Is Keurig Dr Pepper Stock Underperforming the Nasdaq?

Company Overview - Keurig Dr Pepper Inc. (KDP) is a non-alcoholic beverage company based in Burlington, Massachusetts, with a market cap of $38.9 billion [1] - The company operates through three segments: U.S. Refreshment Beverages, U.S. Coffee, and International [1] Market Position - KDP is classified as a large-cap stock, reflecting its substantial size and influence in the non-alcoholic beverages industry [2] - The company is known for its diverse product offerings, including carbonated soft drinks, ready-to-drink teas and juices, and specialty coffees [2] Stock Performance - KDP's stock reached a two-year high of $38.28 on September 24, 2024, but is currently trading 27.8% below that peak [3] - Over the past three months, KDP stock has dropped 15.7%, underperforming the Nasdaq Composite's 11.6% increase during the same period [3] - Year-to-date, KDP's stock has declined nearly 14%, and it has fallen 25% over the past 52 weeks, while the Nasdaq has surged 12.9% in 2025 and 30.6% over the past year [4] Recent Developments - On August 25, KDP's stock plummeted 11.5%, followed by a 6.9% drop in the next trading session, coinciding with the announcement of its acquisition of JDE Peet for approximately €15.7 billion (or $18.4 billion), which included a 33% premium on the target's share prices [5] - Following the acquisition, KDP plans to split into two separate companies, one focusing on soft drinks and the other on coffee, which management views as strategically beneficial [6] - Investor sentiment has been negatively impacted due to the premium paid for the acquisition, and KDP has underperformed compared to its peer, Monster Beverage Corporation, which has seen gains of 19.9% year-to-date and 29.5% over the past 52 weeks [6]