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PepsiCo (PEP -2.20%) stock has reached a critical juncture, presenting an opportunity for investors. The company's struggles have led to a falling stock price and, by extension, a rising dividend yield.

More importantly, recent events have aligned in a way that could lead to a long-awaited stock price recovery. Also, its rising profits bode well for its continued dividend growth.

Here is what happened that turned PepsiCo around and how it can benefit stock investors.

Image source: The Motley Fool.

PepsiCo's value as an income stock
As conditions stand now, new PepsiCo shareholders will earn a 4.3% dividend return. That is far above the 3.2% average yield of the last five years, and well above the 1.1% S&P 500 (^GSPC -0.52%) average.

That return stems from its $5.92-per-share annual dividend. Moreover, since the company has amassed a 54-year record of annual payout hikes, PepsiCo is a Dividend King.

The Dividend King status is critical because a company must raise its payout for at least 50 consecutive years to achieve it. Such a status makes a stock attractive to certain dividend funds. It also likely means that ending the increases would undermine confidence in the stock, a compelling incentive for PepsiCo to maintain the current pace of payout hikes.

Furthermore, free cash flow for the trailing 12 months was $10.8 billion. Since dividend costs are on track to reach about $8 billion for the fiscal year, the company can likely afford to maintain and increase the payout.

Why the income (and stock price) growth is likely to continue
Additionally, dividend funding is likely to improve.

Until recently, PepsiCo appeared destined for stagnation or possibly decline. Consumers had increasingly turned against the unhealthy beverages and packaged foods that define most of the company's product lineup.

In recent years, PepsiCo has responded. The company selectively cut prices and cut some of its products. It then offered health-conscious products and put healthier ingredients in others. It also acquired Siete Foods, a brand focused on healthy ingredients, to build on these initiatives.

Consequently, in the first nine months of fiscal 2026 (ended Sept. 5), revenue of $69 billion climbed 7% annually from year-ago levels. In contrast, revenue increased by less than 1% annually in the first three quarters of 2025.

Expenses climbed at a slower pace, meaning the $8.4 billion in net income for the first nine months of 2026 was up 47% over the same period.

PEP PepsiCo$135.77-$3.06 (-2.20%)

NASDAQ · As of 4:00 PM ET 10/23/26

Unfortunately, the stock has not responded, and it is down for the year. Nonetheless, that drop has taken its P/E ratio to 17, a level near multiyear lows. Such a valuation arguably adds to the draw when income investors know they can earn 4.3% in dividend returns.

Investing in PepsiCo stock
As conditions stand now, new PepsiCo investors can buy a high-yielding, stable, and rising income stream at a discounted valuation.

Indeed, PepsiCo had struggled to adapt to shifting consumer tastes. However, it has adjusted its product lines to address that change, and sales have risen as a result.

Assuming that trend continues, PepsiCo investors should benefit from a generous dividend at a discounted price, possibly making it an undervalued dividend stock you can buy and hold forever.

PepsiCo and Taco Bell renewed their long-running partnership through 2036, the food and beverage company said on Thursday.

The announcement comes one week after Taco Bell's sister chain KFC said that it will switch to Coca-Cola as its U.S. beverage supplier. While it is unusual for large restaurant chains to switch drink providers, the move is not unprecedented, as Coke and Pepsi try to win contracts through perks and other inducements.

Coke's win over Pepsi was more symbolic, representing another example of how the Atlanta-based company has been beating its rival in the soda category.

Pepsi's relationship with Taco Bell and KFC parent Yum Brands spans decades, back to when the beverage giant owned the restaurant chains before spinning them into a separate public company in 1997. Despite KFC's defection in the U.S., Pepsi remains an important partner for Yum and the chain's international markets, KFC U.S. President Catherine Tan-Gillespie wrote in a memo on Oct. 15 that was obtained by CNBC.

Thanks to its partnership with Pepsi, Taco Bell has long served exclusive menu items that use Pepsi products, like Mountain Dew Baja Blast and Doritos Locos Tacos, at its restaurants.

The renewed deal also means that Taco Bell international markets such as Canada, the United Kingdom, Ireland and Thailand will serve Pepsi products.

Key Takeaways PepsiCo's Q3 revenues and core EPS beat estimates, drawing attention to PEP-heavy ETFs.Rising costs pressured margins, making PepsiCo's cost-cutting efforts crucial to its recovery.FTXG, IYK and GXPS offer exposure to PepsiCo, with respective PEP weightings of 7.9%, 6.8% and 5.74%.
PepsiCo, Inc. (PEP - Free Report) reported third-quarter fiscal 2026 net revenues of $25.27 billion, up 5.6% year over year from $23.94 billion.The company released earnings on Oct. 8, 2026, before market open, beating expectations and helping its shares gain 3.7% that day.

Overview of PepsiCo’s Earnings Organic revenues grew 3.1%, while acquisitions and divestitures added 1.7 percentage points and foreign-exchange effects contributed 0.7 percentage points to reported growth.

PepsiCo’s core earnings per share (EPS) beat the Zacks Consensus Estimate of $2.29 by 2.18%, while revenues surpassed the $24.88-billion estimate by 1.59%.

Reported EPS rose 17.4% to $2.23 from $1.90, while core EPS increased 2.2% to $2.34. Gross profit grew to $13.75 billion from $12.82 billion, lifting the gross margin to 54.4% from 53.6%. The improvement indicates that gross profit grew faster than revenues in the quarter.

Reported operating profit increased 19% to $4.26 billion, but core operating profit rose just 3% to $4.28 billion, while the core operating margin declined 35 basis points to 16.9%, reflecting operating cost increases, and higher advertising and marketing expenses.

For the first 36 weeks of fiscal 2026, PepsiCo generated $7.95 billion in operating cash flow compared with $5.47 billion a year earlier, while the capital expenditure fell to $2.18 billion from $2.50 billion. Consequently, the free cash flow increased 80.7% to $5.86 billion from $3.24 billion.

The company expects core EPS growth of 2.5-3.5%, down from its previous forecast of 5-7%, while core constant-currency EPS growth is projected at just 1-2% compared with the previous outlook of the low end of 4-6%.

Rising Costs Instigate Deeper Cost-Cutting MeasuresHigher commodity, energy, transportation and packaging costs are creating additional challenges for PepsiCo. As previous cost hedges expire, the company faces greater exposure to rising input prices, putting pressure on its operating margin.

Since PepsiCo's core operating margin declined year over year in the third quarter of 2026, management plans additional structural cost reductions to eliminate redundancies and discretionary spending.

The savings are expected to help finance investments in innovation, advertising and marketing while offsetting inflationary pressures.

PepsiCo is also expanding its product portfolio to respond to changing consumer preferences. Its initiatives include high-protein and high-fiber snacks, simpler ingredients, zero-sugar beverages and functional hydration products. These efforts are intended to attract health-conscious consumers and address the potential long-term impacts of GLP-1 weight-loss medications on food consumption patterns, per Reuters.

Nevertheless, the company's turnaround remains a work in progress, and investors will be watching whether cost savings can improve profitability without compromising future growth.

ETFs in FocusPepsiCo's third-quarter results present a mixed picture for investors. Better-than-expected revenues and adjusted earnings demonstrate that the company continues to generate demand, particularly in international markets, putting PepsiCo-heavy ETFs in the spotlight.

Investors will also need to monitor competitive pressures in beverages, consumer spending trends and the company's progress toward its turnaround goals.

 A sustained margin recovery, rather than revenue growth alone, will be an important indicator of whether the stock can regain momentum.

First Trust Nasdaq Food & Beverage ETF (FTXG - Free Report) is a U.S.-listed exchange-traded fund that provides exposure to food and beverage companies, including packaged-food makers, soft-drink producers, agricultural processors and other businesses across the food supply chain.

PEP has a holding of 7.9% (as of Oct. 15) in its portfolio and an expense ratio of 0.60%.

iShares U.S. Consumer Staples ETF (IYK - Free Report) provides exposure to U.S. consumer staples companies, including food and beverage producers, household and personal-care product makers, and consumer staples retailers.

PEP has a holding of 6.8% (as of Oct. 15) in its portfolio, along with an expense ratio of 0.37%.

Global X PureCap MSCI Consumer Staples ETF (GXPS - Free Report) is a U.S. sector ETF that invests in consumer staples companies, including food and beverage producers, household-product makers and consumer staples retailers.

PEP has a holding of 5.74% (as of Oct. 15) in its portfolio, along with an expense ratio of 0.15%.

PepsiCo, Inc. (NASDAQ:PEP – Get Free Report) Director Robert Pohlad purchased 184,646 shares of the firm’s stock in a transaction that occurred on Wednesday, October 14th. The stock was bought at an average price of $128.28 per share, for a total transaction of $23,686,388.88. Following the transaction, the director directly owned 433,009 shares of the company’s stock, valued at $55,546,394.52. This trade represents a 74.35% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this link.

PepsiCo Stock Up 2.4% PEP stock opened at $131.49 on Friday. PepsiCo, Inc. has a 52 week low of $123.47 and a 52 week high of $171.48. The business has a 50-day simple moving average of $134.44 and a 200 day simple moving average of $142.25. The company has a quick ratio of 0.76, a current ratio of 0.94 and a debt-to-equity ratio of 1.90. The company has a market cap of $179.19 billion, a PE ratio of 16.52, a price-to-earnings-growth ratio of 3.92 and a beta of 0.35.

PepsiCo (NASDAQ:PEP – Get Free Report) last announced its quarterly earnings data on Wednesday, October 7th. The company reported $2.34 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.29 by $0.05. PepsiCo had a net margin of 11.09% and a return on equity of 53.08%. The firm had revenue of $25.27 billion for the quarter, compared to the consensus estimate of $24.95 billion. During the same period in the prior year, the company posted $2.29 earnings per share. The business’s revenue for the quarter was up 5.6% on a year-over-year basis. Sell-side analysts anticipate that PepsiCo, Inc. will post 8.41 EPS for the current fiscal year.

Analyst Upgrades and Downgrades PEP has been the topic of a number of recent analyst reports. Jefferies Financial Group reissued a “hold” rating on shares of PepsiCo in a research note on Thursday, October 8th. TD Cowen cut their target price on PepsiCo from $145.00 to $133.00 and set a “hold” rating for the company in a research note on Monday, September 28th. BNP Paribas Exane reduced their target price on PepsiCo from $161.00 to $157.00 and set an “outperform” rating on the stock in a report on Friday, October 9th. Piper Sandler decreased their price target on PepsiCo from $176.00 to $140.00 and set an “overweight” rating on the stock in a research note on Friday, October 9th. Finally, Wells Fargo & Company lowered their price target on PepsiCo from $140.00 to $135.00 and set an “equal weight” rating for the company in a report on Monday, October 5th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, fourteen have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, PepsiCo presently has a consensus rating of “Hold” and a consensus price target of $145.50. Get Our Latest Report on PEP

Institutional Investors Weigh In On PepsiCo Hedge funds have recently made changes to their positions in the stock. Evergreen Advisors LLC acquired a new stake in PepsiCo in the first quarter valued at approximately $25,000. Montgomery Financial Services LLC acquired a new position in shares of PepsiCo during the second quarter worth $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new position in shares of PepsiCo during the fourth quarter worth $26,000. Atlatl Advisers LLC bought a new position in shares of PepsiCo in the 2nd quarter valued at $31,000. Finally, Osterweis Capital Management Inc. bought a new position in shares of PepsiCo in the 2nd quarter valued at $31,000. 73.07% of the stock is currently owned by institutional investors and hedge funds.

