Keurig Dr Pepper Soft Drink Sales Take Off, But Coffee Costs Limit Gains

Shares of Keurig Dr Pepper (KDP) fell slightly Thursday morning even as the coffee and soft drink maker posted better-than-expected results, lifted by U.S. beverage sales. However, the impact of soaring coffee prices muted investor enthusiasm.

The company reported first-quarter adjusted earnings per share (EPS) of $0.42, with revenue rising 5% year-over-year to $3.64 billion. Both exceeded Visible Alpha estimates.

U.S. Refreshment Beverages unit sales were 11% higher at $2.3 billion, boosted by “volume/mix growth of 8% and favorable net price realization of 3%.” However, U.S. coffee sales slumped nearly 4% to $900 million, hurt by a volume/mix decline that included “pricing actions implemented in reaction to escalating green coffee costs.” International sales dropped 6% to $400 million.

Keurig Dr Pepper affirmed its full-year guidance of adjusted EPS increasing by a high-single-digit percentage, and constant-currency sales up by a mid-single-digit percentage. 

In addition, the company announced that it added Mike Van de Ven and Lawson Whiting as independent directors, and that Executive Chair Bob Gamgort has shifted to Non-Executive Chair. 

Keurig Dr Pepper shares slipped less than 1% Thursday morning but have gained about 9% in 2025.