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Unpacking Q1 Earnings: Keurig Dr Pepper (NASDAQ:KDP) In The Context Of Other Beverages and Alcohol Stocks


Jabin Bastian /
2024/06/21 7:14 am EDT

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Keurig Dr Pepper (NASDAQ:KDP) and the best and worst performers in the beverages and alcohol industry.

These companies' performance is influenced by brand strength, marketing strategies, and shifts in consumer preferences. Changing consumption patterns are particularly relevant and can be seen in the explosion of alcoholic craft beer drinks or the steady decline of non-alcoholic sugary sodas. Companies that spend on innovation to meet consumers where they are with regards to trends can reap huge demand benefits while those who ignore trends can see stagnant volumes. Finally, with the advent of the social media, the cost of starting a brand from scratch is much lower, meaning that new entrants can chip away at the market shares of established players.

The 13 beverages and alcohol stocks we track reported a decent Q1; on average, revenues were in line with analyst consensus estimates. while next quarter's revenue guidance was 15.8% below consensus. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and beverages and alcohol stocks have had a rough stretch, with share prices down 5.2% on average since the previous earnings results.

Keurig Dr Pepper (NASDAQ:KDP)

Born out of a 2018 merger between coffee company Keurig Green Mountain and beverage company Dr Pepper Snapple, Keurig Dr Pepper (NASDAQ:KDP) boasts a powerhouse portfolio of beverages.

Keurig Dr Pepper reported revenues of $3.47 billion, up 3.4% year on year, topping analysts' expectations by 1.6%. It was a solid quarter for the company, with a decent beat of analysts' gross margin and earnings estimates.

Commenting on this final step in the CEO transition, which began in Fall 2023, Chairman and CEO Bob Gamgort stated, "It has been a privilege to help establish Keurig Dr Pepper into the formidable company it is today, and I look forward to supporting its future growth as Executive Chairman. As KDP enters its next phase, Tim and his leadership team are activating an exciting, evolved strategy that I am confident will extend our track record of success and continue to differentiate KDP within the beverage industry."

Keurig Dr Pepper Total Revenue

The stock is up 5.9% since the results and currently trades at $34.26.

Is now the time to buy Keurig Dr Pepper? Access our full analysis of the earnings results here, it's free.

Best Q1: Boston Beer (NYSE:SAM)

Known for its flavorful beverages challenging the status quo, Boston Beer (NYSE:SAM) is a pioneer in craft brewing and a symbol of American innovation in the alcoholic beverage industry.

Boston Beer reported revenues of $426.1 million, up 3.9% year on year, outperforming analysts' expectations by 3.3%. It was a stunning quarter for the company, with an impressive beat of analysts' earnings estimates.

Boston Beer Total Revenue

The stock is up 2.7% since the results and currently trades at $295.04.

Is now the time to buy Boston Beer? Access our full analysis of the earnings results here, it's free.

Weakest Q1: Zevia PBC (NYSE:ZVIA)

With a primary focus on soda but also a presence in energy drinks and teas, Zevia (NYSE:ZVIA) is a better-for-you beverage company.

Zevia PBC reported revenues of $38.8 million, down 10.4% year on year, falling short of analysts' expectations by 1.6%. It was a weak quarter for the company, with revenue guidance for next quarter missing analysts' expectations.

Zevia PBC had the weakest full-year guidance update in the group. The stock is down 25.9% since the results and currently trades at $0.78.

Read our full analysis of Zevia PBC's results here.

Anheuser-Busch (NYSE:BUD)

Born out of a complicated web of mergers and acquisitions, Anheuser-Busch InBev (NYSE:BUD) boasts a powerhouse beer portfolio of Budweiser, Stella Artois, Corona, and local favorites around the world.

Anheuser-Busch reported revenues of $14.55 billion, up 2.3% year on year, surpassing analysts' expectations by 1.3%. It was a solid quarter for the company, with a decent beat of analysts' earnings estimates and a narrow beat of analysts' operating margin estimates.

The stock is down 2.4% since the results and currently trades at $59.11.

Read our full, actionable report on Anheuser-Busch here, it's free.

Celsius (NASDAQ:CELH)

With its proprietary MetaPlus formula as the basis for key products, Celsius (NASDAQ:CELH) offers energy drinks that feature natural ingredients to help in fitness and weight management.

Celsius reported revenues of $355.7 million, up 36.8% year on year, falling short of analysts' expectations by 8.8%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates.

Celsius scored the fastest revenue growth but had the weakest performance against analyst estimates among its peers. The stock is down 21% since the results and currently trades at $61.87.

Read our full, actionable report on Celsius here, it's free.

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