Key PepsiCo News Here are the key news stories impacting PepsiCo this week:

Positive Sentiment: Director Robert Pohlad bought 184,646 shares for approximately $23.7 million, increasing his direct ownership by 74.35%. The purchase may signal confidence that PepsiCo’s depressed valuation does not reflect its long-term prospects. SEC insider transaction filing Positive Sentiment: Bank of America maintained a Hold rating but raised its price target to $145, suggesting balanced risk-reward and potential upside from current levels. The firm cited strength at Taco Bell as partially offsetting the KFC loss. Bank of America rating update Neutral Sentiment: PepsiCo announced a €500 million offering of 3.750% senior notes. The proceeds strengthen funding flexibility, although the transaction adds to the company’s already elevated debt burden. PepsiCo euro-denominated senior notes announcement Neutral Sentiment: PepsiCo, its foundation and Feed the Children reported distributing 2 million meals through a school-based hunger-relief program. The announcement supports corporate reputation but is unlikely to materially affect earnings. PepsiCo hunger-relief program announcement Negative Sentiment: KFC will replace Pepsi beverages with Coca-Cola products at U.S. restaurants beginning in January 2027, with a full rollout expected by spring. Although KFC represents a limited portion of PepsiCo’s sales, investors view the loss as a setback for its U.S. food-service business and brand presence. Reuters report on KFC switching beverage suppliers Negative Sentiment: In India, PepsiCo warned that its Sting and Adrenaline Rush energy drinks could run out within two months after a court declined to suspend restrictions on “energy drink” labeling. The dispute could cause supply disruptions and allow competitors such as Red Bull to gain share. PepsiCo India energy-drink supply report PepsiCo Company Profile (Get Free Report)

PepsiCo, Inc (NASDAQ:PEP) is a global food and beverage company whose portfolio includes Pepsi-Cola, Mountain Dew, Gatorade, Lay’s, Doritos, Cheetos, Quaker, Tostitos, Fritos, and SodaStream. Its products span carbonated soft drinks, sports and energy beverages, bottled water, juices, convenient foods, snacks, and other packaged food offerings.

The company sells products through retail stores, restaurants, food-service providers, e-commerce platforms, and other distribution channels. PepsiCo serves consumers in North America and international markets across Latin America, Europe, Africa, the Middle East, and Asia-Pacific.

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KFC's decision to switch from Pepsi sodas to Coca-Cola (KO.N) at its US restaurants could raise ​questions about PepsiCo's (PEP.O) other longstanding food service ‌partnerships, analysts said, even as they expect the financial hit to be manageable.

The loss of KFC comes ​as PepsiCo grapples with sluggish demand and ​higher costs in North America, where a ⁠recovery in growth and margins is taking longer ​than expected and has prompted the company to ​deepen cost cuts.

BofA analysts estimate the loss of the KFC account represents about $500 million in annual sales, equivalent ​to roughly a 3% hit to Pepsi ​Beverages North America's concentrate sales, while boosting Coca-Cola's North America ‌sales ⁠by about 2.5%

Brokerage Jefferies says the bigger concern for PepsiCo is the "loss of brand interaction and public perception" rather than the immediate financial ​impact

"A longstanding ​Pepsi customer ⁠switching raises questions whether other accounts that have been historically off-limits are ​now up for grabs," Jefferies analysts ​said

"Investors ⁠see this (move) less as a seismic commercial loss for PepsiCo and more as the natural order ⁠of... (a ​brand) reasserting itself," says Richard ​Exon, founder and partner at Joint, an independent creative agency

PepsiCo (PEP +0.24%) has been a top dividend stock to own for decades. It's been growing its payout and offering investors some great value. But the business hasn't been in great shape of late, and recently it cut its guidance.

Its yield is fairly high at around 4.7%, as the stock has fallen by more than 15% in the past 12 months. With the company facing some greater adversity these days, can investors still depend on its dividend for the long haul, or is it in danger of being cut?

Image source: Getty Images.

The company is facing challengesPepsiCo's business has been growing this year, but it has been at a fairly modest rate. Revenue in its most recent quarter, which ended on Sept. 5, totaled $25.3 billion and was up nearly 6% year over year. But organically, its top line grew by just 3%. Its core earnings per share (EPS) also only rose by a modest 2%.

The company was previously expecting between 5% to 7% growth in core EPS for the full year, but has now reduced that to a range of 2.5% to 3.5%.

With the business making investments into its operations to improve performance and strengthen its future growth, that can adversely impact cash flow, which in turn, may put pressure on the company's dividend.

PepsiCo raised its dividend again this yearIn May, PepsiCo announced a 4% increase to its dividend, boosting it to $1.48 per share each quarter, or $5.92 over the course of a full year. Currently, its payout ratio is at around 70%, which is a healthy rate, suggesting that not only is the dividend safe, but there is room for more increases in the future, even if its growth rate is modest.

PepsiCo is a Dividend King, as it has raised its dividend for 54 consecutive years. While that kind of track record does suggest safety, past performance is not a predictor of the future, and things can change. The good news for investors is that even amid adversity, the dividend still looks safe right now.

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Moneyball Superscore

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Is PepsiCo stock a bargain buy right now?As a result of the decline in its share price, investors can buy PepsiCo's stock at a discount right now. It's currently trading at a forward price-to-earnings multiple of just under 15, which is based on analyst expectations of how it will do in the year ahead. That's far below the S&P 500 average of 20.

For income investors, this can be a potentially underrated dividend stock to buy right now, with PepsiCo having a tremendous track record for dividend growth. Its business is facing challenges, but it is still growing. As a long-term investment, PepsiCo could make for a good buy today.

SummaryPepsiCo, Inc. is rated Hold at $126, trading near the fair value of $124 with a 4.6% yield.North American volumes are weak, Frito-Lay is sacrificing margin, and GLP-1 drugs pose long-term demand risks.Cash conversion is improving, international growth is strong, but acquisition spending and $41 billion in net debt remain concerns.I would only consider buying PepsiCo below $110 to ensure a margin of safety; covered calls are suggested for current holders. Getty Images

PepsiCo, Inc. (PEP) finally looks cheap. The stock is around $126, down close to 30% from its 2023 highs. That's a pretty brutal drawdown for a blue chip, especially during the middle of one of the strongest bull markets of all time. It

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Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

PepsiCo has cratered while every major beverage rival rallied, and now Goldman Sachs sees a 40% rebound ahead. But that call rests on three pillars, and one is already showing serious cracks.

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PepsiCo (NASDAQ:PEP | PEP Price Prediction) trades at $128.34, and analysts’ consensus target sits at $148.64. That works out to about 15.8% of implied upside.

PepsiCo owns Lay’s, Doritos, Gatorade, Pepsi and Mountain Dew. Goldman Sachs analyst Bonnie Herzog set a target of $180.00, meaning roughly 40.3% upside from current levels.

Frito-Lay’s Profit Slide and a Guidance Cut Sent Shares 22.9% Below Their 52-Week High The biggest problem is North American snacks. Core operating profit at Frito-Lay North America fell 12% in the third quarter, and segment revenue stayed flat at $6.504B. The stock slipped all year. It was $155.28 around the first-quarter report, $143.30 at the second and $123.74 going into the third. It now sits 22.9% below its 52-week high of $166.41.

Management cut its 2026 outlook for core constant-currency EPS growth to +1% to +2%, down from +4% to +6%, citing rising input costs. Core operating margin contracted 35 bps. Leadership said “the consumer is worse than what we had anticipated and driven mainly by gas prices.”

The quarter itself beat expectations. EPS was $2.34 against a $2.2964 estimate, and revenue was $25.27B. Shares rose 3.73% on the report despite the guidance cut.

Goldman’s $180 Target Rests on Three Pillars, and One Is Cracking Herzog’s first pillar is pricing power at Frito-Lay, assuming PepsiCo can pass through input cost inflation without structural volume decay. The 12% profit drop strains this assumption. Management argues value spending is working: “A category that was negative in volume now is positive in volume.”

The second pillar, international growth, is holding up. Organic growth reached +9% in both EMEA and Asia Pacific, and Latin America Foods revenue rose 14%. Management expects the international business to “cross $40 billion in this year.”

The third pillar is productivity. Per the CEO, “additional structural cost reduction actions are being identified and will be implemented in the coming months.” management expects better Q4 profit performance than Q3, making the next earnings report the first test.

Goldman is an outlier. The Street counts two Strong Buys, three Buys, 18 Holds and one Sell. The 2026 EPS consensus has had 18 downward revisions in 30 days, falling from 8.6388 to 8.5536. The fourth-quarter estimate drew 12 upward revisions in the past week.

Coca-Cola, Monster and Keurig Dr Pepper Rallied While PepsiCo Sank PepsiCo fell on its own. Its beverage peers rallied this year.

Coca-Cola (NYSE:KO) is up 28% year to date at $87.76, with an average target of $94.43 meaning 7.6% upside.

Monster Beverage (NASDAQ:MNST) has gained 13.86% to $43.65, with a target of $50.02 meaning 14.6% upside.

Keurig Dr Pepper (NASDAQ:KDP) is up 15.13% to $31.26, with a target of $36.21 meaning 15.8% upside and no Sell ratings.

On consensus targets, Keurig Dr Pepper and PepsiCo offer similar upside. Goldman’s $180 call is the largest estimate in the group. PepsiCo’s gap exists because its price fell while peers rose.

PepsiCo Trails the S&P 500 by More Than 20 Points This Year PepsiCo is down 7.86% year to date and 7.3% over the past month. The S&P 500 is up 13.5% year to date. Across 24 analysts, the average target of $148.64 meaning 15.8% upside from $128.34.

The valuation is modest at about 15x forward earnings. The dividend yields 4.36% after the company’s 54th consecutive annual increase, which brought the annual payout to $5.92 per share. That 54-year streak puts PepsiCo firmly in Dividend King territory, and we ranked our ten favorites in the club by valuation in a free report here.

A 4% Dividend Yield Meets a $180 Target That Needs a Frito-Lay Turnaround The thesis improves if Frito-Lay’s volume gains turn into profit growth and the new cost cuts bring back margin expansion over the next few quarters. The downside risk grows if input inflation keeps pushing guidance lower and earnings estimates keep falling. In that case, a 15x multiple could just be the new normal.

The setup looks modestly constructive. Getting to Goldman’s $180 requires all three assumptions to hold at once, and the Frito-Lay pillar is clearly weakening. A move toward the $148.64 consensus is more realistic. The yield above 4% provides income while management works to prove the recovery.

Contact [email protected] for any questions or corrections.

PepsiCo said Thursday it’s raising prices on some chips and drinks after a disappointing third quarter — pivoting from a recent effort to save consumers money — due to soft soda sales and struggles pulling off its turnaround plan. 

Doritos, Ruffles, SunChips and some soda brands will see prices jump in the single-digit percentage range, the company said. Prices on these items will still be lower than they were at the start of the year.

Pepsi said it needs to raise some prices to offset rising costs for fuel, aluminum and agricultural supplies, which have skyrocketed due to the Iran war and tariffs. 

Doritos, Ruffles, SunChips and some soda brands will see prices jump. REUTERS But it’s a notable strategy shift from February, when the company slashed prices on Lay’s, Doritos, Cheetos and Tostitos by up to 15% just ahead of the Super Bowl in an attempt to win back inflation-battered consumers.

PepsiCo CEO Ramon Laguarta said the lower prices helped bring back some customers, but third-quarter earnings in the North America division were weaker than expected – and its turnaround is taking longer than they had hoped.

Frito-Lay snack food volumes were flat compared to the same period last year, while beverage volumes slipped 2%.

“We don’t feel good about the beverage business,” Laguarta said during a conference call Thursday, admitting the company’s sodas – including its flagship Pepsi brand – had fizzled compared to competitors.

He added that PepsiCo will put “all of the urgency of the business and the focus on improving our performance in soft drinks.”

Pepsi noted challenges including increased competition and rising input costs. Experts have also pointed out that weight-loss drugs and more widely available soda alternatives are factors.

