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Pepsi's stock has barely moved in five years while Coca-Cola surged over 80%, yet Jim Cramer says that very underperformance makes one of them the smarter buy right now.

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PepsiCo kicked off its 26th NFL season campaign, “Tailgating Deserves Pepsi,” featuring Pro Football Hall of Famer Jerome Bettis as the “Pepsi gameday ref” alongside Justin Jefferson, complete with a free Pepsi Zero Sugar 12-pack offer running September 9 through September 14, or until 5,000 redemptions are reached. The gameday marketing machine is humming. The stock, less so.

Cramer’s Accidentally High Yield Thesis PepsiCo (NASDAQ:PEP | PEP Price Prediction) trades at $138.44, down 0.6% year to date and up just 4.51% over five years. Over that same five-year stretch, Coca-Cola (NYSE:KO) is up 83.42%, with a 28.09% year-to-date gain and a 34.77% one-year advance to $88.40.

Jim Cramer’s pitch for Pepsi rests on the very math that underperformance creates. On a July episode of Mad Money, he noted that “PepsiCo dropped nearly a buck sinking to a level where it sports a dividend yield north of 4%.” He has since framed the setup around a lower valuation, cheaper oil, and that accidental income. When Cramer earlier compared the two names, he reminded viewers that “the share price tells you nothing about a stock’s valuation vis a vis another stock. To make any kind of apples to apples comparison, you take a step back.”

Dividend Machine Keeps Grinding Pepsi raised its quarterly payout to $1.48 per share, up from $1.4225, with the latest ex-dividend date September 4 and payment date September 30. That marks the 54th consecutive annual increase, backed by a $10 billion buyback authorization through February 28, 2030. The yield sits at 4.04%, versus 2.32% at Coca-Cola.

Two Different Growth Stories Pepsi’s Q2 2026 revenue rose 6.4% year over year to $24.181B, with core EPS of $2.20. CEO Ramon Laguarta told analysts that “a category that was negative in volume now is positive in volume. We were losing share in volume. Now we’re gaining share in volume.” Still, the company signaled results could land at the low end of its EPS range, hampered by softer U.S. impulse channels.

Coca-Cola, by contrast, is compounding. Q2 delivered adjusted EPS of $0.97 and revenue of $13.380B, up 6.74% YoY, with 5% unit case volume growth and raised full-year guidance calling for comparable EPS growth of 9 to 10%. CEO Henrique Braun said, “We delivered a strong quarter with broad-based momentum across our business.”

Scoreboard Investors Actually Watch Pepsi trades at a P/E of 23 against Coke at 29, and Cramer’s view is that the discount plus the 4% yield offers protection. But the yield is elevated because the shares have stalled.

Contact [email protected] for any questions or corrections.

Medicare Part B premiums keep climbing, and Social Security checks keep shrinking to cover them. Three Dividend Kings with very different yields and coverage profiles could shift that math entirely in a retiree's favor.

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For anyone on Medicare, the Part B premium is a bill that arrives every month without fail, usually withheld right out of the Social Security check. CMS set the standard monthly Part B premium at $202.90 for 2026, an increase of $17.90 from $185.00 in 2025. The question this article answers is simple: what does it take, in capital, for dividends alone to cover that recurring line item? Three blue-chip Dividend Kings, PepsiCo (NASDAQ:PEP | PEP Price Prediction), Johnson & Johnson (NYSE:JNJ), and Coca-Cola (NYSE:KO), offer three different combinations of yield, coverage, and dividend track record to do exactly that.

There are a couple caveats to this roster. First, the annual Part B deductible is $283 in 2026, an increase of $26 from $257 in 2025, so the premium is not the only Part B cash outflow. Second, income-related monthly adjustment amounts affect roughly 8% of people with Medicare Part B, and higher-income filers pay meaningfully more, all the way up to $689.90 per month at the top bracket. The math below is anchored to the standard premium.

PepsiCo: The Highest Yield in the Trio PepsiCo trades at $137.63 with a dividend yield of 4.06%, the richest starting yield in this bundle. The current quarterly payout is $1.48 per share, with an annualized forward dividend of $5.92 per share. For an income investor trying to defray Medicare, PEP delivers the most premium coverage per dollar of capital in this group.

Free cash flow yield of 4.08% essentially matches the dividend yield, and management guides FY2026 total cash returns of about $8.9B, with dividends around $7.9B, funded by free cash flow conversion of at least 80%. Interest coverage sits at 12.03x. The dividend track record is the anchor: PepsiCo announced a 4% annualized dividend increase beginning with the June 2026 payment, representing the 54th consecutive annual increase, comfortably a Dividend King.

The bull case for a Medicare-focused income investor is that PEP offers a rare combination of a 4%-plus yield on a wide-moat consumer staple with more than five decades of payout growth, backed by international momentum (LatAm Foods +15%, EMEA +10%, Asia Pacific Foods +12% in Q2 2026). The caveat is that PFNA revenue declined about 2% in Q2 on weaker effective net pricing and core operating margin contracted 40 basis points, while the balance sheet carries a debt/equity ratio of 2.45. Coverage is fine; margin discipline is the thing to watch.

Johnson & Johnson: The Longest Streak, the Deepest Coverage Johnson & Johnson trades at $275.23, with a market cap near $663.3B. The current quarterly payout is $1.34, with an annualized forward dividend of $5.36 per share. JNJ has the lowest headline yield of the three but arguably the strongest cash-flow cushion, and the longest streak.

The board approved a 3.1% dividend increase in Q1 2026 to $1.34 per share quarterly, marking the 64th consecutive year of dividend increases. Coverage is not close: FY2025 free cash flow was $19.7B against a dividend load that JNJ can absorb many times over. FY2026 guidance was raised to reported sales of $100.3B to $101.3B and adjusted EPS of $11.45 to $11.65, and Q1 2026 revenue landed at $24.06B, up 9.9% year over year. Standout oncology assets include DARZALEX at $3.96B (+22.5%) and CARVYKTI at $597M (+62.1%).

The bull case for retirees is straightforward: 64 years of consecutive increases, a diversified pharma and MedTech portfolio, and a planned Orthopaedics separation that sharpens focus. The caveat is STELARA biosimilar erosion of 59.7% in Q1, creating roughly a 920 basis point drag on Innovative Medicine growth, alongside ongoing litigation charges of $330M in Q1 2026 and $854M in Q4 2025. Neither dents dividend coverage, but both drag headline earnings comparisons.

Coca-Cola: Iconic Payer, Richest Valuation Coca-Cola trades at $88.07 with a dividend yield of 2.32%. The current quarterly payout is $0.53 per share, with an annualized forward dividend of $2.12 per share. That yield is the lowest of the three, which means KO requires the most capital to fund the same Medicare bill. What KO offers in exchange is best-in-class quality metrics and one of the most durable payout histories in the entire market.

The dividend record supplied shows sustained annual increases from $0.16 per share in 1999 through $0.53 per share in 2026, consistent with KO’s status as a widely recognized Dividend King with more than 60 years of consecutive annual increases. Coverage is comfortable: FY2026 guidance calls for organic revenue growth of about 5%, comparable EPS growth of 9% to 10%, and free cash flow of roughly $12.4B. Return on equity runs 45.97%, with a gross margin of 61.6% and operating margin of 28.7%. Q2 2026 delivered revenue of $13.38B (+6.7% YoY) with global unit case volume up 5%, led by India, China, US, and Brazil.

The bull case is quality plus staying power: a wide-moat brand system, high-return operations, and FIFA World Cup 2026 activation driving volumes. The caveat is valuation. KO trades at a P/E of roughly 29 and a P/FCF of roughly 72, which caps the effective yield an investor gets on new capital and leaves less margin for error if consumer demand softens.

Blending the Three Kings Three Dividend Kings, three different tradeoffs against one recurring bill. PEP’s 4.06% yield does the heaviest lifting per dollar of capital, JNJ pairs a lower yield with $19.7B in annual free cash flow and a 64-year streak, and KO trades the thinnest current yield for arguably the most bulletproof brand economics in staples. Split evenly, the blend gives a Medicare-focused retiree a coverage profile that does not depend on any single company holding its price, its payout, or its end market (if you want a wider bench of 50-plus-year raisers screened by valuation, we ranked ten of them in a free Dividend Kings report). And because the 2026 Part B standard premium of $202.90 was a $17.90 increase from 2025, dividend growth, not just dividend yield, is what keeps this strategy intact as premiums drift higher.

