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 ...

PepsiCo said it will cut prices on its core brands by up to nearly 15% as soon as this week to address consumer backlash over recent price hikes. The snacks that will see prices lowered include products under its Lay’s, Doritos, Cheetos and Tostitos brands. It comes after the company received an influx of messages from upset consumers over the past year.Food prices have remained elevated even as broader inflation has cooled. POTATO CHIP BRAND UNVEILS BIGGEST REDESIGN IN NEARLY 100-YEAR HISTORYGrocery prices ...

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) ...