Key Takeaways PEP's PBNA posted high-single-digit away-from-home growth and gained share in no-sugar colas and Gatorade.PBNA division's focus on innovation, affordability and functional hydration products drives consumer demand.Frito-Lay faces volume challenges, with Lay's lagging amid progress in Cheetos, Doritos and other snacks.PepsiCo, Inc. (PEP) enters the third quarter of 2025 with strong momentum in the PepsiCo Beverages North America division (PBNA), which delivered high-single-digit growth in away- ...

Key Takeaways PEP posted Q2 EPS of $2.12 on $22.73B in revenues, driven by pricing despite weaker volume trends.Pricing actions, AI-driven productivity and plant closures are helping protect margins and fund innovation.PEP is relaunching core brands and expanding value packs to reignite volume growth and consumer demand.PepsiCo, Inc.’s (PEP) Frito-Lay snacks unit continues to be a key growth engine, even as the company navigates a challenging North American market. Management emphasized that the food busine ...

Group 1 - Mondelēz International, Inc. will participate in a fireside chat at the Barclays Global Consumer Staples Conference on September 3, 2025, at 8:15 am ET [1] - The presentation will be available via a live audio webcast on the company's investor website, with an archive also accessible later [1] Group 2 - Mondelēz International reported net revenues of approximately $36.4 billion for the year 2024 [2] - The company operates in over 150 countries and offers a range of iconic brands including Oreo, Ritz, and Cadbury [2] - Mondelēz is recognized as a member of the Dow Jones Best-in-Class North America and World Indices [2]

Core Insights - Mondelēz International reported a net revenue increase of 7.7% in Q2 2025, with organic net revenue growth of 5.6% driven by strong pricing execution in the chocolate segment and growth across most geographies [1][2][5] - The diluted EPS rose by 8.9% to $0.49, while adjusted EPS decreased by 14.5% on a constant currency basis to $0.73 [1][4][14] - The company returned $2.9 billion to shareholders in the first half of 2025 and announced a 6% increase in the quarterly dividend [1][14] Financial Performance - **Net Revenue**: Q2 2025 net revenues reached $8.984 billion, a 7.7% increase compared to the previous year, with organic growth of 5.6% [3][19] - **Operating Income**: Operating income for Q2 2025 was $1.172 billion, reflecting a 37.2% increase year-over-year, while adjusted operating income decreased by 14.0% [4][14] - **Gross Profit**: Gross profit was $2.937 billion, up 5.0%, but the gross profit margin decreased to 32.7% [4][14] Regional Performance - **Latin America**: Reported net revenues of $1.194 billion, a decrease of 3.1% year-over-year, with organic growth of 5.4% [3] - **Asia, Middle East & Africa**: Revenues increased by 14.7% to $1.821 billion, with organic growth of 8.6% [3] - **Europe**: Revenues rose by 18.7% to $3.412 billion, with organic growth of 12.5% [3] - **North America**: Revenues decreased by 3.5% to $2.557 billion, with organic growth declining by 3.4% [3] Cash Flow and Capital Return - The company generated $1.4 billion in cash from operating activities year-to-date and reported free cash flow of $0.8 billion [1][14] - A quarterly cash dividend of $0.50 per share was declared, marking a 6% increase [1][14] 2025 Outlook - The company maintains an organic net revenue growth target of approximately 5% for 2025, with adjusted EPS expected to decline by about 10% on a constant currency basis due to cocoa cost inflation [7][8] - Free cash flow for 2025 is projected to exceed $3 billion [7]

Core Insights - Mondelēz International, Inc. will release its second quarter 2025 financial results on July 29, 2025, at 4:05 p.m. ET, followed by a conference call at 5:00 p.m. ET [1] - The company reported net revenues of approximately $36.4 billion for the year 2024, highlighting its position as a leader in the snacking industry with a diverse portfolio of iconic brands [4] Financial Results Announcement - The financial results will be disclosed on July 29, 2025, at 4:05 p.m. ET [1] - A conference call will be held at 5:00 p.m. ET on the same day for investors and analysts [1] Participation Details - Investors and analysts can join the conference call by dialing 800-225-9448 from the U.S. or 203-518-9708 from other locations, with a recommendation to call in 10 minutes early [2] - A listen-only webcast will be available on the company's website [2] Replay Information - A replay of the conference call will be accessible until August 5, 2025, using the same phone numbers as the live call, with the access code MDLZQ225 [3] - An archive of the webcast will also be available on the company's website [3] Company Overview - Mondelēz International operates in over 150 countries, focusing on empowering people to snack right [4] - The company boasts a portfolio of well-known brands, including Oreo, Ritz, Clif Bar, and Cadbury Dairy Milk, among others [4] - Mondelēz is recognized as a member of the Dow Jones Best-in-Class North America and World Indices [4]

