Fri, Feb. 27, 11:31 AM
- Factset has compiled a list of the most popular holdings of hedge funds at the end of Q4 and which stocks fell in or out of favor within the group.
- Overall, hedge funds increased their positions in the top 50 holdings during the quarter by 1%.
- Top 50 hedge fund consumer staples/discretionary stocks showing an increase: Family Dollar (NYSE:FDO) +1.3%, PepsiCo (NYSE:PEP) +20.3%, Priceline Group (NASDAQ:PCLN) +24.2%, Delta Air Lines (NYSE:DAL) +15.3%.
- Top 50 hedge fund consumer staples/discretionary stocks showing a decrease: Mastercard (NYSE:MA) -4.2%, Walgreen Boots Alliance (NASDAQ:WBA) -1.3%, Dollar General (NYSE:DG) -11.6%, Mondelez International (NASDAQ:MDLZ) -0.9%.
- Another way to look at the list is to examine which stocks are missing. Coca-Cola (NYSE:KO), Wal-Mart (NYSE:WMT), and Procter & Gamble (NYSE:PG) are in that club.
- Factset's hedge fund ownership report (.pdf)
Thu, Feb. 19, 3:06 PM
- New recommendations from the USDA's Dietary Guidelines Advisory Committee call for reduced consumption of sugar in the U.S. in order to help alleviate obesity.
- A tax on foods with high sugar content has been part of the discussion.
- Analysis from the group on sugar supplement aspartame was mixed.
- The consumption of sodas by children is of particular concern to the group which also issued broader guidelines on dietary health.
- Food lobbyists are expected to challenge some of the proposals.
- USDA press release
- Related stocks: KRFT, MDLZ, PEP, KO, HSY, RMCF, MNST, TR.
Sat, Feb. 14, 10:13 AM
- Craft soda is starting to become a trend to watch closely, according to industry insiders.
- Though still accounting for only ~1% of the total U.S. soda market, major retail chains have increasingly been willing to bet on local craft brands in store aisles.
- The craft craze is old news for the beer industry where coming-of-age millennials buy craft/local beers at a 50% higher rate than brand-loyal older generations. Fading stars such as Budweiser and Bud Light are testament to the impact of the millennial paradigm.
- The craft influence in coffee hasn't been lost on Starbucks which has strategically deployed trucks on college campuses in an effort to win over students.
- Despite the progressive reputation of Starbucks, analysts think new upstarts such as Craft (subscription) and Cups (app) have a shot of gaining influence with the Indie-minded millennial crowd on "customization" and pricing.
- What to watch: An increase in M&A activity in the beverage sector is expected as major companies strategically pick off more local craft brands to incubate.
- Craft beer watch: BUD, OTCPK:SBMRY, TAP, OTCQX:HEINY, SAM, BREW, STZ, OTC:BIBLF, OTCPK:BRBMF.
- Craft coffee watch: GMCR, SBUX, JVA, SJM, KRFT, DNKN, QSR, MCD.
- Craft soda watch: PEP, KO, MNST, COT, DPS, OTCQB:JSDA, REED, SODA, FIZZ.
Thu, Feb. 12, 7:18 AM
- PepsiCo's (NYSE:PEP) Q4 performance may have been strong enough to prompt investment firms to lift their price targets.
- The consensus PT is $101.15 and Evercore ISI has the Street high at $115.
- PepsiCo pullouts from yesterday below.
- Capital allocation: The company expects to return to shareholders $8.5B to $9B through dividends and buybacks.
- Innovation: As a percentage of total revenue, the contribution from innovation has climbed 150 bps over the last two years to 9%.
- Consumer confidence: "It takes a number of months before the consumer fully spends back the so called benefit from lower gas prices," said a top exec.
- Shares of PepsiCo trade within a dollar of their all-time highs.
- Previously: PepsiCo beats by $0.04, beats on revenue (Feb. 11 2015)
- Previously: PepsiCo leans on Frito-Lay for profit beat (Feb. 11 2015)
- Earnings call transcript
Wed, Feb. 11, 7:20 AM
- PepsiCo (NYSE:PEP) reports organic revenue rose 5% in Q4.
- Organic volume rose 2% for the snacks business and 1% for beverages (same as Coca-Cola).
- Developing and emerging market organic revenue +10%.
- Foreign exchange translation clipped revenue by six percentage points.
- Revenue growth by segment: Frito-Lay North America +3% to $4.37B; Quaker Foods North America -2% to $784M; Latin America Foods -0.5% to $2.80B; PepsiCo Americas +1% to $6.06B; Europe -10% to $3.91B; AMEA +4% to $2.02B.
- Operating profit +5.5% to $1.23B at Frito-Lay North America with no F/X overhang.
- Total core operating margin +15 bps.
- Guidance: 7% EPS growth expected for 2015. F/X is forecast to cut 7 percentage points from growth during the year. Organic growth seen growing at a mid-single digit rate.
- PEP +1.03% premarket
Wed, Feb. 11, 7:05 AM
Tue, Feb. 10, 5:30 PM
Thu, Feb. 5, 5:47 PM
Fri, Jan. 30, 3:26 PM
- Products from PepsiCo (PEP -2.1%) will be on full display this Super Bowl Sunday - before, during, and after the mammoth TV event.
