Wall Street analysts expect PepsiCo (PEP) to post quarterly earnings of $1.95 per share in its upcoming report, which indicates a year-over-year increase of 9.6%. Revenues are expected to be $27.93 billion, up 0.3% from the year-ago quarter.The consensus EPS estimate for the quarter has been revised 1.3% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Ahead of a company's earnings ...

Acquisition of Siete Foods - PepsiCo acquired Siete Foods for $1.2 billion, a deal announced in October and closed in January [1] - Siete Foods specializes in grain-free and dairy-free Mexican-American food products, with no beverages in its portfolio [2] - This acquisition aligns with PepsiCo's strategy to expand its food portfolio, following the November acquisitions of Sabra and Obela [3] PepsiCo's Revenue Breakdown - Over the last 12 months, PepsiCo generated over $90 billion in revenue [4] - North American beverage sales accounted for only 31% of Q3 2024 revenue [4] - Snacks and food in North America contributed 28% of Q3 revenue, nearly matching beverage sales [5] - International markets accounted for 39% of revenue through the first three quarters of 2024 [12] Profitability of PepsiCo's Divisions - North American Frito-Lay division contributed 39% of total Q3 operating profit, compared to 24% from the North American beverage unit [6] - Quaker Foods in North America, though small at 3% of overall revenue, had a Q3 operating margin of 15%, significantly higher than the 8% margin for North American beverages [7] Growth and Investment Potential - PepsiCo's revenue growth has been modest, averaging 7% annually over the last 10 years [8][9] - The company's P/E ratio of 22 is below its 10-year average of 26, and it offers a dividend yield of over 3.5% [11] - International markets are growing, with improving profitability, which could boost future profit growth [12] Strategic Focus - PepsiCo is focusing on food acquisitions due to higher margins compared to carbonated beverages [13] - The company's diverse product portfolio and stable profits make it a relatively safe investment [10] - International growth and improved profitability are key areas of focus for future growth [12][13]

Company Comparison - PepsiCo is currently growing faster than Coca-Cola and has a lower valuation [1] - PepsiCo also exhibits materially lower risk compared to Coca-Cola [1] Industry Context - The comparison between PepsiCo and Coca-Cola is a long-standing topic of discussion among both consumers and investors [1] Analyst Perspective - The article expresses the author's own opinions and is not influenced by any business relationships with the mentioned companies [2] - The author has no stock, option, or derivative positions in any of the companies mentioned and no plans to initiate such positions within the next 72 hours [2]

It seems that the majority of investor attention has been directed to the high flying growth stocks and technology companies pursuing the latest AI innovations. While these speculative bets can yield large results, I prefer toFinancial analyst by day and a seasoned investor by passion, I've been involved in the world of investing for over 10 years and honed my skills in analyzing lucrative opportunities within the market.I specialize in uncovering strategies to utilize various investment vehicles - seeking ...

It's tough to go against the crowd. It takes the courage in your convictions when everyone else is going in a different direction.That's especially true when it comes to investments since you'll have your hard-earned money on the line. However, if you do your homework, bucking the investment trend can prove profitable.PepsiCo (PEP -0.31%), a member of the S&P 500, has seen its stock price lag the index. However, dividend-seeking investors may find this presents a compelling opportunity. Weary consumersPepsi ...

PepsiCo (PEP) closed at $148.55 in the latest trading session, marking a +0.2% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.88%. Meanwhile, the Dow experienced a rise of 1.24%, and the technology-dominated Nasdaq saw an increase of 0.65%.The food and beverage company's shares have seen a decrease of 2.01% over the last month, surpassing the Consumer Staples sector's loss of 2.9% and falling behind the S&P 500's gain of 1.17%.The investment community will be clos ...