Core Insights - PepsiCo, Inc. is addressing volume softness through strategic pricing, targeted value investments, and product innovation, particularly in its Frito-Lay North America segment [1][3] - The company has implemented a "dual-size" price-pack architecture to cater to both value-conscious and premium consumers, resulting in improved unit volumes [1][3] - PepsiCo is focusing on intelligent reinvestment strategies that balance affordability with profitability, utilizing data to optimize promotions and product sizes [2][3] Strategic Initiatives - The introduction of smaller packs and value-priced options aims to maintain consumer frequency while enhancing operational efficiencies [2][8] - PepsiCo's portfolio transformation includes expansion into high-growth international markets, with expected mid- to high-single-digit growth from countries like India and Brazil [3][8] - The company is leveraging international momentum to offset domestic volume pressures and preserve margins [3][8] Competitive Landscape - Coca-Cola and Mondelez are key competitors in the beverage and snack sectors, respectively, with Coca-Cola focusing on beverage dominance and Mondelez competing in the snack category [4][5][6] - Both competitors are also emphasizing innovation, affordability, and international expansion to capture market share [6] Financial Performance - PepsiCo's shares have declined by 11.6% year to date, contrasting with the industry's growth of 7% [7][8] - The company trades at a forward price-to-earnings ratio of 17.09X, which is below the industry's average of 18.47X [9] - Earnings estimates indicate a year-over-year decline of 3.6% for 2025, followed by a projected increase of 5.3% in 2026, with recent estimates remaining unchanged [10]

Industry Overview - The Zacks Food-Miscellaneous industry is experiencing challenges due to persistent inflation affecting consumer spending and a shift towards private-label products [1][4] - Rising input costs and operational expenses are squeezing profit margins across the sector [1][5] - The industry includes a variety of food and packaged food items, with sales primarily through wholesalers, distributors, and retail channels [3] Major Trends - The market landscape is tough, with consumers increasingly opting for lower-cost alternatives, impacting sales volumes for leading food brands [4] - Companies are adopting strategies focused on value marketing, promotional campaigns, and expanding affordable product lines to meet changing consumer demands [4] - Cost pressures are significant, with elevated prices for raw materials, labor, and transportation affecting profitability [5] Strategic Initiatives - Food companies are focusing on cost efficiency, product innovation, and portfolio diversification to navigate current pressures [2][6] - Established brands are leveraging customer loyalty and innovation to maintain market position and adapt to consumer preferences [6] - Companies are modernizing production capabilities and diversifying product offerings to ensure future growth [6] Industry Performance - The Zacks Food-Miscellaneous industry ranks 187, placing it in the bottom 24% of over 250 Zacks industries, indicating dull near-term prospects [7][8] - The industry's consensus earnings estimate has declined by 3.1% since April 2025, reflecting decreasing confidence in earnings growth potential [8] Comparative Analysis - Over the past year, the industry has underperformed the S&P 500, declining by 6.9% compared to the S&P 500's growth of 12.5% [9] - The industry is currently trading at a forward P/E of 15.85X, lower than the S&P 500's 22.43X and the sector's 17.39X [12] Company Highlights - Mondelez International is focusing on core categories and strategic portfolio reshaping, with a current EPS estimate of $3.02 [15][16] - Sysco Corporation is enhancing capabilities through its "Recipe for Growth" framework, with an EPS estimate of $4.38 [19][20] - McCormick & Company is leveraging innovation and brand marketing, with a current EPS estimate of $3.02 [23][24] - Celsius Holdings is rapidly growing in the beverage sector with a focus on health-conscious products, though its EPS estimate has declined to 81 cents [27][29]

