Keurig Dr Pepper Fell 29% From Its High. Is 2026 the Turning Point?

Keurig Dr Pepper (KDP) has seen its stock fall 29% from its high, despite beating revenue estimates in recent earnings reports. The company recently completed an $18 billion acquisition of JDE Peet’s and plans to separate into two independent, U.S.-listed businesses: a cold beverage-focused Beverage Co. and a Global Coffee Co. by year-end 2026. The investment case hinges on whether this separation will unlock value and if the company can manage its increased debt, with management projecting 10% EPS accretion and targeting $2 billion in free cash flow for standalone KDP in 2026.

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