The company plans to cut costs and use the savings to ramp up investments in Poppi, the healthy probiotic soda brand it acquired last year, as well as Mountain Dew and Pepsi.

PepsiCo embarked on a turnaround process last fall after activist investor Elliott Investment Management took a $4 billion stake in the company and demanded it lower its prices. 

It had hiked prices by double-digit percentages for eight quarters in a row through 2022 and 2023, arguing it had to cover rising costs as inflation ran rampant in the wake of the pandemic.

PepsiCo CEO Ramon Laguarta warned that the company’s drinks business is not doing well. Bloomberg via Getty Images Despite lowering prices this year, the company has been facing sluggish demand for sodas and snacks, as shoppers cut back on non-necessities and rising GLP-1 usage weighs on sales of junk food.

In the third quarter, the company’s best-performing products in North America included snacks with simpler ingredients, including Doritos without artificial colors or flavors, as well as hydration drinks like Gatorade and energy drinks like Celsius. It plans to expand its high-protein offerings to win over weight-loss drug users, since they need to be on high-protein, high-fiber diets.

PepsiCo reported better-than-expected revenue in the third quarter thanks to strength in its international business, which accounts for 41% of company revenue. Its global snack food volumes jumped 4%, helped by World Cup-related demand for Lay’s snacks.

It recorded adjusted earnings per share of $2.34, above Wall Street estimates of $2.29.

The company lowered its annual forecast, now expecting adjusted earnings per share to grow 2.5% to 3.5% – down from a previous estimate of 5% to 7% growth. However, it expects full-year revenue to grow 6%, at the high end of a previous 4% to 6% forecast range.

Shares in PepsiCo jumped 2.6% Thursday.

PepsiCo shares are down nearly 12% this year and about 16% since Elliott Investment Management took a roughly $4 billion stake. Summary

Wall Street expects third-quarter revenue of $24.96 billion, up 4.3%, with adjusted EPS near $2.29.

PepsiCo Inc. (PEP, Financials) faces earnings release with investors still searching for proof its recovery in North America is gaining traction.

The corporation has reduced pricing by up to 15% on brands such as Lay's and Doritos, boosted marketing and widened distribution. So far such efforts haven't achieved the improvement investors sought.

Core operating margin was 16.3% in the first half down 15 basis points year on year. That is at odds with PepsiCo's target, disclosed after talks with activist investor Elliott Investment Management, of boosting margins by 100 basis points over three years.

Inflation is hardly the only pressure anymore.

The longer-term challenge to PepsiCo's snack portfolio is from GLP-1 weight-loss medications that are spurring better eating. The firm has reacted with items like Doritos Protein and SunChips Fiber but its valuation has already shrunk. Enterprise value has dropped to around 10 times EBITDA from 18 times in mid-2022.

Investors now need to see North American volumes and margins stabilize. Analysts are forecasting $24.96 billion in sales, up 4.3%, for the third quarter with adjusted EPS of around $2.29.

The findings Thursday will demonstrate if PepsiCo's turnaround is finally taking hold or if further improvements are needed.

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

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PepsiCo, Inc. (NASDAQ:PEP) will release third-quarter earnings before the opening bell on Thursday, Oct. 8.

With the recent buzz around PepsiCo, some investors may be eyeing potential gains from the soft drink company’s dividends too. As of now, PepsiCo has an annual dividend yield of 4.71%, based on a quarterly dividend of $1.48 per share ($5.92 a year).

So, how can investors exploit its dividend yield to pocket a regular $500 monthly?

To earn $500 per month, or $6,000 annually, from dividends alone, you would need an investment of about $127,470, or around 1,014 shares. For a more modest $100 per month or $1,200 per year, you would need $25,519 or around 203 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($5.92 in this case). So, $6,000 / $5.92 = 1,014 ($500 per month), and $1,200 / $5.92 = 203 shares ($100 per month).

Note that dividend yield can change on a rolling basis, as dividend payments and stock prices both fluctuate over time.

How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.

For example, if a stock pays an annual dividend of $2 and trades at $50, the dividend yield is 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).

Similarly, changes in dividend payments can affect yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, the yield will also decrease.

Price ActionPepsiCo shares rose 0.1% to close at $125.71 on Tuesday.

Analysts expect the company to report quarterly earnings of $2.30 per share, up from $2.29 per share a year ago. The consensus estimate for PEP’s quarterly revenue is $24.96 billion. It reported $23.94 billion last year, according to Benzinga Pro.

Ahead of quarterly earnings, RBC Capital analyst Nik Modi, on Tuesday, maintained PepsiCo with a Sector Perform and lowered the price target from $161 to $150.

Photo via Shutterstock

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

SummaryPepsiCo (PEP) is downgraded to 'sell' as valuation remains stretched and macro headwinds persist.PEP faces consumer pressure, trade-down risk, and fierce yield competition from rising Treasury rates.Q3 and Q4 earnings are expected to be challenging, with guidance and dividend coverage under scrutiny.Despite a 4.70% yield and Dividend King status, limited growth and high debt constrain upside potential.Looking for a helping hand in the market? Members of iREIT®+HOYA Capital get exclusive ideas and guidance to navigate any climate. Learn More » Fotoatelie/iStock Editorial via Getty Images

Introduction Six months ago, PepsiCo (PEP) stock rallied and quickly moved toward $175. At that time, I downgraded the stock because the rally was not driven by improving fundamentals but by pure multiple expansion. At 20x fwd earnings, PEP was

8.52K Followers

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Key Takeaways PepsiCo is using innovation to navigate inflation, changing preferences and slower North American growth.Hydration, zero-sugar and functional drinks are helping PEP capture the demand for added beverage benefits.PepsiCo expands its better-for-you foods and uses productivity, automation and digitalization to drive growth. PepsiCo Inc. (PEP - Free Report) is using innovation as a key lever to navigate a challenging consumer environment, marked by inflationary pressures, changing preferences and slower category growth in North America. In the second quarter of 2026, the company highlighted portfolio evolution as a major growth driver, with continued investments in products that align with emerging consumer trends, including functional benefits, healthier choices and convenience. PepsiCo reported that global convenient foods organic volume increased 3% year over year, while global beverages organic volume rose 2%, supported by innovation-led portfolio expansion.

The company’s beverage innovation strategy is centered on high-growth segments such as hydration, zero sugar and functional drinks. Gatorade Lower Sugar, Gatorlyte, Propel and new offerings like Propel Clear Protein have helped strengthen PepsiCo’s position in evolving hydration categories. The company also noted continued momentum in zero-sugar beverages, with products such as Pepsi Zero Sugar and Mountain Dew Zero Sugar gaining value and volume share. These initiatives are aimed at capturing demand from consumers seeking products with additional benefits beyond traditional refreshments.

In foods, PepsiCo is expanding its permissible and better-for-you portfolio through products featuring protein, fiber, alternative ingredients and simpler formulations. Recent launches include Doritos Protein, Quaker Protein Rice Crisps, PopCorners Protein and SunChips Fiber, while brands such as Doritos and Cheetos are being refreshed with simplified ingredients. Portion-control products and permissible offerings have also delivered volume and revenue growth, reflecting changing snacking preferences.

While innovation is supporting growth opportunities, PepsiCo continues to face near-term challenges from tighter consumer budgets and softer North American category trends. The company acknowledged that U.S. food and beverage performance moderated due to inflationary pressures.

However, PepsiCo plans to support innovation through productivity savings, automation and digitalization initiatives. By combining portfolio transformation with operational efficiency, PepsiCo aims to strengthen consumer engagement and drive sustainable growth despite industry headwinds.

Is Innovation Driving Peers’ Momentum?As consumer preferences shift toward healthier, functional and convenient offerings, industry peers like The Coca-Cola Company (KO - Free Report) and Monster Beverage Corporation (MNST - Free Report) are increasingly relying on innovation to drive growth and offset broader category pressures.

Coca-Cola is leveraging innovation, consumer insights and portfolio expansion to navigate evolving market conditions, with initiatives focused on strengthening brand relevance and capturing new consumption occasions. The company highlighted its ability to adapt to changing consumer needs through innovations such as the relaunch of Mr. Pibb, which delivered more than 20% volume growth, and digital-led consumer engagement strategies. By combining innovation with localized execution, Coca-Cola aims to sustain momentum despite uneven consumer environments.

Monster Beverage is relying on product innovation, expanding consumer reach and portfolio diversification to sustain growth amid evolving beverage trends. The company highlighted that recent product launches and innovations contributed to market share gains, with its portfolio positioned to benefit from rising demand for functional energy drinks and broader consumer adoption. Innovation remained a key growth driver, with new products and limited-time offerings supporting sales momentum across brands. The company also continues to build its pipeline to capture new consumption occasions and expand household penetration.

PEP’s Price Performance, Valuation & EstimatesShares of PepsiCo have lost 17.2% in the past six months against the industry’s growth of 6%.

Image Source: Zacks Investment Research

From a valuation standpoint, PEP trades at a forward price-to-earnings ratio of 14.49X compared with the industry’s average of 18.8X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for PEP’s 2026 and 2027 earnings per share (EPS) implies year-over-year rallies of 5.3% and 4.6%, respectively. The estimates for 2026 have been unchanged, but 2027 estimates have moved south in the past 30 days.

Image Source: Zacks Investment Research

PepsiCo shares PEP fell on Tuesday after JPMorgan became the second major bank this week to downgrade the food and beverage giant, citing a stalled turnaround in its North American business, rising costs and growing uncertainty over the company's strategy.

The stock slipped about 0.47% even as broader US market indices remained flat.

S&P 500 gained about 0.04%.

JPMorgan downgraded PepsiCo to Neutral from Overweight and cut its price target to $138 from $170, following a similar move by Deutsche Bank on Monday.

PepsiCo shares closed at $128.50 on Monday and are down about 10% this year.

The latest downgrade adds to pressure on PepsiCo as investors assess whether its efforts to revive its struggling North American snacks business can deliver a sustainable recovery without relying heavily on price increases and cost reductions.

JPMorgan analyst Andrea Teixeira said PepsiCo's upcoming quarter could still benefit from strong international sales, favourable weather and the FIFA World Cup.

But she argued that these factors could obscure continued weakness in the company's core North American operations.

"The upcoming quarter may still show a decent top- and bottom-line, especially with International likely performing well on favorable weather tailwinds and a strong FIFA World Cup. However, excluding these non-recurring tailwinds, judging from the tracked channel and recent price increase announcements, we believe trends in North America have likely continued to underperform management expectations," Teixeria said.

"Despite the several interventions including ingredient reformulation and packaging, increased spend and lower prices, FLNA salty snacks performance has been lackluster, in our view, and the recovery appears to have stalled following 1Q26," Teixeira wrote.

The comments point to a difficult backdrop for Frito-Lay North America, PepsiCo's flagship snacks business, which has struggled to regain momentum after years of aggressive price increases.

In its latest earnings report, PepsiCo said sales in its North American food business fell 2% in the second quarter.

The company also warned of higher commodity costs in the second half of the year, although it maintained its full-year outlook.

PepsiCo said in July that elevated gas prices had hurt consumer demand more than it had anticipated, adding another challenge as shoppers remain sensitive to prices.

JPMorgan also lowered its earnings expectations for PepsiCo.

The bank cut its 2027 earnings-per-share estimate to $8.86 from $9.05 and its 2028 estimate to $9.33 from $9.57.

Both estimates are now below consensus expectations of $8.95 for 2027 and $9.47 for 2028.

Teixeira said PepsiCo may have to depend more heavily on cost savings in the fourth quarter to reach the lower end of its target for 5% to 7% earnings growth.

Higher transportation costs are expected to add further pressure.

"As estimates will likely move down from here, we expect investors to wait for expectations to be more realistic given the most recent pressures before becoming more constructive again," Teixeira said.

