Keurig Dr Pepper's Planned Breakup Could Show Which Half Is Worth More

Keurig Dr Pepper is preparing to split into two separately traded companies in early 2027, unwinding the 2018 merger that combined its North American beverage business with its Keurig coffee operations, according to TheStreet. One company will house Dr Pepper and KDP's other cold-drink brands, while the other will combine Keurig with JDE Peet's, following KDP's earlier acquisition of that company.

According to a Bank of America note cited by TheStreet, the bank reiterated a Buy rating on Keurig Dr Pepper with a $38 price target, about 21% above the $31.39 share price cited in the report. BofA estimates the future beverage company alone could be worth roughly $31 per current KDP share, while the coffee business could be worth about $7 per share — meaning the Dr Pepper-led side could eventually be valued at nearly as much as the entire combined company is worth today.

BofA said the split remains on track for its early 2027 timeline. The move marks the first step in a broader restructuring that will leave investors holding stakes in two businesses with different growth, margin, and debt profiles.