Keurig Dr Pepper said it expects a stronger full-year performance after the company reported quarterly results that beat analysts' forecasts. Management pointed to steady consumer demand across its carbonated soft drinks and energy drinks, along with new flavor rollouts and promotional activity, as drivers of performance.
During the quarter, the company's domestic refreshment beverages segment - its largest revenue source - recorded an 11.5% increase in sales versus the prior year. Keurig's coffee business also expanded, with year-over-year sales up 3.9%.
Executives noted the company's ability to capture household share with established brands such as 7UP and Dr Pepper Zero. Keurig has supplemented that portfolio by launching novel flavors including Dr Pepper Creamy Coconut and by releasing refreshers that draw on trending content from platforms like TikTok, efforts it says have helped broaden its consumer base.
To offset inflationary pressures tied to coffee costs and tariffs, Keurig has been implementing sequential price increases. The management team signaled that those price moves are part of a strategy to preserve margins amid higher input costs.
On the board level, Keurig named Pamela Patsley as chair. Patsley, who has served on the company's board since 2018, will transition into the chair role at the end of the first quarter of 2026.
Keurig is also moving forward with its planned acquisition of Dutch coffee and tea group JDE Peet's, describing the deal as a key element of its strategy to boost appeal among younger consumers. As part of the financing plan for the roughly $18 billion takeover of JDE Peet's, the company announced it had secured an additional $1.5 billion of equity funding from long-term investors.
For the coming year, Keurig expects net sales to be between $25.9 billion and $26.4 billion, compared with analysts' estimates of $17.23 billion, according to LSEG. The company also projects adjusted profit for the year to increase in the low-double-digit range on a constant currency basis, a pace above outside estimates of a 6.4% rise.
For the fourth quarter, Keurig reported net sales of $4.50 billion, ahead of consensus estimates of $4.36 billion. Adjusted earnings came in at $0.60 per share, slightly above the $0.59 per share expected by analysts.
Shares of Keurig were trading higher in premarket activity, up about 2%.
Summary
Keurig Dr Pepper beat fourth-quarter expectations and raised its full-year revenue outlook, citing resilient demand for its carbonated beverages, new flavor introductions and marketing as key contributors. The company is advancing financing for its planned acquisition of JDE Peet's and has named Pamela Patsley as chair of the board.