Pepsi (PEP)  is one of the notable enterprise giants that helped kick off the Q3 earnings season on a positive note this week.Exceeding Q3 expectations, the iconic Pepsi brand has been able to sustain through the company’s strategic innovation, cost-cutting initiatives, and pricing power despite many beverage makers facing volume pressures from a more inflation-conscious consumer.Following its favorable Q3 results yesterday morning, Pepsi stock has now spiked +8%, rising as much as +6% in Friday's trading s ...

PepsiCo, Inc. (NASDAQ:PEP) shares rose on Friday as investors focused on its product refreshes, wellness-focused innovations, and plans for steady, sequential growth across snacks and beverages.On Thursday, the food and beverage giant reported third-quarter adjusted earnings per share of $2.29, beating the analyst consensus estimate of $2.26.Quarterly sales of $23.937 billion (+2.6% year over year) outpaced the Street's expectation of $23.827 billion.Also Read: PepsiCo Posts Tepid Q3, Analyst Expects ‘Infle ...

PepsiCo, Inc. (NASDAQ:PEP) shares rose on Friday as investors focused on its product refreshes, wellness-focused innovations, and plans for steady, sequential growth across snacks and beverages.On Thursday, the food and beverage giant reported third-quarter adjusted earnings per share of $2.29, beating the analyst consensus estimate of $2.26.Quarterly sales of $23.937 billion (+2.6% year over year) outpaced the Street's expectation of $23.827 billion.Also Read: PepsiCo Posts Tepid Q3, Analyst Expects ‘Infle ...

Core Viewpoint - PepsiCo is actively reshaping its portfolio and reducing costs in response to scrutiny from activist investor Elliott Investment Management, emphasizing a sense of urgency in its strategic initiatives [1][3]. Group 1: Company Strategy - Elliott Investment Management, managing a $4 billion stake in PepsiCo, has called for a review of the company's food and drinks businesses in North America due to poor financial results [2]. - CEO Ramon Laguarta stated that most of Elliott's suggestions align with PepsiCo's Strategy 2030, indicating that the company is already acting on these ideas [3]. - Both PepsiCo and Elliott agree that the business is undervalued and see opportunities for improvement through urgent interventions [4]. Group 2: Innovation and Product Development - PepsiCo is relaunching its Lay's, Tostitos, and Gatorade brands, with a global rebrand for Lay's and a new lower sugar variant of Gatorade that contains 75% less sugar than the original [5]. - The company plans to eliminate artificial food dyes and flavors from Tostitos and Lay's by the end of the year and is launching a 'NKD' line for Doritos and Cheetos that will be free of artificial colors and flavors [6]. - Ongoing innovation includes the relaunch of Muscle Milk ready-to-drink shakes and a new Propel product targeting GLP-1 consumers, featuring special electrolytes, high fiber content, and good protein levels [7].

The company's enterprise value to operating cash flow ratio is 19.80, showing the relationship between its enterprise value and cash flow from operations. PepsiCo's earnings yield is 3.80%, which is the inverse of the P/E ratio and indicates the percentage of each dollar invested that was earned by the company. PepsiCo's debt-to-equity ratio of 2.62 suggests a higher reliance on debt financing, while its current ratio of 0.91 indicates its ability to cover short-term liabilities with short-term assets. Desp ...

PepsiCo (NasdaqGS:PEP) Q3 2025 Earnings Call October 09, 2025 08:15 AM ET Company ParticipantsRamon Laguarta - Chairman and CEORavi Pamnani - SVP of Investor RelationsJamie Caulfield - EVP and CFOConference Call ParticipantsFilippo Falorni - AnalystMichael Lavery - AnalystChris Carey - AnalystDara Mohsenian - AnalystAndrea Teixeira - AnalystSteve Powers - AnalystPeter Grom - AnalystPeter Galbo - AnalystRobert Moskow - AnalystKaumil Gajrawala - AnalystBonnie Herzog - AnalystRobert Ottenstein - AnalystLauren ...