The downgrade follows Deutsche Bank's decision on Monday to cut PepsiCo to Hold from Buy and lower its price target to $138 from $155.

Deutsche Bank analyst Steve Powers said he had "less certainty in PEP's strategic direction in North America."

He also argued that several of PepsiCo's turnaround initiatives had delivered mixed or short-lived benefits.

Powers said some price increases were understandable given higher fuel, ingredient, packaging and shipping costs.

But the timing of the increases was concerning because they followed price cuts that had failed to generate the desired improvement in sales.

"Successive interventions and refinements suggest the underlying problems are more difficult to solve than management (or we) initially understood," Powers said.

The latest concerns come as PepsiCo prepares to raise prices on some of its US snack products after cutting prices earlier this year.

Reuters reported last week that PepsiCo planned low- to mid-single-digit percentage price increases on some chip brands, broadly in line with inflation, as the Lay's maker attempts to revive sales.

The company said the new prices would remain below levels seen before the earlier price cuts and that it would try to maintain lower prices where possible.

PepsiCo had reduced prices on products including Doritos and Cheetos by as much as 15% following complaints from shoppers that its snacks had become too expensive.

Bloomberg, citing people familiar with the matter, reported that the new increases would likely affect grocery-store-sized bags of brands such as Doritos and Ruffles.

The company is facing increasing competition from smaller snack brands and private-label products sold by retailers.

Both have benefited as consumers have become more price-conscious.

Changes in consumer eating habits are adding another challenge.

The growing use of GLP-1 medications has affected appetite and consumption patterns, including demand for snacks.

PepsiCo has responded with new products, including protein-enhanced Doritos and Pepsi products containing fiber, in an effort to maintain consumer interest.

Powers said PepsiCo's current difficulties partly reflected aggressive price increases in North American snacks during and after the pandemic.

The company also expanded staffing and infrastructure at a time when it expected stronger growth.

"Today, therefore, [Pepsi] appears caught between a cost structure built for higher growth and a consumer environment that remains structurally softer than expected," he said.

TD Cowen has also reduced its profit estimates for PepsiCo for this year and next and lowered its price target to $133 from $145.

TD Cowen analyst Moskow said the latest price increases had reduced his confidence in PepsiCo's shares.

He pointed to GLP-1 medications and the possibility of restrictions on Supplemental Nutrition Assistance Program, or SNAP, subsidies as additional risks to salty-snack sales.

"Bigger picture, management will need to demonstrate on the next earnings call that they have diagnosed the reasons why their Frito-Lay strategy did not work out as they expected and how they will pivot their approach in 2027 besides just raising price," he said.

The scrutiny could also increase pressure from activist investor Elliott Investment Management, which owns 2% of PepsiCo.

Investors have questioned whether Elliott could push for more significant changes at the company, although TD Cowen's Moskow said the outcome remained uncertain.

"We do not know the answer, but we have seen them take this approach in other situations when agitating for change," Moskow said.

PepsiCo sits near a 52-week low while the rest of the market chases AI momentum, and the gap between where it trades and where the fundamentals point is getting harder to ignore.

PepsiCo (NASDAQ:PEP | PEP Price Prediction) has become a genuinely out-of-favor name in a market obsessed with AI and momentum. The stock trades near its 52-week low of $129.55, sports a 4.31% dividend yield, and is coming off four consecutive quarters of beating consensus EPS estimates. Our 24/7 Wall St. price target for PepsiCo is $152.80, implying meaningful upside from current levels.

24/7 Wall St. Price Target Summary Metric Value Current Price $129.95 24/7 Wall St. Price Target $152.80 Upside 17.77% Recommendation BUY Confidence Level 90% Why Pepsi Is Trading Where It Is PepsiCo shares are down 6.7% year to date and 7.88% over the past month.

Q2 pressure came from PepsiCo Foods North America revenue declining 2% and core operating margin contracting 40 basis points. International results offset: LatAm Foods +15%, Asia Pacific Foods +12%, EMEA +10%, and IB Franchise +11%.

Q2 core EPS came in at $2.20 on revenue of $24.18 billion, up 6.4% year over year. CEO Ramon Laguarta noted “fastest growth in volumes since 2022”.

Why Bulls See a Breakout Ahead The bull case rests on international momentum, portfolio innovation, and shareholder returns. Management expects international business to cross $40 billion this year, with operating margin up a full point in Q2. Poppi, Siete, functional hydration, protein snacks, and zero-sugar beverages offer reinvention optionality.

The $10 billion buyback authorization through 2030 plus 54 consecutive years of dividend growth mean shareholders get paid to wait. Bull scenario points to $161.88, and Street consensus sits at $155, with 29 bullish analysts against 4 bearish.

What Could Go Wrong The bear case centers on North America, where the U.S. consumer remains pressured by inflation, hurting convenience and gas channel conversion. Q2 core operating margin contracted 40 basis points, and management flagged results may trend to the low end of the EPS range.

Prior impairments on Rockstar ($1.993B) and Be & Cheery show M&A execution has been imperfect. Operating cash flow of $12.087 billion in FY25 comfortably funds the dividend. Our bear scenario lands at $141.94, still above today’s price.

How PepsiCo Compares to Coca-Cola, Mondelez, and Keurig Dr Pepper Coca-Cola (NYSE:KO) trades at a premium with forward P/E of 25 and 2.36% yield.

Mondelez (NASDAQ:MDLZ) trades at forward P/E of 18 with 3.22% yield.

Keurig Dr Pepper (NASDAQ:KDP) trades at forward P/E of 12, but trailing P/E of 31 reflects 90% earnings decline from recent charges.

Company Forward P/E Dividend Yield PepsiCo ~16 4.31% Coca-Cola 25 2.36% Mondelez 18 3.22% Keurig Dr Pepper 12 2.93% The peer set makes our 24/7 Wall St. price target look conservative. PepsiCo trades at a meaningful discount to Coke and Mondelez on forward earnings while offering the highest yield in the group.

Where the Risk-Reward Stands The 24/7 Wall St. price target of $152.80, buy rating, and 90% confidence reflect a stock priced for North American weakness while international compounds.

The setup improves if management stabilizes U.S. foods and lets international and buyback drive returns. The thesis weakens if PFNA volumes worsen and dividend growth becomes the only story. For a dividend aristocrat near lows, risk-reward looks favorable.

Extending our model forward, here is where PepsiCo could trade assuming current trajectories and shareholder-return policies hold.

Year 24/7 Wall St. Price Target 2026 $135 2027 $157 2028 $175 2029 $193 2030 $207 These projections assume PepsiCo executes on international expansion and productivity. Significant upside or downside could result from U.S. consumer recovery, tariff shifts, or M&A outcomes on poppi and Siete.

Contact [email protected] for any questions or corrections.

Key Takeaways PepsiCo's productivity drive is a key lever for margins as inflation and softer North American demand persist.Q2'26 core operating profit rose 4% y/y, driven mainly by productivity savings and net pricing.Record productivity savings and tariff refund claims are expected to offset much of higher H2 costs. PepsiCo Inc.’s (PEP - Free Report) intensified productivity agenda appears to be a key lever for improving margins, particularly as the company navigates inflation, softer North American demand and continued growth investments. Management is elevating productivity across the organization, especially in developed markets, through automation, digitalization and simplification initiatives designed to improve operating leverage. Importantly, the resulting savings are intended not only to support profitability but also to fund portfolio innovation, affordability initiatives and brand investments.

The benefits are already evident in PepsiCo’s results. In the second quarter of 2026, core operating profit rose 4%, with productivity savings and effective net pricing serving as the primary growth drivers. However, the core operating margin declined 40 basis points (bps) as operating costs increased and other pressures offset some of these benefits. International margins expanded, supported by strong revenue growth and productivity savings, while North American margins contracted due to affordability investments, and unfavorable volume and channel mix.

The productivity push could become even more important in the second half. PepsiCo expects higher input-cost inflation versus the first half, but management believes record productivity savings, together with tariff refund claims, should mitigate a significant portion of higher costs and incremental growth investments. Thus, productivity is likely to remain a major margin catalyst, although its impacts will depend on whether savings can outpace inflation, mix pressure and reinvestment needs.

Can Productivity Gains Lift Margins for PEP Peers: KO & KDP?Productivity initiatives are becoming an increasingly important lever for beverage companies seeking to protect profitability amid persistent cost pressures, raising the question of whether PepsiCo peers The Coca-Cola Company (KO - Free Report) and Keurig Dr Pepper Inc. (KDP - Free Report) can translate efficiency gains into stronger margins.

Coca-Cola’s margin expansion appears supported by structural efficiency, disciplined cost management and digital capabilities rather than a single productivity program. In second-quarter 2026, the comparable gross margin rose about 120 bps and the operating margin increased roughly 90 bps, aided by underlying expansion and currency tailwinds. Management highlighted its more asset-light model, resilient supply chain, and focus on managing the cost and investment base as levers for sustaining margin gains.

Keurig Dr Pepper’s productivity initiatives are emerging as an important margin lever, though inflation remains a near-term constraint. In second-quarter 2026, productivity and disciplined cost management drove 100 basis points of SG&A leverage, while U.S. Refreshment Beverages operating income rose 11.9% as productivity savings helped offset inflation. Moreover, KDP remains confident in achieving $400 million in cost synergies from procurement, IT, SG&A, manufacturing and logistics.

PEP’s Price Performance, Valuation & EstimatesShares of PepsiCo have lost 6.6% in the past three months against the industry’s rise of 1.4%.

Image Source: Zacks Investment Research

From a valuation standpoint, PEP trades at a forward price-to-earnings ratio of 15.38X, below the industry’s average of 19.22X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for PEP’s 2026 and 2027 earnings implies year-over-year growth of 5.3% and 4.9%, respectively. The company’s 2026 EPS estimates have been unchanged in the past 30 days. Meanwhile, the consensus estimate for 2027 moved down by a penny in the past 30 days.

Image Source: Zacks Investment Research

Coke and Pepsi have shared the same grocery aisle for decades, but their five-year stock charts now look like they belong to completely different industries. One structural difference in their business models explains the split, and it raises a pointed…

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Coca-Cola (NYSE:KO | KO Price Prediction) and PepsiCo (NASDAQ:PEP) both posted Q2 2026 results this summer, and the five-year scoreboard tells a stark story. Coke has ridden a pure beverage playbook to +84.09% over five years. Pepsi, wrestling with snack softness and beverage margin pressure, has managed +3.08%. Same shelf, very different outcomes.

Zero Sugar Carries Coke. Snacks Drag Pepsi. Coke’s Q2 was its fifth consecutive EPS beat, with adjusted EPS of $0.97 on revenue of $13.38B, up 6.7% YoY. Global unit case volume rose 5%, with Coca-Cola Zero Sugar up 16% across every segment. Coke’s chief executive, Henrique Braun, said the company “delivered another strong quarter by staying close to the changing needs of our consumers and customers.” Management raised FY2026 organic revenue guidance to around 5%.

Pepsi’s story is messier. Revenue reached $24.181B, up 6.4% YoY, with core EPS of $2.20. But PepsiCo Foods North America fell 2% on weaker net pricing, and core operating margin contracted 40 bps. International segments, especially Latin America Foods (+15%) and EMEA (+10%), carried the quarter. CEO Ramon Laguarta pointed to “the continued evolution of the portfolio to offer more choices through portion control varieties, diverse ingredients, functional benefits.”

Why Coke’s Model Keeps Winning The structural gap explains the return gap. Coke sells concentrate. Bottlers carry the capital intensity, leaving Coke with a gross margin of 61.6% and operating margin of 28.7%. Pepsi’s combined snacks and beverages operation runs trucks, plants, and chip lines, producing a gross margin of 54.1% and operating margin of 14.4%. The market has paid up for the cleaner model.

