PepsiCo (NASDAQ:PEP) reported stronger profit and steady organic volume as snacks gained—U.S. salty snacks rose for a third quarter—while beverages lagged; cost savings of $3.8B and product innovations target GLP-1 era demand amid activist pressure and mixed analyst cuts.
Previous Week Recap
- PepsiCo Momentum And Productivity: PepsiCo (PEP) saw brand momentum, with Rockstar recovering and gains in India, Asia Pacific and EMEA. Organic unit volume ~+1% overall; snacks up, beverages down. Productivity plan saved $3.8B.
- PepsiCo GAAP and EPS: PepsiCo (PEP) posted GAAP Q quarterly net income $2.98B, $2.18/share vs $1.26B, $0.92 LY. Adjusted EPS $2.20, marginally above $2.19 estimate.
- Analysts Trim PepsiCo Targets: Analysts trimmed PepsiCo (PEP) price targets: Jefferies $152, Barclays $138, TD Cowen $145, BNP Paribas $183, Wells Fargo $140, Citi cut to $145 and downgraded to Neutral.
- PepsiCo 2026 Outlook, Elliott Activism: PepsiCo (PEP) reaffirmed 2026 outlook: organic revenue +2%–4%, core EPS +4%–6%. Activist Elliott urges price cuts, smaller pack sizes and brand refreshes as part of turnaround talks.
- PepsiCo Expands Smaller Packagers: PepsiCo expands portion-controlled and functional products—smaller servings, multipacks, 100–120 calorie items, more protein, fiber and functional hydration to match GLP-1 era consumer demand.
- U.S. Salty Snacks Share Gains: PepsiCo (PEP) Q2: U.S. salty snacks volume rose for a third consecutive quarter. Foods NA gained share across chips, pretzels; Doritos, Ruffles and Miss Vickies drove volume and revenue gains.
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