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KDP, Keurig Dr Pepper Inc.

Beverages consumer brand

Keurig Dr Pepper Inc. is a leading beverage company in North America that manufactures, markets, distributes, and sells hot and cold beverages and single serve brewing systems.

We have a broad portfolio of iconic beverage brands, including Dr Pepper, Canada Dry, Mott's, A&W, Pe afiel, GHOST, 7UP, Snapple, Green Mountain Coffee Roasters, Clamato, The Original Donut Shop, and Core Hydration, as well as the Keurig brewing system.

Our beverage brands are some of the most recognized beverage brands in North America, with significant consumer awareness levels and long histories that evoke strong emotional connections with consumers.

Latest annual: FY2025 10-K

KDP · Keurig Dr Pepper Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$16.6B

+8.2% YoY · 7% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $16.9B 5-yr avg $14.7B

Gross margin 54% 5-yr avg 54%

Operating margin 20.8% 5-yr avg 20.3%

ROIC 6% 5-yr avg 6%

Owner-earnings margin 9% 5-yr avg 13%

Free cash flow margin 9% 5-yr avg 13%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What it is: Revenue is U.S. Refreshment Beverages (63%), U.S. Coffee (24%) and International (13%).
What moves the needle: Gross margin has run about 55% and operating margin about 21% through the cycle, a wide spread between price and the cost of what it sells — whether that advantage is durable pricing power or a margin that can erode is the question the record is for. That margin has stayed fairly steady relative to where it runs (17%–23% over the years), so unit growth and cost discipline, not a moving line, are the lever. The cash cycle has run negative through the cycle (a median of −155 days): the operation is paid before it pays, so working capital releases cash as the business grows rather than tying it up. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median 5%, above 15% in 0 of 9 years). By owner earnings: roughly 18% of revenue reaches owners as cash, consistently, and customers and suppliers fund the business through negative working capital. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

U.S. Refreshment Beverages is 63% of revenue, with U.S. Coffee the other meaningful segment at 24%.

