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PepsiCo said Monday it will pay about $1.7 billion for a soft-drink company that built up a social-media following after appearing on “Shark Tank,” as the beverage giant works to appeal to millennials and Gen Z with healthier offerings.
PepsiCo said on Monday it would buy prebiotic soda brand Poppi for $1.95 billion, expanding in the "healthier soda" category.
PepsiCo buys prebiotic soda brand Poppi for more than $1.6 billion
The bottom is likely in for the stock, as a double bottom has formed on the chart. The indicators provide strong confirmation of the pattern. Most recent earnings were mixed, with GAAP revenues seeing YoY declines but organic and core results showing resilience. Guidance was a bit weaker than desired, with EPS projections signalling a growth slowdown.
PepsiCo (PEP) closed at $148.56 in the latest trading session, marking a +0.15% move from the prior day.
With the recent return of volatility in the stock market, investors have fallen back in love with sturdy consumer staples businesses -- especially the ones that pay out predictably rising dividends. PepsiCo (PEP 0.17%) has been one of those relative winners so far in 2025, with shares up slightly even as the S&P 500 dropped 5%.
PepsiCo is in advanced talks to buy healthier soda brand Poppi, Bloomberg News reported on Friday, citing people with knowledge of the matter.
In an environment fraught with uncertainty, PepsiCo still had the confidence to hand out a mid-single-digit payout hike. The food and beverage giant is positioning itself for a return to historical levels of growth beyond 2025. PepsiCo's interest coverage ratio was 14 in 2024.
I maintain a buy rating on PepsiCo despite technical concerns, citing stable EPS growth and a high 3.6% dividend yield. PEP has underperformed the Consumer Staples Sector ETF and S&P 500 since last year, with shares down 12% since Q3 2024. Key risks include consumer wellness trends, Frito-Lay North America challenges, and macroeconomic uncertainties, but long-term EPS growth targets remain optimistic.
PepsiCo has a stable dividend, but a range of other issues make it a sell. PEP's Yield At a Reasonable Price (YARP) valuation is unattractive, indicating high risk and more likely, further downside potential. Sales growth is struggling, margins have slipped, and macroeconomic factors pose challenges, making PEP a poor buy currently.
Like any trade dispute, the current one between the U.S. and some of our most high-profile trading partners is affecting companies disproportionally. Those affected by the goods slapped with levies are facing struggles, while those unaffected can breathe a sigh of relief.