Diageo share price today (11 December 2025): stock hovers near 52‑week lows as ‘Drastic Dave’ prepares turnaround

Key takeaways

London listing (LON: DGE) closed at 1,602p on 11 December 2025, trading between 1,610p and 1,628p during the session. That leaves the stock barely above its 12‑month low of 1,587p and well below its 52‑week high of 2,619.5p. ^[1]
New York ADR (NYSE: DEO) is also under pressure: on 9–10 December, the shares set a new 52‑week low near $86, with a recent close around $86.0 and extended trading slightly higher. ^[2]
The slide follows weak 2025 results, a profit warning and guidance cut in November, and concerns over soft spirits demand in the US and China. ^[3]
Sir Dave “Drastic Dave” Lewis, famed for his Tesco turnaround, has been appointed CEO from 1 January 2026, briefly sending the shares up more than 5% but not reversing the broader downtrend. ^[4]
Despite the weakness, Diageo still offers a dividend yield above 4% on the ADR and around 15–16x trailing earnings on the London listing, attracting both bargain hunters and sceptics. ^[5]

Diageo share price today: London and New York snapshot

London: DGE on the LSE

On Thursday 11 December 2025, Diageo’s primary London‑listed shares (ticker DGE) ended the session at 1,602p. According to daily price data, the stock: ^[6]

Opened: 1,615p
Intraday high: 1,628p
Intraday low: 1,610p
Closed: 1,602p
Volume: ~461,500 shares

That closing level matches Wednesday’s finish and leaves Diageo trading just above a 12‑month low of 1,587p, with a 52‑week range of 1,587p to 2,619.5p. ^[7]

Market snapshots compiled by MarketBeat and Defense World show: ^[8]

Market capitalisation: ~£35.6bn
Trailing P/E ratio: ~15.2
PEG ratio: ~1.75
Beta: ~0.36 (less volatile than the wider market)
50‑day moving average: ~1,764p
200‑day moving average: ~1,877p

In other words, the share price is well below both key moving averages, consistent with a sustained downtrend through 2025.

New York: DEO ADR on the NYSE

In the US, Diageo trades via American Depositary Receipts (ADRs) under ticker DEO.

On 10 December, MarketBeat shows a closing price around $86.04, with extended hours trading early on 11 December nudging the ADR just under $87. ^[9]
On 9 December, DEO set a new 52‑week low, trading as low as $86.08 and last seen around $85.71, down about 2.2% on the day. ^[10]

Taken together, both listings paint the same picture: Diageo is trading close to its lowest levels in years, far below the peaks seen in 2021–2022.

What pushed Diageo shares down in 2025?

1. Weak 2025 results and pressure on margins

Diageo’s preliminary results for the year to 30 June 2025 set the tone for a difficult year. The company reported: ^[11]

Reported operating profit down 27.8%, with the margin shrinking by over 8 percentage points, driven by impairments, restructuring costs and FX headwinds.
Organic operating profit down 0.7%, with organic margin slipping about 70 basis points as higher overheads offset modest gross margin gains.
Net debt of $21.9bn and a leverage ratio of about 3.4x net debt to adjusted EBITDA, towards the top of the company’s target range.

Management nevertheless guided for mid‑single‑digit organic operating profit growth in fiscal 2026, but this assumed a relatively benign trading environment and successful cost savings. ^[12]

2. Disappointing Q1 FY26 trading statement

The Q1 FY26 update (quarter to 30 September 2025) showed a mixed performance: ^[13]

Total net sales: $4.9bn, down 2.2% reported, flat organically.
Volume: up 2.9% organically.
Price/mix: down 2.8%, indicating discounting and weaker premiumisation.

