PepsiCo, Inc. (NASDAQ:PEP) Targets Efficiency and Growth Amidst Strategic Changes

Core Insights - PepsiCo is a leading player in the food and beverage industry, with a diverse product portfolio including brands like Pepsi, Mountain Dew, and Lay's, competing against giants like Coca-Cola and Nestlé [1] - Barclays has set a price target of $144 for PepsiCo, while the stock is currently trading at $149.70, which is 3.81% above the target [1][6] Strategic Changes - PepsiCo is implementing significant changes driven by Elliott Investment Management's push for cost-cutting and product streamlining, planning to cut nearly 20% of its SKUs in the U.S. by early 2026 [2][6] - The company is not eliminating entire product lines but is focusing on specific versions, such as different sizes, flavors, or package types, to maintain core offerings while optimizing for efficiency [3][6] Product Development and Pricing Strategy - PepsiCo aims to offer more affordable pricing options to boost growth and increase purchase frequency of its mainstream brands [4] - The company is rapidly launching new products that cater to consumer demands for healthier options, including those without artificial colors and flavors, and those with more protein, fiber, and whole grains [4][6] Market Performance - Currently, PepsiCo's stock is trading at $149.70, reflecting a $5.06 or 3.50% increase, with a daily trading range between $147 and $149.71 and a market cap of approximately $204.7 billion [5]