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KDP Raises $7 Billion From Apollo, KKR to Help Fund JDE Deal
Yahoo Finance· 2025-10-27 16:18
Core Viewpoint - Keurig Dr Pepper Inc. has raised its full-year net sales outlook, anticipating high-single-digit growth for fiscal 2025, which is an improvement from the previous mid-single-digit forecast [1]. Group 1: Financial Performance - The company reported third-quarter sales of $4.3 billion, exceeding analysts' expectations of $4.1 billion [1]. - US coffee sales, which had been declining for the past 10 quarters, showed a growth of 1.5% [2]. - The adjusted earnings per share growth rate is maintained in the high-single-digit range [3]. Group 2: Market Reaction - Shares of Keurig Dr Pepper increased by as much as 4.7% in premarket trading following the positive sales outlook [2]. - Year-to-date, the stock had declined by 15% as of October 24 [2]. Group 3: Acquisition Plans - The company is in the process of acquiring JDE Peet's NV, which is a focal point for investors [1][3]. - There is skepticism from Wall Street regarding the acquisition, as it increases the company's leverage and exposure to the coffee category, which investors preferred to see reduced [4].