Core Insights - PepsiCo's Lay's is undergoing its largest brand redesign in nearly 100 years, aligning with modern trends and health initiatives [1][3] - The rebranding includes a commitment to cleaner ingredients, with all core Lay's products in the U.S. to be free from artificial flavors and colors by the end of 2025 [2][3] - The new visual identity features a warmer sun logo and a refined color palette that emphasizes the ingredients and quality of the chips [4][6] Product Changes - Lay's Baked will be made with olive oil and contain 50% less fat than regular potato chips, while a new version of Lay's Kettle Cooked will use avocado oil and have 40% less fat [3] - More options across PepsiCo's food portfolio are expected to debut in 2026 [3] Branding Strategy - The rebranding is described as a "historic" overhaul, with a focus on visual storytelling that highlights farm-grown potatoes and quality ingredients [6][7] - The changes aim to connect with health-conscious consumers and reinforce authenticity in a competitive snack market [9] Industry Context - The announcement of Lay's rebranding follows Domino's unveiling its own modernization strategy, indicating a trend among major food brands to refresh their identities [11] - The industry is witnessing a shift towards transparency and healthier options, as brands respond to consumer demand for cleaner products [9]

Core Insights - PepsiCo, Inc. reported strong third-quarter 2025 results with revenues and earnings per share (EPS) exceeding estimates, although EPS showed a year-over-year decline [1][10] - The company demonstrated accelerated net revenue growth compared to the previous quarter, indicating resilience in a challenging environment [1][2] Financial Performance - Core EPS for the third quarter was $2.29, surpassing the Zacks Consensus Estimate of $2.27, but declined 0.9% year over year [3] - Reported net revenues reached $23.94 billion, a 2.6% increase year over year, beating the Zacks Consensus Estimate of $23.87 billion [4] - The reported gross profit decreased by 0.8% year over year to $12.8 billion, with a core gross profit decline of 0.4% to $12.9 million [5][7] - Operating income was reported at $3.6 billion, down 7.8% year over year, while core operating income fell 0.9% to $4.2 billion [7] Segment Performance - Revenue growth was observed across most operating segments, with notable increases in North America and international markets, except for the IB Franchise segment [9][11] - Organic revenues improved in several segments, including a 2% increase for PBNA and 5.5% for EMEA, while PFNA and IB Franchise saw declines [11] Financial Stability - As of the end of Q3 2025, PepsiCo had cash and cash equivalents of $8.1 billion and long-term debt of $44.1 billion [12] - Net cash provided by operating activities was $5.5 million, down from $6.2 billion in the previous year [12] Future Outlook - For 2025, PepsiCo aims for low-single-digit organic revenue growth and steady core EPS performance, with a focus on innovation and cost optimization [13][14] - The company anticipates currency headwinds to impact revenues and core EPS by 0.5 percentage points in 2025 [15] - PepsiCo plans to return $8.6 billion to shareholders in 2025, including $7.6 billion in dividends and $1 billion in share repurchases [16]

Consumer Behavior & Economic Conditions - US middle class and low-income families are financially strained, leading to trade-downs and elimination of non-essential purchases [2] - Hispanic consumers are particularly affected, with changes in mobility, income, and behavior [2] Company Strategy & Innovation - The company focuses on providing consumers the right to be in their brands at affordable price points throughout the month [2] - The company is concerned about certain segments of the population but sees growth opportunities related to functionality, permissibility, and taste [3] - Investment and innovation are focused on these growth spaces to gain consumer preference [3] - The company is excited about 2026 [3][4]

Core Insights - PepsiCo, Inc. reported third-quarter results that slightly exceeded consensus expectations, primarily driven by price increases rather than revenue growth, as volumes declined [1] Financial Performance - The company maintained its guidance from the previous quarter, projecting low single-digit organic growth and flat performance [1]

Core Insights - PepsiCo, Inc. reported third-quarter results that slightly exceeded consensus expectations, primarily driven by price increases rather than revenue growth, as volumes declined [1] - The company's guidance remains unchanged from the previous quarter, indicating low single-digit organic growth and flat performance [1] Financial Performance - The results showed a reliance on price increases to achieve earnings, highlighting a potential concern regarding volume sales [1] - The company continues to project low single-digit organic growth, suggesting a cautious outlook for future performance [1]

