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KDP (Keurig Dr Pepper) Operating Margin % : 22.04% (As of Mar. 2025)


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What is Keurig Dr Pepper Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Keurig Dr Pepper's Operating Income for the three months ended in Mar. 2025 was $801 Mil. Keurig Dr Pepper's Revenue for the three months ended in Mar. 2025 was $3,635 Mil. Therefore, Keurig Dr Pepper's Operating Margin % for the quarter that ended in Mar. 2025 was 22.04%.

The historical rank and industry rank for Keurig Dr Pepper's Operating Margin % or its related term are showing as below:

KDP' s Operating Margin % Range Over the Past 10 Years
Min: 16.62   Med: 21.47   Max: 22.82
Current: 21.56


KDP's Operating Margin % is ranked better than
92.11% of 114 companies
in the Beverages - Non-Alcoholic industry
Industry Median: 8.835 vs KDP: 21.56

Keurig Dr Pepper's 5-Year Average Operating Margin % Growth Rate was -0.40% per year.

Keurig Dr Pepper's Operating Income for the three months ended in Mar. 2025 was $801 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2025 was $3,345 Mil.


Keurig Dr Pepper Operating Margin % Historical Data

The historical data trend for Keurig Dr Pepper's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Keurig Dr Pepper Operating Margin % Chart

Keurig Dr Pepper Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 21.92 22.82 19.80 21.56 21.56

Keurig Dr Pepper Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 22.06 21.95 23.18 19.19 22.04

Competitive Comparison of Keurig Dr Pepper's Operating Margin %

For the Beverages - Non-Alcoholic subindustry, Keurig Dr Pepper's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Keurig Dr Pepper's Operating Margin % Distribution in the Beverages - Non-Alcoholic Industry

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Keurig Dr Pepper's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Keurig Dr Pepper's Operating Margin % falls into.


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Keurig Dr Pepper Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Keurig Dr Pepper's Operating Margin % for the fiscal year that ended in Dec. 2024 is calculated as

Operating Margin %=Operating Income (A: Dec. 2024 ) / Revenue (A: Dec. 2024 )
=3309 / 15351
=21.56 %

Keurig Dr Pepper's Operating Margin % for the quarter that ended in Mar. 2025 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2025 ) / Revenue (Q: Mar. 2025 )
=801 / 3635
=22.04 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Keurig Dr Pepper  (NAS:KDP) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Keurig Dr Pepper Operating Margin % Related Terms

Thank you for viewing the detailed overview of Keurig Dr Pepper's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Keurig Dr Pepper Business Description

Address
53 South Avenue, Burlington, MA, USA, 01803
Keurig Dr Pepper was established in 2018 following a merger between Keurig Green Mountain Coffee and Dr Pepper Snapple. The company manufactures and distributes coffee systems (including coffee brewers and single-serve coffee pods) under the Keurig and Green Mountain brands, as well as ready-to-drink beverages including flavored (non-cola) sparkling soft drinks under well-known brands such as Dr Pepper, Snapple, and Canada Dry. The company controls production and route to market for its own brands through in-house manufacturing plants and distribution infrastructure and leverages these facilities to manufacture and distribute for third-party coffee and beverage brands via licensing and partnership agreements. The US and Canada make up 95% of revenue, with the rest from Mexico.
Executives
Mary Beth Denooyer officer: Chief Human Resources Officer 53 SOUTH AVENUE, BURLINGTON MA 01803
Angela A. Stephens officer: Sr. Vice President, Controller 6425 HALL OF FAME LANE, FRISCO TX 75034
Robert James Gamgort director, officer: CEO & President KEURIG DR PEPPER INC., 6425 HALL OF FAME LANE, FRISCO TX 75034
Maple Holdings B.v. 10 percent owner OOSTERDOKSSTRAAT 80, AMSTERDAM P7 1011DK
Matthew Andrew Archambault officer: President, Commercial 6425 HALL OF FAME LANE, FRISCO TX 75034
Roger Frederick Johnson officer: Chief Supply Chain Officer 53 SOUTH AVENUE, BURLINGTON MA 01803
Jab Holdings B.v. 10 percent owner PIET HEINKADE 55, AMSTERDAM P7 NL 1019 GM
Karin Rotem-wildeman officer: Chief R&D Officer 6425 HALL OF FAME LANE, FRISCO TX 75034
Robert S Singer director 6301 FITCH PATH, NEW ALBANY OH 43054
Sudhanshu Shekhar Priyadarshi officer: Chief Financial Officer 6425 HALL OF FAME LANE, FRISCO TX 75034
Olivier Goudet director 350 FIFTH AVENUE, NEW YORK NY 10118
Peter Harf director C/O COTY INC., 350 FIFTH AVENUE, NEW YORK NY 10118
Timothy P. Cofer officer: Chief Operating Officer 6425 HALL OF FAME LANE, FRISCO TX 75034
Anthony Shoemaker officer: Chief Legal Officer 6425 HALL OF FAME LANE, FRISCO TX 75034
Maria A. Sceppaguercio-gever officer: Chief Corp. Affairs Officer 53 SOUTH AVENUE, BURLINGTON MA 01803