Is KDP (Keurig Dr Pepper Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, KDP is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 2 of 4 compliance screens. Keurig Dr Pepper Inc.'s core business activity was found to be non-compliant. Its debt-to-market-cap ratio of 41.21% exceeds the ≤33% threshold.

Keurig Dr Pepper Inc. is a major beverage company operating globally, known for its Coffee Systems and Packaged Beverages segments. The company manufactures and distributes popular consumer products like K-Cup pods, Keurig brewers, and a wide portfolio of non-alcoholic flavored beverages and concentrates. For Muslim investors using HalalStocks.co.uk, Keurig Dr Pepper is currently classified as Not Halal (Haram). The stock fails two out of the four critical AAOIFI screens, meaning it does not meet the strict criteria required for inclusion in an Islamic investment portfolio. The primary financial concern from an Islamic perspective is KDP's high leverage, as its Debt to Market Cap ratio of 41.2% significantly exceeds the acceptable 33% limit. On a positive note, its interest-bearing cash and securities are minimal at 2.6% of market cap, and interest income is a negligible 0.00% of total revenue. While the core business of coffee and non-alcoholic drinks is fundamentally permissible, the company's failure in the business activity screen suggests problematic secondary revenues or distribution deals. Investors should monitor the company's debt restructuring and any changes to its product partnerships that might improve its compliance profile in the future. Keurig Dr Pepper Inc. operates in the Consumer Defensive sector under the Beverages - Non-Alcoholic industry and is headquartered in Frisco, TX, US. The company is led by CEO Timothy Cofer and employs approximately 29,000 people.

KDP was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. KDP passed 2 of these 4 screens.

KDP was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.