Lens KO PEP 5-Year Return +84.09% +3.08% Trailing P/E 26 18 Dividend Yield 2.38% 4.21% Forward Annual Dividend $2.12 $5.92 Pepsi’s Yield Deserves a Serious Hearing For an income-focused holder, a stalled chart with a growing, well-covered payout is not the same story the price alone tells. Pepsi just delivered its 54th consecutive annual dividend increase, with a 4% hike beginning June 2026, the kind of five-decade streak we ranked by valuation in a free Dividend Kings report. Against EPS of $7.63, the $5.75 dividend is covered, if tightly. Coke’s payout looks more comfortable: $2.08 against EPS of $3.34, backed by rising free cash flow guidance of ~$12.4B.

Next Test Is Pricing Power and Snack Recovery I will watch whether Coke’s zero-sugar and premium packaging engine keeps pushing price/mix higher without denting volume. For Pepsi, the tell is Frito-Lay North America. If affordability packs and brand restaging stabilize PFNA into 2027, the discount closes fast.

Why Coke Fits a Retirement Buyer Today For a retirement-focused investor buying today, I lean Coke. The concentrate model, expanding 34.9% operating margin, and raised guidance justify the 26 multiple more than Pepsi’s 18 justifies buying into an unresolved snack slowdown. What changes my call: two clean quarters of positive PFNA volume and pricing at Pepsi, paired with margin stabilization. Until then, Coke is the sturdier retirement holding, and the yield gap is not enough to bridge that.

Contact [email protected] for any questions or corrections.

Ameritas Advisory Services LLC lifted its stake in PepsiCo, Inc. (NASDAQ:PEP – Free Report) by 65.8% in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 20,902 shares of the company’s stock after buying an additional 8,299 shares during the period. Ameritas Advisory Services LLC’s holdings in PepsiCo were worth $2,830,000 at the end of the most recent reporting period.

Other institutional investors have also added to or reduced their stakes in the company. BlackRock Inc. raised its stake in shares of PepsiCo by 2.1% in the second quarter. BlackRock Inc. now owns 118,281,854 shares of the company’s stock valued at $16,015,363,000 after purchasing an additional 2,440,377 shares in the last quarter. State Street Corp raised its stake in shares of PepsiCo by 1.8% in the third quarter. State Street Corp now owns 59,499,819 shares of the company’s stock valued at $8,356,155,000 after acquiring an additional 1,079,970 shares during the last quarter. Auto Owners Insurance Co increased its holdings in PepsiCo by 14,857.8% during the 4th quarter. Auto Owners Insurance Co now owns 49,252,907 shares of the company’s stock valued at $7,068,777,000 after purchasing an additional 48,923,629 shares in the last quarter. Geode Capital Management LLC raised its position in PepsiCo by 1.1% in the 4th quarter. Geode Capital Management LLC now owns 33,617,937 shares of the company’s stock valued at $4,814,835,000 after purchasing an additional 360,936 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. grew its holdings in shares of PepsiCo by 1.1% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 28,090,426 shares of the company’s stock worth $4,031,646,000 after purchasing an additional 295,955 shares during the last quarter. 73.07% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting PepsiCo Here are the key news stories impacting PepsiCo this week:

Positive Sentiment: PepsiCo’s global convenient-foods organic volume reportedly rose 3% in the second quarter, supported by international demand, product innovation and affordability. The momentum suggests its snack portfolio may be stabilizing after recent pressure. PepsiCo’s Snack Portfolio: What’s Driving Volume Gains? Positive Sentiment: PepsiCo is pursuing growth in a large fresh-food market as GLP-1 medications and health-conscious consumers increase demand for protein, fiber and less-processed products. Diversifying beyond traditional salty snacks could help offset weaker demand in some legacy categories. GLP-1 Drugs Are Pushing PepsiCo Into a New $271 Billion Market Positive Sentiment: Several opinion pieces characterize PepsiCo as an attractive or undervalued dividend investment. Its defensive consumer-staples business and income profile may appeal to investors seeking reliable cash returns, particularly after the stock’s recent weakness. PepsiCo: An Undervalued Dividend Machine Worth A Second Look Neutral Sentiment: PepsiCo is reformulating Gatorade, including the use of black carrots for its red coloring, as it responds to ingredient and consumer-preference trends. The move highlights ongoing innovation but does not yet establish a material financial impact. Inside PepsiCo’s battle to remake Gatorade Negative Sentiment: GLP-1 adoption is also viewed as a risk because users may eat less and reduce consumption of snacks. Articles questioning what is wrong with PepsiCo emphasize its significant underperformance over the past five years, keeping pressure on management to restore growth. What’s Wrong With PepsiCo Stock? Negative Sentiment: Compared with Coca-Cola, PepsiCo is being scrutinized as the less compelling dividend choice by some investors because the companies have recently moved in opposite directions and Coca-Cola offers a higher yield. That comparison could limit enthusiasm for PEP among income-focused buyers. Coca-Cola vs PepsiCo: What’s the Better Dividend Stock to Buy Right Now? Insider Activity In other news, EVP David Flavell sold 2,900 shares of the firm’s stock in a transaction dated Monday, July 27th. The stock was sold at an average price of $139.54, for a total transaction of $404,666.00. Following the sale, the executive vice president owned 74,825 shares of the company’s stock, valued at $10,441,080.50. This trade represents a 3.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.12% of the stock is owned by company insiders. Wall Street Analyst Weigh In A number of research analysts recently issued reports on the company. Morgan Stanley cut their price target on PepsiCo from $180.00 to $160.00 and set an “equal weight” rating for the company in a report on Friday, July 10th. Piper Sandler set a $176.00 price objective on shares of PepsiCo in a research report on Thursday, July 9th. UBS Group set a $159.00 target price on shares of PepsiCo in a research note on Thursday, July 9th. Deutsche Bank Aktiengesellschaft set a $155.00 target price on shares of PepsiCo in a research report on Friday, July 10th. Finally, TD Cowen reissued a “hold” rating on shares of PepsiCo in a report on Friday, August 28th. Seven investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, PepsiCo currently has an average rating of “Hold” and an average price target of $157.90.

Get Our Latest Analysis on PEP

PepsiCo Stock Performance PEP stock opened at $138.45 on Wednesday. The company has a quick ratio of 0.74, a current ratio of 0.93 and a debt-to-equity ratio of 1.91. PepsiCo, Inc. has a twelve month low of $133.73 and a twelve month high of $171.48. The company has a market cap of $188.97 billion, a P/E ratio of 18.15, a price-to-earnings-growth ratio of 2.90 and a beta of 0.35. The business’s fifty day moving average is $139.74 and its 200-day moving average is $148.07.

PepsiCo (NASDAQ:PEP – Get Free Report) last posted its earnings results on Thursday, July 9th. The company reported $2.20 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.19 by $0.01. The company had revenue of $24.18 billion during the quarter, compared to analyst estimates of $23.95 billion. PepsiCo had a return on equity of 54.63% and a net margin of 10.78%.The company’s revenue for the quarter was up 6.4% compared to the same quarter last year. During the same period in the previous year, the company earned $0.92 EPS. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. Equities research analysts forecast that PepsiCo, Inc. will post 8.57 EPS for the current year.

PepsiCo Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Friday, September 4th will be paid a $1.48 dividend. This represents a $5.92 dividend on an annualized basis and a yield of 4.3%. The ex-dividend date of this dividend is Friday, September 4th. PepsiCo’s payout ratio is presently 77.59%.

PepsiCo Profile (Free Report)

PepsiCo, Inc (NASDAQ:PEP) is a global food and beverage company headquartered in Purchase, New York. Its portfolio includes carbonated soft drinks, sports drinks, bottled water, juices, ready-to-drink beverages, snack foods and convenient foods. Major brands include Pepsi, Mountain Dew, Gatorade, Lay’s, Doritos, Cheetos, Quaker and SodaStream.

The company sells products through a broad range of channels, including grocery stores, convenience stores, restaurants, food-service providers, vending operations and e-commerce platforms.

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AXQ Capital LP increased its holdings in shares of PepsiCo, Inc. (NASDAQ:PEP – Free Report) by 270.1% during the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 21,752 shares of the company’s stock after acquiring an additional 15,874 shares during the period. AXQ Capital LP’s holdings in PepsiCo were worth $2,945,000 at the end of the most recent reporting period.

Other institutional investors also recently added to or reduced their stakes in the company. Brighton Jones LLC lifted its holdings in PepsiCo by 12.4% during the 4th quarter. Brighton Jones LLC now owns 59,392 shares of the company’s stock valued at $9,031,000 after purchasing an additional 6,574 shares during the last quarter. Caxton Associates LLP acquired a new stake in shares of PepsiCo during the first quarter worth approximately $251,000. Sivia Capital Partners LLC raised its stake in shares of PepsiCo by 138.5% in the second quarter. Sivia Capital Partners LLC now owns 6,527 shares of the company’s stock valued at $862,000 after acquiring an additional 3,790 shares during the last quarter. Schnieders Capital Management LLC. boosted its holdings in shares of PepsiCo by 10.1% in the 2nd quarter. Schnieders Capital Management LLC. now owns 38,164 shares of the company’s stock worth $5,039,000 after acquiring an additional 3,502 shares in the last quarter. Finally, Sei Investments Co. boosted its holdings in shares of PepsiCo by 45.5% in the 2nd quarter. Sei Investments Co. now owns 536,133 shares of the company’s stock worth $70,789,000 after acquiring an additional 167,707 shares in the last quarter. 73.07% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth A number of research firms recently weighed in on PEP. Weiss Ratings reaffirmed a “hold (c)” rating on shares of PepsiCo in a report on Monday, July 6th. Piper Sandler set a $176.00 target price on PepsiCo in a report on Thursday, July 9th. Bank of America lowered their target price on PepsiCo from $173.00 to $164.00 and set a “neutral” rating for the company in a research note on Thursday, June 25th. Jefferies Financial Group reduced their price target on shares of PepsiCo from $162.00 to $152.00 and set a “hold” rating on the stock in a research report on Friday, July 10th. Finally, UBS Group set a $159.00 price objective on shares of PepsiCo in a research report on Thursday, July 9th. Seven investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $157.90.

Check Out Our Latest Stock Report on PEP Insider Activity In related news, EVP David Flavell sold 2,900 shares of the stock in a transaction dated Monday, July 27th. The stock was sold at an average price of $139.54, for a total transaction of $404,666.00. Following the completion of the transaction, the executive vice president directly owned 74,825 shares in the company, valued at approximately $10,441,080.50. This trade represents a 3.73% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 0.12% of the company’s stock.

Trending Headlines about PepsiCo Here are the key news stories impacting PepsiCo this week:

Positive Sentiment: PepsiCo plans to build a Frito-Lay distribution warehouse near California’s Sonoma County airport. The facility could expand regional distribution capacity and support future sales growth. PepsiCo plans Frito-Lay distribution warehouse near Sonoma County airport Positive Sentiment: Publicis Groupe won PepsiCo’s global media account from Omnicom. The change may help PepsiCo modernize marketing, improve digital capabilities and respond more effectively to changing consumer preferences. PepsiCo hands global media to Publicis amid transformation at CPG giant Positive Sentiment: Analysts and financial commentators see potential for a longer-term recovery, citing international momentum, a large buyback program and a portfolio overhaul. The thesis is more relevant to future valuation than to near-term earnings. Prediction: Pepsi Stock Could Surprise Wall Street in 2027 Neutral Sentiment: PepsiCo’s dividend remains a major attraction for income investors, although reaching $25,000 in annual dividends would require a substantial investment and many shares. How many shares of PepsiCo are needed for $25,000 in yearly dividends Neutral Sentiment: Recent coverage compares PepsiCo with Coca-Cola as defensive consumer-staples investments. The comparison highlights PEP’s dividend history and business resilience but does not provide a clear new catalyst. PepsiCo versus Coca-Cola Negative Sentiment: Reports point to damage at a Ukrainian production facility and softer North American demand, raising concerns about near-term sales, costs and execution. PepsiCo faces Ukraine damage and soft demand Negative Sentiment: PepsiCo is emphasizing fresh-food innovation as consumers move away from processed snacks, signaling a need for investment and potential portfolio-transition risk. The global media-account switch may also create near-term execution costs. PepsiCo puts fresh foods in focus PepsiCo Trading Down 1.7% NASDAQ:PEP opened at $137.63 on Friday. PepsiCo, Inc. has a fifty-two week low of $133.73 and a fifty-two week high of $171.48. The company has a debt-to-equity ratio of 1.91, a current ratio of 0.93 and a quick ratio of 0.74. The stock has a market capitalization of $187.85 billion, a PE ratio of 18.04, a price-to-earnings-growth ratio of 2.95 and a beta of 0.35. The business’s 50-day simple moving average is $139.70 and its 200-day simple moving average is $148.55.