Contact [email protected] for any questions or corrections.

The past five years have been great for the stock market. The S&P 500 index, which is a collection of the leading stocks on U.S. markets, has risen by around 70% during that stretch. Top beverage and snack company, PepsiCo (PEP -0.66%), hasn't unfortunately been nearly as good an investment. In fact, it's down 12% over that same time frame.

The company is still massive, generating close to $100 billion in annual revenue, and its business is producing some solid profits as well. So what's wrong with the beverage stock, and could PepsiCo make for a good contrarian buy right now?

Image source: Getty Images.

Why has the market become bearish on PepsiCo?What's a bit surprising is how different PepsiCo's stock trajectory has been compared with not only the broader market but also its key rival, Coca-Cola. Shares of Coca-Cola have risen by 55% in five years, and this is even though its growth rate has been fairly comparable to PepsiCo's.

PEP Revenue (Quarterly YoY Growth) data by YCharts

PepsiCo also has a large portion of its business centered on snacks, which likely makes it a riskier option in the eyes of many investors due to concerns that GLP-1 drugs are curbing appetites and may result in lower demand for the company's products.

But even with GLP-1 drugs being available for multiple years now, PepsiCo's business hasn't exactly fallen off a cliff. Its financials remain sound, which suggests that the market may be overreacting a bit.

Has PepsiCo stock become a bargain buy?PepsiCo's stock hasn't been able to win over investors this year, as it's still down around 4% thus far for 2026. The stock is trading at a fairly attractive valuation, as its price-to-earnings multiple is just 18 -- well below the 27 times earnings that Coca-Cola trades at, and below the S&P 500 average of 24.

There's good value here for investors who are willing to give PepsiCo's stock a chance. While its growth may not be in double digits, the business is still showing good, decent gains, even at a time when consumers are supposedly cutting back and eating less. The narrative of GLP-1 crippling demand for salty snacks may have resulted in a poor performance for the stock, but its fundamentals suggest the business is more than fine.

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For long-term investors, PepsiCo stock may prove to be an underrated buy right now as its solid numbers and attractive valuation could enable it to outperform the market and its key rival from here on out.

PepsiCo has underperformed the benchmark by 4%, but I remain confident in its long-term value. Despite recent bottom line estimate misses, PEP maintains steady top and bottom line growth, supporting its premium valuation. I continue to rate PEP as a Buy, seeing no structural issues and viewing it as a defensive, dividend-paying staple.

Coca-Cola (KO -0.83%) and PepsiCo (PEP -0.66%) have each been in existence since the 1800s. These venerable companies have battled each other for a very long time, trying to win over consumers' hearts, minds, and wallets.

More recently, has one pulled ahead and become the more attractive choice? Analyzing the business prospects is the first step, followed by examining their valuations.

It's time to conduct a deeper dive into Coca-Cola and PepsiCo to see which one has the better investment potential.

Image source: Getty Images.

Coca-Cola vs. PepsiCo Coca-Cola focuses entirely on beverages. It's branched out from soda, and includes products like water, juice, and plant-based beverages.

Although consumers have grown cautious about discretionary spending, Coca-Cola has produced steady revenue gains. Second-quarter revenue, removing the impact from foreign-currency translation and acquisitions/divestitures, grew 6% year over year. Importantly, higher volume accounted for 4 percentage points, with the balance coming from higher prices/changing mix.

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Turning to PepsiCo, it has expanded beyond beverages to include food items. Its offerings include soda. water, Gatorade, granola bars, cereal, oatmeal, and chips.

The company's top-line results have been sluggish as consumers balked at higher prices, with competitors eating into its market share. However, activist investor Elliott Investment Management took a stake in PepsiCo, and it had discussions with management. Subsequently, the company cut prices, and it's looking into developing products and cutting costs.

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Product volume appears to have responded to the lower prices. After dragging down revenue, higher volume has been a positive contributor this year. PepsiCo's second-quarter adjusted revenue grew 2.4% compared to a year ago. Volume accounted for 1 percentage point of the increase.

Making the investment decision Both companies have raised dividends annually for decades. In fact, Coca-Cola has increased dividends for 64 straight years, and PepsiCo has done so for 54 years. That makes them Dividend Kings, or companies that have hiked dividends for at least 50 consecutive years. However, PepsiCo's stock has an appealing 4.2% dividend yield, 1.8 percentage points higher than Coca-Cola's yield.

The stocks' valuations have been moving in opposite directions. PepsiCo's price-to-earnings (P/E) ratio has fallen from 24 to 18 this year. Meanwhile, Coca-Cola's P/E multiple has expanded from 23 to 27.

After examining each company, PepsiCo's stock presents the better investment opportunity. Management has taken steps to increase sales growth and make the business more competitive. Combined with a higher dividend yield and more attractive valuation, the stock offers greater total return potential.

In an environment of rising interest rates, dividend payers have had more trouble competing for income investors' attention. The 30-year Treasury bond now offers a yield of around 5.25%, a level matched by few dividend stocks.

That includes PepsiCo (PEP -0.66%), whose dividend yield is around 4.1%. Fortunately, the stock offers other benefits that could make buying PepsiCo for its dividend a more attractive option than a 30-year Treasury over the long term. Here's how.

Image source; The Motley Fool.

PepsiCo as a "better" alternative Admittedly, describing a stock as a better alternative to a 30-year Treasury may seem heretical. Investors consider U.S. Treasuries the benchmark of safety with guaranteed returns. In contrast, companies can adjust dividend levels at any time for any reason. Hence, recommending an individual stock with a lower cash return may seem counterintuitive.

Still, a 30-year Treasury bond can lose value if interest rates rise, forcing investors to sell it at a discount to raise the effective interest rate. PepsiCo stock could fall in theory. However, its shares are backed by numerous beverage and food brands besides Pepsi. Those include Mountain Dew, Gatorade, Doritos, and Quaker Oats, established brands that have existed for decades and could bolster the company's growth.

Moreover, PepsiCo stock should continue to rise on a long-term basis. Over the last 30 years, PepsiCo stock surged by almost 390%, and that return rises to more than 920% when including dividends.

PEP data by YCharts

The dividend is also an advantage, even to investors interested only in income. In May, the company increased the annual payout to $5.92 per share. Although that yields just 4.1% as previously mentioned, investors should note that it has also increased that payout for 54 straight years, making PepsiCo a Dividend King.

Several funds will invest in PepsiCo explicitly because of the Dividend King status, but more importantly, that track record ties the stock's reputation to annual payout hikes. Since ending that streak would likely undermine confidence in PepsiCo stock, the company is likely to continue raising the dividend if possible.

Fortunately, it can probably afford the payout. Over the trailing 12 months, PepsiCo generated $9.7 billion in free cash flow. That is significantly more than the $7.8 billion it paid in dividends, meaning it can likely afford the payout and modest annual increases. Thus, when also accounting for the aforementioned potential for stock gains, it could pay to take a chance on PepsiCo stock.

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Given the likelihood of long-term gains, owning PepsiCo could deliver higher returns than owning a 30-year Treasury, even after accounting for the lower cash return and higher risks.

Indeed, 30-year Treasuries offer a guaranteed return, and a direct default is highly unlikely. Nonetheless, PepsiCo has built a high level of confidence, backed by numerous well-known and popular consumer brands, which has driven a rising stock price.

Additionally, the Dividend King status and the annual payout hikes that come with it bolster confidence in the payout. With that and the potential for stock gains, PepsiCo stock is likely the more suitable choice for most investors.

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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Baypointe Partners LLC bought a new position in PepsiCo, Inc. (NASDAQ:PEP – Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm bought 10,000 shares of the company’s stock, valued at approximately $1,354,000. PepsiCo accounts for about 3.2% of Baypointe Partners LLC’s portfolio, making the stock its 11th biggest position.

