We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can KDP Sustain Its Growth Amid Cost Pressures & Coffee Headwinds?
Read MoreHide Full Article
Key Takeaways
Keurig Dr Pepper posted 15.1% international sales growth, led by pricing gains and higher volume/mix.
KDP saw 20% operating income growth, with Mexico and Canada driving strong demand and execution.
Keurig Dr Pepper faces tougher comps from pre-buying, with currency and economic factors adding uncertainty.
Keurig Dr Pepper (KDP - Free Report) delivered a strong international performance in the fourth quarter, highlighting the growing importance of its markets outside the United States. The segment has benefited from a combination of pricing actions, volume gains and improved execution, particularly in key regions like Mexico and Canada. This momentum underscores KDP’s ability to adapt to diverse consumer preferences while leveraging its brand portfolio effectively across geographies.
In the fourth quarter of 2025, international net sales increased 15.1% on a constant-currency basis, driven by a 9% benefit from pricing and a 6.1% increase in volume/mix. Segment operating income grew approximately 20%, reflecting strong operating leverage and improved cost absorption. Mexico remained a standout market with double-digit growth, while Canada also contributed meaningfully through both pricing and volume expansion, supported by solid demand across beverage categories.
However, some of this strong performance was influenced by timing-related factors, including pre-buying activity ahead of tax changes in Mexico. This creates a tougher comparison base for the upcoming quarters and may lead to some moderation in growth in the near term. Additionally, currency fluctuations and regional economic conditions remain external variables that could impact reported results.
Looking ahead, KDP’s international segment appears well positioned for sustained growth, supported by continued investment in distribution, localized innovation and brand building. While near-term growth may normalize following a strong quarter, the company’s ability to balance pricing with volume growth and expand in high-potential markets should help maintain steady momentum over the long term.
Keurig Dr Pepper’s Zacks Rank & Share Price Performance
Shares of this Zacks Rank #3 (Hold) company have declined 4.1% in the past three months, underperforming both the industry and the broader Consumer Staples sector, which rose 4.6% and 4.8%, respectively. However, the stock also lagged the S&P 500, which fell 2.3% in the same time period.
KDP Stock's Past Three-Month Performance
Image Source: Zacks Investment Research
Is KDP a Value Play Stock?
Keurig Dr Pepper currently trades at a forward 12-month P/E ratio of 11.68X, lower than the industry average of 19.0X and the sector average of 17.03X. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.
HSY delivered a trailing four-quarter earnings surprise of 17.2%, on average. The Zacks Consensus Estimate for Hershey’s current financial-year sales and earnings indicates growth of 4.8% and 30.1%, respectively, from the prior-year reported levels.
Mama's Creations, Inc. (MAMA - Free Report) manufactures and markets fresh deli-prepared foods in the United States. At present, it carries a Zacks Rank #2 (Buy).
MAMA delivered a trailing four-quarter earnings surprise of 133.3%, on average. The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 39.9% and 44.4%, respectively, from the year-ago figures.
US Foods Holding Corp. (USFD - Free Report) engages in the marketing, sale and distribution of fresh, frozen and dry food and non-food products to foodservice customers in the United States. It currently carries a Zacks Rank of 2.
USFD delivered a trailing four-quarter earnings surprise of 2.2%, on average. The Zacks Consensus Estimate for US Foods Holding’s current fiscal-year sales and earnings implies growth of 5.4% and 20.9%, respectively, from the year-ago figures.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Can KDP Sustain Its Growth Amid Cost Pressures & Coffee Headwinds?
Key Takeaways
Keurig Dr Pepper (KDP - Free Report) delivered a strong international performance in the fourth quarter, highlighting the growing importance of its markets outside the United States. The segment has benefited from a combination of pricing actions, volume gains and improved execution, particularly in key regions like Mexico and Canada. This momentum underscores KDP’s ability to adapt to diverse consumer preferences while leveraging its brand portfolio effectively across geographies.
In the fourth quarter of 2025, international net sales increased 15.1% on a constant-currency basis, driven by a 9% benefit from pricing and a 6.1% increase in volume/mix. Segment operating income grew approximately 20%, reflecting strong operating leverage and improved cost absorption. Mexico remained a standout market with double-digit growth, while Canada also contributed meaningfully through both pricing and volume expansion, supported by solid demand across beverage categories.
However, some of this strong performance was influenced by timing-related factors, including pre-buying activity ahead of tax changes in Mexico. This creates a tougher comparison base for the upcoming quarters and may lead to some moderation in growth in the near term. Additionally, currency fluctuations and regional economic conditions remain external variables that could impact reported results.
Looking ahead, KDP’s international segment appears well positioned for sustained growth, supported by continued investment in distribution, localized innovation and brand building. While near-term growth may normalize following a strong quarter, the company’s ability to balance pricing with volume growth and expand in high-potential markets should help maintain steady momentum over the long term.
Keurig Dr Pepper’s Zacks Rank & Share Price Performance
Shares of this Zacks Rank #3 (Hold) company have declined 4.1% in the past three months, underperforming both the industry and the broader Consumer Staples sector, which rose 4.6% and 4.8%, respectively. However, the stock also lagged the S&P 500, which fell 2.3% in the same time period.
KDP Stock's Past Three-Month Performance
Image Source: Zacks Investment Research
Is KDP a Value Play Stock?
Keurig Dr Pepper currently trades at a forward 12-month P/E ratio of 11.68X, lower than the industry average of 19.0X and the sector average of 17.03X. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.
KDP P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Stocks to Consider
The Hershey Company (HSY - Free Report) engages in the manufacture and sale of confectionery products and pantry items in the United States and internationally. It sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
HSY delivered a trailing four-quarter earnings surprise of 17.2%, on average. The Zacks Consensus Estimate for Hershey’s current financial-year sales and earnings indicates growth of 4.8% and 30.1%, respectively, from the prior-year reported levels.
Mama's Creations, Inc. (MAMA - Free Report) manufactures and markets fresh deli-prepared foods in the United States. At present, it carries a Zacks Rank #2 (Buy).
MAMA delivered a trailing four-quarter earnings surprise of 133.3%, on average. The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 39.9% and 44.4%, respectively, from the year-ago figures.
US Foods Holding Corp. (USFD - Free Report) engages in the marketing, sale and distribution of fresh, frozen and dry food and non-food products to foodservice customers in the United States. It currently carries a Zacks Rank of 2.
USFD delivered a trailing four-quarter earnings surprise of 2.2%, on average. The Zacks Consensus Estimate for US Foods Holding’s current fiscal-year sales and earnings implies growth of 5.4% and 20.9%, respectively, from the year-ago figures.