At a glance
Keurig Dr Pepper Inc is worth $50.11B, about 24 times its fiscal 2025 earnings. Revenue grew 8.2% to $16.60B in fiscal 2025, with 12.5% kept as profit; over 5 years it has grown 7.4% a year. It pays a 2.5% dividend yield, raised every year for at least 5 years, and returned $7.83B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +39.9% over the past year with dividends reinvested and +3.2% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 33.6% in the 2020 crash (S&P 500: 33.7%) and 12.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 4 months and 2 months after the lows.
The business in plain English
Keurig Dr Pepper makes and sells cold drinks, coffee and Keurig single-serve coffee brewers, mainly in the U.S., Canada and Mexico. It has more than 125 owned, licensed and partner brands, including Dr Pepper, Canada Dry, 7UP, A&W, Snapple, Mott's, GHOST, Peñafiel and Green Mountain Coffee Roasters. The company was formed in 2018 when Keurig combined with Dr Pepper Snapple Group.
In the year ended December 31, 2025, revenue was $16.6 billion. The U.S. Refreshment Beverages segment brought in 62.9%. It sells flavor concentrates and syrups to outside bottlers and to fountain customers such as fast-food restaurants. It also makes and delivers finished drinks itself. U.S. Coffee brought in 24%. It sells Keurig brewers, then earns repeat sales from K-Cup pods for its own brands, and it makes pods for partners such as Starbucks, Dunkin' and Folgers. Pods made up 22.7% of company revenue, against 3.9% for brewers and other appliances. International, which covers Canada, Mexico, the Caribbean and other markets, brought in 13.1%.
Its customers include retailers from supermarkets to convenience stores. Walmart alone accounted for about 16% of 2025 net sales. In August 2025 the company agreed to buy JDE Peet's, owner of the Jacobs, L'OR and Peet's brands. It also announced plans to split afterward into two separately listed companies, one for beverages and one for coffee.
Price history
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KDP +39.9% over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By product or service
| LRB | $11.60B | 69.9% |
| Pods | $3.78B | 22.7% |
| Appliances | $646.0M | 3.9% |
| Other | $578.0M | 3.5% |
By business segment
| U.S. Refreshment Beverages | $10.44B | 62.9% |
| U.S. Coffee | $3.99B | 24% |
| International | $2.17B | 13.1% |
By geography
| U.S. | $14.50B | 87.3% |
| Foreign | $2.10B | 12.7% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $7.31B, up 75.6% from a year earlier, and net income was $142.0M (-74.0%).
- For fiscal 2025, revenue was $16.60B (+8.2% year over year; +7.4% a year from FY2020 to FY2025) with a 12.5% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +7.4% good |
|---|---|
| Operating margin | 21.5% good |
| Free cash flow margin | 9.1% watch |
| Return on equity (FY2025) | 8.1% watch |
| Return on assets (FY2025) | 3.7% watch |
| Net cash (cash minus debt) | $-23.30B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $11.62B | $1.32B | $2.00B |
| FY2021 | $12.68B | $2.15B | $2.45B |
| FY2022 | $14.06B | $1.44B | $2.48B |
| FY2023 | $14.81B | $2.18B | $904.0M |
| FY2024 | $15.35B | $1.44B | $1.66B |
| FY2025 | $16.60B | $2.08B | $1.50B |
Valuation snapshot
| Market value | $50.11B |
|---|---|
| P/E ratio | 24.1 |
| Dividend yield | 2.5% |
Rank among 1514 US companies
Market value at each year end
Keurig Dr Pepper’s market value went from $35.62B at the end of 2018 to $50.11B on Nov 2, 2026, up 41%; since the end of 2025 it is up 32%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $50.11B | +31.7% |
| 2025 | $38.05B | -12.7% |
| 2024 | $43.57B | -6.5% |
| 2023 | $46.59B | -7.7% |
| 2022 | $50.50B | -3.4% |
| 2021 | $52.27B | +16.1% |
| 2020 | $45.03B | +10.6% |
| 2019 | $40.73B | +14.3% |
| 2018 | $35.62B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| KDP price data to Nov 2, 2026 | +35.6% | +39.9% | +9.2% | +3.2% | +11.8% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +35.6% |
| 2025 | -10.1% |
| 2024 | -1.0% |
| 2023 | -4.2% |
| 2022 | -1.2% |
| 2021 | +17.5% |
| 2020 | +13.0% |
| 2019 | +15.4% |
| 2018 | +51.7% |
| 2017 | +9.7% |
| 2016 | -0.4% |
| 2015 | +33.2% |
| 2014 | +51.2% |
| 2013 | +14.0% |
| 2012 | +15.5% |
| 2011 | +15.8% |
| 2010 | +27.3% |
| 2009 | +75.1% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 19.7% over that stretch · deepest drop along the way 33.6%, back to its old high 3.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 4.9% over that stretch · deepest drop along the way 12.2%, back to its old high 2.4 months after the low |
Insider activity
Form 4 filings from 2025-10-27 to 2026-10-27 (25 read): 1 open-market purchases ($250K) and 3 sales ($1.1M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Sep 8, 2026 | Mary Beth DeNooyer Chief Human Resources Officer | sell | $391K |
| Sep 9, 2026 | Mary Beth DeNooyer Chief Human Resources Officer | sell | $388K |
| Sep 3, 2026 | Angela A. Stephens Senior VP & Controller | sell | $311K |
| Aug 25, 2026 | Aaron E Alt Director | buy | $250K |
Who owns it
Large shareholders (13G filings)
| FMR LLC | 12.7% | Jun 30, 2026 |
| Capital World Investors | 8.8% | Jun 30, 2026 |
| BlackRock, Inc. | 8.5% | Jun 30, 2026 |
| Vanguard Capital Management | 7.33% | Mar 31, 2026 |
| HARRIS ASSOCIATES L P | 6.3% | Dec 31, 2025 |
ETFs with the most weight in KDP
| PBJ Invesco Food & Beverage ETF | 5.21% |
| QQLV Invesco QQQ Low Volatility ETF | 4.66% |
| FTXG First Trust Nasdaq Food & Beverage ETF | 4.21% |
| DIVP Cullen Enhanced Equity Income ETF | 3.92% |
| PSL Invesco Dorsey Wright Consumer Staples Momentum ETF | 3.05% |
| RSPS Invesco S&P 500 Equal Weight Consumer Staples ETF | 2.8% |
| XLP Consumer Staples Select Sector SPDR Fund | 2.58% |
| LVHD Franklin U.S. Low Volatility High Dividend Index ETF | 2.46% |
What could go wrong
- Heavy debt and a big coffee merger. The JDE Peet's deal adds significant debt. Total debt was $24.8 billion against $1.5 billion of cash and investments as of June 30, 2026. Merging a global coffee business could also cost more than planned.
