Keurig Dr Pepper exceeded earnings and revenue estimates, boosted by sales of energy drinks. https://t.co/dJf1Qv0OYe ...

Keurig Dr Pepper (KDP) Q2 2025 Earnings Call July 24, 2025 08:00 AM ET Speaker0Good morning, ladies and gentlemen, and thank you for standing by. Welcome to Keurig Doctor Pepper's Earnings Call for the Second Quarter of twenty twenty five. 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 Jane Gelfin, Senior Vice President, Finance at Keurig Doctor Pepper. Ms.Gelfin, please go ahead.Speaker1Thank you and hello everyon ...

Today, just ahead of the 20th anniversary of his seminal album, Let's Get It Thug Motivation 101, an album that defined trap music and became a cultural touchstone. He talked a lot about what got him from there to here and what's coming up next. Take a listen.I was basically living from a survivor's mindset. I didn't know if I was going to see 2006, you know, just under the circumstances. So I was just really putting everything I had in the music just in case because I didn't know the outcome.It was a lot o ...

Key Takeaways CELH is capitalizing on lifestyle-driven demand with innovations and global expansion strategies. CELH's Alani Nu acquisition is boosting retail shelf space and global market reach. Seasonal and limited-time products help CELH maintain strong consumer engagement.As evolving consumer lifestyles drive demand for energy drinks, Celsius Holdings, Inc. ((CELH) is strategically positioned to resonate well with such trends. With strategic acquisitions, constant product innovations, digital marketin ...

Key Takeaways KO is expected to post Q2 revenues of $12.6B, up 1.9% YoY, but EPS may dip 1.2% to 83 cents. Favorable price/mix and digital investments are likely to support revenues despite volume weakness. Currency headwinds and soft demand in key markets may weigh on KO's margin and EPS performance.The Coca-Cola Company (KO) is slated to report second-quarter 2025 earnings on July 22, before the opening bell. The company is expected to register year-over-year top-line growth when it posts second-quarter ...

Core Insights - PepsiCo, Inc. reported strong second-quarter 2025 results with revenues and earnings per share (EPS) exceeding the Zacks Consensus Estimate, although EPS declined year over year [1][3] - The company experienced accelerated net revenue growth compared to the previous quarter, demonstrating its ability to navigate a challenging environment [1] - International momentum remained robust, while North America showed improved execution and competitiveness across key subcategories and channels [2] Financial Performance - Core EPS for Q2 was $2.12, beating the Zacks Consensus Estimate of $2.03, but reflecting a 7% decline year over year; reported EPS was 92 cents, down 59.1% year over year [3][6] - Net revenues reached $22.73 billion, a 1% increase year over year, surpassing the Zacks Consensus Estimate of $22.39 billion; unit volume declined 1.5% in convenient food and was flat in beverages [4][6] - Organic revenue growth was 2.1% in Q2, driven by a 4% increase in effective net pricing, offset by a 1.5% decline in organic volume [7] Profitability Metrics - Reported gross profit decreased 1.3% year over year to $12.4 billion, with core gross profit down 0.4% to $12.5 million; gross margins contracted [8] - Operating income fell 55.8% year over year to $1.8 billion, while core operating income declined 5.1% to $3.9 billion; operating margins contracted significantly [9] Segment Performance - Revenue growth was observed across most operating segments, with reported revenues rising 1% in PFNA, 8% in EMEA, and 3% in IB Franchise, but flat in PBNA and down 7% in LatAm Foods [11] - Organic revenues improved in most segments, with PBNA up 1%, IB Franchise up 5%, EMEA up 7%, and LatAm Foods up 6%, while PFNA saw a 2% decline [12] Financial Stability - As of Q2 2025, PepsiCo had cash and cash equivalents of $7.6 billion, long-term debt of $39.3 billion, and shareholders' equity of $18.4 billion [13] - Net cash provided by operating activities was $996 million, down from $1.3 billion year over year [13] Future Outlook - PepsiCo reaffirmed its 2025 revenue guidance, expecting low-single-digit organic revenue growth, while core constant-currency EPS outlook improved due to moderating foreign exchange headwinds [14][15] - The company anticipates core EPS to decline 1.5% year over year in 2025, with currency headwinds expected to impact revenues and core EPS by 1.5 percentage points [16] - PepsiCo plans to return $8.6 billion to shareholders in 2025, including $7.6 billion in dividends and $1 billion in share repurchases [17]

