PepsiCo CEO: We're aligned with Elliott on the idea that PepsiCo is undervalued

Core Insights - PepsiCo exceeded estimates primarily due to growth in international sales, despite a decline in global volumes during the quarter [1][2] - The beverage business, particularly in North America, showed strong performance with brands like Gatorade and Propel gaining volume and market share [3][4] International Sales - International operations remain resilient, with a notable recovery observed in September after a summer slowdown [2] - The company is optimistic about future growth driven by a strong pipeline of innovations and brand restaging [4] North American Beverage Business - The North American beverage segment is experiencing continuous acceleration, with significant improvements in both volume and net revenue [3] - The company is focused on enhancing customer service and execution to regain momentum in the snacks segment, which has faced challenges [5][7] Innovation and Product Strategy - PepsiCo is launching new products, including a color-free version of Doritos and protein-infused snacks, to connect better with consumers [8][9] - The company is optimistic about the snacks business returning to growth, supported by strong consumer reactions to new product offerings [9] Leadership and Strategic Direction - The appointment of a new CFO from Walmart is seen positively by investors, indicating a focus on operational excellence [11][13] - PepsiCo is engaged in constructive discussions with Elliott Management, aligning on the belief that the company is undervalued and that strategic actions can enhance its valuation [14][15] Portfolio Management - The company is open to exploring various strategies for its bottling operations, acknowledging past underperformance compared to competitors [17][19] - There is a focus on tailoring solutions to different regions in the U.S. market, considering both beverage and snack business dynamics [20][21]