Revenue by reportable segment, FY2025

U.S. Refreshment Beverages63%$10.4B
U.S. Coffee24%$4.0B
International13%$2.2B

By geographyUnited States87%International13%

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2017–2025

realized figures from each filing · older years to the left

2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
										Income statement
$4.3B	$7.4B	$11.1B	$11.6B	$12.7B	$14.1B	$14.8B	$15.4B	$16.6B	$16.9B	RevenueRevenue
48%	52%	57%	56%	55%	52%	55%	56%	54%	54%	Gross marginGross mgn
27%	35%	36%	34%	33%	33%	33%	33%	32%	32%	SG&A / revenueSG&A/rev
1%	1%	1%	1%	1%	0%	0%	0%	0%	0%	R&D / revenueR&D/rev
$897M	$1.2B	$2.4B	$2.5B	$2.9B	$2.6B	$3.2B	$2.6B	$3.6B	$3.5B	Operating incomeOp. inc.
21.0%	16.6%	21.4%	21.3%	22.8%	18.5%	21.5%	16.9%	21.5%	20.8%	Operating marginOp. mgn
$378M	$586M	$1.3B	$1.3B	$2.1B	$1.4B	$2.2B	$1.4B	$2.1B	$1.8B	Net incomeNet inc.
33%	26%	26%	24%	23%	17%	21%	25%	23%	23%	Effective tax rateTax rate
										Cash flow & returns
$1.7B	$1.6B	$2.5B	$2.5B	$2.9B	$2.8B	$1.3B	$2.2B	$2.0B	$2.1B	Operating cash flowOp. cash
$102M	$233M	$358M	$362M	$410M	$399M	$402M	$422M	$455M	$463M	DepreciationDeprec.
$1.2B	$759M	$798M	$684M	$230M	$950M	($1.4B)	$258M	($640M)	($337M)	Working capital & otherWC & other
$66M	$180M	$330M	$461M	$423M	$353M	$425M	$563M	$486M	$482M	CapexCapex
1.5%	2.4%	3.0%	4.0%	3.3%	2.5%	2.9%	3.7%	2.9%	2.8%	Capex / revenueCapex/rev
$1.7B	$1.4B	$2.1B	$2.1B	$2.5B	$2.5B	$904M	$1.8B	$1.5B	$1.6B	Owner earningsOwner earn.
39.4%	19.3%	19.3%	18.0%	19.3%	17.7%	6.1%	11.7%	9.1%	9.3%	Owner earnings marginOE mgn
$1.7B	$1.4B	$2.1B	$2.0B	$2.5B	$2.5B	$904M	$1.7B	$1.5B	$1.6B	Free cash flowFCF
39.4%	19.3%	19.3%	17.2%	19.3%	17.7%	6.1%	10.8%	9.1%	9.3%	Free cash flow marginFCF mgn
$0	$19.1B	$8M	$0	$0	$0	$0	$1.0B	$149M	$149M	AcquisitionsAcquis.
$414M	$232M	$844M	$846M	$955M	$1.1B	$1.1B	$1.2B	$1.3B	$1.3B	Dividends paidDiv. paid
$399M	—	—	$0	$0	$379M	$706M	$1.1B	$9M	—	BuybacksBuybacks
5%	2%	5%	5%	6%	6%	7%	5%	7%	6%	ROICROIC
5%	3%	5%	6%	9%	6%	8%	6%	8%	7%	Return on equityROE
−0%	2%	2%	2%	5%	1%	4%	1%	3%	2%	Retained to equityRetained/eq
										Balance sheet
$138M	$83M	$75M	$240M	$567M	$535M	$267M	$510M	$1.0B	$951M	Cash & investmentsCash+inv
$483M	$1.1B	$1.1B	$1.0B	$1.1B	$1.5B	$1.4B	$1.5B	$1.7B	$1.5B	ReceivablesReceiv.
$384M	$626M	$654M	$762M	$894M	$1.3B	$1.1B	$1.3B	$1.7B	$1.8B	InventoryInvent.
$1.6B	$2.3B	$3.2B	$3.7B	$4.3B	$5.2B	$3.6B	$3.0B	$3.0B	$2.8B	Accounts payablePayables
($713M)	($524M)	($1.4B)	($1.9B)	($2.3B)	($2.4B)	($1.1B)	($184M)	$408M	$525M	Operating working capitalOper. WC
$1.1B	$2.2B	$2.3B	$2.4B	$3.1B	$3.8B	$3.4B	$4.0B	$5.3B	$23.1B	Current assetsCur. assets
$2.0B	$5.7B	$6.5B	$7.7B	$6.5B	$8.1B	$8.9B	$8.1B	$8.3B	$10.0B	Current liabilitiesCur. liab.
0.5×	0.4×	0.4×	0.3×	0.5×	0.5×	0.4×	0.5×	0.6×	2.3×	Current ratioCurr. ratio
$9.8B	$20.0B	$20.2B	$20.2B	$20.2B	$20.1B	$20.2B	$20.1B	$20.2B	$20.2B	GoodwillGoodwill
$15.7B	$48.9B	$49.5B	$49.8B	$50.6B	$51.8B	$52.1B	$53.4B	$55.5B	$73.1B	Total assetsAssets
$5.1B	$14.6B	$13.2B	$13.5B	$11.7B	$11.6B	$11.1B	$13.9B	$13.9B	$22.9B	Total debtDebt
$5.0B	$14.5B	$13.1B	$13.2B	$11.2B	$11.0B	$10.8B	$13.4B	$12.9B	$21.9B	Net debt / (cash)Net debt
8.9×	3.1×	3.6×	4.1×	5.8×	3.8×	6.4×	—	—	7.1×	Interest coverageInt. cov.
$7.4B	$22.5B	$23.3B	$23.8B	$25.0B	$25.1B	$25.7B	$24.2B	$25.5B	$25.3B	Shareholders’ equityEquity
1.4%	0.5%	0.6%	0.7%	0.7%	0.4%	0.8%	0.6%	0.6%	0.6%	Stock comp / revenueSBC/rev
										Per share
791M	1.10B	1.42B	1.42B	1.43B	1.43B	1.41B	1.37B	1.36B	1.36B	Shares out (diluted)Shares
$5.40	$6.78	$7.84	$8.17	$8.88	$9.84	$10.52	$11.22	$12.18	$12.43	Revenue / shareRev/sh
$0.48	$0.53	$0.88	$0.93	$1.50	$1.01	$1.55	$1.05	$1.53	$1.34	EPS (diluted)EPS
$2.13	$1.31	$1.51	$1.47	$1.72	$1.74	$0.64	$1.31	$1.10	$1.16	Owner earnings / shareOE/sh
$2.13	$1.31	$1.51	$1.40	$1.72	$1.74	$0.64	$1.21	$1.10	$1.16	Free cash flow / shareFCF/sh
$0.52	$0.21	$0.59	$0.59	$0.67	$0.76	$0.81	$0.87	$0.92	$0.92	Dividends / shareDiv/sh
$0.08	$0.16	$0.23	$0.32	$0.30	$0.25	$0.30	$0.41	$0.36	$0.35	Cap. spending / shareCapex/sh
$9.36	$20.53	$16.39	$16.76	$17.49	$17.59	$18.23	$17.72	$18.72	$18.52	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	8-yr	5-yr
Revenue / share	+10.7%/yr	+8.3%/yr
Owner earnings / share	−7.9%/yr	−5.6%/yr
EPS	+15.6%/yr	+10.4%/yr
Dividends / share	+7.3%/yr	+9.0%/yr
Capital spending / share	+19.9%/yr	+1.9%/yr
Book value / share	+9.1%/yr	+2.2%/yr

