PepsiCo(US:PEP) Xin Lang Cai Jing·2025-10-09 22:49Core Insights - PepsiCo's stock price increased by 4.23% on October 9, indicating renewed market interest after a period of decline, although the intraday low reached its lowest point since August 2025, highlighting ongoing challenges for the company [1] - The company's Q3 financial report exceeded market expectations, but the North American snack business faced a slowdown, with food revenue declining by 3% and sales down by 4% [1][2] - Activist investor Elliott Management purchased $4 billion worth of PepsiCo shares, urging the company to streamline its snack product portfolio and refocus on core brands, adding pressure for decisive action in a rapidly changing market [1] Financial Performance - North American snack business revenue decreased by 3%, and sales fell by 4%, prompting significant reforms including layoffs and potential factory and warehouse closures [1] - Despite challenges in the U.S. market, international sales, particularly in Latin America and Asia, showed resilience, partially offsetting North America's weakness [2] - The North American beverage segment showed signs of recovery with a 2% growth, marking the highest growth rate in nearly two years [2] Strategic Adjustments - PepsiCo is actively adjusting its product portfolio to meet changing consumer demands, planning to eliminate artificial flavors from snacks and increase investment in healthier snack brands [1] - The company aims to introduce more dietary fiber, whole grain, and protein products, alongside innovative packaging and new product launches to enhance market competitiveness [1] - Management changes are underway, with the current CFO Jamie Coffield retiring and Steve Schmidt from Walmart taking over, reflecting the company's efforts to adapt to internal and external pressures [2] Transformation Phase - PepsiCo is undergoing a significant transformation phase, mobilizing a series of strategic measures to address challenges posed by changing consumer demands and investor pressures [2] - Investors are advised to monitor the company's financial metrics and market strategies closely in this uncertain environment [2]