LAS VEGAS and PURCHASE, N.Y., Jan. 6, 2026 /PRNewswire/ -- At CES 2026, PepsiCo (NASDAQ: PEP) announced a multi-year, industry-first collaboration with Siemens and NVIDIA to transform plant and supply chain operations through advanced digital twin technology and AI. This collaboration marks a first-of-its-kind initiative for a global CPG company applying digital twins to reshape how plant and warehousing facilities are digitally simulated and tested, with early pilots already underway in the U.S. Together, ...

With a market cap of $194.5 billion, PepsiCo, Inc. (PEP) is a global food and beverage company offering snacks, cereals, beverages, and dairy products under brands like Pepsi, Lay’s, and Quaker. It operates in North America, Latin America, Europe, Africa, the Middle East, South Asia, and the Asia Pacific. The Purchase, New York-based company is scheduled to deliver its fiscal Q4 2025 results soon. Ahead of this event, analysts forecast PepsiCo to post an adjusted EPS of $2.24, up 14.3% from $1.96 in the ...

PepsiCo, Inc. (NASDAQ:PEP) is included among the 15 Best Blue-Chip Stocks with Growing Dividends. PepsiCo (PEP) Gets Price Target Lift at Barclays as 2026 Outlook Comes Into Focus On December 11, Barclays raised its price target on PepsiCo, Inc. (NASDAQ:PEP) to $144 from $142, keeping an Equal Weight rating. The firm said the company “aimed to convey greater conviction and visibility” into its 2026 outlook, which mostly matches what the Street expects. A few days earlier, on December 8, PepsiCo, Inc. (N ...

PepsiCo has reshuffled parts of its team of senior executives as part of its efforts to speed up the company's growth. The changes, which will take effect later this month, were announced yesterday (15 December) and come as the US group looks to improve its performance after pressure from activist investor Elliott Investment Management. Steven Williams, the CEO of PepsiCo's business in North America, has been moved to a new combined position of vice chairman and global chief commercial officer. William ...

Core Viewpoint - PepsiCo is collaborating with Elliott Investment Management, an activist investor, to enhance its profitability and potentially achieve a 20% price breakout despite facing current business challenges [2][7]. Company Overview - PepsiCo is the seventh-largest consumer staples company globally by market capitalization and the second-largest food-related corporation after Coca-Cola, with diversified operations in beverages, snacks, and packaged foods [3]. Financial Performance - PepsiCo's organic revenue growth for Q3 was only 1.3%, significantly lower than Coca-Cola's 6% growth during the same period [5]. - The stock has increased by approximately 15% over the past six months but remains about 25% below its 2023 highs [6]. Strategic Initiatives - PepsiCo is utilizing acquisitions and innovation to adapt to changing consumer preferences, which is a common strategy for strong brand managers during challenging times [6]. - The company is considering adopting a higher-margin approach similar to Coca-Cola's, which could lead to a significant stock price increase if implemented [8][10]. Investment Outlook - The current dividend yield for PepsiCo is 3.8%, which is on the higher end of its historical range, providing a reasonable return for investors while waiting for potential growth [9]. - If Elliott's recommendations are followed, a swift and substantial stock price increase is anticipated, making it advisable for potential investors to act sooner rather than later [11].

Core Insights - Dividend aristocrat stocks are essential for investors aiming for stability and long-term wealth creation, as they have consistently increased dividends for at least 25 years, showcasing financial discipline and commitment to shareholders [1][2] Dividend Aristocrats Overview - Dividend aristocrats serve as a hedge against economic uncertainty, providing downside protection and consistent payout increases, making them suitable anchors in diversified portfolios [2] - Five highlighted dividend aristocrats for 2026 include Atmos Energy Corporation, Medtronic plc, PepsiCo, Inc., Caterpillar Inc., and S&P Global Inc., all of which exhibit robust dividend growth and steady returns [3][8] Atmos Energy Corporation (ATO) - ATO has raised its annual dividend for 42 consecutive years, with a current quarterly dividend of $1 per share and an annual dividend yield of 2.38% [3][4] - The new dividend for fiscal 2026 is $4 per share, reflecting a nearly 15% increase from fiscal 2025 [4] Medtronic plc (MDT) - MDT has increased its dividend for 48 consecutive years, with a current quarterly dividend of 71 cents and an annual dividend yield of 2.84% [5][6] - The company is expanding its global presence, particularly in the Cardiovascular business, despite facing near-term supply and tariff-related challenges [6] PepsiCo, Inc. (PEP) - PEP has raised its annualized dividend by 5% in 2025, reaching $5.69 per share, marking its 53rd consecutive annual dividend increase [7][9] - The company plans to return $8.6 billion to shareholders in 2025, including $7.6 billion in dividends and $1 billion in buybacks, with an annual dividend yield of 3.78% [9] Caterpillar Inc. (CAT) - CAT has a long history of dividend payments, having raised dividends for 32 consecutive years, with a recent quarterly dividend hike of 7% to $1.51 per share [10][11] - The company returned approximately $1.1 billion to shareholders in dividends and share repurchases in Q3 2025, with an annual dividend yield of 1.01% [11] S&P Global Inc. (SPGI) - SPGI has increased its dividend annually for over 50 years, with a current quarterly dividend of 96 cents and an annualized dividend of $3.84 per share [12][13] - The company reported a strong adjusted operating profit margin of 52.1% and generated free cash flow of $1.4 billion in the last quarter [14]