- The company plans to run 11 Mountain Dew Kickstart spots during the extended SB pre-game show.
- Doritos and Gatorade will have their usual high-visibility presence, while Tostitos gets its introduction to the spectacle.
- A lead-in commercial just before the Pepsi-sponsored halftime show has a chance to be one of the most watch commercials of the game.
- In an appeal to millennials, the company is running a student cooking competition using PepsiCo products and unloading massive marketing efforts around the crowdsourced Crash the Super Bowl competition.
- One group that doesn't mind the significant efforts of PepsiCo to generate Super Bowl buzz is C-stores (KR, CASY, PTRY, OTCPK:ANCUF, CST, MUSA).
- Traffic to C-stores this weekend is forecast to be up over 8% Y/Y.
- Mountain Dew Kickstart Ad
- PepsiCo Super Bowl teaser ad
Wed, Jan. 28, 1:14 PM
- Popcorn isn't so boring, according to a report from Rabobank.
- The ready-to-eat popcorn category has seen growth rates of 25% as more millennials latch onto favored brands for snacking.
- Strong innovation from smaller players has boosted sales at the expense of some microwave popcorn brands from larger companies.
- P-E firms have taken notice of the potential and are active in the sector:
- Popcorn sellers with an eye on the trend include ConAgra (NYSE:CAG), Target (NYSE:TGT) through a private label brand, 1-800-Flowers.com (NASDAQ:FLWS), Snyder's-Lance (NASDAQ:LNCE), Diamond Foods (NASDAQ:DMND), PepsiCo (NYSE:PEP), and even Berkshire Hathaway.
Mon, Jan. 26, 1:22 PM
- PepsiCo (PEP +0.3%) will sell Pepsi True through retailers in Denver, Minneapolis, and Washington, D.C. in an expanded launch of the mid-calorie drink, according to Beverage Digest.
- The soda product, which will compete against Coca-Cola Life, is sweetened through a combination of stevia and real sugar.
- The brand launched on Amazon originally.
Fri, Jan. 16, 5:13 PM
- Former Heinz chairman/CEO William R. Johnson is joining PepsiCo's (NYSE:PEP) board, effective March 23. Johnson serves as an advisory partner for vocal PepsiCo activist investor Trian Fund.
- Trian's Nelson Peltz, who has been urging PepsiCo to spin off its snack ops from its beverage ops for some time (to no avail): "We support Indra's commitment to operational excellence, which has resulted in improved performance of the company. We are confident that Bill will be a strong and complementary addition to the PepsiCo Board."
- PepsiCo is lower AH in response to the apparent truce.
Tue, Jan. 13, 1:04 PM
- Barclays sees dividend payouts on the S&P 500 increasing 7% this year to reach a yield of close to 2%.
- The investment firm recommends buying shares of companies in the index poised for top-line growth and dividend payout boosts.
- At least 6 consumer products/services companies make the Barclays list of attractive dividend stocks.
- Hershey (NYSE:HSY): 2.01% yield
- Yum Brands (NYSE:YUM): 2.24% yield
- PepsiCo (NYSE:PEP): 2.70% yield
- Lorillard (NYSE:LO): 3.80% yield
- Wyndham Worldwide (NYSE:WYN): 1.63% yield
- Macy's (NYSE:M): 1.89% yield
Fri, Jan. 9, 6:41 PM
- The Peltz proxy fight for DuPont (NYSE:DD) - the third largest proxy fight ever - could be an uphill battle, given how well DuPont stock has performed; during Ellen Kullman’s time as CEO starting in 2009, shares are up 190% vs. 126% for the S&P 500.
- Trian argues it's not enough and does not fix what the activist fund says are DuPont’s more fundamental problems of corporate overhead that burdens the company’s business lines, which would be more competitive if they were split - a strategy Peltz has successfully pushed at other targets including Ingersoll Rand, Cadbury Schweppes and Kraft.
- Critics say the move sends an ominous signal to companies already working to improve operations and set shareholder-friendly courses; they say if activists start targeting strong stocks, it could delay or imperil otherwise sound strategies to improve profits or trim weaker operations.
- But picking a fight might be as much about Peltz as it is about DuPont, sending a signal to his other investments, such as Pepsi (NYSE:PEP), that his patience has limits.
- DuPont says it will review Trian’s board nominees but warns that a proxy battle has “the potential to disrupt our company at a key stage of execution against our plan."
Fri, Jan. 9, 6:34 AM
Wed, Jan. 7, 10:59 AM
- Most investment firms weighing in think PepsiCo (PEP +2.3%) is too big of a target for 3G to land as they dissect the WSJ report on interest in the multinational.
- Campbell Soup (CPB +4.3%) is trading like it's viable 3G target, while Kellogg K, and Kraft Food Group (KRFT +2.1%) have also been bandied around by retail analysts as possibilities.
- Outside of the food sector, Bloomberg's Tara Lachappelle notes Colgate-Palmolive (CL +0.2%) makes sense for 3G.
PEP vs. ETF Alternatives
PepsiCo Inc is a food, snack and beverage company. It manufactures, markets, distributes and sells convenient and enjoyable beverages, foods and snacks, serving customers and consumers in more than 200 countries and territories.
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