Core Insights - McDonald's Corporation (MCD) is focusing on the high-margin beverage category to boost traffic and average check size globally [1] - The company plans to test an expanded beverage lineup in U.S. restaurants later this year, leveraging insights from its CosMc's pilot concept [1][4] - Management identified beverages, beef, and chicken as core growth pillars, supported by a new organizational structure with dedicated category leaders [2][10] Beverage Market Strategy - Insights from CosMc's indicate that 80% of customers prefer preset beverage recipes with minor customization, reducing operational complexity concerns [3][10] - McDonald's sees significant potential in the beverage segment, particularly in cold beverages, energy drinks, and customizable options, currently capturing about 10% of the U.S. coffee market [4] - The company is optimistic about integrating learnings from CosMc's into its core restaurants to drive growth [4] Competitive Landscape - McDonald's faces increasing competition in the premium beverage category from established players like Starbucks and Dutch Bros [5] - Starbucks dominates the U.S. specialty beverage market, with cold beverages making up over 75% of total drink sales, leveraging personalization and mobile ordering [6] - Dutch Bros reported a 10% year-over-year increase in same-shop sales and a 29% rise in total revenues, focusing on speed and customer connection [7] Financial Performance - McDonald's shares have decreased by 4% over the past three months, while the industry has grown by 4.5% [8] - The company trades at a forward price-to-sales ratio of 7.86, significantly higher than the industry's 4.02 [11] - The Zacks Consensus Estimate for McDonald's earnings per share indicates a year-over-year increase of 4.5% for 2025 and 7.8% for 2026, with recent upward revisions [13]

Company Strategy - Liquid Death 计划推出能量饮料产品线 [1] Branding - Liquid Death 以其朋克风格的品牌形象和罐装水而闻名 [1]

Core Insights - Celsius Holdings, Inc. (CELH) is expanding its product line by acquiring Alani Nu, a brand targeting female consumers, officially closing the deal on April 1, 2025, which adds a second billion-dollar brand to its portfolio [1] - The acquisition aligns with a trend in the energy drink market towards wellness-focused consumption, with female consumers being a significant growth segment [1] Group 1: Alani Nu Performance - In Q1 2025, Alani Nu's retail sales increased by 88% year-over-year, raising its market share by 221 basis points to 5.3% [2] - Alani Nu achieved over $1 billion in trailing 12-month retail sales, highlighting its strong consumer connection and role in the better-for-you beverage trend [2] - The combined portfolio of Celsius and Alani Nu captured a 16.2% dollar share in the energy drink category, an increase of 81 basis points from the previous year, contributing approximately 20% of total category dollar growth in Q1 2025 [2][7] Group 2: Integration and Market Position - The integration of Alani Nu is crucial, as management noted only a 15% overlap between Celsius and Alani Nu consumers, indicating potential for complementary growth [3] - As competition in functional energy intensifies, leveraging Alani Nu's female-focused brand could be pivotal for Celsius's market position [3] Group 3: Competitive Landscape - PepsiCo (PEP) reported strong performance in its functional beverage portfolio, with Pepsi Zero Sugar gaining market share and Gatorade leading in sports hydration, alongside a pending acquisition of Poppi, a prebiotic soda brand [4] - The Coca-Cola Company (KO) highlighted growth in its Fairlife brand, with 30% of its volume now from low or no-calorie beverages, emphasizing its commitment to health-conscious consumption [5] Group 4: Financial Performance and Estimates - Celsius shares have increased by 3.1% over the past month, outperforming the industry growth of 1.8% [6] - CELH trades at a forward price-to-earnings ratio of 45.27X, significantly higher than the industry average of 16.07X [8] - The Zacks Consensus Estimate for CELH's EPS indicates year-over-year growth of 17.1% for 2025 and 41.5% for 2026 [9]

Core Insights - Keurig Dr Pepper (KDP) is expanding its presence in the energy drinks market through a diverse portfolio that includes acquisitions and partnerships, such as GHOST Energy and C4, while also supporting emerging brands like Bloom Sparkling Energy and Black Rifle Energy [1][2]. Group 1: Energy Drinks Portfolio - KDP's energy drinks portfolio achieved a 6.4% constant currency net sales growth in Q1 2025, with GHOST Energy contributing 4.8 points to volume mix growth and experiencing double-digit retail growth [3][9]. - The multi-brand strategy allows KDP to target different consumer niches, enhancing credibility and diversifying risk, with brands like C4 appealing to performance-focused consumers and Bloom targeting female consumers [2]. Group 2: Growth Outlook - KDP anticipates continued high growth in energy and sports hydration categories, supported by favorable consumption trends and planned innovations across its brands, despite macroeconomic uncertainties [4]. - The energy drink segment's growth is expected to mitigate challenges in other areas, such as coffee, reinforcing KDP's leadership in the broader beverage market [4]. Group 3: Financial Performance - KDP's shares have appreciated by 3.1% over the past year, outperforming the Zacks Beverages - Soft Drinks industry's decline of 2.0% and the broader Consumer Staples industry's return of 1.1% [5]. - The stock is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 15.93X, which is below the industry's average of 17.99X, indicating it is undervalued compared to peers [10].