Diane King Hall is with me looking at a few more of the earnings here because there are many and we have more after the bell today. But let's start off with Kurig Dr. . Pepper.Good morning D. >> Yeah, we got some gains fizzing up here for Kurick Dr. . Pepper.Uh those shares higher off the back of its latest quarterly results have beat expectations on both the top and bottom line for Kurick Do Pepper in terms of earnings. They came in at 60 cents per share on an adjusted basis. So swinging into the black uh ...

Keurig Dr Pepper (NasdaqGS:KDP) Q4 2025 Earnings call February 24, 2026 08:00 AM ET Speaker4Good morning, ladies and gentlemen, and thank you for standing by. Welcome to Keurig Dr Pepper's earnings call for the fourth quarter of 2025. This conference call is being recorded, and there will be a question and answer session at the end of the call. I would now like to introduce Chase Michels, Senior Director of Investor Relations at Keurig Dr Pepper. Mr. Michels, please go ahead.Speaker1Thank you. Hello, everyo ...

Keurig Dr. Pepper Inc. (NASDAQ:KDP) is one of the best sugar stocks to buy according to hedge funds. On February 19, RBC Capital reaffirmed a Buy rating on Keurig Dr. Pepper Inc. (NASDAQ:KDP) and set a price target of $42. In a separate development, the company announced the continued evolution of its Board of Directors on February 12, effective March 2, and that two new independent directors, Amie Thuener and William “Bill” Newlands, will join the Board. Management added the same day that the existing Rem ...

Core Viewpoint - PepsiCo is disappointing investors in 2025, but there is potential for a rebound if an activist investor can implement changes to improve the company's performance [1][3]. Group 1: Financial Performance - PepsiCo's stock is down 2.16% year to date, contrasting sharply with Coca-Cola's 14% increase in the same period [3]. - The company's long-term debt has reached $44.13 billion, reflecting a 14.61% year-over-year increase, which is growing faster than that of Coca-Cola [4]. - Organic sales growth for 2025 has been weak, with global volumes declining in the first three quarters, indicating challenges in pricing strategies amid elevated consumer prices [6]. Group 2: Market Position - PepsiCo has fallen to fourth place in soda popularity, behind Coca-Cola Classic, Dr. Pepper, and Sprite, marking a significant shift from its historical standing [7]. - The company controls 60 brands, and there is potential for streamlining operations by divesting some brands to raise cash and reduce debt [11]. Group 3: Activist Investor Involvement - Elliott Investment Management has taken a $4 billion stake in PepsiCo, indicating a belief in the potential for improvement and change within the company [8]. - Elliott is advocating for PepsiCo to spin off its North American bottling operations, similar to Coca-Cola's strategy, which could enhance profitability [9]. Group 4: Dividend Dependability - PepsiCo has a strong history of over 50 consecutive years of annual dividend increases, which is a key reason some investors remain committed to the stock [12].

Group 1 - Dr. Pepper has tied with Pepsi for the second most popular soft drink in the U.S., following Coca-Cola [2] - Both PepsiCo and Keurig Dr Pepper have underperformed the broader market in 2024, with the S&P 500 gaining 17%, while PEP's stock is flat and KDP's stock is down about 10% [2] - KDP is considered a better investment option compared to PEP due to its lower valuation and stronger growth in revenue and operating income [3][6] Group 2 - KDP currently trades at a lower Price-to-Operating Income multiple compared to PEP, indicating a more attractive valuation [6] - KDP shows greater revenue and operating income growth despite its lower valuation, suggesting a potential for better investment returns [6] - An analysis of the past year's metrics may indicate whether PepsiCo's stock is overvalued compared to its competitors, with continued underperformance strengthening this inference [7]

Group 1 - Coca-Cola has lost a significant court case, resulting in the company no longer having access to Dr. Pepper in certain markets, which is the second-best-selling soda brand [4][6] - The Texas court ruling allows Keurig Dr Pepper to take full control of its distribution, impacting Coca-Cola's supply chain and access to Dr. Pepper in venues and restaurants [4][5] - Sprite remains the dominant player in the lemon-lime soda market, while PepsiCo's attempts to compete have not been successful, with its brands lagging far behind [1][3] Group 2 - PepsiCo has a history of launching various lemon-lime sodas to compete with Sprite, including Teem and Sierra Mist, but these brands have struggled to gain market traction [7] - In 2023, PepsiCo discontinued Sierra Mist and introduced a new brand, Starry, targeting Gen Z with a modern flavor profile and branding [7]