A number of other hedge funds also recently bought and sold shares of PEP. Tudor Financial Inc. grew its position in PepsiCo by 81.6% in the 2nd quarter. Tudor Financial Inc. now owns 6,769 shares of the company’s stock worth $917,000 after purchasing an additional 3,042 shares during the last quarter. Rogco LP increased its stake in PepsiCo by 1.9% during the second quarter. Rogco LP now owns 11,744 shares of the company’s stock valued at $1,590,000 after acquiring an additional 218 shares during the period. Syon Capital LLC raised its holdings in PepsiCo by 4.5% in the 2nd quarter. Syon Capital LLC now owns 11,216 shares of the company’s stock valued at $1,519,000 after acquiring an additional 484 shares in the last quarter. denkapparat Operations GmbH lifted its position in shares of PepsiCo by 10.3% in the 2nd quarter. denkapparat Operations GmbH now owns 6,252 shares of the company’s stock worth $847,000 after acquiring an additional 586 shares during the period. Finally, TD Waterhouse Canada Inc. boosted its position in shares of PepsiCo by 100.2% during the 2nd quarter. TD Waterhouse Canada Inc. now owns 412,372 shares of the company’s stock valued at $58,250,000 after acquiring an additional 206,442 shares in the last quarter. 73.07% of the stock is currently owned by institutional investors.

PepsiCo Stock Down 1.7% NASDAQ:PEP opened at $137.63 on Friday. The stock has a market cap of $187.85 billion, a price-to-earnings ratio of 18.04, a PEG ratio of 2.95 and a beta of 0.35. PepsiCo, Inc. has a 1 year low of $133.73 and a 1 year high of $171.48. The stock has a 50-day moving average price of $139.70 and a two-hundred day moving average price of $148.55. 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 (NASDAQ:PEP – Get Free Report) last released its earnings results on Thursday, July 9th. The company reported $2.20 EPS for the quarter, beating the consensus estimate 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 for the quarter, compared to analysts’ expectations of $23.95 billion. During the same quarter in the previous year, the business posted $0.92 EPS. The business’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, equities analysts expect that PepsiCo, Inc. will post 8.57 earnings per share for the current year. PepsiCo Announces Dividend The business also recently declared 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 is Friday, September 4th. PepsiCo’s dividend payout ratio (DPR) is currently 77.59%.

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 Analyst Upgrades and Downgrades Several research firms have recently weighed in on PEP. Barclays upped their price objective on PepsiCo from $138.00 to $142.00 and gave the company an “equal weight” rating in a research note on Tuesday, July 21st. Weiss Ratings reissued a “hold (c)” rating on shares of PepsiCo in a report on Monday, July 6th. Morgan Stanley cut 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. Citigroup cut PepsiCo from a “buy” rating to a “neutral” rating and cut their price target for the company from $170.00 to $145.00 in a report on Friday, July 10th. Finally, Bank of America reduced their price target on shares of PepsiCo from $173.00 to $164.00 and set a “neutral” rating on the stock in a research report on Thursday, June 25th. Seven equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $157.90.

Get Our Latest Report on PepsiCo

Insider Buying and Selling at PepsiCo In other news, EVP David Flavell sold 2,900 shares of the company’s stock in a transaction that occurred 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 sale, the executive vice president owned 74,825 shares in the company, valued at $10,441,080.50. This represents a 3.73% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. 0.12% of the stock is owned by company 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.

Featured Stories Five stocks we like better than PepsiCo Revolution Medicines Got Its Breakthrough—What Moves It Next? Retail Earnings Just Exposed a Bigger Divide in the U.S. Consumer Economy FB Financial’s Southern Expansion and Buybacks Drive Analyst Optimism AST SpaceMobile Stock Soared 12%—This Was the Catalyst Want to see what other hedge funds are holding PEP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for PepsiCo, Inc. (NASDAQ:PEP – Free Report).

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In investing, goal-setting is important. Whether it's retirement planning, using stocks to save for a home, or just simple wealth-building, investors should identify their end games early on in the process.

Many dividend investors are already checking that box. Before getting involved with a stock, many experienced payout hunters will say to themselves, "I want to generate $X per year in dividends from a particular stock."

Investors will need a lot of cash to get to $25,000 in yearly dividends with PepsiCo stock. Image source: Getty Images.

Obviously, there's some math behind that exercise, but fortunately not the high school algebra kind. For investors who want to harness $25,000 a year, an impressive sum to be sure, from PepsiCo (PEP -0.36%), knowing the math is essential. With a 4% increase delivered in February, PepsiCo stock features a yearly payout of $5.92 per share. Divide $25,000 by the dividend of $5.92, and the result is that 4,223 shares are required to generate $25,000 in annual dividends from Pepsi.

Here's where the dividend math gets intimidating with this consumer staples stock. PepsiCo closed at $140.52 on Sept. 2. Round down and call it $140.50, multiply that by 4,223 shares, and the result is $593,331.50.

Generating $25,000 a year in dividends from PepsiCo is definitely an ambitious goal. But that doesn't mean market participants should forget the value of ambition in investing. Nor does the math imply that they should simply gloss over PepsiCo.

Premium Feature

Moneyball Superscore

69/100

Today's Change

(

-0.36

%) $

-0.49

Current Price

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138.54

Over time, the math becomes more favorable, particularly if an investor makes regular additions to their PepsiCo stake. Time is also on the side of patient shareholders with this stock because it's raised its payout for 55 consecutive years, making it a Dividend King, or a company with an annual dividend increase streak of at least 50 years.

That's where the math becomes more favorable because, as PepsiCo's dividend rises, less capital is required for investors to reach their $25,000 dreams.

PepsiCo shares have quietly slipped while rivals rallied, but a confluence of international momentum, a massive buyback, and a portfolio overhaul is building pressure beneath the surface. Here is the case for why 2027 could be the year the market…

I’ve watched PepsiCo (NASDAQ:PEP | PEP Price Prediction) trade like a stock the market has forgotten. Shares are down 0.71% year-to-date and off 2.25% over the past year, even as CEO Ramon Laguarta pushes through the biggest portfolio refresh in years.

Q2 delivered the fastest volume growth since 2022, U.S. salty snacks flipped from share loser to share gainer, and international revenue is on pace to cross $40 billion this year. With shares near $141, let me walk through what it would take for Pepsi to reach $175 in 2027.

Why Wall Street Sees a Slow Grind Higher The Street’s consensus 12-month price target sits at $155, roughly 10% above the current quote. Analysts model $8.98 in 2027 EPS on $101.9 billion in revenue, up from $8.56 EPS on $98.9 billion in 2026. Coverage is deep, with 23 EPS analysts tracking the name.

Estimates have drifted lower (the 2027 EPS average was $9.15 ninety days ago), which reflects management’s warning that results could land “towards the low end of the EPS range.” Still, Pepsi has beaten expectations in 4 consecutive quarters, so the modeled numbers may prove conservative.

Path to $175 Per Share At $141, PEP trades at roughly 16x 2027 EPS of $8.98. A move to $175 would push the multiple to about 19x, still below the S&P 500’s forward P/E near 22x and well beneath Pepsi’s own historical 23x trailing multiple.

In other words, the path to $175 hinges on the market re-rating PEP back toward its long-run average as growth reaccelerates, with only modest EPS progress required.

Here’s what could get it there:

International engine. International operating margin grew by a full point in Q2, with 7% accelerating revenue growth across EMEA, Asia Pacific, and Latin America. North America turnaround. Laguarta said “the food business in the U.S. will continue to grow volume and grow net revenue in the coming quarters,” aided by shelf-space gains and affordability execution. Portfolio transformation. The permissible-foods portfolio is already $3 billion and growing almost double-digit, with poppi, Siete, Naked, and Doritos Protein scaling. Capital returns. A $5.92 annualized dividend, the 54th consecutive annual hike, and a $10 billion buyback authorization underwrite total return. Tariff tailwind. Management said refund claims will contribute “about one full point of EPS growth for the year.” Historical Returns Say $175 Is Reasonable A move from $141 to $175 is roughly 24% in price, or closer to 28% with dividends. That’s above Pepsi’s five-year total return of 3.58%, but well within its 10-year gain of 74.74%.

With a beta near 0.36, PEP tends to move in modest ranges, yet mid-20% snapbacks off multi-year lows have happened repeatedly for consumer staples aristocrats when sentiment turns.

Bottom Line on $175 Hitting $175 requires a modest re-rating to 19x forward earnings plus mid-single-digit EPS growth. Wall Street is already halfway there with a $155 target, and a bull-case scenario reaches $172.52 by September 2027.

If international keeps compounding, PFNA volume inflects, and the buyback shrinks the share count, $175 becomes the natural landing spot. Returns like that shouldn’t be expected every year, but we’ve outlined the blueprint for how Pepsi could deliver outsized returns in 2027.

Contact [email protected] for any questions or corrections.

Investors are interested in this high-quality dividend stock.

*Stock prices used were the afternoon prices of Aug. 30, 2026. The video was published on Sept. 1, 2026.

