Keurig Dr Pepper is attractively valued at 15.9x forward P/E, below the peer average of 21.6x, and offers a solid 2.8% dividend yield. The company is experiencing strong earnings momentum, with projected EPS growth at a 6% CAGR from 2025 to 2027, supported by margin expansion and rising beverage sales. While the coffee segment remains weak, easing coffee prices and potential promotions may support a recovery by late 2025 or early 2026.
KDP delivers growth in core categories supported by a strong brand portfolio and in-market execution.
Coca-Cola, Constellation Brands and Colgate-Palmolive reported that Hispanic consumers are spending less, which weighed on their North American sales. Some executives have pointed to the White House's hard-line immigration stance and broader economic concerns as reasons for the slowdown.
KDP's Q1 results show robust top- and bottom-line growth, driven by double-digit gains in U.S. Refreshing Beverages and strong momentum across key categories.
Keurig Dr Pepper Inc. (NASDAQ:KDP ) Q1 2025 Results Conference Call April 24, 2025 7:30 AM ET Company Participants Jane Gelfand - Senior Vice President, Finance Tim Cofer - Chief Executive Officer Sudhanshu Priyadarshi - Chief Financial Officer and President, International Conference Call Participants Dara Mohsenian - Morgan Stanley Lauren Lieberman - Barclays Nik Modi - RBC Capital Markets Chris Carey - Wells Fargo Peter Grom - UBS Peter Galbo - Bank of America Kaumil Gajrawala - Jefferies Filippo Falorni - Citi Operator Good morning, ladies and gentlemen, and thank you for standing by. Welcome to Keurig Dr Pepper's Earnings Call for the First Quarter of 2025.
Although the revenue and EPS for Keurig Dr Pepper (KDP) give a sense of how its business performed in the quarter ended March 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Keurig Dr Pepper, Inc (KDP) came out with quarterly earnings of $0.42 per share, beating the Zacks Consensus Estimate of $0.38 per share. This compares to earnings of $0.38 per share a year ago.
Besides Wall Street's top -and-bottom-line estimates for Keurig Dr Pepper (KDP), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended March 2025.
Keurig Dr Pepper (KDP) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
KDP's first-quarter 2025 results are likely to reflect gains from brand strength and pricing actions. However, a sluggish Coffee unit is a concern.
KDP remains positioned for long-term growth, supported by its diversified portfolio, strong brand equity, and disciplined approach to innovation and execution.
Keurig Dr Pepper (KDP) reported earnings 30 days ago. What's next for the stock?