BURLINGTON, Mass. and FRISCO, Texas, Sept. 12, 2024 /PRNewswire/ -- Keurig Dr Pepper (NASDAQ: KDP) announced today that its Board of Directors has approved a 7.0% increase in its annualized dividend rate to $0.92 per share, from the current annualized rate of $0.86 per share, effective with the regular quarterly cash dividend also announced today. The increased regular quarterly cash dividend of $0.23 per share is payable in U.S. dollars on the Company's common stock on October 11, 2024 to shareholders of r ...

Core Viewpoint - Keurig Dr Pepper has settled an SEC complaint regarding misleading statements about the recyclability of K-Cup pods, agreeing to pay $1.5 million and commit to accurate reporting in future statements [1]. Company Overview - Keurig Dr Pepper is a leading player in the single-serve coffee market, with approximately 40 million American households owning a Keurig brewer and billions of K-Cups consumed annually [4]. SEC Settlement Details - The SEC's complaint highlighted that Keurig's 1999 and 2000 annual reports overstated the recyclability of K-Cup pods, failing to disclose concerns from major recycling companies about the feasibility of curbside recycling [1]. - The company has agreed to adhere to accurate reporting rules in its future annual reports [1]. Recycling Claims and Changes - Keurig claims that its K-Cup pods are made from recyclable polypropylene plastic (5 plastic), which is accepted in many curbside recycling systems across North America [2]. - Since late 2020, Keurig has stated that K-Cups are "100% recyclable," but they are still not accepted by some curbside recycling programs due to their small size [3]. Future Initiatives - The company plans to introduce new plant-based K-Rounds in 2025, which will address the plastic recycling issue but will require consumers to purchase new coffee makers as they will not be compatible with existing brewers [4].

The Securities and Exchange Commission on Tuesday charged Keurig Dr Pepper (KDP) with making inaccurate statements about the recyclability of its single-use K-Cup pods. Keurig agreed to pay $1.5 million to settle the case, the regulator said. According to the SEC, Keurig said in its fiscal 2019 and 2020 annual reports that its testing had found the KCup pods could be "effectively recycled." Keurig Failed To Mention Concerns of Two Large Recycling Firms But the coffee maker and beverage firm failed to mentio ...

Core Viewpoint - The Securities and Exchange Commission (SEC) has charged Keurig Dr Pepper for making misleading claims regarding the recyclability of its K-Cup pods, resulting in a $1.5 million civil penalty without admission of wrongdoing [1]. Group 1: Environmental Impact and Consumer Perception - Consumer awareness of carbon footprints has raised concerns about the environmental impact of K-Cups, with the pods' inventor expressing regret over the waste generated [2]. - A previous lawsuit regarding recycling claims led to a $10 million class-action settlement, highlighting ongoing scrutiny of the company's practices [2]. - By the end of 2020, K-Cups were declared fully recyclable by the company, although misleading claims were made prior to this achievement [2][3]. Group 2: Misleading Claims and Regulatory Findings - In annual reports for fiscal years 2019 and 2020, the company claimed that K-Cups could be effectively recycled based on testing with recycling facilities [4]. - The SEC revealed that two major U.S. recyclers had informed Keurig that they would not accept K-Cups for recycling and had significant concerns about the financial viability of curbside recycling for these pods [4]. Group 3: Financial Implications - The misleading claims regarding recyclability may have influenced consumer purchasing decisions, contributing to sales growth for both K-Cups and brewing systems [5]. - In the fiscal second quarter, sales of K-Cup pods and brewing systems represented nearly 25% of the company's total revenue [5]. Group 4: Company Response and Future Commitment - A company spokesperson expressed satisfaction with the resolution of the matter and reiterated that K-Cup pods are made from recyclable polypropylene plastic, which is accepted in many North American curbside recycling systems [6]. - The company continues to encourage consumers to verify local recycling program acceptance and remains committed to improving recycling systems for all packaging materials [6].

Core Insights - Keurig Dr Pepper has entered a multi-year partnership with Soccer United Marketing and the Federación Mexicana de Futbol, becoming an official partner for the U.S. tours of the Mexican Men's and Women's National Teams [1][2][5] Company Overview - Keurig Dr Pepper is a leading beverage company in North America with a portfolio of over 125 brands and annual revenue of approximately $15 billion [6] - The company holds leadership positions in various beverage categories, including soft drinks, coffee, tea, water, juice, and mixers [6] Partnership Details - The partnership will feature five brands popular among Hispanic consumers: Peñafiel®, Clamato®, Squirt®, 7UP®, and McCafé at Home, as U.S. beverage category sponsors for the Mexican National Teams [2][4] - The brands will be involved in consumer engagement experiences, including sampling opportunities and local retail market activations [3][4] Market Engagement - MexTour has an average attendance of nearly 60,000 per match over the last decade, with an estimated fan base of 60 million, making it one of the most successful sports properties in North America [4] - MexTour W is entering its third year in 2025 with an estimated fan base of 49 million, indicating strong interest and engagement [4] Strategic Importance - The partnership is seen as a compelling opportunity for both Keurig Dr Pepper and Soccer United Marketing to connect with the passionate Mexican soccer fanbase in the U.S. [5]