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Replacing nearly $47,000 a year in retirement income without touching principal sounds like a math problem, but the real trap is choosing the wrong yield tier and watching either your paycheck or your nest egg quietly shrink.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

A 75-year-old who wants $3,900 a month in dividend income needs to replace $46,800 a year without touching principal. That is roughly what a paid-off homeowner spends on property tax, insurance, groceries, and utilities in a middle-cost state. The question is not whether it can be done. The question is how much capital it takes, and what risk comes with the answer.

Three Dividend Kings frame the conservative end of that decision: Coca-Cola (NYSE:KO | KO Price Prediction), Johnson & Johnson (NYSE:JNJ), and PepsiCo (NASDAQ:PEP). Together, they carry roughly 178 combined years of consecutive dividend increases.

Why This Trio, and What They Pay At $0.53 a share each quarter, Coca-Cola’s annualized dividend comes to $2.12, putting the yield near 2.3% with shares trading around $89 after a 32% run over the past year. The company just reported second-quarter revenue of $13.38 billion, up 7% from a year earlier, and raised its full-year guidance to 9% to 10% comparable EPS growth. This is a dividend raiser with more than six decades of increases behind it.

The quarterly payout from Johnson & Johnson was recently lifted to $1.34, or $5.36 on an annualized basis, which gives it a yield of roughly 2.0% at the current $266 share price. It has raised its dividend for 64 straight years, and its 0.23 beta makes it one of the calmest large-cap stocks in the market.

The highest yield of the three belongs to PepsiCo at roughly 4.0%, with the annualized dividend raised to $5.92 starting with the June 2026 payment. That increase marks its 54th consecutive annual raise, and shares are trading around $140.

What $3,900 a Month Costs at Each Yield Tier The math is fixed. Divide $46,800 by the yield to get the required capital.

Conservative tier, 3% to 4% yield. This is the KO, JNJ, PEP zone: broad-market dividend growth and dividend kings. A blended 3.3% yield across the trio (roughly 34% KO, 33% JNJ, 33% PEP) requires about $1,410,000. At a cleaner 3.5%, the number is $1,337,000. You need the most capital here, and you get the most defensible income and the highest probability of principal appreciation. Moderate tier, 5% to 7% yield. Covered call ETFs, preferred shares, REITs, and high-dividend equity funds live here. At 6%, the target requires $780,000. The tradeoff is real: covered call strategies cap upside, REIT distributions can be tax-inefficient in taxable accounts, and dividend growth typically slows to near zero. Aggressive tier, 8% to 14% yield. Business development companies, mortgage REITs, leveraged option-income funds, and high-yield bond funds sit here. At 10%, $468,000 covers the target. At 12%, $390,000. Principal often erodes, distributions get cut in recessions, and a 75-year-old paying premium tax rates on ordinary income may keep less than the headline suggests. Rising Payouts Reframe the Choice A 12% payer with no growth pays the same $46,800 in year one and year fifteen. A 3.3% trio like KO, JNJ, and PEP that raises the payout roughly 7% to 8% annually doubles the income in about a decade. KO’s quarterly dividend has gone from $0.28 in 2013 to $0.53 in 2026. JNJ’s went from $0.66 to $1.34 over the same window. That is what a 75-year-old is buying with the higher capital requirement: an income stream that keeps up with the grocery bill (we ranked ten dividend kings by valuation right now in a free report you can grab here).

Three Things to Do Before Committing Capital Price your actual annual spending, not your former salary. Many retirees discover they need to replace closer to $40,000 than $60,000, which changes the tier decision. Compare the 10-year total return of a 3% to 4% dividend-growth basket against a 10% yield fund. Rising payouts plus reinvested distributions usually win, even against a much higher starting yield. Model the tax bracket. Qualified dividends from KO, JNJ, and PEP are taxed at long-term capital gains rates. Distributions from mortgage REITs and BDCs are largely ordinary income, which materially changes the after-tax yield. Contact [email protected] for any questions or corrections.

Bcwm LLC purchased a new stake 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 & Exchange Commission. The firm purchased 45,490 shares of the company’s stock, valued at approximately $6,159,000.

A number of other hedge funds also recently added to or reduced their stakes in PEP. Auto Owners Insurance Co lifted its holdings in PepsiCo by 14,857.8% during the fourth quarter. Auto Owners Insurance Co now owns 49,252,907 shares of the company’s stock worth $7,068,777,000 after buying an additional 48,923,629 shares during the period. Norges Bank purchased a new stake in PepsiCo in the fourth quarter valued at about $3,018,813,000. Legal & General Group Plc acquired a new stake in PepsiCo in the 2nd quarter worth approximately $1,200,274,000. Canada Pension Plan Investment Board acquired a new stake in shares of PepsiCo during the second quarter worth $487,558,000. Finally, Diamant Asset Management Inc. grew its holdings in shares of PepsiCo by 16,146.5% during the first quarter. Diamant Asset Management Inc. now owns 3,586,423 shares of the company’s stock valued at $556,936,000 after buying an additional 3,564,348 shares during the last quarter. 73.07% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In PEP has been the topic of a number of research reports. Evercore set a $150.00 price objective on PepsiCo in a report on Thursday, July 9th. Royal Bank Of Canada decreased their target price on PepsiCo from $163.00 to $161.00 and set a “sector perform” rating for the company in a report on Friday, July 10th. Citigroup lowered PepsiCo from a “buy” rating to a “neutral” rating and dropped their target price for the company from $170.00 to $145.00 in a research report on Friday, July 10th. Sanford C. Bernstein set a $134.00 price target on shares of PepsiCo in a research report on Friday, July 10th. Finally, Jefferies Financial Group decreased their price objective on shares of PepsiCo from $162.00 to $152.00 and set a “hold” rating for the company in a research note 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. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $157.90.

Read Our Latest Stock Analysis on PEP PepsiCo Stock Down 0.5% Shares of PEP opened at $140.34 on Tuesday. The company has a market capitalization of $191.55 billion, a price-to-earnings ratio of 18.39, a PEG ratio of 3.10 and a beta of 0.35. PepsiCo, Inc. has a 52 week low of $133.73 and a 52 week high of $171.48. The stock’s 50-day moving average price is $139.85 and its 200-day moving average price is $149.20. 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 (NASDAQ:PEP – Get Free Report) last released its quarterly earnings data on Thursday, July 9th. The company reported $2.20 EPS for the quarter, topping the consensus estimate 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 return on equity of 54.63% and a net margin of 10.78%.The business’s quarterly revenue was up 6.4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.92 EPS. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. On average, sell-side analysts predict that PepsiCo, Inc. will post 8.57 EPS for the current year.

PepsiCo Announces Dividend 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 dividend of $1.48 per share. 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 is 77.59%.

Insider Buying and Selling 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 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 legal filing with the Securities & Exchange Commission, which is available at the SEC website. 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.

See Also Five stocks we like better than PepsiCo Securing AI: 5 Most-Upgraded Stocks From the Q2 Reporting Season Insiders Are Betting Big on These 3 Healthcare Stocks 3 Stocks for Investors Who Still Believe Cash Is King Dollar General and Dollar Tree Are Recovering, But Not for the Same Reason Want to see what other hedge funds are holding PEP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for PepsiCo, Inc. (NASDAQ:PEP – Free Report).

Receive News & Ratings for PepsiCo Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for PepsiCo and related companies with MarketBeat.com's FREE daily email newsletter.

Brooks Moore & Associates Inc. bought a new position in shares of PepsiCo, Inc. (NASDAQ:PEP – Free Report) during the second quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor bought 28,411 shares of the company’s stock, valued at approximately $3,847,000. PepsiCo makes up 1.7% of Brooks Moore & Associates Inc.’s investment portfolio, making the stock its 19th largest position.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in PEP. Evergreen Advisors LLC acquired a new position in PepsiCo in the first quarter valued at approximately $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new position in shares of PepsiCo in the 4th quarter valued at approximately $26,000. Swiss RE Ltd. bought a new stake in shares of PepsiCo during the fourth quarter worth $28,000. Atlatl Advisers LLC acquired a new stake in shares of PepsiCo in the 2nd quarter valued at about $31,000. Finally, Osterweis Capital Management Inc. acquired a new stake in PepsiCo in the 2nd quarter valued at approximately $31,000. 73.07% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth A number of research firms have recently commented on PEP. TD Cowen restated a “hold” rating on shares of PepsiCo in a research note on Friday. Jefferies Financial Group decreased their price target on shares of PepsiCo from $162.00 to $152.00 and set a “hold” rating on the stock in a research note on Friday, July 10th. UBS Group set a $159.00 target price on PepsiCo in a report on Thursday, July 9th. Royal Bank Of Canada dropped their price objective on PepsiCo from $163.00 to $161.00 and set a “sector perform” rating for the company in a report on Friday, July 10th. Finally, Barclays increased their price target on shares of PepsiCo from $138.00 to $142.00 and gave the stock an “equal weight” rating in a research report on Tuesday, July 21st. Seven analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $157.90.

