Financial Analysis

2. JDE Peet's Acquisition and Related Transactions JDE PEET'S ACQUISITION On January 15, 2026, we commenced a tender offer to acquire all of the issued and outstanding ordinary shares of JDE Peet's for a cash offer price of 31.85 per share, without interest. We substantially completed the tender offer in connection with the JDE Peet's Acquisition on April 1, 2026. Refer to Note 19 for additional information. During the first quarter of 2026, we completed a series of transactions in order to obtain funding for the consideration of the JDE Peet's Acquisition: Delayed Draw Term Loan of $3.6 billion Senior Unsecured Notes of approximately $6 billion JV Investment of $4 billion Issuance of Convertible Preferred Stock of $4.5 billion Each transaction is described further below. BORROWING ARRANGEMENTS In connection with the JDE Peet's Acquisition, we entered into the Bridge Credit Agreement, the Delayed Draw Term Loan Agreement, and the Maple Notes. Refer to Note 3 for additional information on these borrowing arrangements. PREFERRED INVESTMENT On March 30, 2026, we completed the Preferred Investment. We issued and sold 4.5 million shares of our Convertible Preferred Stock, with a par value of $0.01 per share, to the Preferred Investors for a purchase price of $1,000 per share. Refer to Note 4 for additional information. JV INVESTMENT On March 30, 2026, we completed the JV Investment. We contributed the Coffee Production Assets, as well as certain of our related coffee assets (inclu …

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"Commitments and Contingencies We are occasionally subject to litigation or other legal proceedings. We accrue for specific legal proceedings when we determine that the likelihood of an unfavorable outcome is probable and the amount of loss can be reasonably estimated, and such accruals were not material in the periods presented. We have also identified certain other legal matters where we believe an unfavorable outcome is reasonably possible and/or for which no estimate of possible losses can be made. We do not believe that the outcome of these, or any other, pending legal matters, individually or collectively, will have a material adverse effect on our results of operations, financial condition, or liquidity. ANTITRUST LITIGATION In February 2014, TreeHouse Foods, Inc. and certain affiliated entities filed suit against our wholly-owned subsidiary, Keurig (formerly known as Green Mountain Coffee Roasters, Inc.), in the U.S. District Court for the Southern District of New York (""SDNY"") (TreeHouse Foods, Inc. et al. v. Green Mountain Coffee Roasters, Inc. et al.). The TreeHouse complaint asserted claims under the federal antitrust laws and various state laws, contending that Keurig had monopolized alleged markets for single serve coffee brewers and single serve coffee pods. The TreeHouse complaint sought treble monetary damages, declaratory relief, injunctive relief and attorneys' fees. In the months that followed, a number of additional actions, including claims from anothe …

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Long-term Obligations and Borrowing Arrangements The following table summarizes our long-term obligations: (in millions) March 31, 2026 December 31, 2025 Notes and Maple Notes $ 19,900 $ 13,931 Delayed draw term loan 2,986 Less: current portion of long-term obligations (1,995) (895) Long-term obligations $ 20,891 $ 13,036 The following table summarizes our short-term borrowings and current portion of long-term obligations: (in millions) March 31, 2026 December 31, 2025 Commercial paper notes $ 2,189 $ 2,210 Delayed draw term loan 632 Current portion of long-term obligations Notes 1,995 895 Short-term borrowings and current portion of long-term obligations $ 4,816 $ 3,105 SENIOR UNSECURED NOTES (in millions, except %) Maturity Date Rate March 31, 2026 December 31, 2025 2026 Notes September 15, 2026 2.550% $ 400 $ 400 2026-B Notes November 15, 2026 Floating (2) 500 500 2027-B Notes March 15, 2027 Floating (2) 350 350 2027-C Notes March 15, 2027 5.100% 750 750 2027 Notes June 15, 2027 3.430% 500 500 2028 Euro Notes (600 million) (3) March 26, 2028 3.495% 690 2028 Notes May 15, 2028 4.350% 500 500 2028 Merger Notes May 25, 2028 4.597% 1,112 1,112 2029-B Notes March 15, 2029 5.050% 750 750 2029-C Notes (3) March 26, 2029 4.750% 550 2029 Notes April 15, 2029 3.950% 1,000 1,000 2030 Euro Notes (800 million) (3) March 26, 2030 3.881% 921 2030 Notes May 1, 2030 3.200% 750 750 2030-B Notes May 15, 2030 4.600% 500 500 2031 Notes March 15, 2031 2.250% 500 500 2031-B Notes March 15, 2031 …

