratings, if U.S. coffee softness deepens, or if the integration-and-separation programme slips on cost or timing.
Watchpoints
- ConfirmsQ2 2026 earnings (41 days) landing in line with or above management guidance.
- ConfirmsEvidence supporting the "Resilient cold-beverage engine:" thesis continuing to build across subsequent filings.
- InvalidatesMaterialisation of the "Leverage and capital structure (Financial):" risk, or any disclosure that fundamentally alters the capital-return or growth profile stated by management.
Diagnostic grid
Generated by ChartsView research tooling. Thesis strength measures how well the evidence in this report supports the company's stated thesis — it is NOT a buy/sell rating or price target. ChartsView is not authorised by the FCA to provide regulated investment advice. Generated 26 Jun 2026.