Check Out Our Latest Stock Analysis on PepsiCo PepsiCo Price Performance Shares of NASDAQ PEP opened at $140.34 on Tuesday. The company has a market capitalization of $191.55 billion, a PE ratio of 18.39, a P/E/G ratio of 3.10 and a beta of 0.35. The company has a quick ratio of 0.74, a current ratio of 0.93 and a debt-to-equity ratio of 1.91. The firm has a fifty day simple moving average of $139.85 and a 200 day simple moving average of $149.20. 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 announced its earnings results 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%.The firm’s revenue for the quarter was up 6.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.92 EPS. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. On average, sell-side analysts forecast that PepsiCo, Inc. will post 8.57 EPS for the current year.

PepsiCo Announces Dividend The company 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 $1.48 dividend. This represents a $5.92 dividend on an annualized basis and a yield of 4.2%. The ex-dividend date of this dividend is Friday, September 4th. PepsiCo’s payout ratio is presently 77.59%.

Insider Buying and Selling at PepsiCo In related news, EVP David Flavell sold 2,900 shares of PepsiCo 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. This trade represents a 3.73% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.12% of the stock is owned by insiders.

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.

Featured Articles Five stocks we like better than PepsiCo Securing AI: 5 Most-Upgraded Stocks From the Q2 Reporting Season Insiders Are Betting Big on These 3 Healthcare Stocks 3 Stocks for Investors Who Still Believe Cash Is King Dollar General and Dollar Tree Are Recovering, But Not for the Same Reason

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Indian authorities have raided an illegal operation in Mumbai that faked expiry dates and nutritional ​information on original food products manufactured by PepsiCo (PEP.O), Nestle (NESN.S), Coca-Cola (KO.N) and Unilever (ULVR.L) so they could be exported to other countries.

Reuters got exclusive access to the warehouse last ‌week as food officers conducted a six-day investigation and seized goods worth nearly $80,000. A photographer saw chemicals used to remove manufacturers' original expiry dates and ingredient labels, machines to print and apply replacements and scores of label packs for products including Lay's potato chips and Maggi noodles.

India's Maharashtra state, where Mumbai is the capital, has intensified a food safety drive under the new head of the state's Food and Drug Administration, Tukaram Mundhe, whose ​surprise inspections at elite clubs and restaurants have made him an online and TV celebrity.

"I am absolutely shocked by the scale. It is like organised activity. It's been done ​systematically," Mundhe told Reuters on Tuesday about the investigation into the illicit warehouse operation.

The warehouse, located in the industrial area of Navi Mumbai ⁠around 25 km (16 miles) from Mumbai's international airport, was run by privately owned Sadhana Enterprises. Its owner said they carried out the activities on behalf of 19 little-known exporters, according to ​a media release from the state and a police case document.

Officials said most products were expired or near expired. By changing dates, "harmful food products are being exported for sale, thereby defrauding ​customers," the case document said.

It was not clear which countries the products were destined for but all the stock was for export, Mundhe said. At least one reprinted label on a PepsiCo packet was in English and French, Reuters found.

PepsiCo, Nestle, Unilever India unit Hindustan Unilever (HLL.NS), and Coca-Cola did not respond to Reuters requests for comment.

Reuters calls to warehouse co-owners Jayprakash Sanchatiram Singh and Jaya Navrang Bahadur Singh were not answered. It was ​not clear whether any arrests had been made.

CHEMICALS AND PRINTING MACHINES
The gated warehouse had four large rooms beneath a tin roof.

Officials found nearly 5,000 cartons of consumer products, including PepsiCo's ​Lay's and Kurkure chips, Nestle's Maggi Masala Noodles, Unilever's Knorr Mushroom Soup and Hellmann's Mayonnaise, and Coca-Cola's Thums Up and Limca cans. Many of the Kurkure and Maggi packets, as well as the Thums Up ‌cans, had ⁠their dates removed.

Inside the dirty warehouse, Reuters photographer Francis Mascarenhas saw a can of a chemical solvent that officials said was used to erase dates from the packets.

They said an operator would enter the fake expiry and manufacturing dates using a stylus on a computer screen. Workers would then use a machine fitted to a metal table, decorated with a tiny "I love my India" sticker, to allegedly print the new label on packaging and cans.

REUTERS/Francis Mascarenhas
"The original date of manufacture and expiry date on the packaging of the food articles had been scratched out, erased ... (and) new information ​printed over them," the police document said.

The police ​case did not accuse any global ⁠companies of wrongdoing, but Mundhe called for supply chain accountability.

"Everybody needs to take this seriously. Companies have to abide with compliances and ensure that branding, packaging and sale is done as per regulations," he said.

REUTERS/Francis Mascarenhas
CARTONS OF MAGGI, FAKE INGREDIENT LABELS
Enforcement of food safety laws is weak in India. ​Food safety checks have long focused on adulteration, particularly of dairy products, when cases rise during festive seasons as demand for traditional ​Indian sweets surges.

Mundhe told ⁠Reuters his team found some packs were being reprinted with a future manufacturing date of October 2, 2026 inside the Mumbai warehouse.

Given foreign countries may have different labelling requirements and health guidelines, Reuters found dozens of Maggi cartons in the warehouse, with one sample showing a fake nutrition label pasted on top of a pack, making it export ready by describing it as a "Product of India".

One PepsiCo ⁠Kurkure pack had ​a nutrition label in English and French in a bilingual format.

The fake label reduced the quantity of cereal ​products in its ingredients by 10%, and tweaked the number of calories and serving size in an apparent move to align the labels with foreign regulations.

REUTERS/Francis Mascarenhas

First Bancorp Inc ME bought a new stake in PepsiCo, Inc. (NASDAQ:PEP – Free Report) during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm bought 5,286 shares of the company’s stock, valued at approximately $716,000.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Evergreen Advisors LLC purchased a new stake in PepsiCo during the 1st quarter worth $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in PepsiCo in the fourth quarter valued at about $26,000. Swiss RE Ltd. acquired a new position in shares of PepsiCo during the fourth quarter worth about $28,000. Networth Advisors LLC lifted its stake in shares of PepsiCo by 2,857.1% during the first quarter. Networth Advisors LLC now owns 207 shares of the company’s stock worth $32,000 after purchasing an additional 200 shares in the last quarter. Finally, Vermillion Wealth Management Inc. boosted its position 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 period. 73.07% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth Several equities research analysts recently commented on the company. UBS Group set a $159.00 target price on PepsiCo in a report on Thursday, July 9th. Evercore set a $150.00 price target on PepsiCo in a report on Thursday, July 9th. Jefferies Financial Group lowered their price objective on shares of PepsiCo from $162.00 to $152.00 and set a “hold” rating for the company in a research report on Friday, July 10th. Royal Bank Of Canada dropped their price objective on shares of PepsiCo from $163.00 to $161.00 and set a “sector perform” rating on the stock in a research note on Friday, July 10th. Finally, Piper Sandler set a $176.00 target price on shares of PepsiCo in a research report on Thursday, July 9th. Seven 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 company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $157.90.

Get Our Latest Stock Report on PEP Insider Activity In related news, EVP David Flavell sold 2,900 shares of PepsiCo 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 in the company, valued at approximately $10,441,080.50. The trade was a 3.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.12% of the company’s stock.

More 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? PepsiCo Stock Performance NASDAQ:PEP opened at $141.07 on Monday. 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, 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 quick ratio of 0.74 and a current ratio of 0.93. The business’s 50-day simple moving average is $139.86 and its 200 day simple moving average is $149.39.

PepsiCo (NASDAQ:PEP – Get Free Report) last issued its quarterly earnings data on Thursday, July 9th. The company reported $2.20 earnings per share for the quarter, beating 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 analyst estimates of $23.95 billion. During the same quarter last year, the firm earned $0.92 EPS. PepsiCo’s quarterly revenue was up 6.4% on a year-over-year basis. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. As a group, sell-side analysts predict that PepsiCo, Inc. will post 8.57 earnings per share for the current fiscal year.

