PepsiCo (PEP) concluded the recent trading session at $150.65, signifying a +1.08% move from its prior day's close.
PEP gains momentum, with solid Q3 revenues, strong North America beverages and steady international growth driving renewed investor confidence.
PepsiCo will cut hundreds of products after Elliott Investment Management pushes for cost reductions. The company will reduce SKUs by 20% to boost value.
PepsiCo plans to cut prices and eliminate some of its products under a deal with an activist investor that was announced Monday.
PepsiCo is rated a sell due to rising debt, weak free cash flow, and unsustainable dividend coverage. PEP's recent growth stems from aggressive price hikes, masking persistent volume declines and deteriorating operating profits in core segments. Net debt has doubled over the past decade to $44 billion, while free cash flow has failed to cover dividend payouts for several quarters.
Its popular array of snacks includes Lay's, Cheetos, Doritos, and Funyuns, as well as drinks like Pepsi and Mountain Dew.
PepsiCo is rated a buy with a $168.42 price target, reflecting stable cash generation and long-term value creation. PEP's 2.6% revenue growth was offset by 6.9% cost inflation, leading to margin compression and an 11.2% net income decline. Growth initiatives include brand relaunches, healthier product expansion, and operational efficiency investments, though near-term execution risks remain.
PEP outlines 2026 goals targeting faster organic growth, margin gains and major productivity savings to strengthen long-term shareholder value.
Layoffs have hit American workers hard in 2025, particularly in the government and tech sectors. Already this year, well over a million jobs have been lost due to layoffs—and unfortunately, it doesn't look like a cessation of job cuts is on the horizon.
PepsiCo, Inc. (PEP) Shareholder/Analyst Call Transcript
PepsiCo Inc (NASDAQ:PEP, XETRA:PEP) said on Tuesday it reached an agreement with activist investor Elliott Management to cut costs and streamline its product lineup, avoiding a protracted proxy battle after the hedge fund built a roughly $4 billion stake in the company. The maker of Pepsi-Cola, Lay's and Doritos said it will reduce expenses across its food and beverage operations and trim the number of individual products it sells in the US by about 20% next year.
The soda and snacks company struck an agreement with Elliott Investment Management, which revealed a $4 billion stake in September.