PepsiCo Earnings Were Finally Good Enough to Boost the Stock - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# PepsiCo Earnings Were Finally Good Enough to Boost the StockBy [Evie Liu]and [,]ShareResize---ReprintsIn this article[PEP][SPX]Peps ...

Core Insights - PepsiCo, Inc. shares rose over 4% intraday following fourth-quarter results that surpassed analyst expectations for both earnings and revenue [1] - The company reported adjusted earnings per share of $2.26, exceeding the consensus estimate of $2.24, and revenue of $29.34 billion, above the expected $28.98 billion [1] Financial Performance - Organic revenue increased by 2.1% during the quarter, indicating a sequential acceleration in both reported and organic growth, driven by improvements in North American and international operations [2] - Reported revenue grew by 5.6% year over year, while core constant-currency EPS rose by 11% [2] Future Outlook - PepsiCo reaffirmed its 2026 outlook, projecting organic revenue growth of 2% to 4% and core constant-currency EPS growth of 4% to 6% [3] - The company announced a 4% increase in its annualized dividend to $5.92 per share, marking the 54th consecutive annual dividend increase [3] Regional Performance - Regional performance varied, with Europe, the Middle East, and Africa achieving 12% revenue growth, while PepsiCo Foods North America grew by 1.5% [4] - The company introduced a new $10 billion share repurchase program, which will extend through February 2030 [4]

On the surface, there are two good reasons for dividend-focused investors to prefer PepsiCo (NASDAQ: PEP) over Coca-Cola (NYSE: KO). While both stocks are Dividend Kings with over 50 years of annual dividend increases, PepsiCo offers a significantly higher dividend yield of 3.8% compared to Coca-Cola's 2.8%. PepsiCo has also been raising its payouts much faster than Coca-Cola in recent years, with its dividend rising by 39% since 2021, compared to 21% payout growth for Coca-Cola. But unfortunately for Pe ...

Core Insights - PepsiCo will reduce prices on its core brands by nearly 15% to address consumer backlash over recent price hikes [1] - The price cuts will apply to popular snack brands including Lay's, Doritos, Cheetos, and Tostitos [1] - The decision follows significant consumer feedback regarding rising food prices, which have remained high despite a general cooling of inflation [1][6] Pricing Strategy - The new retail prices are expected to roll out this week, although retailers will ultimately set the final prices, potentially leading to greater savings for shoppers [9] - PepsiCo aims to keep its most loved brands accessible while maintaining product quality as part of its broader strategy [9] Market Context - Grocery prices rose 2.4% annually in December 2025, reflecting ongoing inflationary pressures since the COVID-19 pandemic [2] - The company acknowledges that consumers are feeling financial strain due to rising everyday costs [4][6] Company Performance - PepsiCo shares have increased by over 13% year to date, indicating positive market performance despite the pricing adjustments [10]

PepsiCo (PEP) came out with quarterly earnings of $2.26 per share, beating the Zacks Consensus Estimate of $2.24 per share. This compares to earnings of $1.96 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +1.09%. A quarter ago, it was expected that this food and beverage company would post earnings of $2.27 per share when it actually produced earnings of $2.29, delivering a surprise of +0.88%.Over the last four quarters, the ...

Core Insights - PepsiCo plans to reduce prices on snacks by up to 15% to alleviate consumer pressure from inflation [1][4] - The company has received significant feedback from consumers struggling with high prices, prompting this decision [2][7] Pricing Strategy - Suggested retail prices for snacks like Lay's and Doritos will begin rolling out this week, with specific examples including an 8-ounce bag of Lay's dropping from $4.99 to $4.29 and a 9.25-ounce bag of Doritos decreasing by about $0.80 to $5.49 [1][7] - The price reductions are part of a broader strategy to regain consumer loyalty amid rising costs and competition from cheaper alternatives [3][8] Market Context - Retail prices for salty snacks increased by approximately 38% year-over-year as of June 2024, contributing to consumer dissatisfaction [3] - The overall food prices rose by 3.1% compared to the previous year, indicating a challenging economic environment for consumers [3] Company Actions - PepsiCo executives acknowledge that while snack prices have risen in line with inflation, sales growth has stagnated, leading to the decision to lower prices [4][13] - The company is also focusing on marketing initiatives that highlight simpler ingredients and healthier options, including new packaging for classic snacks [11][14] Financial Performance - In the most recent quarter, PepsiCo showed signs of improvement, particularly in savory and salty retail sales, alongside strong revenue growth in its beverage segment [15]

Core Insights - PepsiCo is reducing prices on popular snack brands due to consumer affordability concerns as the Super Bowl approaches [1][2][3] Pricing Strategy - The company announced a reduction of suggested retail prices by "up to nearly 15%" on products such as Lay's, Doritos, Cheetos, and Tostitos, starting this week [2] - Final shelf prices may vary by retailer, potentially leading to greater savings for consumers [2] Consumer Sentiment - CEO Rachel Ferdinando stated that the price reduction reflects the company's commitment to alleviate consumer pressure, emphasizing that product size and quality will remain unchanged [3] - Economic data indicates that U.S. consumer confidence has dropped to its lowest level in over a decade, with food prices being a significant stress factor [4] Behavioral Changes - Research shows that approximately half of U.S. consumers are struggling with daily living expenses, particularly with groceries and household essentials [5] - Consumers are increasingly price-sensitive, leading to changes in purchasing behavior, such as trading down and delaying discretionary purchases [5]

In October I wrote an article about PepsiCo ( PEP ), and my recommendation was "sell." At that time it appeared that I was somewhat of a lone wolf, but I based my thesis on theI’m a Portfolio manager (flexible equity funds and private clients), fundamental equity research, macro and geopolitical strategy.Over 10 years across global markets, managing multi-asset strategies and equity portfolios at a European asset manager.I combine top-down macro, bottom-up stock selection and real-time positioning (Bloomber ...

Core Viewpoint - PepsiCo is reducing the suggested retail prices of certain snack products by up to 15% in response to consumer financial pressures [1][2]. Group 1: Price Cuts and Strategy - The price cuts will not be uniform across all products; the company will focus on items where price sensitivity is highest [2]. - CEO Ramon Laguarta emphasized a "surgical" approach to pricing adjustments, targeting products that face significant consumer friction due to price [2]. Group 2: Consumer Behavior and Economic Context - Inflation on food items has moderated, but many consumers still perceive grocery and restaurant prices as high, particularly affecting lower-income shoppers [3]. - The current economic landscape is characterized by a K-shaped recovery, where lower-income consumers are more financially strained compared to affluent shoppers [3]. Group 3: Future Guidance and Brand Strategy - PepsiCo's guidance for 2026 indicates that middle- and low-income consumers will remain financially stretched and selective in their grocery shopping [4]. - The company is relaunching major brands, such as Lay's, to address health concerns and attract more consumers, particularly in time for the Super Bowl [4][5].

百事可乐(PEP.US)涨近4%，报161.24美元，创2024年12月以来新高。消息面上，百事可乐Q4营收同比 增长5.6%至约293.4亿美元，营业利润同比增长近60%至约35.57亿美元。百事将旗下部分主要品牌(包括 乐事薯片和多力多滋薯片)的价格下调高达15%，以提振销量。展望今年，公司重申在去年12月发布的 年度核心每股收益增长4%至6%的目标。此外，百事可乐管理层宣布了一项高达100亿美元的股票回购 计划。(格隆汇) ...