Elliott Sends Presentation to Board of Directors of PepsiCo Inc.

Core Viewpoint - Elliott Investment Management highlights a unique opportunity for PepsiCo to revitalize its growth and enhance financial performance through strategic focus and operational improvements, aiming to unlock substantial shareholder value [1][3][5]. Company Performance - PepsiCo has faced strategic and operational challenges leading to poor financial results, stock-price underperformance, and a dislocated valuation [2][4]. - The company's beverage segment, PepsiCo Beverages North America (PBNA), has underperformed its peers for over a decade, while the food segment, PepsiCo Foods North America (PFNA), has also begun to falter due to a challenging consumer environment and increased investment spending [10][11]. Strategic Recommendations - Elliott proposes a clear agenda to restore business momentum, including: 1. Reviewing PBNA's structure and portfolio to enhance focus and operational efficiency [14]. 2. Realigning PFNA's asset base and portfolio to improve profit margins and free up capital for reinvestment [14]. 3. Investing in profitable growth through targeted investments and disciplined capital allocation [14]. Financial Outlook - A more focused and streamlined PepsiCo could see a valuation re-rating, potentially delivering over 50% upside to shareholders from current levels [5][15]. Company Overview - PepsiCo operates with over $90 billion in revenue and has a strong presence in snacks and beverages, which are among the fastest-growing consumer packaged goods categories [8][9]. - The company has a significant international segment with long-term growth potential, despite recent underperformance in its North American businesses [12][13].