PepsiCo Dividend Announcement The business also recently declared 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. The ex-dividend date of this dividend is Friday, September 4th. This represents a $5.92 dividend on an annualized basis and a dividend yield of 4.2%. PepsiCo’s dividend payout ratio (DPR) is presently 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.

Further Reading Five stocks we like better than PepsiCo Strike a Balance Between Growth and Stability With These 3 Names Ready to Rally Rubrik’s AI Security Bet Could Power the Next Leg Higher Apple’s Foldable iPhone Could Be a Catalyst, But Not a Cure-All Snowflake Is Up Nearly 50% in 2026—What Are Short Sellers Betting Against? Want to see what other hedge funds are holding PEP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for PepsiCo, Inc. (NASDAQ:PEP – Free Report).

Receive News & Ratings for PepsiCo Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for PepsiCo and related companies with MarketBeat.com's FREE daily email newsletter.

EFG International AG purchased a new stake in shares of PepsiCo, Inc. (NASDAQ:PEP – Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund purchased 114,558 shares of the company’s stock, valued at approximately $15,519,000.

Several other hedge funds have also recently bought and sold shares of the business. BlackRock Inc. grew its stake in PepsiCo by 2.1% during the 2nd quarter. BlackRock Inc. now owns 118,281,854 shares of the company’s stock valued at $16,015,363,000 after acquiring an additional 2,440,377 shares in the last quarter. State Street Corp lifted its position 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 worth $8,356,155,000 after purchasing an additional 1,079,970 shares in the last quarter. Auto Owners Insurance Co boosted 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 worth $7,068,777,000 after purchasing an additional 48,923,629 shares during the period. Geode Capital Management LLC grew its position in PepsiCo by 1.1% during the fourth 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 in the last quarter. Finally, Charles Schwab Investment Management Inc. grew its position in PepsiCo by 1.1% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 28,090,426 shares of the company’s stock valued at $4,031,646,000 after purchasing an additional 295,955 shares in the last quarter. 73.07% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes A number of equities research analysts have issued reports on the stock. UBS Group set a $159.00 target price on shares of PepsiCo in a research report on Thursday, July 9th. JPMorgan Chase & Co. dropped their price target on shares of PepsiCo from $178.00 to $170.00 and set an “overweight” rating on the stock in a research note on Wednesday, July 1st. BNP Paribas Exane cut their price objective on PepsiCo from $195.00 to $183.00 and set an “outperform” rating for the company in a report on Wednesday, July 8th. Morgan Stanley lowered their target price on PepsiCo from $180.00 to $160.00 and set an “equal weight” rating on the stock in a research note on Friday, July 10th. Finally, Royal Bank Of Canada dropped their target price on PepsiCo from $163.00 to $161.00 and set a “sector perform” rating on the stock in a research report on Friday, July 10th. Seven investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $157.90.

Read Our Latest Analysis on PepsiCo PepsiCo Stock Performance PEP stock opened at $141.07 on Monday. The firm has a 50 day moving average of $139.86 and a two-hundred day moving average of $149.39. PepsiCo, Inc. has a 12 month low of $133.73 and a 12 month high of $171.48. The company has a market capitalization of $192.55 billion, a price-to-earnings ratio of 18.49, a P/E/G ratio of 3.10 and a beta of 0.35. 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 (NASDAQ:PEP – Get Free Report) last released its quarterly earnings results on Thursday, July 9th. The company reported $2.20 earnings per share for the quarter, beating analysts’ consensus estimates of $2.19 by $0.01. The business had revenue of $24.18 billion for 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 for the quarter was up 6.4% on a year-over-year basis. During the same quarter last year, the firm earned $0.92 EPS. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. As a group, equities 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. Shareholders of record on Friday, September 4th will be given 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 dividend yield of 4.2%. PepsiCo’s payout ratio is currently 77.59%.

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? Insider Buying and Selling at PepsiCo In other news, EVP David Flavell sold 2,900 shares of the company’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 completion of the sale, the executive vice president owned 74,825 shares in the company, valued at approximately $10,441,080.50. This represents a 3.73% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 0.12% of the stock is owned by corporate insiders.

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.

Further Reading Five stocks we like better than PepsiCo Strike a Balance Between Growth and Stability With These 3 Names Ready to Rally Rubrik’s AI Security Bet Could Power the Next Leg Higher Apple’s Foldable iPhone Could Be a Catalyst, But Not a Cure-All Snowflake Is Up Nearly 50% in 2026—What Are Short Sellers Betting Against?

Receive News & Ratings for PepsiCo Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for PepsiCo and related companies with MarketBeat.com's FREE daily email newsletter.

Cullen Capital Management LLC bought a new position in PepsiCo, Inc. (NASDAQ:PEP – Free Report) during the second quarter, according to its most recent Form 13F filing with the SEC. The firm bought 6,224 shares of the company’s stock, valued at approximately $843,000.

A number of other large investors have also made changes to their positions in the stock. Evergreen Advisors LLC purchased a new position in PepsiCo during the first quarter worth approximately $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new stake in PepsiCo in the 4th quarter valued at $26,000. Swiss RE Ltd. acquired a new stake in shares of PepsiCo in the 4th quarter worth $28,000. Atlatl Advisers LLC purchased a new position in shares of PepsiCo during the 2nd quarter worth $31,000. Finally, Imprint Wealth LLC acquired a new position in shares of PepsiCo during the 3rd quarter valued at about $31,000. 73.07% of the stock is currently owned by hedge funds and other institutional investors.

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? Insider Buying and Selling In other 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 completion of 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 ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 0.12% of the stock is owned by company insiders. PepsiCo Trading Up 1.0% Shares of PEP stock opened at $141.07 on Friday. PepsiCo, Inc. has a 1-year low of $133.73 and a 1-year high of $171.48. The firm has a market cap of $192.55 billion, a PE ratio of 18.49, a price-to-earnings-growth ratio of 3.10 and a beta of 0.35. The company has a 50-day moving average of $139.86 and a two-hundred day moving average of $149.51. 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, beating analysts’ consensus estimates 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 period in the previous year, the firm earned $0.92 EPS. The business’s revenue 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, analysts predict that PepsiCo, Inc. will post 8.57 EPS for the current year.

PepsiCo Dividend Announcement The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Friday, September 4th will be given 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 payout ratio is presently 77.59%.

Analyst Upgrades and Downgrades Several research firms recently issued reports on PEP. BNP Paribas Exane cut their price objective on shares of PepsiCo from $195.00 to $183.00 and set an “outperform” rating for the company in a research report on Wednesday, July 8th. Citigroup cut shares of PepsiCo from a “buy” rating to a “neutral” rating and dropped their price target for the company from $170.00 to $145.00 in a research note on Friday, July 10th. Morgan Stanley cut 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. Sanford C. Bernstein set a $134.00 price objective on PepsiCo in a report on Friday, July 10th. Finally, Barclays increased their price objective on PepsiCo from $138.00 to $142.00 and gave the stock an “equal weight” rating in a research report on Tuesday, July 21st. Seven equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, PepsiCo presently has an average rating of “Hold” and an average target price of $157.90.

Get Our Latest Stock Analysis on PepsiCo

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.

Featured Articles Five stocks we like better than PepsiCo From SaaS-pocalypse to Perfect Storm: Workday’s AI Growth Story Strengthens These 3 GARP Stocks Show Why Growth and Value Do Not Have to Clash Venture Into High-Volatility Corners of the Market With These 3 ETFs 3 Retail Stocks to Watch After a Big Consumer Earnings Week Want to see what other hedge funds are holding PEP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for PepsiCo, Inc. (NASDAQ:PEP – Free Report).

Receive News & Ratings for PepsiCo Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for PepsiCo and related companies with MarketBeat.com's FREE daily email newsletter.

D.B. Root & Company LLC purchased a new stake in PepsiCo, Inc. (NASDAQ:PEP – Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 4,466 shares of the company’s stock, valued at approximately $605,000.

