Goldman Says PepsiCo Poised For Turnaround As Innovation, Productivity Ramp Up

Core Insights - PepsiCo reported third-quarter adjusted earnings per share of $2.29, exceeding the analyst consensus estimate of $2.26 [1] - Quarterly sales reached $23.937 billion, reflecting a 2.6% year-over-year increase, surpassing expectations of $23.827 billion [1] - Analyst Bonnie Herzog from Goldman Sachs reiterated a Buy rating with a price target of $165 [1] Group 1: Analyst Expectations and Market Position - Expectations were modest prior to the earnings report due to concerns about consumer health and softer consumption trends [2] - Herzog anticipates an inflection in performance next quarter as PepsiCo introduces a strong innovation pipeline, including new protein beverages [2] - The company is well-positioned for long-term growth in food and beverages, supported by strong brands and a solid innovation pipeline [3] Group 2: Growth Strategies and Productivity - PepsiCo's disciplined revenue growth management and owned distribution network enhance its market position [3] - Management's focus on elevating productivity initiatives and disciplined commercial investments is expected to stimulate future growth [4] - Despite near-term challenges, Herzog projects sustainable mid-single-digit average organic sales growth over the next decade [3]