PepsiCo shares are trading near a 52-week low despite higher revenue and earnings, as investors weigh strong international growth against a sluggish North American business. International beverage volume rose 5% last quarter with revenue up 11%, while Asia Pacific snack revenue jumped 15% and Latin America rose 12%, helping the company post its fastest volume sales growth since 2022. However, North American food sales fell 2% and beverage volume dropped 4%, with management citing higher gas prices reducing convenience store traffic. The stock trades at about 16 times forward earnings, a discount to its five-year median near 22, and offers a 4.3% dividend yield backed by 54 consecutive years of increases, though the payout ratio has climbed to 68.75%. Activist investor Elliott Investment Management is pushing for faster growth and cost cuts as PepsiCo restages core brands including Lay's, Tostitos, Gatorade, and Quaker.
PepsiCo IncNorth American food sales fell 2% and beverage volume dropped 4% due to higher gas prices reducing convenience store traffic.
The Coca-Cola CompanyElliott is pushing for faster growth and cost cuts at PepsiCo, but the impact on Elliott itself is not detailed.