Core Insights - PepsiCo is facing challenges in its Frito-Lay North America (FLNA) business due to subdued snack demand, raising concerns about the company's future growth momentum [1][2] - The company reported a modest 1% year-over-year organic revenue growth in the FLNA segment, leading to a downward revision of its 2025 earnings guidance [2][10] - PepsiCo is implementing a multi-pronged recovery strategy, including dual-size pricing tiers and a focus on transforming its snack portfolio to meet changing consumer preferences [2][3] Financial Performance - PepsiCo's shares have declined approximately 13.8% year-to-date, contrasting with the industry's growth of 5.9% [7] - The forward price-to-earnings ratio for PepsiCo is 16.25X, which is below the industry average of 18.32X [9] - The Zacks Consensus Estimate indicates a year-over-year decline of 3.6% in 2025 earnings, with a projected growth of 5.2% in 2026 [10] Competitive Landscape - Mondelez International (MDLZ) is emerging as a key competitor, leveraging a diversified portfolio and focusing on high-growth segments like permissible indulgence and well-being snacks [4][5] - Campbell's Snacks division is gaining market share in the U.S. snack category, particularly in premium and health-conscious segments, responding quickly to consumer demand shifts [6]

Core Insights - The 2024 State of Snacking report by Mondelēz International reveals a trend towards mindful snacking, with consumers focusing on flavor, taste, and texture while being present during their snacking moments [1][2][3] Consumer Behavior - The survey indicates that nearly all consumers are managing portion sizes and being attentive while snacking [2] - 96% of global consumers engage in mindful snacking behaviors, and 79% appreciate snacks more when consumed mindfully [7] - 81% of consumers pay attention to the sensory experience of their snacks, savoring the flavor, taste, and texture [7] Portion Control - Over half of consumers seek snacks that are portion controlled, with 69% looking for such options [7] - Mindful consumption is emphasized as a way to enjoy snacks in a balanced manner [7] Company Positioning - Mondelēz International is adapting to evolving consumer preferences by ensuring that every snack provides opportunities for connection and mindfulness [3] - The company reported net revenues of approximately $36.4 billion in 2024, leading the future of snacking with iconic brands [4]

Core Insights - Mondelēz International, Inc. released its 2024 Human Rights Due Diligence and Modern Slavery Report, highlighting progress in addressing human rights and modern slavery risks across its operations and value chain [1] - The company emphasizes the importance of human rights due diligence as part of its "Snacking Made Right" mission, focusing on meaningful partnerships and a culture of care and integrity [2] Human Rights Due Diligence Efforts - Mondelēz International is enhancing its human rights due diligence (HRDD) across its operations and supplier network, with a focus on prioritized ingredients like cocoa [3] - The Cocoa Life program aims to make cocoa farming more profitable, protect forests, and empower local communities, including initiatives for women's empowerment and entrepreneurship [3] Sector Collaboration - The company is investing approximately $3 million from 2022 to 2026 in the Child Learning and Education Facility (CLEF) to combat child labor in the West African cocoa supply chain, targeting over 4 million children [4] - A new public-private partnership, the System Change Architecture for Learning Excellence (SCALE), is being supported with an investment of around $1 million over the next four years to improve education quality in Ghana [5] Audit and Training Statistics - Approximately 96% of owned manufacturing sites and 98% of prioritized suppliers have undergone third-party SMETA audits in the past three years [6][7] - Since the launch of its Human Rights Policy in 2021, the company has trained over 50,000 employees on human rights issues, including 7,000 in manufacturing and logistics [7] Child Labor Monitoring - By the end of 2024, about 89% of Cocoa Life communities in West Africa, representing approximately 2,480 communities, will be covered by the Child Labor Monitoring & Remediation System (CLMRS) [7] - The company aims to cover all West African Cocoa Life communities with a CLMRS by the end of 2025, having conducted over 240,000 interviews to prevent child labor [7] Broader Human Rights Initiatives - Mondelēz International is committed to respecting human rights throughout its value chain, guided by the United Nations Guiding Principles on Business and Human Rights (UNGPs) [8] - The company collaborates with various industry coalitions to enhance its human rights efforts, including partnerships to combat child labor and improve education in cocoa-producing regions [10]