- Keurig Dr Pepper beat Wall Street estimates for third-quarter sales on Thursday, as higher prices and steady demand for its sodas and drinks helped limit the hit from a slowing coffee business.The company and rivals Coca-Cola and PepsiCo have been raising prices to counter higher commodity, freight and labor costs following the pandemic-induced supply chain snags that were compounded by Russia's invasion of Ukraine.
Net sales for the third quarter increased 5.1% to $3.81 billion, beating estimates of $3.77 billion, according to LSEG data. Excluding items, the company reported a profit of 48 cents per share topping estimates of 47 cents. However, the U.S. coffee segment remained under pressure, with net sales falling 3.2% to $1.01 billion.
Coffee sales boomed during the pandemic as people spent more time at home but demand eased as people ventured out more. Keurig Dr Pepper, however, reaffirmed its fiscal 2023 adjusted earnings per share to rise 6% to 7% and net sales to grow 5% to 6%.