PepsiCo reports organic revenue growth for the third quarter that missed estimates as US shoppers purchase fewer processed snacks and sugary sodas https://t.co/63CsdMl2zk ...

Core Insights - PepsiCo reported third-quarter results that exceeded Wall Street expectations for both revenue and earnings per share, with revenue at $23.94 billion and adjusted earnings per share at $2.29 [1] - The company is facing challenges in its US snacking business, which has seen a decline in food revenue by 3% [2] Financial Performance - Revenue for the quarter was $23.94 billion, slightly above the expected $23.85 billion, while adjusted earnings per share were $2.29, surpassing the forecast of $2.27 [1] - The beverage segment in North America grew by 2%, helping to offset the slowdown in the food business [2] Business Segments - The trademark Pepsi brand experienced growth in both volume and net revenue, with hydration products like Propel also showing strong performance [2] - The acquisition of Poppi for $1.95 billion has resulted in over a 50% increase in retail sales year-over-year [2] - The company reported a 5.5% revenue growth in its Europe, Middle East, and Africa business, and a 4% growth in Latin America [2] Strategic Challenges - The company is under pressure from activist investors, including Elliott Management, which has a $4 billion stake and is advocating for a turnaround [3] - PepsiCo's stock has declined nearly 8% year-to-date, contrasting with a 6% increase in rival Coca-Cola's stock [3] Future Outlook - The company reiterated its fiscal 2025 guidance, expecting low-single-digit organic revenue growth and core constant currency earnings per share to be approximately even with the prior year [4] Leadership Changes - CFO Jamie Caulfield will retire, with Steve Schmitt, formerly CFO of Walmart US, taking over the role effective November 10 [5] - Board member Darren Walker plans to leave the board on November 19 [5]

The U.S. stock market is poised for a cautious open on Thursday, October 9, 2025, as investors digest a mixed premarket session following Wednesday's record-setting rally in technology shares. While the broader market continues to grapple with lingering inflation concerns and the implications of an ongoing government shutdown, the artificial intelligence (AI) boom remains a significant catalyst for certain sectors.Premarket Trading and Futures MovementsAs of early Thursday morning, U.S. stock index futures ...

Core Insights - PepsiCo exceeded Wall Street expectations for third-quarter revenue and profit, driven by steady demand for its energy drinks, healthier sodas, and snack brands in key international markets [1] Financial Performance - The company reported better-than-expected revenue and profit figures for the third quarter, indicating strong performance in its product categories [1] Market Demand - Demand for energy drinks, healthier sodas, and snacks remained robust in important international markets, contributing to the company's positive financial results [1]

Core Insights - The advertising measurement landscape remains complex and fragmented, with marketers struggling to accurately assess the effectiveness of their campaigns across various channels and platforms [4][5][6] - Keurig Dr. Pepper emphasizes the importance of both message delivery and the context in which it is received, with 60% of ROI attributed to messaging and 40% to other factors [2][4] - Live sports advertising is seen as a valuable opportunity for brands, despite rising costs, particularly to engage younger consumers like Gen Zennials [7][9][11] Measurement Challenges - The current advertising ecosystem is characterized by media fragmentation and the presence of walled gardens, complicating the attribution process [3][4] - Marketers are often uncertain about the precise return on investment from their marketing spend, estimating effectiveness within a range of 10-15% [4][6] Live Sports Engagement - Keurig Dr. Pepper has increased its collaboration with Disney Advertising to enhance digital fan engagement during college football season [7] - The cost of advertising during live sports has risen, but the potential reach and engagement with key demographics justify the expense [9][11] - Dr. Pepper's sponsorship of the college football championship game resulted in 80% more engagement compared to other advertising efforts throughout the year [11][12] Brand Connection and Fandom - The brand's strategy includes leveraging cultural connections through sponsorships, which are crucial for long-term brand value beyond immediate sales [12] - Dr. Pepper has established relationships with 55 college football athletes to create content that maximizes engagement with fans [13]

Core Insights - The second annual AI Deciphered conference will take place on November 13, featuring keynotes from Chris Wiggins and Pratik Thakar [1][4] - The theme for this year's conference is "The Next Stage of Your Evolution," focusing on inspiring and providing tactical counsel for communicators and marketers to implement AI effectively [2] Event Details - Chris Wiggins, chief data scientist at The New York Times, will open the conference, discussing the transformative impact of Generative AI on data collection and implementation for marketing [3] - Pratik Thakar, VP and global head of generative AI at The Coca-Cola Company, will close the event, sharing insights on AI successes and challenges faced by his brand [4] Learning Opportunities - The conference will feature multiple sessions, including three main stage presentations and additional tracks led by industry leaders from companies such as Ford, Verizon, and Bayer [5] - Key topics include the evolution of search, AI's impact on the workplace, conversational AI in marketing, building AI tools, and ethical considerations in AI usage [6]