Regional trends were starkly divergent:

North America (38% of net sales): organic net sales ‑2.7%, with US spirits down around 4% amid a softer‑than‑expected category, heightened competition (especially in tequila) and tough comparisons. ^[14]
Europe (25%): organic net sales +3.5%, helped by strong Guinness growth and pricing, particularly in Türkiye and for Guinness in Great Britain. ^[15]
Asia Pacific (18%): organic net sales ‑7.5%, hit by sharp declines in Chinese white spirits and weak consumption in Greater China, partially offset by double‑digit growth in India. ^[16]
Latin America & Caribbean: organic net sales +10.9%, led by Brazil.
Africa: organic net sales +8.9%, with strong beer and RTD growth.

The combination of falling price/mix and pockets of volume weakness, especially in the US and China, undermined Diageo’s long‑running narrative of “lower volumes, higher prices” and worried investors focused on long‑term pricing power.

3. November profit warning and guidance cut

On 6 November 2025, Diageo issued a profit warning, cutting its sales and profit outlook and pushing the share price to levels last seen around 2015. ^[17]

Reuters reported that: ^[18]

The company reduced its expectations for fiscal 2026, now guiding for flat or slightly lower net sales and only low‑ to mid‑single‑digit operating profit growth.
Management highlighted continued softness in US spirits, ongoing destocking, and weakness in China’s baijiu market as key drags.
Shares fell more than 5% on the day, marking a decade‑low and leaving them down close to 30% year‑to‑date at that point.

The fact that the update came while investors were still waiting for clarity on a permanent CEO amplified the negative reaction.

4. Credit rating outlook turns negative

In September, Fitch Ratings revised Diageo’s outlook from Stable to Negative, while affirming its long‑term issuer rating at ‘A‑’. ^[19]

Fitch flagged:

Weaker credit metrics following the profit slump.
Elevated leverage, given net debt of nearly $22bn.
The need for improved cash generation and disciplined capital allocation (dividends, buybacks, and investment) to stabilise the rating.

This did not trigger an immediate sell‑off, but it reinforced concerns that Diageo has less balance‑sheet flexibility than in the past.

5. Labour and operational headlines

More recently, Diageo has also faced labour‑related headlines:

On 9 December, Reuters reported that workers at Diageo’s Belfast packaging site voted to resume an eight‑day strike over pay, seeking parity with staff at the company’s Runcorn facility in England. Diageo said it does not expect any disruption to Guinness or Guinness 0.0 supply over Christmas. ^[20]

While the direct financial impact is limited, ongoing disputes add to the sense of execution and reputational risk at a time when the company is already under scrutiny.

Leadership reset: Sir “Drastic Dave” Lewis steps in

Against this backdrop, leadership has become the central story for the Diageo share price.

New CEO with turnaround pedigree

On 10 November 2025, Diageo announced that Sir Dave Lewis, the former Tesco CEO, would become Chief Executive Officer and Executive Director from 1 January 2026. ^[21]

Lewis is best known for stabilising Tesco after its 2014–15 crisis, cutting debt, simplifying the product range and refocusing on core profitability—moves that earned him the nickname “Drastic Dave” in the UK business press.

Reuters reports that the announcement sent Diageo’s London‑listed shares up about 5.2% on the day, their biggest one‑day gain in more than three years, even as the FTSE 100 closed at a record high. ^[22]

Analysts quoted by Reuters and other outlets noted that: ^[23]

The stock had become “unloved” after several years of disappointing performance.
A highly respected CEO could help restore confidence, but investors will ultimately judge him on results rather than reputation.

Insider buying supports the story

On 11 December 2025, filings highlighted fresh insider buying:

John Alexander Manzoni, a Diageo insider, purchased 410 shares at around 1,600p on 10 December, following earlier purchases of 355 shares at 1,850p in November and 358 shares at 1,833p in October. ^[24]

Articles summarising the trades point out that insiders rarely buy if they believe the business is structurally broken, though the amounts involved are modest in corporate terms.