Core Insights - The advertising measurement landscape remains complex and fragmented, with marketers struggling to accurately assess the effectiveness of their campaigns across various channels and platforms [4][5][6] - Keurig Dr. Pepper emphasizes the importance of both message delivery and the context in which it is received, with 60% of ROI attributed to messaging and 40% to other factors [2][4] - Live sports advertising is seen as a valuable opportunity for brands, despite rising costs, particularly to engage younger consumers like Gen Zennials [7][9][11] Measurement Challenges - The current advertising ecosystem is characterized by media fragmentation and the presence of walled gardens, complicating the attribution process [3][4] - Marketers are often uncertain about the precise return on investment from their marketing spend, estimating effectiveness within a range of 10-15% [4][6] Live Sports Engagement - Keurig Dr. Pepper has increased its collaboration with Disney Advertising to enhance digital fan engagement during college football season [7] - The cost of advertising during live sports has risen, but the potential reach and engagement with key demographics justify the expense [9][11] - Dr. Pepper's sponsorship of the college football championship game resulted in 80% more engagement compared to other advertising efforts throughout the year [11][12] Brand Connection and Fandom - The brand's strategy includes leveraging cultural connections through sponsorships, which are crucial for long-term brand value beyond immediate sales [12] - Dr. Pepper has established relationships with 55 college football athletes to create content that maximizes engagement with fans [13]

Group 1 - The Carillon Scout Mid Cap Fund's second quarter 2025 investor letter indicates that the Russell Midcap Index experienced positive returns despite a sell-off in early April due to tariff announcements, with delays in tariff collection allowing for better negotiations among trading partners [1] - Coca-Cola Consolidated, Inc. (NASDAQ:COKE) was highlighted as a key stock, showing a one-month return of 6.71% but a 52-week loss of 4.78%, with a market capitalization of $10.65 billion as of September 09, 2025 [2] - The fund noted that Coca-Cola Consolidated, Inc. is one of the largest bottlers in the U.S., facing challenges from higher costs but expecting earnings improvement due to strong brand performance [3] Group 2 - Coca-Cola Consolidated, Inc. was held by 37 hedge fund portfolios at the end of the second quarter, an increase from 22 in the previous quarter, indicating growing interest among institutional investors [4] - The analysis suggests that while Coca-Cola Consolidated, Inc. has investment potential, certain AI stocks may offer greater upside with less risk, reflecting a shift in investment focus [4]

Market Trends & Earnings Analysis - McGra Hill raised $414 million in its IPO [1] - Tesla's Q2 performance met expectations, while Alphabet's earnings call showed bullish commentary on cloud demand and AI monetization [2] - IBM had a good quarter, but the stock is getting hit, while Chipotle had an unsavory quarter, and that stock is getting shredded [3] - Chipotle shares opened down 13% after a disappointing earnings report with a larger-than-expected drop in same-store sales and traffic, prompting a cut to its full-year outlook [5][6] - The Dow opened around 300 points lower, S&P 500 is up around 02%, and the NASDAQ is up roughly 03% [9] - Alphabet raised its capex guidance by $10 billion [25][29] Company Performance & Strategies - Future Standard (formerly FS Investments) highlights a bifurcated earning season, noting investors are becoming more comfortable with AI investments despite potential margin impacts [15][16][17] - Alphabet's AI spend is strong, benefiting the hyperscalers and the broader industry [19] - Pivotal Research raised its price target on Alphabet shares to $245 [22] - Keurig Dr Pepper's US refreshment beverage business is up double digits, driven by core carbonated soft drinks and newer additions like Ghost Energy, which is now a $1 billion business [48][49][50][51] - Keurig Dr Pepper is confident in delivering mid-single-digit topline growth and high-single-digit EPS growth [62] Economic Factors & Challenges - Lower-income consumers are pulling back on spending, impacting the fast-food casual space [7] - Tariffs are a headwind for Keurig Dr Pepper's business, particularly concerning green coffee, but the company has built that into its outlook [59][60][61] - Additional spending in the AI complex will contribute approximately 045% of GDP next year [33] Tesla Analysis - Tesla is in a transition phase, not just an EV play but not yet a robo-taxi company, facing challenges with broken promises and delayed launches [36][37] - Tesla's EV sales are slowing in the US and facing competition in Europe, with potential impact from the removal of EV tax credits [40][41]