The year, in the company's words

the filing →

Verbatim from the 10-K's management discussion. Each sentence is shown only because its subject, direction, and stated figures check out against the filed numbers on this page. The words are the company's; the arithmetic is the record's.

Operating income+38.0%
“Income from operations increased $984 million, or 38.0%, to $3,575 million for the year ended December 31, 2025 compared to $2,591 million in the prior year, driven by the favorable comparison of our non-cash impairment charges for goodwill and intangible assets compared to the prior year, increased gross profit, and the favorable comparison to the termination fee associated with ABI incurred in the prior year.”
✓ figure matches the filed record
Net income+44.3%
“Net income increased $638 million, or 44.3%, to $2,079 million for the year ended December 31, 2025, primarily driven by increased income from operations, partially offset by the increase in our mandatory redemption liability for GHOST.”
✓ figure matches the filed record

The record, charted

FY2017–2025

Each measure over its full record; the current point and the worst year marked.

Share count

1.4Bpeak FY2022

ROIC

7%low FY2018

Gross margin

54%low FY2017

Net debt ÷ owner earnings

8.6×peak FY2023

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$1.5Bowner earningsvs.$2.1Bnet incomelow FY2023

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2017FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business reported $2.1B of profit but $1.5B of owner earnings: $574M less than the profit line, taken out by capital spending and the timing of cash.

Reported net income$2.1B

Owner earnings$1.5B · 9% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$2.1B	$1.4B	$2.2B	$1.4B	$2.1B
Depreciation & amortizationnon-cash charge added back	+$455M	+$422M	+$402M	+$399M	+$410M
Stock-based compensationreal costnon-cash, but a real cost	+$97M	+$98M	+$116M	+$52M	+$88M
Working capital & othertiming of cash in and out, other non-cash items	−$640M	+$258M	−$1.4B	+$950M	+$230M
Cash from operations	$2.0B	$2.2B	$1.3B	$2.8B	$2.9B
Maintenance capital expenditurethe spending needed just to hold position and volume	−$486M	−$422M	−$425M	−$353M	−$423M
Owner earnings	$1.5B	$1.8B	$904M	$2.5B	$2.5B
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	—	−$141M	—	—	—
Free cash flow	$1.5B	$1.7B	$904M	$2.5B	$2.5B
Owner-earnings marginowner earnings ÷ revenue	9%	12%	6%	18%	19%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $97M), owner earnings is nearer $1.4B.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 7.2×

