PepsiCo Taps Walmart Executive as New CFO

Core Insights - PepsiCo reported higher revenue in its fiscal third quarter, but profit declined as volumes fell [1][4] - The company is undergoing a leadership change with the appointment of Steve Schmitt as CFO to address slowing sales and pressure from an activist investor [2][3] Financial Performance - Revenue for the three months ended September 6 was nearly $24 billion, reflecting a 2.7% increase year-over-year, driven by international business resilience and improved North American beverage performance [4] - Organic sales rose by 1.3% during the same period [4] - Profit decreased and volumes fell, with North America, which constitutes about 60% of PepsiCo's business, experiencing a 4% decline in food volumes and a 3% decline in beverage volumes [5] Strategic Focus - The new CFO, Schmitt, will focus on enhancing growth, reorganizing the cost structure, and maximizing brand investment [6] - The company has been reshaping its portfolio by cutting underperforming products and launching new ones aligned with health and wellness trends [6] - Schmitt's experience at Walmart is expected to aid in growing PepsiCo's digital business, which is a priority for the company [7] Market Context - PepsiCo's share price has declined over 15% from a year ago, influenced by its recent performance [8] - Activist investor Elliott Investment Management has acquired a roughly $4 billion stake in PepsiCo and is advocating for refranchising its bottling business and other changes to enhance the company's share price [8]