- The planned breakup may disappoint. The split into beverage and coffee companies may not happen on the planned terms or timeline. It will be costly and may not deliver the expected benefits. Afterward, credit ratings could slip and the stock may swing more.
- New preferred shares could dilute owners. The deal involves issuing convertible preferred stock, which can later turn into common shares, and possibly more stock sales. That could shrink existing holders' stake and weigh on the share price.
- Walmart is about a sixth of sales. Walmart accounted for about 16% of 2025 net sales. A drop in sales to Walmart, or changes in how big retailers operate, could hurt results.
- Depends on bottlers and partner brands. Outside bottlers and distributors handle a significant share of the business. Brand owners whose pods it makes, such as Starbucks and Dunkin', could end their agreements. Either could hurt sales and growth.
- Plastic pods and health concerns. Worries about plastic packaging, such as K-Cup pods and bottles, or about the health effects of its drinks could hurt sales. New warning labels or marketing limits could also weigh on affected products.
Recent events
- Other company announcement
- Other company announcement
- Other company announcement
- Executive or board change
- Quarterly results released
- Executive or board change
- Investor presentation or announcement; Other company announcement
- Shareholder vote results; Other company announcement
- Other company announcement
- Quarterly results released
For income and retirement investors
Keurig Dr Pepper has raised its regular dividend five years in a row, from $0.60 a share in 2020 to $0.92 in 2025. That is growth of about 8.9% a year. The yield was 2.63% as of October 28, 2026. In 2025, dividends used 60.1% of earnings and 83.1% of free cash flow (the cash left after running and investing in the business). That leaves a fairly thin cushion, and in 2023 dividends were larger than free cash flow. Buybacks (share repurchases) totaled $2.2 billion from 2021 through 2025 but nearly stopped in 2025, at $9 million. The significant debt tied to the JDE Peet's deal may also compete for cash.
In the 2020 COVID crash the stock fell 33.6% but recovered in under four months. From the market's January 2022 peak to its October low, it gained 4.9%, despite a 12.2% dip along the way. Its deepest drop in 18.5 years of price history was 57.4%. Single stocks carry more risk than diversified funds.
Questions investors ask
How does Keurig Dr Pepper make money?
Mostly by selling cold drinks and coffee pods. In the year ended December 31, 2025, revenue was $16.6 billion. U.S. Refreshment Beverages brought in 62.9%. It sells drinks such as Dr Pepper, Canada Dry and Snapple, plus concentrates and syrups for bottlers and restaurants. U.S. Coffee, home to Keurig brewers and K-Cup pods, brought in 24%. International, covering Canada, Mexico, the Caribbean and other markets, brought in 13.1%. Pods alone were 22.7% of revenue; brewers and other appliances were 3.9%.
Does Keurig Dr Pepper raise its dividend every year?
It has raised its regular dividend five years in a row, through 2025. The dividend went from $0.60 a share in 2020 to $0.92 in 2025, about 8.9% a year. The yield was 2.63% as of October 28, 2026. In 2025, dividends used 60.1% of earnings and 83.1% of free cash flow. The significant debt tied to the JDE Peet's deal could limit future increases.
Is Keurig Dr Pepper splitting into two companies?
Yes, that is the stated plan. On August 25, 2025, the company announced it intends to separate its beverage and coffee businesses into two independent, publicly traded companies. The split is meant to follow its purchase of JDE Peet's, the global coffee company behind Jacobs, L'OR and Peet's. Its annual report, filed in February 2026, expected that deal to close early in the second quarter of 2026. The company has warned the split may not happen on the planned terms or timeline, or at all.
How much debt does Keurig Dr Pepper have?
Total debt was $24.8 billion as of June 30, 2026, against $1.5 billion of cash and investments. That puts net debt (debt minus cash) at about $23.3 billion. Shareholders' equity was $25.0 billion. The annual report warned the company would take on significant debt for the JDE Peet's deal, which could hurt financial performance. It also warned that after the planned split, the company may not keep a satisfactory credit rating.
How has Keurig Dr Pepper stock performed?
Unevenly. As of October 28, 2026, the share price was up 24.9% over one year. It had risen an average of 2.4% a year over five years and 11.1% a year over ten. It fell in every calendar year from 2022 through 2025, including a 10.1% drop in 2025. The ten-year figure includes years before the 2018 Keurig combination, when the company was Dr Pepper Snapple Group. These are share-price returns, which leave out dividends.