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]

Core Insights - PepsiCo is facing challenges with low consumer demand due to economic pressures affecting shoppers globally [1][2] - The company reported a 3% year-over-year decline in U.S. revenue from food brands and a 4% decrease in volume during Q3 [2] - CEO Ramon Laguarta highlighted that consumers are increasingly health-conscious and cautious about spending [3][4] Financial Performance - U.S. revenue from beverages increased by 2%, but volume for these products declined by 3% [2] - The company anticipates full-year 2026 organic revenue growth to range between 2% and 4%, expecting to achieve the higher end in the second half of 2026 [13] Strategic Initiatives - PepsiCo is implementing a turnaround plan focusing on affordability, innovation, and cost reduction [5][10] - The company has agreed with Elliott Investment Management to scale back its product lineup in the U.S. and lower prices [6] - Plans include removing artificial colors and flavors, simplifying ingredients, and reducing the product lineup by 20% by early next year [8][9] Consumer Behavior - A significant portion of Americans (61%) are stressed about grocery costs, with 88% adjusting their shopping habits [7] - Consumers are increasingly opting for generic brands and paying closer attention to prices [8] Workforce Changes - PepsiCo plans to reduce its workforce as part of cost-cutting measures, with recent layoffs affecting over 450 workers due to facility closures [11][12] - The company is moving towards a leaner workforce, emphasizing the need for reskilling in technology and AI [13] Analyst Perspectives - Analysts have mixed views on PepsiCo's turnaround plan, with some expressing skepticism about the effectiveness of the proposed initiatives [14]

Core Viewpoint - PepsiCo has agreed to reduce its product lineup by 20% in the US, lower some prices, and lay off an unspecified number of workers as part of a deal with activist investor Elliott Management [1][2][3] Group 1: Product Changes - The company will cut an unspecified number of brands from its well-known snack and beverage lineup, which includes Lay's, Cheetos, Doritos, and Pepsi [1][6] - PepsiCo has repackaged its Lay's potato chips to emphasize they are made with "real potatoes" and has replaced artificial dyes with natural alternatives in some products [4] - The company plans to introduce new products with higher protein and fiber content, as well as reduced-sugar options [5][8] Group 2: Financial Strategy - PepsiCo expects organic revenue growth of 2% to 4% in fiscal 2026, slightly below analysts' estimates of 2.7% [5] - The CEO stated that savings from cost-cutting measures will be used to lower prices on top brands to boost sales, as inflation has led consumers to avoid expensive snacks and sodas [7][8] Group 3: Corporate Restructuring - The company is making structural changes that will affect some roles, although the specific number of layoffs and areas impacted have not been disclosed [3] - PepsiCo is not considering a full refranchising of its North American business despite Elliott's push for changes [10]

Core Insights - PepsiCo, Inc. (PEP) is positioned for growth due to strengths in core categories, a diversified portfolio, improved digital capabilities, and flexible distribution systems [1] - The company has outlined commercial and financial priorities aimed at enhancing shareholder value, including a preliminary financial outlook for 2026 [1] Financial Performance and Growth Targets - Management anticipates organic revenue growth of 2-4% in 2026, with potential contributions from acquisitions and foreign currency translation, leading to overall net revenue growth of 4-6% [5] - Core effective annual tax rate is expected to be around 22% in 2026, with core EPS projected to rise by approximately 5-7% [7] Innovation and Product Development - PepsiCo is advancing an innovation agenda focused on permissible and functional products, including the launch of new products like Simply NKD Cheetos and Doritos Protein [3] - The company is enhancing marketplace competitiveness by strategically focusing on affordable price tiers to drive growth in mainstream brands [2] Cost Management and Operational Efficiency - The company is aggressively cutting operating costs, including the closure of three manufacturing plants and reducing nearly 20% of SKUs in the US by early next year [4] - Management aims for at least 100 basis points of core operating margin expansion over the next three fiscal years through automation and digitalization [6] Shareholder Returns and Capital Allocation - PepsiCo plans to maintain capital spending below 5% of net revenues in 2026 while continuing to raise annual dividends, subject to board approval [8] - The company anticipates a free cash flow conversion ratio of at least 80% in 2026, with plans to increase cash returns to shareholders through dividends and share repurchases [9]