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 ...

EXHIBIT 99.1 Keurig Dr Pepper Reports Q2 2024 Results and Reaffirms Fiscal 2024 Guidance Net Sales Led by Double-Digit Growth in International and Solid U.S. Refreshment Beverages Performance Company Continues to Expect On-Algorithm Net Sales and Adjusted EPS Growth in 2024 BURLINGTON, MA and FRISCO, TX (July 25, 2024) – Keurig Dr Pepper Inc. (NASDAQ: KDP) today reported results for the second quarter of 2024 and reaffirmed its full year guidance. | --- | --- | --- | --- | --- | |-----------------|--------- ...

Keurig Dr Pepper reported quarterly earnings and revenue that met analysts' expectations on Thursday as higher prices fueled its U.S. soda sales. Earnings per share: 45 cents adjusted, in line with estimates Revenue: $3.92 billion, in line with estimates Net sales rose 3.5% to $3.92 billion. Volume, which excludes pricing and currency changes, increased 1.8% during the quarter, while prices were up 1.6% compared with the year-ago period. Keurig Dr Pepper's U.S. coffee division's sales shrank 2.1% to $1 bill ...

Net Sales Led by Double-Digit Growth in International and Solid U.S. Refreshment Beverages Performance Company Continues to Expect On-Algorithm Net Sales and Adjusted EPS Growth in 2024 BURLINGTON, Mass. and FRISCO, Texas, July 25, 2024 /PRNewswire/ -- Keurig Dr Pepper Inc. (NASDAQ: KDP) today reported results for the second quarter of 2024 and reaffirmed its full year guidance. Commenting on the quarter, CEO Tim Cofer stated, "Our second quarter results were healthy, with accelerating net sales trends, sig ...

SOPA Images/LightRocket via Getty Images Firstly, let us look at KDP stock performance in recent years. It has witnessed gains of 15% from levels of $30 in early January 2021 to around $35 now, vs. an increase of about 50% for the S&P 500 over this period. However, the increase in KDP stock has been far from consistent. Returns for the stock were 15% in 2021, -3% in 2022, and -7% in 2023. In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 24% in 2023 — indicating that KDP underp ...

Keurig Dr Pepper's quarterly performance is expected to have been supported by continued brand strength and effective pricing strategies. The company's expansion initiatives and product innovation are likely to have contributed to improved sales trends. Momentum in the Refreshment Beverages, backed by innovations, effective in-market execution, growth in CSDs, and expansion in energy and sports hydration, is expected to be reflected in KDP's second-quarter results. The International unit has also been perfo ...