Please ensure Javascript is enabled for purposes of website accessibility

Keurig Dr Pepper Predicts Faster Growth After a Strong 2019

By Demitri Kalogeropoulos - Feb 27, 2020 at 10:34AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The outlook is brightening for soda and coffee sales.

Keurig Dr Pepper (KDP -4.03%) is ready to push its soda and coffee portfolio to the next level. The consumer beverage giant on Thursday reported solid sales and profit results for fiscal 2019 while predicting faster gains to come thanks to robust demand for many of its key franchises.

A glass of soda.

Image source: Getty Images.

Sales rose 3.2% for the full year after accounting for currency exchange shifts and the temporary impact of merger charges. That result included market share gains in the core soft drink portfolio and in niches like bottled water, fruit juices, and coffee.

Keurig Dr Pepper achieved significant gains in its manufactured coffee pods thanks in part to major distribution agreements with McDonald's and Starbucks. "We delivered strong performance for 2019," CEO Bob Gamgort said in a press release, "with sales growth in all four segments and [earnings per share] growth above our ... target range ."

What's next?

The strong finish to the year has given management confidence to predict more improvements, with sales slated to rise between 3% and 4% in 2020. The company is expecting a busy year for partnerships and for investments throughout its supply chain and manufacturing footprint. Yet adjusted earnings should still rise between 13% and 15%, supported by rising prices and continued cost savings from the 2018 merger that brought Keurig and Dr Pepper under the same corporate umbrella.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Keurig Green Mountain, Inc. Stock Quote
Keurig Green Mountain, Inc.
KDP
$34.52 (-4.03%) $-1.45

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
349%
 
S&P 500 Returns
122%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/19/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.