Latest news with #KeurigGreenMountain
Yahoo
24-07-2025
- Business
- Yahoo
Keurig Dr Pepper (NASDAQ:KDP) Surprises With Q2 Sales
Beverage company Keurig Dr Pepper (NASDAQ:KDP) reported revenue ahead of Wall Street's expectations in Q2 CY2025, with sales up 6.1% year on year to $4.16 billion. Its non-GAAP profit of $0.49 per share was in line with analysts' consensus estimates. Is now the time to buy Keurig Dr Pepper? Find out in our full research report. Keurig Dr Pepper (KDP) Q2 CY2025 Highlights: Revenue: $4.16 billion vs analyst estimates of $4.13 billion (6.1% year-on-year growth, 0.9% beat) Adjusted EPS: $0.49 vs analyst estimates of $0.49 (in line) Operating Margin: 21.6%, in line with the same quarter last year Free Cash Flow Margin: 7.5%, down from 13.8% in the same quarter last year Sales Volumes rose 9.5% year on year (0.4% in the same quarter last year) Market Capitalization: $45.5 billion Commenting on the quarter, CEO Tim Cofer stated, "Our Q2 results cemented a strong first half of the year, as we drove robust performance in U.S. Refreshment Beverages, good growth in International, and sequential progress in U.S. Coffee. Today's dynamic environment puts a premium on operational excellence, which we are demonstrating while pushing ahead on our multi-year strategic agenda. Though the back half will present new challenges, we are on track to deliver our 2025 outlook and are confident in the long-term value creation ahead." Company Overview Born out of a 2018 merger between Keurig Green Mountain and Dr Pepper Snapple, Keurig Dr Pepper (NASDAQ:KDP) is a consumer staples powerhouse boasting a portfolio of beverages including sodas, coffees, and juices. Revenue Growth Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. With $15.76 billion in revenue over the past 12 months, Keurig Dr Pepper is one of the larger consumer staples companies and benefits from a well-known brand that influences purchasing decisions. However, its scale is a double-edged sword because it's harder to find incremental growth when your existing brands have penetrated most of the market. To expand meaningfully, Keurig Dr Pepper likely needs to tweak its prices, innovate with new products, or enter new markets. As you can see below, Keurig Dr Pepper grew its sales at a mediocre 5.9% compounded annual growth rate over the last three years, but to its credit, consumers bought more of its products. This quarter, Keurig Dr Pepper reported year-on-year revenue growth of 6.1%, and its $4.16 billion of revenue exceeded Wall Street's estimates by 0.9%. Looking ahead, sell-side analysts expect revenue to grow 4.8% over the next 12 months, similar to its three-year rate. This projection doesn't excite us and implies its products will see some demand headwinds. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Volume Growth Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful staples business as there's a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive. Keurig Dr Pepper's average quarterly volume growth was a healthy 2.4% over the last two years. This is pleasing because it shows consumers are purchasing more of its products. In Keurig Dr Pepper's Q2 2025, sales volumes jumped 9.5% year on year. This result was an acceleration from its historical levels, certainly a positive signal. Key Takeaways from Keurig Dr Pepper's Q2 Results It was good to see Keurig Dr Pepper narrowly top analysts' revenue expectations this quarter. On the other hand, its gross margin missed. Predictably, EPS was roughly in line. Zooming out, we think this was a mixed quarter. The stock remained flat at $33.74 immediately following the results. Is Keurig Dr Pepper an attractive investment opportunity right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
29-05-2025
- Business
- Yahoo
Keurig Coffee King Wakes Up Big Money Buyers, Listing His Palm Beach Mega Mansion For $90 Million
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Robert Stiller, best known as the former CEO and founder of Keurig Green Mountain coffee, has awoken luxury brokers and buyers in coveted Palm Beach by listing his sprawling waterfront mansion for $90 million. The 13,375-square-foot home, which was built in 2013, comes with a deep water dock, seven bedrooms, and over 150 feet of frontage on the Intracoastal Waterway. Stiller — the former coffee king who left the Green Mountain board in 2013 — and his wife, Christine, have not owned the home for long, buying it in 2023 for $66 million, according to the Palm Beach Daily News. The potential $24 million windfall the couple could make on the home, not including fees, closing costs, and capital gains taxes, works out to about $2 million per month of ownership. Don't Miss: Hasbro, MGM, and Skechers trust this AI marketing firm — Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – The Stillers have picked an opportune time to sell, as Palm Beach homes have sold for record-high prices since the election. According to Douglas Elliman data, single-family homes in the wealthy South Florida enclave have seen 31 sales, an increase of 63.2% compared to Q1 over the same period last year. Higher-end home sales have been particularly robust, with median sales prices of $13.95 million enjoying an 11.6% jump year-over-year. The luxury sector, representing the top 10% of the market, was up 22.2% over the previous year. According to the report, median sales in the highest echelon also soared to $23.75 million, a 70.9% increase from a median of $13.9 million a year earlier. