PepsiCo's US Snacks Slump Deepens as Elliott's $4B Stake Raises Turnaround Pressure
PEP is trading near its 52-week low of $124.215 (1.6% above the low).
Summary
PepsiCo's core US snacks business remains stuck in neutral despite price cuts, increased marketing, and new products. The article reveals activist investor Elliott Investment Management holds a roughly $4 billion stake, adding urgency to the turnaround. Core operating margin slipped 15 basis points to 16.3% in the first half, moving further from the company's three-year target of a 100-basis-point improvement. Shares are down about 12.4% year-to-date, trading near the 52-week low. The company is expected to report Q3 revenue of $24.96 billion, up 4.3%, with adjusted EPS of about $2.29.
At the time of this announcement, PEP was trading at $126.17 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $171.6B. The 52-week trading range was $124.22 to $171.48. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.