Keurig Dr Pepper Inc (NASDAQ:KDP) has been downgraded to a ‘Hold' rating by Jefferies analysts, who cited uncertainties around the planned split with JDE Peet's and potential integration risks associated with the combined businesses. The broker noted that while both New BevCo and Global CoffeeCo are capable of delivering top-line and EBIT growth in 2026 and 2027, the scale of the merger, a heavy debt load, coffee price volatility, and the company's new financing structure with KKR and Apollo “may hinder the direction of travel.
KDP's strong beverage momentum offsets coffee softness and rising costs as innovation and scale drive long-term growth confidence.
Both PepsiCo (NASDAQ: PEP) and Keurig Dr Pepper (NASDAQ: KDP) have significantly underperformed the broader market this year. The S&P 500 index has posted a solid 17% gain, yet PEP's stock price is essentially flat compared to the beginning of the year, and KDP's stock is down about 10%.
Keurig's Q3 sales top forecasts, earnings meet estimates and a raised 2025 outlook sends shares up nearly 8%.
Shares of Keurig Dr Pepper (KDP) gained when the soft-drink giant posted better-than-expected results and raised its outlook on strong domestic sales and the benefit from its acquisition of Ghost energy drinks.
Keurig Dr Pepper Inc (NASDAQ:KDP) on Monday reported better than expected revenue for its third quarter 2025, while also raising its annual sales forecast on expected strong demand for its energy beverages and carbonated soft drinks. The beverage maker's revenue for the quarter rose 10.7% year over year to $4.31 billion, surpassing the analyst consensus estimate of $4.15 billion, according to data compiled by LSEG.
Financing would aid takeover of JDE Peet's and eventual split into two companies
Keurig Dr Pepper, Inc (KDP) came out with quarterly earnings of $0.54 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.51 per share a year ago.
KO's global scale and diverse portfolio contrast with KDP's North American focus and coffee strength, revealing two unique growth paths.
It will essentially unwind the 2018 merger that put Keurig, known for its coffee brewers and K-Cups, and soda titan Dr Pepper under the same roof – today valued at around $50 billion.
Keurig Dr Pepper Inc (NASDAQ:KDP) announced it has agreed to acquire Dutch coffee and tea company JDE Peet's in an all-cash deal valued at about $18 billion. The pending takeover is expected to perk up Keurig's sluggish coffee business.
Shares of Keurig Dr Pepper Inc (NASDAQ:KDP) are 7.5% lower to trade at $32.49 this morning, after the company said it plans to buy Peet's Coffee parent JDE Peet's for $18 billion and then separate into two parts.