Keystone Financial Planning, Inc. initiated a new stake in Diageo (DEO 1.25%) during Q3 2025, acquiring 87,055 shares in a trade estimated at $8.31 million, according to an SEC filing dated October 7, 2025.
What happened
According to a filing with the Securities and Exchange Commission dated October 7, 2025, Keystone Financial Planning, Inc. established a new position in Diageo during the third quarter. The fund acquired 87,055 shares with an estimated transaction value of $8.31 million based on the period’s average share price. The addition brings the fund’s total reported U.S. equity positions to 46, as of September 30, 2025.
What else to know
This new position now represents 2.4% of Keystone's 13F assets under management as of September 30, 2025.
Top holdings after the filing:
- UNK:SCHD: $167.92 million (48.8% of AUM)
- NASDAQ:MSFT: $13.92 million (4.0% of AUM)
- NYSE:CVX: $12.20 million (3.5% of AUM)
- NYSE:USB: $11.00 million (3.2% of AUM)
As of October 7, 2025, Diageo shares were priced at $95.90, down 29.6% over the past year and underperforming the S&P 500 by 46.0 percentage points during the same period.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $20.25 billion |
| Net Income (TTM) | $2.35 billion |
| Dividend Yield | 4.40% |
| Price (as of market close October 7, 2025) | $95.90 |
Company Snapshot
Diageo offers a broad portfolio of alcoholic beverages, including whisky, vodka, gin, tequila, rum, liqueurs, beer, and cider under globally recognized brands such as Johnnie Walker, Smirnoff, Guinness, and Don Julio.
The company generates revenue primarily through the production, marketing, and sale of branded spirits and beer across multiple international markets.
It targets adult consumers globally, focusing on both mature and emerging markets.
Diageo is a leading global producer and marketer of premium alcoholic beverages, operating at scale with a diverse brand portfolio and significant international presence.
Foolish take
Diageo may not be a household name in itself, but it has a hefty portfolio of more than 200 recognizable names in the alcoholic beverage industry. While the company does have production plants in the U.S., much of its production is imported from Europe.
With tariffs hitting many importers hard this year, it's not exactly surprising that Diageo has underperformed the S&P 500. In fact, last quarter, Diageo estimated that tariffs would consume around $150 million in annual costs.
But the company is also facing industry-wide problems with slowing demand for alcohol -- especially among younger consumers -- likely contributing to its weakened performance.
If these issues are only short-term struggles, Diageo could be poised for a fantastic comeback down the road. But if the industry as a whole is at risk, the company could have a bigger problem on its hands. Difficult times are make-or-break moments for company leadership, and investors will be watching how Diageo and similar organizations pivot amid these challenges.
Glossary
Stake: An ownership interest or investment in a company, often represented by shares.
13F assets under management: The total value of securities reported by institutional investment managers in quarterly SEC Form 13F filings.
Position: The amount of a particular security or asset held in a portfolio.
Top holdings: The largest investments within a fund or portfolio, usually ranked by market value.
Dividend yield: Annual dividends paid by a company divided by its share price, shown as a percentage.
Portfolio: A collection of investments held by an individual or institution.
TTM: The 12-month period ending with the most recent quarterly report.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a financial institution.
Equity positions: Investments in company shares, representing ownership in those businesses.
Filing: A formal document submitted to a regulatory authority, such as the SEC, disclosing financial or operational information.
Reportable: Required to be disclosed in regulatory filings due to size or regulatory thresholds.