Comfortable

Operating income $3.6B ÷ interest expense $496M

What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
How heavy is the debt, net of cash? $12.9B · 3.6× operating profit

Meaningful net debt

Cash $1.0B − debt $13.9B

What this means
Netting $1.0B of cash and short-term investments against $13.9B of debt leaves $12.9B owed, about 3.6× a year's operating profit (3.9× on the gross debt, before the cash). It also holds $48M in longer-dated marketable securities; counting those, it sits at $12.9B of net debt. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? -24d

Negative, funded by others

DSO 37 + DIO 83 − DPO 144 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. A negative cycle is a quiet moat: suppliers and customers fund the operation (Buffett's “float”), the company grows on other people's money.

Is it a good business?

Return on invested capital 5%

Below average through the cycle

9-yr median, range 2%–7%; 7% latest = NOPAT $2.8B ÷ invested capital $38.4B

Industry peers: median 12%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 9 years (it ran 7% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 18%

High through the cycle

9-yr median margin, range 6%–39%; latest $1.5B = operating cash $2.0B − maintenance capex $486M

Industry peers: median 13%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 9% of revenue this year, a 18% median across 9 years. Treating stock comp as the real expense it is (less $97M of SBC) leaves $1.4B.
Are earnings backed by cash? 0.96×

Mostly cash-backed

Cash from ops $2.0B ÷ net income $2.1B

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 84%

Returns about half

Dividends + buybacks $1.3B ÷ Owner Earnings $1.5B

What this means
Of $1.5B Owner Earnings, $1.3B (84%) went back to shareholders, $1.3B dividends, $9M buybacks. But the buybacks barely exceed stock issued to employees ($97M SBC), net of dilution, little was truly returned. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 1.07×

Maintaining

Capex $486M ÷ depreciation $455M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 4 of 6 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Pass

Revenue ≥ $2B · $16.6B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Miss

Current ratio ≥ 2× · 0.64×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Miss

Debt ≤ working capital · $13.9B vs ($3.0B) WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Pass

A profit every year (9-yr record) · no losses

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Pass

Uninterrupted dividends · paid every year (9)

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Pass

Earnings +33% over the record · +157%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $1.40/share (latest year $1.53), the averaged base the calculator's gate runs on, and book value is $18.75/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2017–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 9 of 9

What this means
Never lost money over the record, the earnings stability Graham insisted on.
Return on capital ≥ 15% 0 of 9 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin 20% → 20% (3-yr avg ends)

In the filing’s words The filing claims pricing power in its strongest form — price raised, volume held — yet the margin here has not widened to match. The claim leads the record; weigh them together.

What this means
Through the cycle the operating margin held roughly steady — about 20% early, 20% lately, median 21%.
Reinvestment, incremental ROIC 15%

What this means
Reinvested capital came back at only a modest incremental return — near the cost of capital, where extra growth adds little per dollar. The record shows whether it is a soft stretch or a thinning moat.
Owner earnings growth +1%/yr

What this means
Owner earnings grew about 1% a year over the record.
Worst year 2018 · 16.6% op. margin

What this means
Stayed profitable even in its hardest year, the resilience that survives recessions.
Share count +7.0%/yr

What this means
The share count is rising, dilution works against you on a per-share basis.
Dividend record rising

What this means
Paid and raised the dividend across the record, the continuity Graham prized.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing Raised, but not as a competitor

The filing raises AI among its risks, but in other terms (security, regulation, energy or the like), not as a competitor to its product.