Dividend, buybacks and balance sheet: income vs risk

Dividends and yield

Diageo remains a major income stock:

For FY2025, the company recommended a full‑year dividend of 103.48 cents per share, with a final dividend of 62.98 US cents, converted to 47.91p per ordinary share for sterling investors. The final dividend was paid on 4 December 2025. ^[25]
For the DEO ADR, TS2.Tech notes two dividend payments in 2025 totalling $4.08 per ADR, implying a trailing yield around 4.5–4.7% at share prices in the high‑$80s. TechStock²

With the share price depressed, yield has risen significantly versus a few years ago, one of the main attractions for long‑term income investors.

Buybacks and leverage

Diageo has also been an enthusiastic user of share buybacks:

A $1bn buyback programme was completed in fiscal 2024.
Multiple buyback programmes between FY2018 and FY2023 returned several billions to shareholders. TechStock²+1

However, TS2.Tech and MarketBeat both highlight that Diageo’s debt‑to‑equity ratio is above 200% on some measures, and Fitch’s outlook change underscores that balance‑sheet flexibility isn’t unlimited in a higher‑rate environment. MarketBeat+3TechStock²+3www.diageo.com+3

If trading remains weak, management may have to prioritise debt reduction and investment over aggressive buybacks, which could reduce one of the historic supports for EPS growth.

Analyst ratings and Diageo share price forecasts

London listing: “Moderate Buy” with sizeable upside

On the LSE, recent summaries of broker research show: ^[26]

Consensus rating: “Moderate Buy” based on eight analysts (four Buy, four Hold).
Average price target: around 2,199p, implying roughly 35–40% upside from the current 1,602p level.
Recent moves:
- Barclays raised its price target to 2,650p (from 2,470p) and kept an “overweight” stance on Diageo, according to a MarketScreener summary published on 11 December. ^[27]
- Other houses including JPMorgan, Berenberg, Jefferies and Deutsche Bank have cut targets in recent months but mostly retain Buy or Hold recommendations. ^[28]

New York ADR: “Reduce” on MarketBeat, but with 38% upside

For the DEO ADR, MarketBeat paints a more cautious picture: ^[29]

Consensus rating: “Reduce”, based on 9 analysts (3 Sell, 4 Hold, 2 Buy).
Average 12‑month price target: $119, implying about 38% upside from a current price near $86.
Recent commentary notes:
- Zacks downgraded DEO to “Strong Sell”. ^[30]
- UBS cut its rating from Buy to Neutral and trimmed its sterling price target to 1,850p from 2,250p, citing concerns around US spirits and tequila weakness. ^[31]
- Technical indicators show DEO’s 50‑day and 200‑day moving averages still well above the current price (around $94 and $101), reinforcing the sense of a sustained downtrend. ^[32]

Valuation in context

Commentary from TS2.Tech and other analysts frames Diageo’s current valuation as: TechStock²+2www.diageo.com+2

P/E around 15–16 on depressed earnings—cheaper than its own history and some global staples peers, but not rock‑bottom.
A mid‑single‑digit dividend yield (on the ADR) coupled with potential 30–40% upside based on consensus price targets.
However, these upside figures sit alongside multiple Sell or Reduce ratings and rising short interest, so the market clearly isn’t unanimous.

Bull case vs bear case: is Diageo a “generational bargain” or a value trap?

Recent analysis pieces—including on TS2.Tech and Motley Fool—essentially split investor opinion into two camps. TechStock²+2The Motley Fool+2

The bull case

Supporters of Diageo at today’s price point to:

