1) Strategy & Leadership
- KDP successfully closed the acquisition of JDE Peet's on April 1, 2026, integrating over 20,000 new employees and complementary portfolios.
- The company is focused on achieving low double-digit EPS growth and operational readiness for the separation into two standalone companies by the end of 2026, with the official split expected in early 2027.
- Tim Cofer will lead Beverage Co., while Rafa Oliveira from JDE Peet's will head Global Coffee Co.
- The transformation agenda aims to balance near-term performance with long-term strategic goals, including synergies and operational efficiencies.

2) Financial & Segment Results
- Q1 2026 net sales grew by 8.1%, driven by strong performance in U.S. Refreshment Beverages and International, while U.S. Coffee faced a decline.
- Segment Performance: | Segment | Q1 Net Sales Growth | Operating Income Growth | |-----------------------------|---------------------|-------------------------| | U.S. Refreshment Beverages | 11.9% | 9.8% | | U.S. Coffee | -2.3% | -21.3% | | International | 8.5% | -15.1% | - EPS for Q1 was $0.39, down 7.1% YoY, impacted by cost pressures and a prior gain from the sale of Vita Coco.

3) Problems / Headwinds
- U.S. Coffee segment profitability was affected by elevated green coffee costs, tariffs, and trade inventory adjustments, leading to a 7% decline in pod shipments.
- Gross margin contracted by 220 basis points due to cost pressures, with expectations of improvement in the back half of the year as inflation eases.
- The company anticipates subdued profit for U.S. Coffee in the first half of 2026 but expects gradual improvement in the second half.

4) Operational or Product Plans
- KDP is enhancing its product offerings, including the launch of Canada Dry Fruit Splash and Dr Pepper Creamy Coconut, which are expected to drive share gains.
- The company is investing in long-term growth initiatives, including the Keurig Coffee Collective and the Keurig Alta system, set for direct-to-consumer launch later in 2026.
- In the energy drink segment, KDP is seeing strong growth from GHOST and Bloom, with plans for further distribution expansion and innovation.

5) Guidance & Outlook / Investor Angle
- KDP reaffirms its 2026 guidance, expecting total company net sales between $25.9 billion and $26.4 billion, with low double-digit EPS growth.
- The company anticipates high single-digit EPS growth in Q2, with further acceleration in the back half of the year as cost pressures ease and synergies from JDE Peet's are realized.
- Future capital allocation will focus on maintaining investment-grade ratings and optimizing the capital structures of the two future companies.

Bottom line: KDP is on a solid trajectory with strong growth in its Refreshment Beverages segment and a strategic focus on integrating JDE Peet's while preparing for a successful separation. Despite short-term challenges in the Coffee segment, the company remains confident in its long-term growth prospects and value creation opportunities for shareholders.