10 Best Coffee Stocks To Buy According to Hedge Funds

4. Keurig Dr Pepper Inc. (NASDAQ:KDP)

Number of Hedge Fund Holders: 38

Keurig Dr. Pepper Inc. (NASDAQ:KDP) is a leading beverage company in North America that has a portfolio of over 125 owned, licensed, and partner brands. The company offers ready-to-drink beverages catering to diverse tastes including carbonated soft drinks, tea, still or sparkling water, juice, and non-alcoholic mixers. In the ready-to-brew category, specialty coffee and other specialty beverages in K-Cup pods are offered.

Keurig boasts a leadership position in liquid refreshment beverages, including soft drinks, specialty coffee and tea, water, juice and juice drinks and mixers, and markets the top single serve coffee brewing system in the US and Canada. A consumer-centric innovation model is what has helped Keurig Dr. Pepper capture the market of 45 million North American coffee consumers who use Keurig brewers. The company is known for transforming the way consumers brew coffee through the introduction of the K-Cup pod single serve coffee system.

Driven by the strong US Refreshment Beverages segment and international momentum, Keurig closed a solid Q3. Net sales for the third quarter rose 2.3% to $3.9 billion. The firm looks forward to a strong finish to 2024 and a healthy 2025 based on an improvement in its volume/mix performance despite a muted operating environment and cost discipline throughout the organization.

In the US coffee segment, Keurig Dr. Pepper Inc. (NASDAQ:KDP) continued progress despite a soft recent quarter, positioning the firm for success when the category recovers. Other than having a healthy pod market share, KDP witnessed double-digit brewer unit growth which reflects stabilizing coffeemaker category trends and ongoing share gains.