A number of other institutional investors and hedge funds also recently modified their holdings of PEP. Evergreen Advisors LLC acquired a new position in shares of PepsiCo in the 1st quarter worth $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new stake in shares of PepsiCo during the fourth quarter valued at $26,000. Swiss RE Ltd. acquired a new position in shares of PepsiCo in the 4th quarter valued at $28,000. Atlatl Advisers LLC purchased a new position in PepsiCo in the 2nd quarter worth about $31,000. Finally, Imprint Wealth LLC purchased a new position in PepsiCo in the 3rd quarter worth about $31,000. Institutional investors and hedge funds own 73.07% of the company’s stock.

Analysts Set New Price Targets A number of research firms have commented on PEP. Citigroup lowered shares of PepsiCo from a “buy” rating to a “neutral” rating and reduced their price objective for the company from $170.00 to $145.00 in a research note on Friday, July 10th. Wells Fargo & Company dropped their target price on shares of PepsiCo from $150.00 to $140.00 and set an “equal weight” rating on the stock in a research report on Friday, July 10th. Weiss Ratings restated a “hold (c)” rating on shares of PepsiCo in a report on Monday, July 6th. BNP Paribas Exane decreased their price objective on shares of PepsiCo from $195.00 to $183.00 and set an “outperform” rating for the company in a research note on Wednesday, July 8th. Finally, Evercore set a $150.00 price objective on shares of PepsiCo in a research report on Thursday, July 9th. 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’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $157.90.

Check Out Our Latest Report on PepsiCo PepsiCo Trading Up 1.0% NASDAQ:PEP opened at $141.07 on Friday. The stock’s 50-day moving average is $139.86 and its two-hundred day moving average is $149.51. PepsiCo, Inc. has a fifty-two week low of $133.73 and a fifty-two week high of $171.48. The stock has a market cap of $192.55 billion, a PE ratio of 18.49, a price-to-earnings-growth 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 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%. The company’s revenue was up 6.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.92 EPS. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. As a group, equities research analysts forecast 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. Investors of record on Friday, September 4th will be issued a dividend of $1.48 per share. This represents a $5.92 annualized dividend and a dividend yield of 4.2%. The ex-dividend date is Friday, September 4th. 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 PepsiCo 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 completion of the sale, the executive vice president owned 74,825 shares of the company’s stock, 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 document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.12% of the company’s stock.

Key Headlines 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 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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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.

Further Reading Five stocks we like better than PepsiCo From SaaS-pocalypse to Perfect Storm: Workday’s AI Growth Story Strengthens These 3 GARP Stocks Show Why Growth and Value Do Not Have to Clash Venture Into High-Volatility Corners of the Market With These 3 ETFs 3 Retail Stocks to Watch After a Big Consumer Earnings Week

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PepsiCo (NASDAQ:PEP – Get Free Report) and Tsingtao Brewery (OTCMKTS:TSGTF – Get Free Report) are both consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, valuation, earnings and risk.

Profitability This table compares PepsiCo and Tsingtao Brewery’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets PepsiCo 10.78% 54.63% 10.49% Tsingtao Brewery N/A N/A N/A Institutional and Insider Ownership 73.1% of PepsiCo shares are held by institutional investors. Comparatively, 9.1% of Tsingtao Brewery shares are held by institutional investors. 0.1% of PepsiCo shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations This is a breakdown of current recommendations for PepsiCo and Tsingtao Brewery, as reported by MarketBeat. Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score PepsiCo 1 12 7 0 2.30 Tsingtao Brewery 0 0 0 0 0.00 PepsiCo presently has a consensus target price of $157.90, indicating a potential upside of 11.93%. Given PepsiCo’s stronger consensus rating and higher probable upside, research analysts plainly believe PepsiCo is more favorable than Tsingtao Brewery.

Dividends PepsiCo pays an annual dividend of $5.92 per share and has a dividend yield of 4.2%. Tsingtao Brewery pays an annual dividend of $0.45 per share and has a dividend yield of 8.6%. PepsiCo pays out 77.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Tsingtao Brewery pays out 30.6% of its earnings in the form of a dividend. PepsiCo has increased its dividend for 54 consecutive years. Tsingtao Brewery is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation This table compares PepsiCo and Tsingtao Brewery”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio PepsiCo $93.92 billion 2.05 $8.24 billion $7.63 18.49 Tsingtao Brewery N/A N/A N/A $1.47 3.57 PepsiCo has higher revenue and earnings than Tsingtao Brewery. Tsingtao Brewery is trading at a lower price-to-earnings ratio than PepsiCo, indicating that it is currently the more affordable of the two stocks.

Summary PepsiCo beats Tsingtao Brewery on 12 of the 14 factors compared between the two stocks.

About PepsiCo (Get Free Report)

PepsiCo, Inc. engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The company operates through seven segments: Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Latin America; Europe; Africa, Middle East and South Asia; and Asia Pacific, Australia and New Zealand and China Region. It provides dips, cheese-flavored snacks, and spreads, as well as corn, potato, and tortilla chips; cereals, rice, pasta, mixes and syrups, granola bars, grits, oatmeal, rice cakes, and side dishes; beverage concentrates, fountain syrups, and finished goods; ready-to-drink tea, coffee, and juices; dairy products; and sparkling water makers and related products, as well as distributes alcoholic beverages under Hard MTN Dew brand. The company offers its products primarily under the Lay’s, Doritos, Fritos, Tostitos, BaiCaoWei, Cheetos, Cap’n Crunch, Life, Pearl Milling Company, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, Rice-A-Roni, Aquafina, Bubly, Emperador, Diet Mountain Dew, Diet Pepsi, Gatorade Zero, Crush, Propel, Dr Pepper, Schweppes, Marias Gamesa, Ruffles, Sabritas, Saladitas, Tostitos, 7UP, Diet 7UP, H2oh!, Manzanita Sol, Mirinda, Pepsi Black, Pepsi Max, San Carlos, Toddy, Walkers, Chipsy, Kurkure, Sasko, Spekko, White Star, Smith’s, Sting, SodaStream, Lubimyj Sad, Agusha, Chudo, Domik v Derevne, Lipton, and other brands. It serves wholesale and other distributors, foodservice customers, grocery stores, drug stores, convenience stores, discount/dollar stores, mass merchandisers, membership stores, hard discounters, e-commerce retailers and authorized independent bottlers, and others through a network of direct-store-delivery, customer warehouse, and distributor networks, as well as directly to consumers through e-commerce platforms and retailers. The company was founded in 1898 and is based in Purchase, New York.

(Get Free Report)

Tsingtao Brewery Company Limited, together with its subsidiaries, engages in the production, distribution, wholesale, and retail sale of beer products worldwide. It operates through seven segments: Shandong Region; South China Region; North China Region; East China Region; Southeast China Region; Hong Kong, Macau and Other Overseas Region; and Finance Company. The company sells its beer products primarily under the Tsingtao and Laoshan brand names. It also provides wealth management, and agency collection and payment services; and financing, construction, and logistics services, as well as technology promotion and application services. Tsingtao Brewery Company Limited was founded in 1903 and is headquartered in Qingdao, the People's Republic of China.

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Citizens Financial Group Inc. RI decreased its position in shares of PepsiCo, Inc. (NASDAQ:PEP – Free Report) by 4.7% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 83,760 shares of the company’s stock after selling 4,167 shares during the quarter. Citizens Financial Group Inc. RI’s holdings in PepsiCo were worth $11,341,000 at the end of the most recent quarter.

Other hedge funds have also recently bought and sold shares of the company. Texas Capital Bank Wealth Management Services Inc raised its holdings in PepsiCo by 2.2% during the second quarter. Texas Capital Bank Wealth Management Services Inc now owns 11,599 shares of the company’s stock worth $1,571,000 after purchasing an additional 251 shares during the last quarter. Aegis Wealth Management LLC grew its holdings in PepsiCo by 17.9% in the second quarter. Aegis Wealth Management LLC now owns 1,873 shares of the company’s stock valued at $254,000 after purchasing an additional 284 shares during the last quarter. B & T Capital Management DBA Alpha Capital Management increased its position in shares of PepsiCo by 3.3% in the second quarter. B & T Capital Management DBA Alpha Capital Management now owns 35,169 shares of the company’s stock valued at $4,762,000 after buying an additional 1,112 shares in the last quarter. Oarsman Capital Inc. raised its stake in shares of PepsiCo by 8.3% during the 2nd quarter. Oarsman Capital Inc. now owns 13,538 shares of the company’s stock worth $1,833,000 after buying an additional 1,036 shares during the last quarter. Finally, BlackRock Inc. boosted its position in shares of PepsiCo by 2.1% in the 2nd quarter. BlackRock Inc. now owns 118,281,854 shares of the company’s stock worth $16,015,363,000 after buying an additional 2,440,377 shares in the last quarter. 73.07% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades PEP has been the subject of several recent research reports. UBS Group set a $159.00 target price on shares of PepsiCo in a report on Thursday, July 9th. Citigroup downgraded shares of PepsiCo from a “buy” rating to a “neutral” rating and reduced their price target for the company from $170.00 to $145.00 in a report on Friday, July 10th. JPMorgan Chase & Co. dropped their price objective 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. Weiss Ratings restated a “hold (c)” rating on shares of PepsiCo in a research report on Monday, July 6th. Finally, Evercore set a $150.00 target price on PepsiCo in a report on Thursday, July 9th. Seven 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 company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $157.90.

