| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 49 | 31.6x | 17.8x | Around median | |
Growth | 73 | 27.5% | 7.1% | Top tier | |
Quality | 62 | 5.6% | 4.5% | Around median | |
Safety | 28 | 8.7x | 2.6x | Bottom tier | |
Capital Return | 42 | 2.93% | 2.12% | Around median | |
Momentum | 74 | 6.0% | 2.9% | Top tier | |
Sentiment | 88 | 11 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Keurig Dr Pepper operates through a portfolio combining refreshment beverages and coffee in the United States and international markets, generating revenue from carbonated soft drinks such as Dr Pepper and Canada Dry, energy drinks such as C4, Bloom, and GHOST, the Keurig brewer and K-Cup pod ecosystem, as well as JDE Peet's brands such as L'OR and Peet's. Following the closing of the JDE Peet's acquisition on April 1, 2026, the company began operating two separate beverage and coffee business units in preparation for the planned separation in early 2027, while integrating the Keurig and Peet's sales forces in the United States and issuing a unified invoice for their portfolios.
In fiscal Q2 2026, revenue reached $7.31 billion and consolidated net sales grew 74.6%, driven by the addition of JDE Peet's, while pre-acquisition KDP revenue grew 7.3%, including 4.2 percentage points from pricing and 3.1 points from volume and mix. Adjusted operating income rose 42.9%, and adjusted EPS increased 16.3% to $0.57 versus expectations of $0.54, but GAAP EPS was limited to $0.04 due to acquisition and integration costs. Gross margin was 46.5%, down 860 basis points year over year, primarily because of the change in business mix following the addition of JDE Peet's, and contracted by 210 basis points excluding the acquisition's impact.
The U.S. Refreshment Beverages segment led performance in fiscal Q2 2026, with sales increasing 10% and operating income rising 11.9%, while the JDE Peet's segment recorded revenue of approximately $2.8 billion and operating income of $414 million. In contrast, U.S. Coffee sales declined 3.2% and its operating income fell 24.7%, while KDP International sales grew 12.4% and operating income remained stable. For comparison, EDGAR filings for fiscal Q1 2026 showed revenue of $4.0 billion, gross profit of $2.1 billion, and net income of $270 million.
The average analyst price target is $37.75, above the 52-week range high of $33.82, with a Buy consensus; however, the wide target range of $30 to $42 reveals meaningful disagreement about the company's value following the JDE Peet's acquisition and the separation plan. A P/E ratio is not available in the provided data, so KDP's valuation depends more heavily on achieving low-double-digit EPS growth, realizing $400 million in cost savings, and reducing leverage from 4.4 times to approximately 4.1 times by the end of fiscal 2026.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Revenue reached $7.31 billion, and consolidated sales grew 74.6% following the closing of the JDE Peet's acquisition on April 1, 2026. Adjusted EPS rose to $0.57 versus expectations of $0.54, while adjusted operating income increased 42.9%. The outperformance came primarily from U.S. Refreshment Beverages and JDE Peet's, while weakness in U.S. Coffee limited performance.
U.S. Coffee sales declined 3.2% in fiscal Q2 2026, and volume and mix fell 8.2 percentage points despite a five-point contribution from pricing. Pod shipments declined 11.6%, or 8.3% after excluding the impact of transferring Peet's recognition, amid consumer caution and a shift toward private-label brands. Green coffee inflation and tariffs also reduced the segment's operating income by 24.7%, although Keurig brewer shipments returned to growth at 2.1%.
The acquisition closed on April 1, 2026, and the JDE Peet's segment added approximately $2.8 billion in revenue and $414 million in operating income in fiscal Q2 2026. The company is targeting $400 million in cost savings from procurement, information technology, administrative expenses, manufacturing, and logistics. It has integrated the U.S. sales teams and invoicing for the Keurig and Peet's portfolios, although management believes the segment's fiscal Q2 2026 earnings may be its highest quarterly contribution during the year because of timing factors.
Automated analysis for informational purposes only — not investment advice.
Free cash flow reached $714 million in fiscal Q2 2026, and the company reaffirmed a full-year target of approximately $2.5 billion. Preliminary management leverage reached 4.4 times at the end of the quarter, slightly better than management's expectations, and the target remains approximately 4.1 times by the end of fiscal 2026. Capital allocation priorities focus on investing in the business, maintaining current distributions, and repaying debt, with expected interest expense of between $1.12 billion and $1.14 billion.
The energy portfolio reached an annual revenue run rate of $1.5 billion, and its market share exceeded 9% in fiscal Q2 2026 after being less than 1% approximately four years ago. Share has already exceeded 10% among 15 major U.S. customers, and C4, Bloom, GHOST, and Black Rifle lead this platform. The portfolio is based entirely on sugar-free products, and the C4 packaging refresh generated a double-digit sales increase in the initial launch regions.
The company expects revenue of between $25.9 billion and $26.4 billion, including $8.5 billion to $8.7 billion from JDE Peet's. KDP's pre-acquisition business is targeting constant-currency growth of between 4% and 6%, with management favoring the upper end of the range, while EPS is targeted to grow at a low-double-digit rate on a constant-currency basis. The outlook includes an additional non-cash headwind of approximately 2% to EPS due to higher depreciation of JDE Peet's assets, which is expected to be approximately offset by a one-time cash tariff refund.