PepsiCo (NASDAQ:PEP – Get Free Report) last issued its quarterly earnings data on Thursday, July 9th. The company reported $2.20 EPS for the quarter, topping analysts’ consensus estimates of $2.19 by $0.01. The business had revenue of $24.18 billion for the quarter, compared to analyst estimates of $23.95 billion. PepsiCo had a net margin of 10.78% and a return on equity of 54.63%. The firm’s quarterly revenue was up 6.4% on a year-over-year basis. During the same period last year, the business posted $0.92 earnings per share. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. Sell-side analysts expect that PepsiCo, Inc. will post 8.57 earnings per share for the current fiscal year.

PepsiCo Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Friday, September 4th will be given a dividend of $1.48 per share. This represents a $5.92 annualized dividend and a dividend yield of 4.3%. The ex-dividend date of this dividend is Friday, September 4th. PepsiCo’s dividend payout ratio is currently 77.59%.

About PepsiCo (Free Report)

PepsiCo, Inc (NASDAQ: PEP) is a multinational food and beverage company headquartered in Purchase, New York. The company develops, manufactures, markets and sells a broad portfolio of branded food and beverage products, including carbonated and noncarbonated soft drinks, bottled water, sports drinks, juices, ready-to-drink teas and coffees, salty snacks, cereals, and other convenient foods. Its leading consumer brands include Pepsi, Mountain Dew, Gatorade, Tropicana, Quaker, Lay’s, Doritos and Cheetos, among others.

Formed through the 1965 merger of Pepsi-Cola and Frito-Lay, PepsiCo has grown into a global business with integrated manufacturing, distribution and marketing operations.

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Bank OZK acquired a new position in shares of PepsiCo, Inc. (NASDAQ:PEP – Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 18,210 shares of the company’s stock, valued at approximately $2,466,000.

A number of other hedge funds have also recently made changes to their positions in the business. Swiss Life Asset Management Ltd raised its holdings in PepsiCo by 11.4% during the 4th quarter. Swiss Life Asset Management Ltd now owns 415,271 shares of the company’s stock valued at $59,600,000 after acquiring an additional 42,335 shares during the period. National Pension Service grew its position in shares of PepsiCo by 2.5% in the fourth quarter. National Pension Service now owns 3,143,939 shares of the company’s stock valued at $451,218,000 after purchasing an additional 77,051 shares in the last quarter. Allstate Corp raised its stake in shares of PepsiCo by 108.1% during the 4th quarter. Allstate Corp now owns 104,723 shares of the company’s stock valued at $15,030,000 after purchasing an additional 54,405 shares during the period. First Nebraska Trust Co purchased a new stake in PepsiCo during the 1st quarter worth about $10,782,000. Finally, Knights of Columbus Asset Advisors LLC boosted its stake in PepsiCo by 90.0% in the 4th quarter. Knights of Columbus Asset Advisors LLC now owns 94,652 shares of the company’s stock worth $13,584,000 after purchasing an additional 44,824 shares during the period. 73.07% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In PEP has been the subject of several recent analyst reports. Deutsche Bank Aktiengesellschaft set a $155.00 target price on shares of PepsiCo in a report on Friday, July 10th. Evercore set a $150.00 price objective on PepsiCo in a research report on Thursday, July 9th. Morgan Stanley reduced their target price on PepsiCo from $180.00 to $160.00 and set an “equal weight” rating for the company in a research report on Friday, July 10th. JPMorgan Chase & Co. decreased their target price on PepsiCo from $178.00 to $170.00 and set an “overweight” rating on the stock in a research note on Wednesday, July 1st. Finally, Jefferies Financial Group lowered their price target on PepsiCo from $162.00 to $152.00 and set a “hold” rating on the stock in a report on Friday, July 10th. Seven equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, PepsiCo has an average rating of “Hold” and a consensus price target of $157.90.

Read Our Latest Analysis on PEP Insider Activity In other news, EVP David Flavell sold 2,900 shares of the firm’s stock in a transaction dated Monday, July 27th. The shares were sold at an average price of $139.54, for a total transaction of $404,666.00. Following the sale, the executive vice president owned 74,825 shares of the company’s stock, valued at $10,441,080.50. This trade represents a 3.73% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. 0.12% of the stock is currently owned by insiders.

PepsiCo Stock Down 0.5% NASDAQ PEP opened at $140.34 on Tuesday. The business’s 50-day moving average is $139.85 and its 200 day moving average is $149.20. PepsiCo, Inc. has a 1 year low of $133.73 and a 1 year high of $171.48. The stock has a market capitalization of $191.55 billion, a PE ratio of 18.39, a PEG ratio of 3.10 and a beta of 0.35. The company has a debt-to-equity ratio of 1.91, a current ratio of 0.93 and a quick ratio of 0.74.

PepsiCo (NASDAQ:PEP – Get Free Report) last released its quarterly earnings results on Thursday, July 9th. The company reported $2.20 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.19 by $0.01. The company had revenue of $24.18 billion during the quarter, compared to the consensus estimate of $23.95 billion. PepsiCo had a net margin of 10.78% and a return on equity of 54.63%. PepsiCo’s revenue was up 6.4% on a year-over-year basis. During the same period in the prior year, the firm earned $0.92 earnings per share. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. Sell-side analysts forecast that PepsiCo, Inc. will post 8.57 earnings per share for the current year.

PepsiCo Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Friday, September 4th will be paid a $1.48 dividend. The ex-dividend date is Friday, September 4th. This represents a $5.92 annualized dividend and a dividend yield of 4.2%. PepsiCo’s payout ratio is currently 77.59%.

PepsiCo Company Profile (Free Report)

PepsiCo, Inc (NASDAQ: PEP) is a multinational food and beverage company headquartered in Purchase, New York. The company develops, manufactures, markets and sells a broad portfolio of branded food and beverage products, including carbonated and noncarbonated soft drinks, bottled water, sports drinks, juices, ready-to-drink teas and coffees, salty snacks, cereals, and other convenient foods. Its leading consumer brands include Pepsi, Mountain Dew, Gatorade, Tropicana, Quaker, Lay’s, Doritos and Cheetos, among others.

Formed through the 1965 merger of Pepsi-Cola and Frito-Lay, PepsiCo has grown into a global business with integrated manufacturing, distribution and marketing operations.

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Bank of Nova Scotia purchased a new stake in shares of PepsiCo, Inc. (NASDAQ:PEP – Free Report) in the second quarter, according to its most recent Form 13F filing with the SEC. The firm purchased 1,489,246 shares of the company’s stock, valued at approximately $201,648,000. Bank of Nova Scotia owned 0.11% of PepsiCo at the end of the most recent reporting period.

A number of other hedge funds have also recently made changes to their positions in the stock. Auto Owners Insurance Co lifted its holdings in shares of PepsiCo by 14,857.8% during the fourth quarter. Auto Owners Insurance Co now owns 49,252,907 shares of the company’s stock valued at $7,068,777,000 after purchasing an additional 48,923,629 shares in the last quarter. Norges Bank purchased a new position in PepsiCo in the 4th quarter worth about $3,018,813,000. Diamant Asset Management Inc. lifted its stake in PepsiCo by 16,146.5% during the 1st quarter. Diamant Asset Management Inc. now owns 3,586,423 shares of the company’s stock valued at $556,936,000 after acquiring an additional 3,564,348 shares during the period. Assenagon Asset Management S.A. boosted its holdings in shares of PepsiCo by 952.6% during the 2nd quarter. Assenagon Asset Management S.A. now owns 3,715,812 shares of the company’s stock valued at $503,121,000 after acquiring an additional 3,362,794 shares during the last quarter. Finally, AQR Capital Management LLC grew its stake in shares of PepsiCo by 120.7% in the third quarter. AQR Capital Management LLC now owns 5,916,417 shares of the company’s stock worth $830,902,000 after acquiring an additional 3,235,726 shares during the period. 73.07% of the stock is owned by institutional investors.

PepsiCo Stock Up 1.0% Shares of PEP opened at $141.07 on Friday. The company has a quick ratio of 0.74, a current ratio of 0.93 and a debt-to-equity ratio of 1.91. PepsiCo, Inc. has a 52-week low of $133.73 and a 52-week high of $171.48. The company has a market cap of $192.55 billion, a PE ratio of 18.49, a P/E/G ratio of 3.07 and a beta of 0.35. The business has a fifty day moving average of $139.86 and a 200 day moving average of $149.51.

PepsiCo (NASDAQ:PEP – Get Free Report) last announced its earnings results on Thursday, July 9th. The company reported $2.20 earnings per share for the quarter, beating the consensus estimate of $2.19 by $0.01. PepsiCo had a net margin of 10.78% and a return on equity of 54.63%. The business had revenue of $24.18 billion for the quarter, compared to the consensus estimate of $23.95 billion. During the same quarter in the prior year, the firm posted $0.92 earnings per share. The business’s revenue for the quarter was up 6.4% on a year-over-year basis. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. On average, sell-side analysts expect that PepsiCo, Inc. will post 8.57 EPS for the current year. PepsiCo Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Friday, September 4th will be issued a $1.48 dividend. The ex-dividend date is Friday, September 4th. This represents a $5.92 dividend on an annualized basis and a dividend yield of 4.2%. PepsiCo’s payout ratio is presently 77.59%.

Analyst Upgrades and Downgrades Several research analysts have recently weighed in on the stock. JPMorgan Chase & Co. decreased their price objective on shares of PepsiCo from $178.00 to $170.00 and set an “overweight” rating for the company in a report on Wednesday, July 1st. Jefferies Financial Group cut their price target on PepsiCo from $162.00 to $152.00 and set a “hold” rating for the company in a research note on Friday, July 10th. Piper Sandler set a $176.00 price objective on shares of PepsiCo in a research note on Thursday, July 9th. Deutsche Bank Aktiengesellschaft set a $155.00 price objective on shares of PepsiCo in a report on Friday, July 10th. Finally, BNP Paribas Exane dropped their price target on shares of PepsiCo from $195.00 to $183.00 and set an “outperform” rating on the stock in a research note on Wednesday, July 8th. Seven equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, PepsiCo presently has an average rating of “Hold” and a consensus price target of $157.90.