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(in millions) U.S. Refreshment Beverages U.S. Coffee International Total First Quarter of 2026 LRB $ 2,515 $ 18 $ 334 $ 2,867 K-Cup pods 701 139 840 Appliances 106 10 116 Other 84 32 37 153 Net sales $ 2,599 $ 857 $ 520 $ 3,976 First Quarter of 2025 LRB $ 2,263 $ 13 $ 277 $ 2,553 K-Cup pods 717 116 833 Appliances 116 8 124 Other 60 31 34 125 Net sales $ 2,323 $ 877 $ 435 $ 3,635 …

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12. Stock-Based Compensation The components of stock-based compensation expense are presented below: First Quarter (in millions) 2026 2025 Total stock-based compensation expense $ 30 $ 22 Income tax benefit (5) (5) Stock-based compensation expense, net of tax $ 25 $ 17 RESTRICTED SHARE UNITS The table below summarizes RSU activity: RSUs Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Outstanding as of December 31, 2025 13,120,837 $ 29.62 1.8 $ 368 Granted 4,030,382 28.41 Vested and released (2,638,544) 31.31 78 Forfeited (98,604) 29.72 Outstanding as of March 31, 2026 14,414,071 $ 28.97 2.1 $ 380 As of March 31, 2026, there was $257 million of unrecognized compensation cost related to unvested RSUs that is expected to be recognized over a weighted average period of 3 years. PERFORMANCE SHARE UNITS The table below summarizes PSU activity: PSUs Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Balance as of December 31, 2025 446,818 $ 30.60 2.2 $ 13 Granted 520,456 28.39 Forfeited or expired (26,265) 30.57 Balance as of March 31, 2026 941,009 $ 29.38 2.5 $ 25 As of March 31, 2026, there was $19 million of unrecognized compensation cost related to unvested PSUs that is expected to be recognized over a weighted average period of 2.5 years.

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Goodwill and Intangible Assets GOODWILL Changes in the carrying amount of goodwill by reportable segment are as follows: (in millions) U.S. Refreshment Beverages U.S. Coffee International Total Balance as of December 31, 2025 $ 8,870 $ 8,622 $ 2,755 $ 20,247 Foreign currency translation (37) (37) Balance as of March 31, 2026 $ 8,870 $ 8,622 $ 2,718 $ 20,210 INTANGIBLE ASSETS OTHER THAN GOODWILL The net carrying amounts of intangible assets other than goodwill are as follows: March 31, 2026 December 31, 2025 (in millions) Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Intangible assets with definite lives: Acquired technology $ 1,146 $ (712) $ 434 $ 1,146 $ (694) $ 452 Customer relationships 683 (309) 374 683 (301) 382 Contractual arrangements 146 (32) 114 146 (30) 116 Trade names 126 (126) 126 (126) Brands 76 (43) 33 76 (40) 36 Distribution rights 162 (41) 121 162 (35) 127 Other 25 (3) 22 25 (3) 22 Total intangible assets with definite lives $ 2,364 $ (1,266) $ 1,098 $ 2,364 $ (1,229) $ 1,135 Intangible assets with indefinite lives: Brands $ 19,956 $ 19,993 Trade names 2,478 2,478 Distribution rights 121 119 Total intangible assets with indefinite lives 22,555 22,590 Total intangible assets, net $ 23,653 $ 23,725 Amortization expense for intangible assets with definite lives was as follows: First Quarter (in millions) 2026 2025 Amortization expense $ 37 $ 34 …

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Income Taxes Our effective tax rates were as follows: First Quarter 2026 2025 Effective tax rate 24.4 % 21.7 % For the first quarter of 2026, the change in our effective tax rate was driven by discrete tax impacts associated with the completion of the JV Investment and the creation of the Pod Manufacturing JV. CASH PAID FOR INCOME TAXES We paid $47 million and $60 million in cash for income taxes, net of refunds received, during the first quarter of 2026 and 2025, respectively.

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Leases The following table presents the components of lease cost: First Quarter (in millions) 2026 2025 Operating lease cost $ 45 $ 44 Finance lease cost Amortization of right-of-use assets 30 28 Interest on lease liabilities 12 9 Variable lease cost (1) 10 9 Total lease cost $ 97 $ 90 (1) Variable lease cost primarily consists of common area maintenance costs, property taxes, and adjustments for inflation. The following tables present supplemental information about our leases: (in millions) Balance Sheet Location March 31, 2026 December 31, 2025 Assets: Operating lease right-of-use assets Other non-current assets $ 837 $ 845 Finance lease right-of-use assets (1) Property, plant, and equipment, net 998 919 Liabilities: Operating lease liability Other current liabilities $ 136 $ 127 Finance lease liability Other current liabilities 184 179 Operating lease liability Other non-current liabilities 753 764 Finance lease liability Other non-current liabilities 815 745 (1) Amounts are presented net of accumulated amortization of $453 million and $426 million as of March 31, 2026 and December 31, 2025, respectively. First Quarter (in millions) 2026 2025 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 40 $ 42 Operating cash flows from finance leases 12 9 Financing cash flows from finance leases 34 25 Right-of-use assets obtained in exchange for lease obligations: Operating leases 27 4 Finance leases 109 44 The follow …