Financial Data and Key Metrics Changes - The company reported a sequential improvement in business performance, particularly in beverages, which grew volume in the quarter, with larger brands like Pepsi showing positive growth in volume and net revenue [8][10] - The food business experienced a shift in promotional strategy, leading to better revenue realization but impacted volume growth, with expectations of flat performance in the food segment for the quarter [9][10] - The company anticipates margin improvement in 2026, driven by international growth and cost structure adjustments [23][24] Business Line Data and Key Metrics Changes - In the beverage segment, volume growth was noted, particularly in larger brands, while the food segment faced volume pressures due to promotional strategy changes [8][9] - The company is optimistic about the performance of its core brands, with significant interventions planned for Lay's, Tostitos, and Gatorade to drive future growth [16][18] - The permissible snacks category continues to perform well, contributing positively to the overall portfolio [56] Market Data and Key Metrics Changes - International markets showed mid to high single-digit performance in September, recovering from a weaker summer due to weather impacts [10][36] - The consumer landscape varies by region, with growth in India and Brazil, while consumers in China are more cautious [36][37] - The company is focusing on enhancing its presence in the Middle East and managing challenges in Mexico due to economic conditions [37] Company Strategy and Development Direction - The company is focused on reigniting top-line growth through innovation, brand relaunches, and enhancing customer engagement [14][16] - There is a strong emphasis on leveraging technology and operational efficiency to adapt to changing consumer demands and improve cost structures [68] - The company is open to exploring franchising options for its beverage operations to enhance agility and responsiveness to market demands [72] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to long-term growth algorithms by 2026, emphasizing the importance of executing core business fundamentals [14][47] - The company acknowledges the need for affordability and value in its offerings, reflecting broader consumer trends [79] - Engagement with activist investors has been constructive, with alignment on the need for portfolio transformation and cost reduction [83] Other Important Information - The company is undergoing a leadership transition with a new CFO expected to drive future strategic initiatives [69] - There is a focus on innovation in protein and functional hydration products, with plans to enhance existing brands and introduce new offerings [18][61] Q&A Session Summary Question: Volume pressures in food and beverage businesses - Management noted that beverage volumes grew, while food volumes were impacted by promotional strategy changes, but they remain optimistic about future volume growth due to innovation [8][9][10] Question: Long-term revenue growth acceleration - Management sees a clear path to returning to long-term growth algorithms by 2026, focusing on brand relaunches and operational excellence [14][16] Question: Cost implications of innovations - The company is working on improving margins while investing in innovation, with expectations of margin expansion in 2026 [23][25] Question: Right-sizing fixed cost structure - Management is actively rationalizing manufacturing and warehouse operations to improve efficiency and reduce costs [28][29] Question: Health of consumers in international markets - The company is seeing varied consumer behavior globally, with strong growth in India and Brazil, while consumers in China are more cautious [36][37] Question: Engagement with activist investors - Management is aligned with activist investors on the need for value creation and is open to constructive dialogue on strategic initiatives [83]

Financial Data and Key Metrics Changes - The beverage business experienced volume growth in the quarter, particularly with major brands like Pepsi, which saw increases in volume, net revenue, and market share [6][8] - The food segment implemented a new promotional strategy that focused on everyday low value rather than deep discounts, leading to better revenue realization despite a flat volume performance [6][7] - Service levels improved significantly, reaching 97% to 98%, which positively impacted customer satisfaction and execution at the point of sale [7][8] Business Line Data and Key Metrics Changes - The beverage segment showed positive developments with volume growth, while the food segment was close to flat but showed growth in the last four weeks of the quarter [6][8] - The international business faced challenges due to weather but rebounded to mid-single-digit growth in September, indicating recovery [8][36] Market Data and Key Metrics Changes - The consumer landscape is described as stressed globally, with varying impacts across regions; for instance, growth in India contrasts with challenges in China [36][37] - Brazil showed strong performance with close to double-digit growth, while Mexico's performance is closely tied to U.S. market trends [37] Company Strategy and Development Direction - The company is focused on reigniting top-line growth through innovation, particularly in core brands like Lay's, Tostitos, and Gatorade, with relaunches planned [12][13] - There is a strong emphasis on permissible snacks and functional hydration products, with significant investments in innovation to capture growing market segments [14][15] - The company is also exploring cost structure improvements and productivity enhancements to maintain competitiveness and drive growth [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to long-term growth algorithms by 2026, emphasizing the importance of executing basic operations effectively [12][66] - The company acknowledges the need for agility and flexibility in operations to adapt to changing consumer demands and market conditions [66][72] Other Important Information - The company is undergoing a leadership transition with a new CFO expected to drive the strategic vision forward [67] - Engagement with activist investors has been constructive, with alignment on the need for portfolio transformation and cost reduction [81][82] Q&A Session Summary Question: Volume pressures in food and beverage businesses - Management noted that beverage volumes grew, while food volumes were impacted by promotional strategy changes, but they remain optimistic about future growth due to improved service levels and innovation [6][7] Question: Long-term revenue growth acceleration - Management sees a clear path to returning to long-term growth algorithms by 2026, focusing on brand relaunches and innovation [12][13] Question: Cost implications of innovations - The company expects margin improvements driven by cost structure adjustments and price increases, with a focus on reallocating marketing spend to support new product launches [21][23] Question: Productivity interventions in PBNA - Management is rationalizing manufacturing nodes and warehouse infrastructure to improve efficiency and reduce costs, with ongoing productivity interventions expected into 2026 [27][28] Question: Health of consumers in international markets - The company is managing to compete well in various regions, with growth in India and Brazil, while facing challenges in China and Mexico [36][37] Question: Brand performance of Pepsi - The success of the Pepsi brand is attributed to effective marketing and product innovation, particularly in the zero-sugar segment [40][41] Question: Engagement with activist investors - Management is aligned with activist investors on the need for urgent interventions to improve company valuation and is open to constructive dialogue [81][82]

PepsiCo (PEP) is doubling down on its snack business after years of declining volume growth. On Thursday before the market open, the company beat low earnings estimates from Wall Street in its third quarter report. But the snacking slowdown continued in the US: North America food revenue fell 3%, and units sold declined 4%. PepsiCo CEO Ramon Laguarta told Yahoo Finance that a major overhaul is underway. "The situation in the US is accelerating top line," Laguarta said in a phone interview. "We're very a ...

The soda and snacks giant is giving products a MAHA-era makeover with natural ingredients. ...