Core Viewpoint - Keurig Dr Pepper (KDP) is nearing an $18.4 billion acquisition of Dutch coffee company JDE Peet's, which has led to a 23% decline in its stock over 21 trading days due to investor concerns about the premium paid and increased debt [2][3]. Company Overview - KDP operates as a beverage company providing coffee systems, packaged beverages, concentrates, and Latin American products to various sectors including retailers, distributors, restaurants, hotels, and consumers [5]. Financial Performance - KDP has a market capitalization of $37 billion and reported $16 billion in revenue, currently trading at $27.11. The company has experienced a revenue growth of 4.6% over the last 12 months and maintains an operating margin of 21.5% [6]. - The company holds a Debt to Equity ratio of 0.48 and a Cash to Assets ratio of 0.01, which is expected to increase significantly due to the additional debt from the acquisition [6]. Stock Performance Analysis - KDP stock has shown resilience during past economic downturns, performing slightly better than the S&P 500 index. Historical data indicates that the stock has experienced significant declines but has also demonstrated a capacity for recovery [4][9]. - The stock declined 30.4% from a peak of $40.08 on August 16, 2022, to $27.90 on October 12, 2023, while the S&P 500 saw a peak-to-trough decline of 25.4% during the same period [9]. - In previous crises, KDP stock has shown varying degrees of decline and recovery, including a 55.1% drop during the 2008 financial crisis, but it fully recovered to its pre-crisis peak by August 2009 [9].