Description
Keurig Dr Pepper: 8.1% Sales Growth Cannot Mask A 7.1% EPS Decline And Coffee Squeeze!
Keurig Dr Pepper’s first quarter reflected a business balancing solid beverage momentum, coffee-related cost pressure, and a major corporate transformation following the closing of the JDE Peet’s acquisition. Net sales grew 8.1%, driven by 5.5 percentage points of net price realization and 2.6 points of volume and mix, while EPS declined 7.1% to $0.39 due to higher costs, tariff impacts, and the comparison against a prior-year gain from the sale of the Vita Coco stake. Management reaffirmed its 2026 outlook for low double-digit constant currency EPS growth, supported by expected improvement from the second quarter onward and stronger acceleration in the second half. The strongest part of the result was U.S. Refreshment Beverages, where net sales rose 11.9% and operating income increased 9.8%. Growth was supported by strength in carbonated soft drinks, energy, sports hydration, and partner brands.