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$23.1B

Cash & short-term investments$898M
Receivables$1.5B
Inventory$1.8B
Other current assets$18.9B

Current liabilities$10.0B

Debt due within a year$2.0B
Accounts payable$2.8B
Other current liabilities$5.2B

Current ratio2.31×all current assets ÷ what's due · Graham looked for 2×

Quick ratio2.12×stricter: inventory excluded

Cash ratio0.09×strictest: cash alone against what's due

Working capital$13.1Bthe cushion left after near-term bills

Debt due this year vs. cash$2.0B due · $898M cash cash alone won't cover the maturities; it leans on refinancing or operating cash · both figures from the Mar 31, 2026 balance sheet

Revenue, latest quarter vs. a year ago+9.4%the freshest read on whether the business is still growing

Current ratio, recent quarters0.5× → 2.3×

Deeper floors

Tangible book value($18.6B)equity stripped of goodwill & intangibles

Net current asset value($16.4B)Graham's net-net: current assets less all liabilities

Debt incl. operating leases$23.8B$889M of it operating leases; with finance leases, “total fixed claims” below reaches $15.7B (annual-report basis)

Deferred revenue$1.1Bcustomer cash collected before delivery; operating float

From the company's latest filing.

Lease obligations

the lease note, SEC EDGAR →

Debt by another name. What the business owes on the property, aircraft, stores and equipment it rents rather than owns is a fixed claim due on a schedule; added back to the debt, it is the true leverage. That ladder, operating and finance leases together, and what it adds to the debt on the page above.

Operating leasesFinance leases

'26$377M

'27$290M

'28$247M

'29$234M

'30$223M

later$866M

Lease payments by year, scaled to the largest; “later” is everything beyond year five, shown apart. These are the contractual cash payments, before the interest the filing imputes back out to the balance-sheet liability.

Due in the next 12 months$377Ma fixed cash payment, owed whether or not the business has a good year

Total lease payments$2.2Bevery year plus the tail, undiscounted: the full cash the leases will take

On the balance sheet$1.8Bthe present value of those payments, the recognised lease liability

True leverage: debt plus leases

On-balance-sheet debt$13.9B

Lease obligations (present value)$1.8B

Total fixed claims on the business$15.7B

Counting the leases the way Buffett does, the fixed claims on this business come to $15.7B, of which the leases are 12%. The lease wall above and the debt schedule together are the calendar of what must be paid, and when.

Lease ladder read from the ASC 842 tags in the company’s Dec 31, 2025 annual report and reconciled: the yearly buckets sum to the undiscounted total, which less the imputed interest equals the balance-sheet liability; a ladder that doesn’t tie out is withheld.

How the cash was used, 2017–2025

Over the record, the business generated $19.5B of operating cash; how management split it reads as a balanced allocator, splitting cash between the business, owners, and the balance sheet.

Reinvested$3.3B · 17%
Dividends$8.0B · 41%
Buybacks$2.6B · 13%
Retained (debt / cash)$5.7B · 29%

Returned to owners$10.6B
64% of the owner earnings the business produced over the span, $8.0B as dividends and $2.6B as buybacks.
Source of fundingOperating cash
Operating cash covered reinvestment and returns; over the span debt rose $17.8B and cash and short-term investments rose $808M.
Average price paid for buybacks$90.68
Across the years where the filing reports a share count, 4M shares were bought for $399M, about $90.68 each.
Net change in share count72.5%
The diluted count rose from 791M to 1364M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
Dividend record$0.92/sh
Paid in 9 of the years on record, the per-share dividend growing about 7% a year. It was cut at least once along the way.
Return on what it retained−16%
Of the earnings it kept rather than paid out ($2.3B over the span), annual owner earnings (first three years vs last three) fell $351M, so each retained $1 gave back about 0.16 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Acquisitions & goodwill

from the balance sheet & the 9-year cash-flow record

Goodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.

Goodwill & intangibles$44.0B79% of all assets; the premium carried on the balance sheet for businesses acquired

Against book equity79%goodwill is this share of book equity; the rest is the company’s own retained and paid-in capital

Cash spent acquiring$20.3Bover 9 years buying other businesses, against $3.3B of capital spent building

$306M written down across 1 year (2024): goodwill the company has already conceded it overpaid for, charged against earnings. A write-down costs no cash (the cash went out when the deal was signed), but it is management marking its own past judgment to market.

Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and write-downs summed across the 9-year record, from the company's own filings.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	Robert Gamgort	$7.8M	$17.5M	$2.5B
2022	Ozan Dokmecioglu	$16.7M	−$22.5M	$2.5B
2022	Robert Gamgort	$12.5M	$13.0M	$2.5B
2023	Robert Gamgort	$7.6M	$8.8M	$904M
2024	Robert Gamgort	$6.7M	−$1.6M	$1.8B
2024	Timothy Cofer	$7.0M	$7.0M	$1.8B
2025	Timothy Cofer	$8.2M	$5.7M	$1.5B

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership<1%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
CEO pay ratio127:1
What the chief earns for every dollar the median employee makes, per the 2026 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.
Stock-based compensation$97M
The slice of the business handed to employees in shares this year, 1% of revenue, equal to 3% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Keurig Dr Pepper Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2017–2025.

3 of the 6 tests turned up something to look into; the other 3 came back clean.

Look hereIs it less profitable than it was?9.0% vs 26.0%
The owner-earnings margin averaged 26.0% early in the record and 9.0% across the last three years, and the latest year has not recovered. Ask the filing whether that is a structural drift or a cyclical trough — price, mix, cost, or a competitor — and whether it is permanent.
Look hereDid the share count rise anyway?72.5%
Diluted shares grew 72.5% over 2017–2025, even as the company spent $2.6B on buybacks. The repurchases were outrun by issuance — to staff, in a raise, or in a deal — and the filing says which; owners' slice still shrank. Read the buyback line beside this one, not on its own.
Look hereDid debt outgrow the business?$5.1B → $22.9B
Debt rose from $5.1B to $22.9B while owner earnings went from about $1.8B to $1.4B — about 2.9 years of owner earnings in debt then, about 16 now: measured against what the business earns, the balance sheet carries more debt than it did. Debt raised for buybacks or deals rather than growth is the kind that bites in a downturn.

And these came back clean

Did reported profit become cash?
Did receivables and inventory outpace sales?
Are "one-time" charges a yearly habit?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Revenue recognition, Income taxes, Acquisitions as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Beverages

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
KOCoca-Cola Co.	$47.9B	61%	26.0%	16%	21%
GISGeneral Mills Inc.	$18.4B	35%	16.9%	12%	13%
KDPKeurig Dr Pepper Inc.	$16.6B	55%	21.3%	5%	18%
SFDSmithfield Foods Inc.	$15.5B	13%	7.9%	13%	4%
TAPMolson Coors	$13.0B	50%	11.0%	6%	9%
STZConstellation Brands Inc.	$9.1B	50%	29.9%	9%	25%
MNSTMonster Beverage Corp.	$8.3B	58%	32.9%	28%	24%
PRMBPrimo Brands	$6.7B	30%	6.7%	3%	4%
Group median	—	50%	19.1%	11%	16%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Keurig Dr Pepper Inc. has delivered.

Today’s price $

Through the cycle, Keurig Dr Pepper Inc. earns about $3.0B on its 18.0% median owner-earnings margin. This year’s 9.1% margin runs below that; the reported figure may understate a lean year. Normalize, below, values the price on that through-cycle figure rather than the latest year.

Base Normalize · through-cycle ($3.0B) Net of stock comp (−$105M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25−10%/yr

Owner-earnings growth · ’17→’25+0%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $1.6B on 1361M shares outstanding, per the 10-Q cover, as of 2026-04-21; net debt $21.9B. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh KDP against another business →

The owners of KDP: the meeting and the votes →

Cite: Owner Scorecard, "Keurig Dr Pepper Inc. (KDP), the owner's record," https://ownerscorecard.com/c/KDP, data as of 2026-07-09.

Manual order: ← KDK its page in the Manual KE →

Industry order: ← FMX the Beverages chapter KO →