Keurig Dr Pepper Sees Mixed Performance Amid Strong Market Presence

Burlington, Massachusetts-based Keurig Dr Pepper Inc. (KDP) operates as a non-alcoholic beverage company. It owns, manufactures, and distributes a variety of beverages and single-serve brewing systems both in the U.S. and internationally. With a market capitalization of $44.1 billion, KDP is categorized as a “large-cap stock,” demonstrating its significant size and influence within the non-alcoholic beverages sector. The company is well-known for its carbonated soft drinks, ready-to-drink teas and juices, and specialty coffees.

Keurig Dr Pepper recently reached a two-year high of $38.28 on September 24, 2024, although it currently trades 13.2% lower than that peak. Over the past three months, KDP has experienced a slight dip of 6 basis points, but notably, it has outperformed the Invesco Food & Beverage ETF (PBJ), which has seen an 8% decline during the same period.

Over the last six months, KDP’s stock has decreased by 10.3%, lagging behind PBJ, which dropped 3.6%. However, over the past year, KDP has experienced a solid surge of 13.5%, significantly outperforming PBJ, which has declined by 4% in that time frame. Additionally, KDP has mainly traded below its 200-day moving average since late October 2024 yet has remained above its 50-day moving average since mid-February 2025.

Following the release of strong Q4 results on February 25, KDP’s stock prices rose by 2.4%. Despite some softness in its U.S. Coffee segment, the U.S. Refreshment Beverages and International segments demonstrated remarkable momentum. This performance led to a year-over-year growth in net sales of 5.2%, reaching $4.1 billion and surpassing analysts’ expectations. However, the company faced significant impairment charges totaling $718 million during the quarter, resulting in a $144 million net loss on a GAAP basis. Excluding these non-recurring charges, KDP’s adjusted earnings per share (EPS) stood at $0.58, which was 1.8% above the consensus estimates.

Despite underperforming against its competitor Monster Beverage Corporation (MNST), which gained 11.2% over the past six months, KDP still outpaced MNST’s 6.6% decline over the last 52 weeks.

Among the 17 analysts analyzing KDP’s stock, the consensus rating is a “Moderate Buy.” Furthermore, the mean price target of $38.28 signifies a potential 15.2% upside based on current price levels.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please view the Barchart Disclosure Policy here.

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