Let's break down some blue- chip stocks for stability when times get tough. This topic feels especially important now, with fears of recession rising. We can see this through the recent spikes in the CBOE Volatility Index. Also known as the "fear index," it is up nearly 130% since July 29. Over the same period, the S&P 500 is down 5%. These changes can cause investors to worry, but that doesn't mean there aren't places to hide in the stock market when things get dicey. Some important metrics I'll highlight ...

Financial Data and Key Metrics - Constant currency net revenue grew 3.4% in Q2, led by strong double-digit growth in the International segment and healthy trends in US refreshment beverages [24] - Operating income grew 11% YoY, with EPS growth of 7% in Q2 [25] - Free cash flow conversion strengthened, with $543 million generated in Q2 [54] - Gross margin expanded by 130 basis points YoY, driven by productivity, pricing, and inflation management [48] Business Line Performance - US Refreshment Beverages: Revenue grew at a low-single-digit rate, led by CSDs, with Dr Pepper maintaining market share growth [39][40] - US Coffee: Net sales declined 2.1%, but pod shipments stabilized with 0.2% growth YoY [50][51] - International: Net sales grew 15.5% (14.7% constant currency), driven by strong volume mix growth of 10.4% and price increases of 4.3% [80][81] Market Performance - US: CSDs outperformed expectations, with Dr Pepper gaining market share due to innovations like Creamy Coconut LTO [40][89] - International: Mexico and Canada showed strong performance, with Peñafiel and Canada Dry driving growth [45][80] - Energy Category: C4 Energy grew 30% in retail sales, with significant growth potential despite recent moderation [106] Strategic Direction and Industry Competition - The company is focusing on partnerships (Electrolit, La Colombe) and innovation to drive growth, with new products like Canada Dry Fruit Splash and Bai WonderWater gaining traction [10][17] - A barbell strategy is being employed to cater to both value-seeking and premium consumers, with affordability initiatives in coffee and premiumization in CSDs [42][43] - The acquisition of Kalil Bottling Company aims to optimize distribution and leverage DSD assets [12][36] Management Commentary on Operating Environment and Outlook - The operating environment remains uneven, with higher-income consumers showing resilience while low and middle-income consumers seek value [6][88] - Management expects top-line acceleration in H2, driven by partnerships and innovation, with mid-single-digit net sales and high-single-digit EPS growth for 2024 [83][85] - Green coffee price inflation and currency volatility are being managed through productivity and cost discipline [13][97] Other Important Information - The company is committed to corporate responsibility, with progress highlighted in the 2023 corporate responsibility report [14][38] - Innovations like the K-Brew + Chill brewer and La Colombe Ready-To-Drink coffee are expected to drive growth in the cold coffee segment [44][132] Q&A Summary Question: Impact of inflation and consumer behavior on CSDs [60] - Response: CSDs remain resilient, offering value to consumers, with Dr Pepper gaining market share. The company is addressing affordability through smaller pack sizes and value messaging [63][89] Question: Back-half sales acceleration drivers [65] - Response: Acceleration is driven by partnerships (Electrolit, La Colombe) and innovation (Creamy Coconut, Bai WonderWater), with no need for significant macro changes [66][67] Question: Green coffee price impact on pricing strategy [116] - Response: Green coffee price increases are factored into guidance, with hedging in place. The company will manage price gaps responsibly while funding high-quality investments [97][143] Question: US Coffee stabilization and back-half outlook [129] - Response: K-Cup volume trends are improving, with four consecutive quarters of sequential growth. Cold coffee initiatives and the K-Brew + Chill brewer are expected to drive further growth [131][132] Question: International growth strategy [139] - Response: The company is focused on Mexico and Canada, with potential for inorganic entry into new markets. International growth is driven by category expansion and route-to-market investments [135][140]

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Shares of Keurig Dr Pepper have returned -4.6% over the past month versus the Zacks S&P 500 composite's -0.3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the n ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission file number 001-33829 Keurig Dr Pepper Inc. (Exact name of registrant as specified in its charter) Delaware 98-0517725 (State or other jurisdiction of incor ...

A quarter ago, it was expected that this company would post earnings of $0.34 per share when it actually produced earnings of $0.38, delivering a surprise of 11.76%. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. While Keurig Dr Pepper has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? A ...