Read Our Latest Stock Report on PepsiCo

Key PepsiCo News Here are the key news stories impacting PepsiCo this week:

Positive Sentiment: Jim Cramer highlighted PepsiCo as a defensive large-cap opportunity, citing its roughly 4% dividend yield and the potential benefit of lower oil prices. Cheaper fuel could support consumer spending and reduce transportation and operating costs. Jim Cramer Shares Why PepsiCo Caught His Eye During Consumer Headwinds Positive Sentiment: Investors remain attracted to PepsiCo’s 54-year record of consecutive dividend increases and comparatively reasonable valuation. Improving international results could help offset continuing weakness in North America, supporting the case for income-oriented investors. Most Investors Overlook This. I’m Buying PepsiCo for Its Dividend Positive Sentiment: PepsiCo is pursuing growth beyond its traditional snack portfolio by introducing and emphasizing global flavors, a strategy that could broaden consumer appeal and create new avenues for international growth. PepsiCo Bets on Global Flavors to Grow Beyond Snacks Neutral Sentiment: Commentary describing consumer staples as a lagging sector frames PepsiCo as a value opportunity rather than a near-term growth leader. The investment appeal depends on the stock’s discounted valuation, dividend support and execution on its recovery plans. The Consumer Staples Sector Is Lagging the S&P 500 Negative Sentiment: Texas authorities are investigating PepsiCo and Kraft Heinz over claims involving avocado oil. The outcome and scope of the investigation are unclear, but regulatory scrutiny could create legal, reputational or product-related costs. PepsiCo, Kraft Heinz Under Investigation in Texas Over Avocado Oil Claims Negative Sentiment: Analysts note that PepsiCo’s dividend faces pressure from slower growth, persistent North American weakness and a more difficult recovery than the commodity-driven risks facing Chevron. This raises questions about future payout growth, despite the company’s long dividend history. Chevron or PepsiCo: Whose Dividend Is Standing on Thinner Ice? Insider Buying and Selling In other PepsiCo news, EVP David Flavell sold 2,900 shares of the firm’s stock in a transaction on Monday, July 27th. The stock was sold at an average price of $139.54, for a total transaction of $404,666.00. Following the transaction, the executive vice president directly owned 74,825 shares in the company, valued at $10,441,080.50. This trade represents a 3.73% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 0.12% of the stock is owned by insiders.

PepsiCo Company Profile (Free Report)

PepsiCo, Inc (NASDAQ: PEP) is a multinational food and beverage company headquartered in Purchase, New York. The company develops, manufactures, markets and sells a broad portfolio of branded food and beverage products, including carbonated and noncarbonated soft drinks, bottled water, sports drinks, juices, ready-to-drink teas and coffees, salty snacks, cereals, and other convenient foods. Its leading consumer brands include Pepsi, Mountain Dew, Gatorade, Tropicana, Quaker, Lay’s, Doritos and Cheetos, among others.

Formed through the 1965 merger of Pepsi-Cola and Frito-Lay, PepsiCo has grown into a global business with integrated manufacturing, distribution and marketing operations.

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Flavin Financial Services Inc. acquired a new stake in PepsiCo, Inc. (NASDAQ:PEP – Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor acquired 11,898 shares of the company’s stock, valued at approximately $1,611,000.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Evergreen Advisors LLC acquired a new position in PepsiCo during the first quarter valued at $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in shares of PepsiCo during the 4th quarter valued at about $26,000. Swiss RE Ltd. purchased a new position in shares of PepsiCo during the 4th quarter valued at about $28,000. Networth Advisors LLC lifted its holdings in shares of PepsiCo by 2,857.1% in the 1st quarter. Networth Advisors LLC now owns 207 shares of the company’s stock valued at $32,000 after buying an additional 200 shares during the period. Finally, Vermillion Wealth Management Inc. boosted its stake in shares of PepsiCo by 99.1% in the first quarter. Vermillion Wealth Management Inc. now owns 217 shares of the company’s stock worth $34,000 after buying an additional 108 shares during the last quarter. Institutional investors and hedge funds own 73.07% of the company’s stock.

Analysts Set New Price Targets Several research analysts recently weighed in on the company. Wells Fargo & Company reduced their price target on PepsiCo from $150.00 to $140.00 and set an “equal weight” rating for the company in a research report on Friday, July 10th. Deutsche Bank Aktiengesellschaft set a $155.00 price objective on PepsiCo in a research report on Friday, July 10th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of PepsiCo in a report on Monday, July 6th. JPMorgan Chase & Co. decreased their target price on shares of PepsiCo from $178.00 to $170.00 and set an “overweight” rating for the company in a research note on Wednesday, July 1st. Finally, Citigroup downgraded shares of PepsiCo from a “buy” rating to a “neutral” rating and lowered their price target for the stock from $170.00 to $145.00 in a report on Friday, July 10th. Seven analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $157.90.

Check Out Our Latest Analysis on PepsiCo Key Stories Impacting PepsiCo Here are the key news stories impacting PepsiCo this week:

Positive Sentiment: Jim Cramer highlighted PepsiCo as a defensive large-cap opportunity, citing its roughly 4% dividend yield and the potential benefit of lower oil prices. Cheaper fuel could support consumer spending and reduce transportation and operating costs. Jim Cramer Shares Why PepsiCo Caught His Eye During Consumer Headwinds Positive Sentiment: Investors remain attracted to PepsiCo’s 54-year record of consecutive dividend increases and comparatively reasonable valuation. Improving international results could help offset continuing weakness in North America, supporting the case for income-oriented investors. Most Investors Overlook This. I’m Buying PepsiCo for Its Dividend Positive Sentiment: PepsiCo is pursuing growth beyond its traditional snack portfolio by introducing and emphasizing global flavors, a strategy that could broaden consumer appeal and create new avenues for international growth. PepsiCo Bets on Global Flavors to Grow Beyond Snacks Neutral Sentiment: Commentary describing consumer staples as a lagging sector frames PepsiCo as a value opportunity rather than a near-term growth leader. The investment appeal depends on the stock’s discounted valuation, dividend support and execution on its recovery plans. The Consumer Staples Sector Is Lagging the S&P 500 Negative Sentiment: Texas authorities are investigating PepsiCo and Kraft Heinz over claims involving avocado oil. The outcome and scope of the investigation are unclear, but regulatory scrutiny could create legal, reputational or product-related costs. PepsiCo, Kraft Heinz Under Investigation in Texas Over Avocado Oil Claims Negative Sentiment: Analysts note that PepsiCo’s dividend faces pressure from slower growth, persistent North American weakness and a more difficult recovery than the commodity-driven risks facing Chevron. This raises questions about future payout growth, despite the company’s long dividend history. Chevron or PepsiCo: Whose Dividend Is Standing on Thinner Ice? PepsiCo Stock Performance NASDAQ PEP opened at $141.07 on Friday. The stock has a market capitalization of $192.55 billion, a price-to-earnings ratio of 18.49, a PEG ratio of 3.10 and a beta of 0.35. The stock has a 50-day moving average of $139.86 and a 200 day moving average of $149.51. The company has a current ratio of 0.93, a quick ratio of 0.74 and a debt-to-equity ratio of 1.91. PepsiCo, Inc. has a twelve month low of $133.73 and a twelve month high of $171.48.

PepsiCo (NASDAQ:PEP – Get Free Report) last issued its quarterly earnings data on Thursday, July 9th. The company reported $2.20 EPS for the quarter, beating the consensus estimate of $2.19 by $0.01. The company had revenue of $24.18 billion for the quarter, compared to analyst estimates of $23.95 billion. PepsiCo had a return on equity of 54.63% and a net margin of 10.78%.PepsiCo’s quarterly revenue was up 6.4% compared to the same quarter last year. During the same period last year, the company earned $0.92 earnings per share. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. Sell-side analysts anticipate that PepsiCo, Inc. will post 8.57 EPS for the current fiscal year.

PepsiCo Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Friday, September 4th will be paid a $1.48 dividend. The ex-dividend date of this dividend is Friday, September 4th. This represents a $5.92 dividend on an annualized basis and a yield of 4.2%. PepsiCo’s dividend payout ratio (DPR) is currently 77.59%.

Insider Transactions at PepsiCo In related news, EVP David Flavell sold 2,900 shares of the business’s stock in a transaction on Monday, July 27th. The shares were sold at an average price of $139.54, for a total value of $404,666.00. Following the completion of the sale, the executive vice president owned 74,825 shares of the company’s stock, valued at approximately $10,441,080.50. The trade was a 3.73% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 0.12% of the company’s stock.

PepsiCo Profile (Free Report)

PepsiCo, Inc (NASDAQ: PEP) is a multinational food and beverage company headquartered in Purchase, New York. The company develops, manufactures, markets and sells a broad portfolio of branded food and beverage products, including carbonated and noncarbonated soft drinks, bottled water, sports drinks, juices, ready-to-drink teas and coffees, salty snacks, cereals, and other convenient foods. Its leading consumer brands include Pepsi, Mountain Dew, Gatorade, Tropicana, Quaker, Lay’s, Doritos and Cheetos, among others.

Formed through the 1965 merger of Pepsi-Cola and Frito-Lay, PepsiCo has grown into a global business with integrated manufacturing, distribution and marketing operations.

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Cibc World Market Inc. purchased a new stake in PepsiCo, Inc. (NASDAQ:PEP – Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor purchased 338,219 shares of the company’s stock, valued at approximately $45,795,000.

Several other hedge funds and other institutional investors also recently bought and sold shares of the business. Evergreen Advisors LLC purchased a new stake in shares of PepsiCo in the first quarter valued at about $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in shares of PepsiCo during the fourth quarter worth about $26,000. Swiss RE Ltd. acquired a new position in PepsiCo in the 4th quarter valued at about $28,000. Atlatl Advisers LLC purchased a new stake in PepsiCo during the 2nd quarter valued at approximately $31,000. Finally, Imprint Wealth LLC acquired a new stake in PepsiCo during the 3rd quarter worth approximately $31,000. 73.07% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at PepsiCo In related news, EVP David Flavell sold 2,900 shares of the company’s stock in a transaction that occurred on Monday, July 27th. The shares were sold at an average price of $139.54, for a total transaction of $404,666.00. Following the transaction, the executive vice president owned 74,825 shares of the company’s stock, valued at approximately $10,441,080.50. This represents a 3.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 0.12% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets A number of research analysts have recently issued reports on the company. Weiss Ratings reissued a “hold (c)” rating on shares of PepsiCo in a report on Monday, July 6th. Wells Fargo & Company decreased their price target on PepsiCo from $150.00 to $140.00 and set an “equal weight” rating for the company in a report on Friday, July 10th. Deutsche Bank Aktiengesellschaft set a $155.00 price objective on shares of PepsiCo in a research report on Friday, July 10th. TD Cowen restated a “hold” rating on shares of PepsiCo in a research report on Friday. Finally, Morgan Stanley reduced their target price on shares of PepsiCo from $180.00 to $160.00 and set an “equal weight” rating for the company in a research note on Friday, July 10th. Seven investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $157.90. Check Out Our Latest Stock Report on PEP

Trending Headlines about PepsiCo Here are the key news stories impacting PepsiCo this week:

Positive Sentiment: Jim Cramer highlighted PepsiCo as a defensive large-cap opportunity, citing its roughly 4% dividend yield and the potential benefit of lower oil prices. Cheaper fuel could support consumer spending and reduce transportation and operating costs. Jim Cramer Shares Why PepsiCo Caught His Eye During Consumer Headwinds Positive Sentiment: Investors remain attracted to PepsiCo’s 54-year record of consecutive dividend increases and comparatively reasonable valuation. Improving international results could help offset continuing weakness in North America, supporting the case for income-oriented investors. Most Investors Overlook This. I’m Buying PepsiCo for Its Dividend Positive Sentiment: PepsiCo is pursuing growth beyond its traditional snack portfolio by introducing and emphasizing global flavors, a strategy that could broaden consumer appeal and create new avenues for international growth. PepsiCo Bets on Global Flavors to Grow Beyond Snacks Neutral Sentiment: Commentary describing consumer staples as a lagging sector frames PepsiCo as a value opportunity rather than a near-term growth leader. The investment appeal depends on the stock’s discounted valuation, dividend support and execution on its recovery plans. The Consumer Staples Sector Is Lagging the S&P 500 Negative Sentiment: Texas authorities are investigating PepsiCo and Kraft Heinz over claims involving avocado oil. The outcome and scope of the investigation are unclear, but regulatory scrutiny could create legal, reputational or product-related costs. PepsiCo, Kraft Heinz Under Investigation in Texas Over Avocado Oil Claims Negative Sentiment: Analysts note that PepsiCo’s dividend faces pressure from slower growth, persistent North American weakness and a more difficult recovery than the commodity-driven risks facing Chevron. This raises questions about future payout growth, despite the company’s long dividend history. Chevron or PepsiCo: Whose Dividend Is Standing on Thinner Ice? PepsiCo Stock Performance NASDAQ PEP opened at $141.07 on Friday. The company has a quick ratio of 0.74, a current ratio of 0.93 and a debt-to-equity ratio of 1.91. PepsiCo, Inc. has a fifty-two week low of $133.73 and a fifty-two week high of $171.48. The business has a fifty day moving average of $139.86 and a 200-day moving average of $149.51. The stock has a market cap of $192.55 billion, a price-to-earnings ratio of 18.49, a price-to-earnings-growth ratio of 3.10 and a beta of 0.35.

