Krause Fund Research Spring 2015 Consumer Staples Dr Pepper Snapple Group, Inc. (NYSE: DPS) Recommendation: HOLD April 21, 2015 April Analysts Current Price $77.79 Di Yan Target Price $79.95
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[email protected] Yuqing Fang Dr Pepper Snapple has stable revenue growth each year,
[email protected] with an average increase of 2% from 2010-2014. Since the U.S. economy is healthy and experiencing an increasing demand in Company Overview the consumer staple sector due to the growing population nationwide, we expect a 1.27% increase in net sales in 2015. In Dr Pepper Snapple Group, Inc. (NYSE: DPS) is a leading addition, due to volatile commodity prices in recent months, we integrated brand owner, manufacturer, and distributor of non- expect approximately a 1% decrease in the proportion of the cost alcoholic beverages in the United States, Canada, and Mexico. of goods sold in sales in 2015. It is headquartered in Plano, Texas. In 2008, Dr Pepper Snapple Growth for beverage industry has been sluggish in recent was spun off from its parent company Cadbury Schweppes and years, thus we merely estimate a 1.4% continuing value growth started being publicly traded in the U.S. Dr Pepper Snapple has rate for Dr Pepper Snapple after 2019. three business segments including Beverage Concentrates, Since consumers are increasingly concerned about health Packaged Beverages, and Latin America Beverages. The and wellness, they are changing their preferences towards much Packaged Beverages segment has always been the chief healthier drinks.