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.
Wed, Jan. 7, 7:12 AM
- Shares of Campbell Soup (NYSE:CPB) and PepsiCo (NYSE:PEP) are on watch after the WSJ reports 3G is discussing trying to acquire a major food company.
- Sources indicate the massive size of PepsiCo deal could prompt a partial buyout or a bid in tandem with Aneuser-Busch InBev (NYSE:BUD).
- PEP +0.8% premarket, CPB inactive.
Tue, Jan. 6, 4:16 PM
- GasBuddy.com projects gas prices will average $2.64 per gallon in 2015.
- Most economists see a boost in U.S. retail spending from the gas savings with the exception of regions highly dependent upon the energy industry.
- While some Q4 reports from restaurant chains and retailers may show a marginal lift in sales due to the drop in gas prices, insiders think quantifying the impact will be more art than science.
- The following sub-sectors have been tapped by analysts as potential under-the-radar beneficiaries of the gas price effect.
- C-stores:KR, CASY, PTRY, OTCPK:ANCUF, CST, MUSA.
- Theme parks: SIX, FUN, DIS, CMCSA, PLAY.
- Beverages: KO, PEP, COT, DPS, BUD, SAM, BREW, TAP, MNST.
Dec. 17, 2014, 12:35 PM
- Estimates on PepsiCo (PEP +0.2%) are at risk of being lowered due to currency swings in the key markets of Russia, Mexico, and Canada.
- The three regions account for over 18% of the company's total sales.
- PepsiCo's last update on guidance came with its Q3 report and during the subsequent earnings conference call.
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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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