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — It's unlikely Stiller, whose net worth is $508 million, will be counting on selling his home to pay his bills. The innovative coffee magnate made his fortune by selling coffee and K-Cups, the now-popular single-serve coffee pods. Despite a financial setback in 2012, when he was forced to sell 5 million shares to cover margin calls to cover loans taken against his position, Stiller has enjoyed success after success. Stiller initially sold coffee as a retailer in Vermont after discovering Green Mountain Coffee Roasters during a ski trip to the state in the 1980s, Inc. reported, but stopped that side of the business to focus on manufacturing. The company went public in 1993 and enjoyed a soaring stock price in the 2000s, during which time Green Mountain became one of the first coffee companies to join the Fair Trade movement. In 2006, Stiller invested in a single-serving coffee machine company, Keurig. In 2016, the company was bought for $13.9 billion and taken private by JAB Holding, owner of Peet's Coffee and other brands, according to multiple media sources. Keurig Green Mountain and Dr Pepper Snapple Group merged in 2018 in a deal worth $18.7 billion, to form Keurig Dr Pepper (NASDAQ:KDP), multiple outlets reported. Keurig owns or partners with multiple brands to produce different varieties of its single-serve coffee Keurig has received criticism about the environmental impact of its K-Cups, Stiller prefers to consider the company's overall impact. 'I feel overall we made a positive impact with the company. It reminds me of when we were doing a lot of Fair Trade coffee,' he told Inc. 'We got pushback from some Fair Trade companies: How could we sell regular coffee? 'I think you need to be successful as an organization, first and foremost,' Stiller said. 'We needed to have a complete coffee offering. We got into [food services company] Sodexo with our regular coffee, and then a couple of years later, they switched to Fair Trade. You've got to do what's right to build the strength of your company.' Read Next: , which provides access to a pool of short-term loans backed by residential real estate with just a $100 minimum. 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Image: Shutterstock Send To MSN: 0 This article Keurig Coffee King Wakes Up Big Money Buyers, Listing His Palm Beach Mega Mansion For $90 Million originally appeared on Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
10-04-2025
- Business
- Yahoo
Keurig Dr Pepper (KDP): Buy, Sell, or Hold Post Q4 Earnings?
Keurig Dr Pepper trades at $34.65 per share and has moved almost in lockstep with the market over the last six months. The stock has lost 5.1% while the S&P 500 is down 7.7%. This might have investors contemplating their next move. Is there a buying opportunity in Keurig Dr Pepper, or does it present a risk to your portfolio? Dive into our full research report to see our analyst team's opinion, it's free. Even though the stock has become cheaper, we're swiping left on Keurig Dr Pepper for now. Here are three reasons why there are better opportunities than KDP and a stock we'd rather own. Born out of a 2018 merger between Keurig Green Mountain and Dr Pepper Snapple, Keurig Dr Pepper (NASDAQ:KDP) is a consumer staples powerhouse boasting a portfolio of beverages including sodas, coffees, and juices. Reviewing a company's long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Regrettably, Keurig Dr Pepper's sales grew at a mediocre 6.6% compounded annual growth rate over the last three years. This fell short of our benchmark for the consumer staples sector. Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. Looking at the trend in its profitability, Keurig Dr Pepper's operating margin decreased by 4.7 percentage points over the last year. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Its operating margin for the trailing 12 months was 16.9%. Growth gives us insight into a company's long-term potential, but how capital-efficient was that growth? A company's ROIC explains this by showing how much operating profit it makes compared to the money it has raised (debt and equity). Keurig Dr Pepper historically did a mediocre job investing in profitable growth initiatives. Its five-year average ROIC was 5.5%, somewhat low compared to the best consumer staples companies that consistently pump out 20%+. Keurig Dr Pepper's business quality ultimately falls short of our standards. After the recent drawdown, the stock trades at 17.1× forward price-to-earnings (or $34.65 per share). Investors with a higher risk tolerance might like the company, but we think the potential downside is too great. We're pretty confident there are superior stocks to buy right now. We'd recommend looking at our favorite semiconductor picks and shovels play. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.
