Keurig Dr Pepper Inc

KDP: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$95.00	Jsplsw	Shjcrnc

Keurig Dr Pepper Earnings: Ready-to-Drink Beverage Performance Resilient, but Coffee Still a Drag

Dan Su

Jul 25, 2024

We don't plan material changes to our $32 fair value estimate on narrow-moat Keurig Dr Pepper after second-quarter sales and adjusted EPS, led by a strong performance in ready-to-drink beverages, were up 4% and 7%, respectively, even as coffee weakness persists. There is no change to our 2024 forecast for sales and adjusted EPS to grow 4% and 7%, respectively, and our 10-year estimates remain in place for mid-single-digit annual sales growth and operating margins in the low 20s. We view shares as fully valued.

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