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Restructuring RESTRUCTURING PROGRAM Network Optimization In March 2024, we announced a restructuring program designed to more effectively and efficiently meet the needs of consumers and customers. Our restructuring program includes the closure of certain facilities and other costs intended to optimize our manufacturing and distribution footprint throughout our operations. The restructuring program is expected to incur cumulative pre-tax restructuring charges of approximately $175 million through the end of 2026, primarily comprised of asset related costs. RESTRUCTURING CHARGES Restructuring and integration expenses for the defined programs were as follows: First Quarter (in millions) 2026 2025 Network Optimization $ 23 $ 2 RESTRUCTURING LIABILITIES Restructuring liabilities that qualify as exit and disposal costs under U.S. GAAP are included in accounts payable and accrued expenses in the unaudited condensed consolidated financial statements. Restructuring liabilities, primarily consisting of workforce reduction costs, were as follows: (in millions) Restructuring Liabilities Balance as of December 31, 2025 $ 8 Cash payments (3) Balance as of March 31, 2026 $ 5

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Net Sales The following table disaggregates our net sales by product portfolio and by reportable segment: (in millions) U.S. Refreshment Beverages U.S. Coffee International Total First Quarter of 2026 LRB $ 2,515 $ 18 $ 334 $ 2,867 K-Cup pods 701 139 840 Appliances 106 10 116 Other 84 32 37 153 Net sales $ 2,599 $ 857 $ 520 $ 3,976 First Quarter of 2025 LRB $ 2,263 $ 13 $ 277 $ 2,553 K-Cup pods 717 116 833 Appliances 116 8 124 Other 60 31 34 125 Net sales $ 2,323 $ 877 $ 435 $ 3,635 LRB represents net sales of owned and partner brands within our portfolio and includes branded concentrates, syrup, and finished beverages, including contract manufacturing of KDP branded products for our bottlers and distributors. K-Cup pods represents net sales from owned brands, partner brands, and private label owners. Net sales for partner brands and private label owners are contractual and long-term in nature. …

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"Segments Our three operating and reportable segments consist of the following: The U.S. Refreshment Beverages segment reflects sales in the U.S. from the manufacture and distribution of branded concentrates, syrups, finished beverages, and other consumables, including the sales of our own brands and third-party brands, to third-party bottlers, distributors, and retailers. The U.S. Coffee segment reflects sales in the U.S. from the manufacture and distribution of finished goods relating to our K-Cup pods, single serve brewers and accessories, and other coffee products, to partners, retailers, and directly to consumers through the Keurig.com website. The International segment reflects sales in international markets, including the following: Sales in Canada, Mexico, the Caribbean, and other international markets from the manufacture and distribution of branded concentrates, syrups, and finished beverages, including sales of our own brands and third-party brands, to third-party bottlers, distributors, and retailers. Sales in Canada from the manufacture and distribution of finished goods relating to our single serve brewers, K-Cup pods, and other coffee products. Segment results are based on management reports provided to the CODM, which is Tim Cofer, our CEO. Net sales and income from operations are the significant financial measures used to assess the operating performance of our operating segments. The CODM periodically monitors our actual results and remaining forecast versus …

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Subsequent Event COMPLETION OF JDE PEET'S ACQUISITION On March 27, 2026, the offer period for the issued and outstanding ordinary shares of JDE Peet's expired, and on April 1, 2026, we acquired substantially all of the outstanding issued and ordinary shares of JDE Peet's. We acquired 96.22% of the issued and outstanding ordinary shares of JDE Peet's on April 1, 2026. The post-closing acceptance period expired on April 13, 2026, and we acquired additional shares on April 15, 2026. Altogether, the total shares acquired represent 97.75% the issued and outstanding ordinary shares of JDE Peet's. We intend to acquire all remaining outstanding shares. The aggregate consideration for the tendered shares was approximately 15.11 billion. Due to the limited time since the date of the JDE Peet's Acquisition execution, it is impracticable for us to make certain business combination disclosures at this time as we are still gathering information necessary to provide those disclosures. We are unable to present (i) the allocation of the preliminary purchase price to the fair value of assets acquired and liabilities assumed and (ii) supplemental pro forma financial information related to the JDE Peet's Acquisition. We plan to provide this information in our quarterly report on Form 10-Q for the quarter ending June 30, 2026. …

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