Keurig Dr Pepper Hits 52-Week High After Strong Third-Quarter Beverage Growth
Keurig Dr Pepper reached a new 52-week peak after topping third-quarter estimates. Strong refreshment drink sales and the JDE Peet's deal lifted revenue 70.6%.
Shares of Keurig Dr Pepper reached a new 52-week peak on Wednesday, trading as high as $37.90 before finishing the session at $37.8080. The advance follows the beverage maker's third-quarter earnings release on Tuesday, November 3rd, which topped expectations behind sturdy refreshment drink sales and contributions from its newly integrated coffee business.
For the quarter, the company delivered earnings of $0.66 per share, surpassing consensus estimates of $0.62 per share. Revenue advanced 70.6% year over year to $7.34 billion, edging past projected sales of $7.33 billion. Consolidated top-line growth was largely boosted by the acquisition of JDE Peet's, alongside volume and pricing gains across the core legacy operations.
U.S. Refreshment Beverages served as a primary operational engine during the period. The segment reported a 10.9% increase in net sales to $3 billion, with volume and mix contributing 7.2% and pricing adding 3.7%. Growth was spearheaded by the energy drink portfolio, which achieved over 10% market share for the first time, while the Dr Pepper Zero franchise expanded 25% to exceed a $1 billion annualized retail sales run rate.
In contrast, the U.S. Coffee division experienced slower momentum, posting a 2.7% sales increase as single-serve pod shipments rose 0.3%. Net pricing declined 4.2% as lower green coffee expenses funded customer promotions amid budget-conscious consumer behavior. The company trimmed its legacy earnings per share growth forecast to 3% to 5%, though JDE Peet's is projected to add seven to eight percentage points of earnings growth.
The quarterly results arrive as management prepares to separate the business into two standalone entities: an as-yet-unnamed beverage company led by Tim Cofer and Global Coffee Co., which welcomed new head Russ Torres on November 3rd. According to MarketBeat, the company holds an average analyst rating of Moderate Buy, with an average target price of $37.29 across ten Buy and nine Hold recommendations.