What caused KDP's Q3 earnings to fall short of forecasts?

Keurig Dr Pepper's (KDP) Q3 earnings fell short of forecasts due to several key factors: 1. **Revenue Shortfall in U.S. Coffee Segment**: The U.S. Coffee segment experienced a 2.1% decline in net sales, despite a 0.8% increase in volume/mix. This decline in net sales, particularly in the context of a revenue shortfall, contributes significantly to the overall earnings shortfall. 2. **International Growth Not Enough to Compensate**: While the International segment saw a robust 15.5% increase in net sales, with a 14.7% increase on a constant currency basis, driven by strong volume/mix growth and net price realization, this growth was not enough to fully compensate for the declines in the U.S. Coffee segment. 3. **Overall Net Sales Growth Lagged Expectations**: The company's net sales growth of 3.5% to $3.92 billion for the quarter ended June 2024, although higher than the previous year, lagged the expectations of analysts, who had forecasted approximately $3.91 billion. This slight shortfall in revenue growth, despite a solid increase year-over-year, contributed to the earnings falling short of forecasts. 4. **Cost Factors and Market Conditions**: The impact of cost efficiency and capital discipline efforts, as well as broader market conditions, could have influenced the company's financial performance, although specific details on these factors are not available in the earnings reports referenced. In summary, Keurig Dr Pepper's Q3 earnings fell short of forecasts due to a combination of a decline in the U.S. Coffee segment's net sales, slightly lagged overall revenue growth, and possibly other cost-related factors.