PepsiCo, Inc. (PEP)

Over the last 12 months, PepsiCo's stock price has decreased, though it saw an increase in the past month as of October 2025. Activist investor Elliott Investment Management revealed a stake in PepsiCo and began pushing for changes. PepsiCo is investing in artificial intelligence to enhance supply-chain efficiency and customer engagement. PepsiCo's shares fell in February 2025 after the company forecast annual profit below expectations and missed quarterly revenue estimates due to weakening demand in the United States, and the company plans to use promotions and introduce new products to stimulate demand. PepsiCo reported mixed third-quarter results, missing revenue estimates but narrowly beating earnings estimates, and revised its 2024 full-year sales outlook due to lagging North American and international sales. The company completed the acquisition of Siete Foods in January 2025 and announced the acquisition of prebiotic soda brand Poppi in March 2025.

PepsiCo utilizes predictive analytics to forecast demand for its products, incorporating "seasonality features" into its algorithms to analyze historical purchasing patterns. Demand for its diverse portfolio of beverages and snacks is influenced by seasonal variations, which are factored into its operational and merchandising decisions. PepsiCo uses a cloud-based data and analytics platform called Pep Worx to make informed decisions regarding product merchandising and to identify consumers interested in specific brands.

PepsiCo, Inc. is a leading American multinational food and beverage corporation with a diversified range of iconic brands globally. The company operates in the consumer defensive sector, focusing on the manufacturing, distribution, and marketing of its products. Formed in 1965 through the merger of Pepsi-Cola Company and Frito-Lay, Inc., PepsiCo has expanded its portfolio through strategic acquisitions and boasts over 20 brands that generate more than $1 billion in annual retail sales. Major products and brands include Pepsi-Cola, Diet Pepsi, Mountain Dew, Gatorade, Lay's, Doritos, Cheetos, Quaker Oats, Life cereal, Rice-A-Roni, Tropicana, and SodaStream. Recent acquisitions include Siete Foods (January 2025) and Poppi (March 2025).

PepsiCo has a vast global presence, operating in over 200 countries and territories with manufacturing facilities, distribution centers, sales and marketing offices, and R&D centers. The company segments its operations into PepsiCo Beverages North America, Frito-Lay North America, Quaker Foods North America, Latin America, Europe, Africa, Middle East and South Asia (AMESA), and Asia Pacific, Australia, New Zealand and China (APAC). Key regions of operation include the United States, Mexico, Russia, Canada, China, and the United Kingdom.

PepsiCo focuses on sustainability and purpose-driven initiatives through its "PepsiCo Positive (pep+)" agenda and "Performance with Purpose" approach. Lay's unveiled its largest packaging redesign in nearly a century, aligning with the federal "Make America Healthy Again" (MAHA) initiative and introducing healthier options. PepsiCo is re-evaluating its wider snacking portfolio, with plans to potentially relaunch "better-for-you" crisp ranges and discontinuing products to focus on more popular snacks. Following price increases, PepsiCo addressed consumer concerns about "shrinkflation" by discussing strategies to offer more value. A class-action lawsuit concerning Gatorade protein bars was dismissed. The company faced weakening demand for its sodas and snacks in the U.S., leading to increased promotions and plans to overhaul existing products and introduce new flavors to stimulate demand. PepsiCo India won a legal battle over the "Aquafina" trademark.

Institutional investors hold a significant portion of PepsiCo's stock, owning 73.07% of the company. Numerous institutional investors have recently adjusted their positions in PEP. Some firms increased their stakes, while others trimmed their holdings. Sterling Investment Management opened a new position in PepsiCo during Q3 2025, and Mizuho Markets Americas LLC significantly raised its position in Q2.