Check Out Our Latest Stock Report on PEP Insider Buying and Selling In related news, EVP David Flavell sold 2,900 shares of the company’s stock in a transaction on Monday, July 27th. The stock was sold at an average price of $139.54, for a total value 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 represents a 3.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 0.12% of the company’s stock.

PepsiCo Stock Performance NASDAQ:PEP opened at $144.67 on Tuesday. 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 firm has a market cap of $197.46 billion, a PE ratio of 18.96, a P/E/G ratio of 3.15 and a beta of 0.35. The firm has a 50 day simple moving average of $139.99 and a 200-day simple moving average of $150.13. PepsiCo, Inc. has a 1-year low of $133.73 and a 1-year high of $171.48.

PepsiCo (NASDAQ:PEP – Get Free Report) last released its earnings results on Thursday, July 9th. The company reported $2.20 EPS for the quarter, topping the consensus estimate of $2.19 by $0.01. The firm had revenue of $24.18 billion during the quarter, compared to analysts’ expectations of $23.95 billion. PepsiCo had a net margin of 10.78% and a return on equity of 54.63%. PepsiCo’s revenue for the quarter was up 6.4% on a year-over-year basis. 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. On average, equities analysts expect that PepsiCo, Inc. will post 8.57 EPS for the current year.

PepsiCo Dividend Announcement The firm 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 $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 dividend yield of 4.1%. PepsiCo’s payout ratio is currently 77.59%.

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

Positive Sentiment: PepsiCo’s international business is approaching $40 billion in annual revenue, supported by overseas volume growth, market-share gains and continued investment. A greater contribution from international markets could diversify growth beyond the mature U.S. business. Is PepsiCo’s Growth Story Becoming More Internationally Focused? Positive Sentiment: PepsiCo is reportedly considering Iraq as a potential Middle East manufacturing hub. Such an investment could improve regional production and distribution, although the project remains prospective. Will Iraq become PepsiCo’s Next Middle East Manufacturing Hub? Positive Sentiment: Several dividend-investing articles continue to present PepsiCo as a long-term income and defensive consumer-staples holding. That supports demand from investors seeking reliable cash distributions, particularly while interest rates remain elevated. 3 Dividend Stocks to Buy Before August Ends and Hold for Life Neutral Sentiment: Analysts collectively rate PepsiCo “Hold,” suggesting the stock’s valuation and dependable dividend are balanced against limited near-term growth and execution risks. PepsiCo Receives Consensus Recommendation of Hold Negative Sentiment: India’s food-safety regulator issued notices to major food companies, including PepsiCo, over alleged misleading advertising and labeling claims. The developments could bring compliance costs, reputational concerns or product changes. Food Safety Regulator Notices Major Food Companies Negative Sentiment: Consumers are shifting toward healthier and lower-sugar beverages, increasing competition from brands such as Olipop. PepsiCo’s acquisition of Poppi gives it exposure to the trend, but the transition could pressure traditional soda demand and require greater innovation spending. How Olipop Is Beating Big Soda at Its Own Game 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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PURCHASE, N.Y., Aug. 25, 2026 /PRNewswire/ -- PepsiCo, Inc. (NASDAQ: PEP) today announced that it will issue its third-quarter 2026 (ending September 5) financial results and other related information on Thursday, October 8, 2026 by posting the following materials and links on the company's website at: www.pepsico.com/investors.

Gatik, the autonomous vehicle startup known for its self-driving box trucks, has raised $200 million just two months after striking a multiyear commercial agreement with PepsiCo.

The round was led by Qatar Investment Authority and Koch Disruptive Technologies, with participation from Millennium Management, ARK Invest, and Intact Private Capital. The Santa Clara, California-based company has raised about $500 million since it came out of stealth in 2019. The company didn’t disclose its valuation.

The funding, the company’s largest to date, marks a new phase for Gatik as it evolves from a startup with a few pilot programs into a company that runs commercial driverless operations with multiple commercial customers across several cities.

“These are all long-term investors,” Gatik co-founder and CEO Gautam Narang said in a recent interview. “All the scale-up plans that we have and the growth that we have in mind for the next few years — these are the kind of financial partners that can help us.”

For Narang, scaling means more driverless trucks, customers, and cities — and even someday outside of North America.

Gatik has carved out a niche for itself in the competitive and burgeoning autonomous vehicle industry. While dozens of startups and well-funded tech companies worked on developing sidewalk delivery robots, robotaxis, self-driving big rigs for long hauls, or driverless vehicles designed for construction and mining, Gatik focused on short-haul delivery.

The startup built a fleet of driverless box trucks, manufactured by Isuzu Motors, that could be used to deliver food and beverages for suppliers. It started small with fixed-route trips that were less than 10 miles, and grew to dynamic routes with dozens of pick-up and drop-off locations that cover up to 400 miles.

Gatik largely sits alone in this slice of the market, where it has become a dominant player in so-called “middle-mile” delivery. The company has several high-profile customers, including Canada’s Loblaws, Kroger, and Tyson Foods. Its first customer, which was disclosed six years ago, was Walmart.

Last year, the company reached a critical technical and operational milestone that allowed it to pull the safety driver from behind the wheel on its commercial routes. Gatik now has dozens of self-driving trucks that are fully driverless and operate commercially across several markets. Importantly, they can operate in a variety of conditions and environments.

“The technology has evolved and matured a lot over the last few years, especially with the latest generation of our tech,” Narang said, noting that the company’s third-generation self-driving trucks operate around the clock on surface streets and highways, and can handle light rain and snow.

Gatik wouldn’t share precise fleet numbers or name all of its customers. But its largest public partnership is with PepsiCo, in which 41 driverless box trucks shuttle Cheetos, Doritos, and other Frito-Lay products from distribution centers to stores in Dallas, Phoenix, and Northwest Arkansas.

That middle-mile niche has paid off for the Santa Clara, California-based startup. The company has locked in commercial deals worth $600 million in contracted revenue, according to Narang.

The fresh $200 million will allow Gatik to scale even faster — a goal that will require it to expand beyond its 350-person workforce. Narang said the company plans to hire engineers and operational staff as well as expand to new markets, or within existing ones.

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Kirsten Korosec is a reporter and editor who has covered the future of transportation from EVs and autonomous vehicles to urban air mobility and in-car tech for more than a decade. She is currently the transportation editor at TechCrunch and co-host of TechCrunch’s Equity podcast. She is also co-founder and co-host of the podcast, “The Autonocast.” She previously wrote for Fortune, The Verge, Bloomberg, MIT Technology Review and CBS Interactive.

You can contact or verify outreach from Kirsten by emailing [email protected] or via encrypted message at kkorosec.07 on Signal.

PepsiCo (PEP - Free Report) closed the most recent trading day at $142.27, moving -1.66% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.32%. Elsewhere, the Dow saw an upswing of 0.3%, while the tech-heavy Nasdaq appreciated by 0.66%.

The stock of food and beverage company has risen by 3.49% in the past month, lagging the Consumer Staples sector's gain of 3.6% and overreaching the S&P 500's gain of 3.34%.

Analysts and investors alike will be keeping a close eye on the performance of PepsiCo in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.31, showcasing a 0.87% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $24.92 billion, showing a 4.1% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $8.57 per share and a revenue of $98.97 billion, demonstrating changes of +5.28% and +5.37%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for PepsiCo. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. PepsiCo is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, PepsiCo is currently trading at a Forward P/E ratio of 16.87. This expresses a discount compared to the average Forward P/E of 18.56 of its industry.

It's also important to note that PEP currently trades at a PEG ratio of 3.18. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Beverages - Soft drinks industry was having an average PEG ratio of 1.68.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 103, this industry ranks in the top 42% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.