Stock Performance - PepsiCo shares have lost 15% in the past three months, underperforming the broader industry and the Zacks Consumer Staples sector's declines of 11.6% and 9%, respectively [2] - The stock has also underperformed the S&P 500's rally of 3.4% in the same period [2] - Currently priced at $148.25, the stock trades close to its 52-week low of $141.51, reflecting a 4.8% premium to the low mark and a 19.2% discount to its 52-week high of $183.41 [5] - The stock trades below the 50-day and 200-day simple moving averages, indicating a bearish sentiment [6] Operational Challenges - PepsiCo has been facing operational challenges in its North America market since early 2024 due to declining consumer demand and product recalls in the Quaker Foods North America (QFNA) segment [1] - The QFNA segment has been affected by recalls tied to contamination concerns, such as Salmonella, involving various cereals and snacks, reducing sales and profits in recent quarters [16] - The recalls have disrupted sales and incurred additional costs, including logistics, communication, and potential brand damage [17] - The North America convenient foods business has experienced weak demand, led by higher prices and product recalls in the QFNA segment [17] Financial Performance and Estimates - The Zacks Consensus Estimate for PepsiCo's 2024 EPS was unchanged in the last 30 days, indicating steady analyst expectations [8] - The consensus estimate for 2025 EPS has moved down 0.2% in the past 30 days [8] - For 2024, the Zacks Consensus Estimate for sales and EPS implies 0.7% and 7% year-over-year growth, respectively [9] - The consensus mark for 2025 sales and earnings indicates 2.9% and 5.2% year-over-year increases, respectively [9] Valuation - PepsiCo is currently trading at a forward 12-month P/E ratio of 17.23X, above the industry average of 17.18X and the Consumer Staples sector's average of 16.15X [10] - Despite the recent decline, PepsiCo commands a high valuation, reflecting strength and resilience in core categories, diversified portfolio, modernized supply chain, improved digital capabilities, and flexible go-to-market distribution systems [10] - The stock is considered overvalued at the current level [10] Potential for Turnaround - PepsiCo continues to benefit from investments in brands, go-to-market systems, supply chains, manufacturing capacity, and digital capabilities to build competitive advantages [19] - The company's international business continues to hallmark its overall performance, delivering significant volume and organic revenue growth in the third quarter of 2024 [19] - PepsiCo's productivity and cost-management initiatives support its positive outlook, with the company focused on driving greater efficiency and effectiveness by reducing costs and reinvesting savings to develop scale and core capabilities [20] Investment Considerations - Investing in PepsiCo stock requires a thoughtful strategy, especially given the company's recent challenges in its North America operations and the broader market environment [21] - Trading at a premium P/E, above the industry average, the stock looks overvalued at this time [22] - Muted estimate revision trend and bearish technical indicators call for a cautious approach for new investors [22]

PepsiCo (PEP 1.17%) is a well-known company and most investors probably have a good understanding of what it does. But there's an important nuance to consider when investors look at the company's dividend.Right now, the dividend yield on PepsiCo stock is a historically high 3.6%, which suggests the stock is on sale. But this Dividend King has a long history of reliable dividend growth behind it and that fact changes the dividend story in an important way that investors can't afford to overlook.What does Pep ...

PepsiCo, Inc. (PEP) has been experiencing strength in its core categories, diversified portfolio, improved digital capabilities and flexible go-to-market distribution systems. In the latest revelation, PepsiCo has completed the buyout of Garza Food Ventures LLC, dba Siete Foods (Siete), for $1.2 billion.Details on PEP’s Latest NewsThis acquisition looks to strengthen the company's food portfolio, including nutritious, simple foods and ingredients. This popular Siete brand brings more positive choices that r ...

Founder of Dividend Mantra. Founder of Mr. Free At 33. Co-Founder of Dividends & Income. I started blogging about my journey to financial independence back in 2011. By living well below my means and intelligently investing my hard-earned capital, I went from below broke at age 27 to financially free at 33 years old. I regularly create content on dividend growth investing, living off of dividends, undervalued high-quality dividend growth stocks, high-yield situations, and other long-term investment opportuni ...