Keurig Dr Pepper Inc

Strong Financial Performance in Q1 2025: Keurig Dr Pepper (KDP) reported a net sales growth of 6.4% YoY, with EPS increasing by 10.5%. Notably, U.S. Refreshment Beverages segment was a standout performer, achieving an 11% growth driven by strong carbonated soft drink (CSD) trends and the integration of GHOST energy drinks, a recent acquisition.

Earnings Guidance Reaffirmed: The company maintains its guidance for 2025, projecting mid-single-digit net sales growth and high single-digit EPS growth. They emphasize their ability to manage through inflationary pressures, tariff-related challenges, and their flexible capital allocation strategy.

Operational Challenges: The U.S. Coffee segment faced a decline in net sales of 3.7%, largely due to commodity-driven inflation and delayed pricing adjustments by competitors which resulted in volume pressure. KDP plans for the back half of the year to see improved performance as pricing begins to normalize.