Core Insights - PepsiCo reported an EPS of $1.90, missing the estimated $2.27, while its revenue of $23.94 billion slightly exceeded the forecasted $23.85 billion [1][6] - The company has experienced robust sales growth in international markets, which has helped offset the decline in North American beverage volumes [2][6] Financial Metrics - PepsiCo has a price-to-earnings (P/E) ratio of 26.31, indicating investor willingness to pay per dollar of earnings [3][6] - The price-to-sales ratio is 2.06, and the enterprise value to sales ratio is 2.52, reflecting its valuation relative to revenue [3] - The enterprise value to operating cash flow ratio stands at 19.80, showing the relationship between enterprise value and cash flow from operations [4] - The earnings yield is 3.80%, indicating the percentage of each dollar invested that was earned by the company [4] Debt and Liquidity - PepsiCo's debt-to-equity ratio is 2.62, suggesting a higher reliance on debt financing [5][6] - The current ratio is 0.91, indicating the company's ability to cover short-term liabilities with short-term assets [5]

Group 1 - The company, known for its popular soft drinks and snacks, announced a change in finance leadership alongside a better-than-expected quarterly earnings report, generating $23.94 billion in Q3, a 2.6% increase year-over-year [3][4] - Organic revenue, excluding acquisitions and foreign exchange, rose by 1.3% in the quarter, with a 4% price increase offsetting a 3% volume drop, primarily in North America [4] - Management plans to increase investments in innovation and away-from-home channels to engage consumers better, which may help North America volumes rebound and drive organic sales growth back to the long-term range of 4%-6% [5] Group 2 - Steve Schmitt has been appointed as the new CFO, effective November 10, with an annual base salary of $900,000 and a sign-on bonus of $2 million [6][7] - Schmitt previously served as CFO for Walmart U.S. and played a significant role in Walmart's transformation into an omnichannel retailer, focusing on cost discipline [7] - The company's chairman and CEO emphasized Schmitt's experience with complex supply chains and operational excellence, which will be crucial for accelerating growth and optimizing the cost structure [7]

Core Insights - The focus on fiber is increasing in the packaged food and beverage industry, with PepsiCo's CEO indicating that fiber will become as significant as protein in consumer diets [1][2] - PepsiCo is launching new products with added fiber, including a reformulated Propel beverage and a prebiotic cola, aiming to boost sales growth amid recent lackluster performance [2][7] Company Initiatives - PepsiCo is developing a fiber-rich Starbucks Coffee + Protein line and enhancing fiber content in its Quaker, Sun Chips, PopCorners, and Smartfood brands [2] - The introduction of fiber in products is part of a strategy to address consumer dietary deficiencies and improve overall health [1][8] Market Trends - The rise of weight loss medications like Ozempic and Wegovy is driving the demand for fiber, as these treatments can lead to gastrointestinal side effects that fiber can alleviate [7] - There is a growing awareness among consumers about the importance of dietary fiber, which is linked to better digestion and a lower risk of colon cancer [8][9]

Market Overview - U.S. stocks are experiencing modest movements near record highs, with the S&P 500 rising 0.1% and marking its eighth gain in the last nine days [1] - Futures for major indices like S&P 500, Nasdaq, and Dow Jones are virtually unchanged before the market opens, following record highs on Wednesday [2] Company Earnings - Delta Air Lines reported a stronger-than-expected profit for the third quarter, forecasting a full-year profit of $6 per share, which is in the upper half of its previous guidance range. Delta shares rose 5.8% in premarket trading [4] - PepsiCo's shares increased by less than 1% after reporting better-than-expected revenue in Q3, despite an 11% decline in net income to $2.6 billion. Adjusted earnings per share were $2.29, beating analysts' forecasts by 3 cents [3] Mergers and Acquisitions - Novo Nordisk announced the acquisition of Akero Therapeutics for $4.7 billion in cash, leading to an 18% increase in Akero's shares before market opening [5] Commodity Prices - Oil prices fell slightly, with U.S. benchmark crude dipping 21 cents to $62.34 per barrel and Brent crude down 18 cents to $66.07 per barrel [8] - Gold prices remain high at $4,054.50 per ounce, despite shedding some gains [8]

Let's turn now to PepsiCo. Find out what's happening in the world economy and consumers. The company topped estimates thanks in large part to international sales growth.Though global volumes fell in the quarter. PepsiCo chairman and CEO Ramon Lagerta joins us now to discuss the quarter. It's good to have you back Ramon.Welcome. >> Hello. Hello Sarah.Good to see you. >> So it's good to see you. There there was some improvement that I wanted to mention in the beverage business and and certainly in internation ...