World‑class brands and global footprint
Diageo owns a uniquely broad portfolio, from Johnnie Walker, Guinness and Don Julio to Baileys, Tanqueray and Smirnoff, with more than 200 brands sold in 180 countries. TechStock²+1
Bulls argue that such brands retain long‑term pricing power and cultural relevance, even if demand is currently soft in some categories.
Demographic tailwinds
Management and industry analysts highlight an expected increase of around 600 million legal‑drinking‑age consumers by 2030, particularly in emerging markets. TechStock²
That doesn’t guarantee volume growth, but it expands the addressable customer base.
Cost savings and cash‑flow ambitions
Diageo has lifted its cost‑saving target to about $625m and is aiming for free cash flow of around $3bn annually from FY26, providing a path for margin recovery and ongoing shareholder returns if delivered. ^[33]
New CEO as a catalyst
“Drastic Dave” Lewis’s track record at Tesco—where he cut debt, restored margins and simplified the business—feeds hopes that he can re‑energise Diageo’s strategy, potentially including portfolio rationalisation and sharper focus on high‑return brands. ^[34]
Attractive income and potential mean‑reversion
With the ADR yielding over 4.5% and both listings trading at discounts to historical multiples, bulls see Diageo as a quality franchise going through a rough patch, where patient investors could benefit from eventual earnings and valuation recovery. TechStock²+2www.diageo.com+2

The bear case

Sceptics, by contrast, focus on several risks:

Structural shifts in alcohol consumption
Younger, more health‑conscious consumers are drinking less, particularly high‑strength spirits. Recent volume declines in US and Chinese spirits raise the question of whether Diageo’s classic model of steady volume plus premium price increases is structurally challenged, not just cyclically weak. ^[35]
Pricing power under pressure
Q1 FY26 showed negative price/mix (‑2.8%) despite positive volume, suggesting discounting or mix down to cheaper products. That’s the opposite of the premiumisation story that long supported Diageo’s rating. ^[36]
Tariffs and political risk
Tariffs on spirits, particularly between the US and Europe, continue to bite and could worsen quickly if geopolitical tensions flare. Earlier guidance suggested tariff impacts of around $150–200m a year, still a meaningful drag on profit. TechStock²+2The Guardian+2
Leverage and rating pressure
With high debt levels, a Negative outlook from Fitch, and rising borrowing costs, Diageo has less room for strategic mis‑steps. Bears worry that another earnings disappointment could force management to cut back on buybacks or slow dividend growth. ^[37]
Downgrades and weak technicals
Recent downgrades from Zacks (to Strong Sell) and UBS (to Neutral, with a lower target), plus DEO’s new 52‑week low and underperforming moving averages, feed a narrative of a stock in a downward trend that may not yet have bottomed. ^[38]

What to watch next for the Diageo share price

As of 11 December 2025, the Diageo share price story is finely balanced between turnaround hopes and execution risk. Investors and traders will be watching several catalysts:

Sir Dave Lewis’s first strategic moves (early 2026)
Markets will want to see concrete plans on:
- Brand and portfolio focus (including any decisions on Guinness or regional beer assets).
- Pace and detail of cost savings.
- Capital allocation priorities between deleveraging, buybacks and dividends. ^[39]
Next results and trading updates
Diageo’s next scheduled results (covering the second half of calendar 2025) will be the first big test of:
- Whether US spirits and Chinese demand are stabilising.
- Whether negative price/mix can be reversed without sacrificing volumes. ^[40]
Further analyst revisions
With consensus split between Moderate Buy (London) and Reduce (New York), any change in tone from major brokers—especially around the new CEO’s strategy or US demand trends—could move the shares sharply. ^[41]
Macro and policy backdrop
Interest‑rate moves, changes to trade tariffs and broader consumer‑spending trends (particularly in premium spirits) will continue to influence sentiment across the global staples sector, Diageo included. ^[42]

Bottom line

On 11 December 2025, the Diageo share price sits near multi‑year lows in both London and New York, despite a world‑class brand portfolio and a respected new CEO waiting in the wings.

For optimistic, income‑focused investors, the combination of higher yield, potential 30–40% upside implied by consensus targets, and turnaround optionality under Dave Lewis looks appealing. ^[43]
For more cautious investors, the mix of structural demand questions, pricing pressure, elevated leverage and ongoing downgrades makes it easy to see Diageo as a possible value trap rather than a bargain.

As always, anyone considering an investment should factor in their own risk tolerance, time horizon and financial situation, and consider seeking professional advice before acting.

References

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