PepsiCo (NASDAQ:PEP – Get Free Report) last posted its quarterly earnings data on Thursday, July 9th. The company reported $2.20 EPS for the quarter, topping analysts’ consensus estimates of $2.19 by $0.01. PepsiCo had a return on equity of 54.63% and a net margin of 10.78%.The firm had revenue of $24.18 billion during the quarter, compared to analysts’ expectations of $23.95 billion. During the same quarter last year, the business posted $0.92 EPS. The firm’s quarterly revenue was up 6.4% compared to the same quarter last year. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. As a group, analysts predict that PepsiCo, Inc. will post 8.57 earnings per share for the current fiscal year.

PepsiCo Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Friday, September 4th will be issued a dividend of $1.48 per share. The ex-dividend date is Friday, September 4th. This represents a $5.92 dividend on an annualized basis and a dividend yield of 4.2%. PepsiCo’s payout ratio is 77.59%.

About PepsiCo (Free Report)

PepsiCo, Inc (NASDAQ: PEP) is a multinational food and beverage company headquartered in Purchase, New York. The company develops, manufactures, markets and sells a broad portfolio of branded food and beverage products, including carbonated and noncarbonated soft drinks, bottled water, sports drinks, juices, ready-to-drink teas and coffees, salty snacks, cereals, and other convenient foods. Its leading consumer brands include Pepsi, Mountain Dew, Gatorade, Tropicana, Quaker, Lay’s, Doritos and Cheetos, among others.

Formed through the 1965 merger of Pepsi-Cola and Frito-Lay, PepsiCo has grown into a global business with integrated manufacturing, distribution and marketing operations.

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Focus Partners Advisor Solutions LLC reduced its position in PepsiCo, Inc. (NASDAQ:PEP – Free Report) by 34.0% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 47,933 shares of the company’s stock after selling 24,710 shares during the quarter. Focus Partners Advisor Solutions LLC’s holdings in PepsiCo were worth $6,490,000 at the end of the most recent quarter.

Other large investors have also made changes to their positions in the company. ABN AMRO Bank N.V. increased its stake in shares of PepsiCo by 4.8% in the 2nd quarter. ABN AMRO Bank N.V. now owns 20,237 shares of the company’s stock valued at $2,749,000 after purchasing an additional 928 shares during the last quarter. Kelleher Financial Advisors boosted its stake in PepsiCo by 9.3% in the second quarter. Kelleher Financial Advisors now owns 5,934 shares of the company’s stock valued at $804,000 after buying an additional 505 shares in the last quarter. GSA Capital Partners LLP grew its position in PepsiCo by 3.1% in the second quarter. GSA Capital Partners LLP now owns 4,970 shares of the company’s stock valued at $673,000 after acquiring an additional 148 shares during the last quarter. Stoneridge Investment Partners LLC acquired a new position in PepsiCo during the second quarter worth about $560,000. Finally, Avalon Trust Co lifted its holdings in shares of PepsiCo by 9.5% in the second quarter. Avalon Trust Co now owns 2,593 shares of the company’s stock worth $351,000 after acquiring an additional 225 shares during the last quarter. Institutional investors and hedge funds own 73.07% of the company’s stock.

Insider Buying and Selling In other PepsiCo news, EVP David Flavell sold 2,900 shares of PepsiCo stock in a transaction dated Monday, July 27th. The stock was sold at an average price of $139.54, for a total transaction of $404,666.00. Following the transaction, the executive vice president directly owned 74,825 shares of the company’s stock, valued at approximately $10,441,080.50. The trade was a 3.73% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 0.12% of the company’s stock.

PepsiCo Price Performance NASDAQ:PEP opened at $143.48 on Monday. PepsiCo, Inc. has a one year low of $133.73 and a one year high of $171.48. The company has a debt-to-equity ratio of 1.91, a current ratio of 0.93 and a quick ratio of 0.74. The company has a market cap of $195.83 billion, a PE ratio of 18.80, a P/E/G ratio of 3.15 and a beta of 0.35. The firm’s 50 day simple moving average is $140.02 and its 200 day simple moving average is $150.26. PepsiCo (NASDAQ:PEP – Get Free Report) last released its quarterly earnings results on Thursday, July 9th. The company reported $2.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.19 by $0.01. The firm had revenue of $24.18 billion during the quarter, compared to the consensus estimate of $23.95 billion. PepsiCo had a net margin of 10.78% and a return on equity of 54.63%. The company’s revenue for the quarter was up 6.4% on a year-over-year basis. During the same quarter last year, the firm earned $0.92 earnings per share. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. On average, research analysts anticipate that PepsiCo, Inc. will post 8.57 earnings per share for the current year.

PepsiCo Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Friday, September 4th will be given a dividend of $1.48 per share. This represents a $5.92 annualized dividend and a yield of 4.1%. The ex-dividend date of this dividend is Friday, September 4th. PepsiCo’s dividend payout ratio (DPR) is currently 77.59%.

Wall Street Analysts Forecast Growth Several equities research analysts recently issued reports on PEP shares. Piper Sandler set a $176.00 price target on shares of PepsiCo in a report on Thursday, July 9th. Royal Bank Of Canada dropped their price objective on shares of PepsiCo from $163.00 to $161.00 and set a “sector perform” rating for the company in a research note on Friday, July 10th. Evercore set a $150.00 target price on shares of PepsiCo in a research report on Thursday, July 9th. Sanford C. Bernstein set a $134.00 target price on shares of PepsiCo in a research note on Friday, July 10th. Finally, Morgan Stanley lowered their price target on shares of PepsiCo from $180.00 to $160.00 and set an “equal weight” rating for the company in a report on Friday, July 10th. Seven analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $157.90.

View Our Latest Stock Analysis on PepsiCo

PepsiCo Company Profile (Free Report)

PepsiCo, Inc (NASDAQ: PEP) is a multinational food and beverage company headquartered in Purchase, New York. The company develops, manufactures, markets and sells a broad portfolio of branded food and beverage products, including carbonated and noncarbonated soft drinks, bottled water, sports drinks, juices, ready-to-drink teas and coffees, salty snacks, cereals, and other convenient foods. Its leading consumer brands include Pepsi, Mountain Dew, Gatorade, Tropicana, Quaker, Lay’s, Doritos and Cheetos, among others.

Formed through the 1965 merger of Pepsi-Cola and Frito-Lay, PepsiCo has grown into a global business with integrated manufacturing, distribution and marketing operations.

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August is closing on a market that has rewarded speculation and punished patience, which is exactly when the boring compounders start looking interesting again. The three names below are all Dividend Kings, each with more than 50 consecutive years of dividend increases, and each has just delivered results that reinforce why long-term holders keep showing up (we ranked our ten favorite Dividend Kings by valuation right now in a free report here). Two of them are trading well off their 52-week highs, and one is running hot into a World Cup catalyst. For investors thinking about positioning income portfolios before the calendar flips to September, this trio deserves a serious look.

Procter & Gamble: A 70-Year Streak at a Reset Price Procter & Gamble (NYSE:PG | PG Price Prediction) is the definition of forever-hold. The consumer staples giant just closed out fiscal 2026 with its 70th consecutive year of dividend increases and has now paid dividends for 136 straight years, going back to 1890. That is a streak that has become an institution.

The latest quarterly payout sits at $1.0885 per share, with an annualized forward dividend of $4.354. Fiscal 2026 delivered core EPS of $6.89 on $87.03 billion in revenue, and management has laid out a fiscal 2027 capital return plan of over $10 billion in dividends plus roughly $5 billion in share repurchases. Free cash flow productivity hit 100% for the year.

The bull case is straightforward. P&G owns Tide, Pampers, Gillette, Crest, Charmin, and Olay. Nine of ten product categories held or grew organic sales in fiscal 2026, and management said they are "growing share in China for the first time in 15 quarters." Shares are down 6.21% over the past year and trade at a forward P/E near 20, a rare discount for a business this durable.

The risk: fiscal 2027 carries approximately $1 billion after tax of cost headwinds from raw materials, energy, and transportation. Management warned first-quarter EPS could be "down 5% or more versus prior year." That is a real speed bump, but it is a cyclical drag on a structural compounder.

PepsiCo: 54 Years of Raises and a North American Reset PepsiCo (NASDAQ:PEP) just delivered its latest quarterly dividend of $1.48 per share, up from $1.4225, extending a streak that now sits at more than five decades of annual increases. The forward annualized payout is $5.92 per share, and the dividend yield of 4.05% is the highest of this trio.

Q2 2026 was better than the headlines suggested. Revenue came in at $24.18 billion, and reported net revenue grew 7% in the first half. CEO Ramon Laguarta highlighted the international engine: "Our international business, as you saw, continues very strong, and we were able to grow 7% accelerating." That business is "going to cross $40 billion in this year" and is now profit-accretive.

The stock has quietly turned. It is up 5.77% over the past month as investors have started to look past the North American slowdown. A forward P/E of 17 for a business with 51% return on equity is the kind of setup long-term holders live for. Plans call for roughly $8.9 billion in capital returns this year through dividends and buybacks.

The risk: North America convenience-channel weakness is real. Laguarta acknowledged the U.S. business will "gradually improve, but at a more moderate pace than we thought coming into Q2." Affordability investments will pressure near-term margins.

Coca-Cola: Momentum Meets a 60-Plus Year Dividend King Coca-Cola (NYSE:KO) is the momentum play in this group, and it is not close. Shares are up 32.06% year to date and 32.6% over the past year, with a 10.83% gain in just the last month. The current quarterly dividend of $0.53 per share annualizes to $2.12, and the next ex-dividend date is September 15, 2026.

Q2 2026 was a statement quarter. Volume grew 5%, organic revenue grew 6%, and Trademark Coca-Cola posted its strongest volume growth in 17 years, excluding COVID recovery. Fairlife grew 18%, and Powerade grew 8% globally. Management raised full-year guidance to organic revenue of approximately 5% and comparable EPS growth of 9 to 10%. Free cash flow reached approximately $6.9 billion.

The World Cup catalyst is playing out in real time. Coca-Cola activated the tournament in more than 180 markets and more than 20 million retail outlets, collecting more than 25 million first-party data points. CEO Henrique Braun said the company is "really confident that we have many levers to deliver on our objectives in 2026 and over the long term." Net debt leverage sits at 1.4 times EBITDA, below the 2 to 2.5 times target, giving management room to keep returning capital.

The risk: valuation. A forward P/E of 27 leaves less margin for error, and Q4 2026 will have six fewer days compared to the fourth quarter of 2025, which will optically pressure the reported growth. For a hold-for-life position, that is noise. For a new entry point, it is worth watching the stock into September.

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