Shares of coffee and carbonated beverage giant Keurig Dr Pepper (NASDAQ: KDP) popped on Thursday after the company reported soaring profits in its latest quarterly financial report. As of 2:40 p.m. ET, Keurig Dr Pepper stock was up 4% but it had been up almost 7% earlier in the day.

Keurig Dr Pepper mostly sells coffeemakers, coffee brewing supplies, and packaged beverages. In the first quarter of 2024, the company's net sales were only up by a modest 3% to $3.5 billion. However, it enjoyed substantial improvements to profits, which is what investors are cheering today.

Keurig Dr Pepper's gross margin expanded to nearly 56% compared with 52% in the prior-year period. Productivity improvements were partially credited for the increase. And on an adjusted basis, the company's Q1 operating income jumped 17.5% to $825 million.

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Source Fool.com