Core Viewpoint - Coca-Cola is positioned as a strong dividend stock, providing a reliable and growing stream of passive income for investors, supported by its robust financial profile and consistent dividend increases over decades [1][2]. Dividend Performance - In early 2025, Coca-Cola raised its dividend by 5.2%, achieving 63 consecutive years of increases, placing it among the elite Dividend Kings [3]. - The company pays out over $8 billion in annual dividends and has distributed nearly $100 billion to shareholders since 2010 [3]. Investment by Major Shareholders - Berkshire Hathaway owns 400 million shares of Coca-Cola, representing about 9.3% of the company's outstanding shares, valued at $26.7 billion, making it Berkshire's fourth-largest holding [4]. - Berkshire Hathaway collects over $800 million in annual dividend income from Coca-Cola, significantly increasing from its initial investment of about $1.3 billion in the late 1980s and early 1990s [4]. Dividend Yield Comparison - Coca-Cola's current dividend yield exceeds 3%, more than double the S&P 500's yield, which is below 1.2% [5]. Financial Strength and Cash Flow - Coca-Cola generated $10.8 billion in adjusted free cash flow last year, with a comfortable 73% dividend payout ratio, indicating strong financial health [6]. - The company expects adjusted free cash flow to be $9.5 billion this year, still sufficient to cover its current dividend level [6]. Balance Sheet and Leverage - Coca-Cola ended the second quarter with $14.3 billion in cash and equivalents, maintaining a low leverage ratio of 2.0 times, allowing for potential debt capacity [7]. Growth Investments - The company invests approximately $2 billion annually in capital expenditures to support operations and aims for 4%-6% annual organic revenue growth and 7%-9% annual earnings-per-share growth [8]. Strategic Acquisitions - Since 2016, acquisitions like Fairlife and Costa Coffee have contributed to a quarter of Coca-Cola's earnings-per-share growth, enhancing its growth profile [9]. Future Dividend Outlook - Coca-Cola's financial strength and growth potential position it well to continue increasing its dividend in the future, making it an attractive option for income-focused investors [10].

With U.S. stock futures trading mixed this morning on Thursday, some of the stocks that may grab investor focus today are as follows:Wall Street expects PepsiCo Inc. (NASDAQ:PEP) to post quarterly earnings at $2.26 per share on revenue of $23.83 billion before the opening bell, according to data from Benzinga Pro. PepsiCo shares rose 0.1% to $139.00 in after-hours trading.Costco Wholesale Corp. (NASDAQ:COST) reported net sales of $26.58 billion for the retail month of September, which includes the five week ...

Market Overview - Major averages have recently hit record highs, with the S&P 500 closing on over 30 records [1] - There has been a significant rally of 40% from the market's bottom, leading to cautious optimism among investors [2][5] Investment Strategy - The company has raised some cash in anticipation of potential volatility during the upcoming earnings season [3][5] - A cautious approach is being adopted, following Warren Buffett's principle of being fearful when others are greedy, especially in the current information vacuum [4][11] Earnings Outlook - Concerns are raised regarding the deceleration of earnings growth among major tech companies, with the MAG 7 expected to see earnings growth drop from 32% last year to below 15% this quarter [9][10] - Capital expenditures as a percentage of free cash flow among hyperscalers have increased to 60%, impacting earnings growth and stock buybacks [8] Stock Recommendations - Estee Lauder and Diageo are highlighted as attractive defensive stocks, with potential for significant returns over a 3 to 5-year period [12][18] - Diageo is recovering from COVID impacts, targeting $3 billion in free cash flow and experiencing growth in its non-alcoholic beverage segment [17] - Estee Lauder is returning to growth with a focus on online sales, increasing from 20% to 31% of its business, and targeting $1 to $1.1 billion in operating cash flow [19][20]

Market Overview - US stock futures are stable as investors evaluate optimism surrounding AI and potential interest-rate cuts amid a government shutdown [1] - S&P 500 futures remain unchanged after a record close, with Dow Jones and Nasdaq 100 also showing minimal movement [1] Gold Market - The rally in gold has slowed down due to profit-taking, retreating from its all-time high of approximately $4,060 [2] - The ongoing federal shutdown has affected scheduled data releases, including jobless claims, shifting focus to upcoming earnings reports [2] Company Earnings - PepsiCo reported quarterly profit and revenue beats, marking the beginning of the third-quarter earnings season, with major bank reports expected next week [3] - Delta Air Lines is also set to release its earnings results on Thursday [3] Federal Reserve Insights - Investors are anticipating comments from Chair Jerome Powell at the Federal Reserve's bank conference, following positive sentiment from the minutes of the September policy meeting [4] - The minutes indicated a consensus among officials for at least two more rate cuts this year [4]