Keurig Dr Pepper Inc . KDP is currently trading at a notably low price-to-earnings (P/E) multiple, which is below the Zacks Beverages - Soft Drinks industry and broader Consumer Staples averages. KDP's forward 12-month P/E ratio is 16.04X, lower than the industry average of 18.31X and the sector average of 17.39X.

KDP Valuation Picture

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The stock is undervalued compared with its industry peers, offering compelling value to investors looking for exposure to the consumer staple sector.

KDP shares have appreciated 5.9% in the last three months, outperforming the Zacks Beverages - Soft Drinks industry’s growth of 1% and the broader Consumer Staples industry’s return of 3.5%.

KDP Stock's Performance In the Past Three Months

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Factors Driving KDP Stock’s Performance

Keurig’s strong performance in the first quarter of 2025 highlights the effectiveness of its consumer-focused innovation model, which is supported by scorecards that track awareness, household penetration and loyalty. This approach has played a pivotal role in driving market share gains across key categories such as liquid refreshment beverages, K-Cup pods and brewers in major markets including the United States, Mexico and Canada.

The company’s growth reflects a strategic combination of innovation, brand activity and strong commercial execution, underpinned by a continued emphasis on cost efficiency, productivity and disciplined capital management. KDP further strengthened its distribution network with new territory expansion in Tennessee, while its company-owned Direct Store Delivery network in Mexico provided a competitive edge in a market dominated by traditional trade.

Investments in expanding system coverage, increasing selling routes and placing more coolers in Mexico contributed to robust regional growth. Additionally, the company’s solid brand portfolio and effective in-market execution, along with pricing elasticity across most categories, supported a 4.8% year-over-year increase in net sales, or 6.4% on a constant-currency basis, in the first quarter of 2025. This includes a 3.6% rise in volume/mix and a 2.8% benefit from favorable pricing.

Keurig has been building strong momentum in its U.S. Refreshment Beverages segment, driven by sustained volume growth, pricing actions, and strategic brand and partnership initiatives. In the first quarter of 2024, sales in the segment reached $2.32 billion, marking an 11% year-over-year increase, supported by an 8% rise in volume/mix and a 3% increase in net price realization. The growth was underpinned by market share gains across carbonated soft drinks, energy drinks and sports hydration categories.

Notably, solid performance in liquid refreshment beverages was fueled by the strength of brands like Peñafiel and core CSD offerings such as Dr Pepper and Crush. The acquisition of GHOST further bolstered segment results, enhancing the energy drink portfolio and aligning with evolving consumer preferences. The base business remains healthy, supported by the continued success of carbonated soft drinks and key partnerships.