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PepsiCo Inc. (PEP)

  • Thu, Mar. 26, 12:37 PM
    • Deutsche Bank thinks 3G Capital will be back in the food sector for a major acquisition faster than some other investment firms anticipate.
    • 3G put itself in a stronger position to make a major purchase by not adding debt in the Kraft deal.
    • Analyst Eric Katzman sees some food names trading with a premium as the 3G shadow hangs over the sector, while others have downside risk with M&A speculation not making as much sense.
    • Premium on: ConAgra (NYSE:CAG), General Mills (NYSE:GIS), Mondelez International (NASDAQ:MDLZ), Pinnacle Foods (NYSE:PF), PepsiCo (NYSE:PEP).
    • Premium off: Campbell Soup (NYSE:CPB), Hershey (NYSE:HSY), Hormel (NYSE:HRL), Kellogg (NYSE:K), J.M. Smucker (NYSE:SJM).
    • Previously: Investors snapping up food stocks (Mar. 25 2015)
    • Previously: Beer fallout from Kraft buyout (Mar. 25 2015)
    • Previously: Kraft-Heinz merger has a few ETFs on the move (Mar. 25 2015)
    | Thu, Mar. 26, 12:37 PM | 11 Comments
  • Wed, Mar. 25, 10:45 AM
    • Orange juice futures are 21% higher in a three-day rally tied to concerns over crops in Florida.
    • The steep rise follow a 3-month period of falling OJ prices.
    • Leading brands Tropicana (NYSE:PEP) and Minute Maid (NYSE:KO) have some pricing pressure on them already with OJ demand in decline across the U.S.
    • Retail analysts think the popularity of smoothies and the unpopularity of sit-down breakfasts with younger generations have cut into sales.
    • Orange Juice futures chart
    | Wed, Mar. 25, 10:45 AM | 10 Comments
  • Wed, Mar. 25, 8:46 AM
    • There's nothing like a major merger in the food industry to turn the spotlight back on PepsiCo's (NYSE:PEP) standalone strategy.
    • The company has been viewed as a candidate to mimic the split strategy of the original Kraft Foods which is now paying off shareholders generously.
    • The recent addition of the former Heinz CEO, and current Trian advisor, to the company's board is seen by some as buying CEO Indra Nooyi some time to set strategy (other than a business split).
    • Shares of Pepsico have trailed the return of the S&P Consumer Staples ETF over the last six months, +2.5% vs. +7.1%.
    • Previously: Food sector on watch after mega-merger announced
    • Previously: Kraft, Heinz announce merger
    • PEP +0.2% premarket.
    | Wed, Mar. 25, 8:46 AM | 11 Comments
  • Tue, Mar. 24, 11:02 AM
    • Beverage stocks break higher as some industry sales tracking is reported to be positive.
    • The C-store channel has been vibrant for the sector recently.
    • Strong gainers include Keurig Green Mountain (NASDAQ:GMCR) up 2.5% and Monster Beverage (NASDAQ:MNST) with a 2.3% increase.
    • Small player Jones Soda (OTCQB:JSDA) is up 7% and Cott (NYSE:COT) continues its stellar 2015 run with a 2.2% rally.
    • Even large soda sellers Pepsico (PEP +1.2%), Coca-Cola (KO +0.7%), and Dr. Pepper Snapple (DPS +0.7%) are ahead of broad market averages.
    | Tue, Mar. 24, 11:02 AM | 6 Comments
  • Mon, Mar. 23, 7:16 AM
    • PepsiCo (NYSE:PEP) announces the addition of Richard Fisher to its board of directors.
    • Fisher is the former head of the Federal Reserve Bank of Dallas.
    • The financial heavyweight jumps on the board on March 23.
    | Mon, Mar. 23, 7:16 AM | 2 Comments
  • Sat, Mar. 14, 10:01 AM
    • PepsiCo (NYSE:PEP) has a cool $500M planned for investment in the northeast part of Africa this year after generating improved sales in Egypt last year.
    • The region is attracting more foreign investment amid Egyptian President Abdel Fattah al-Sisi's efforts to instate political and economic stability.
    • Gulf Arab allies have pledged close to $12B of deposits and investments at the Central Bank of Egypt, according to reports.
    • Yesterday, GE announced a $200M investment in Egypt for a new facility.
    • Related ETFs; EGPT, EGYP.
    | Sat, Mar. 14, 10:01 AM | 9 Comments
  • Fri, Mar. 13, 7:40 AM
    • PepsiCo (NYSE:PEP) names Robert Pohlad to its board of directors.
    • Pohlad is the president of Dakota Holdings and is the former CEO of a PepsiCo bottler, although he may be best known as the owner of the Minnesota Twins.
    • The board at PepisCo currently has 13 members.
    | Fri, Mar. 13, 7:40 AM | Comment!
  • Tue, Mar. 10, 9:24 AM
    • Burger King Worldwide (NYSE:QSR) has followed a fast-food trend of dropping soft drinks as a listed option for kids meals, reports USA Today.
    • Though customers can still order as many soft drinks as they like, the trend to de-emphasize sodas with kids meals could have a marginal impact on sales for Coca-Cola (NYSE:KO), PepsiCo (NYSE:PEP), and Dr. Pepper Snapple (NYSE:DPS) over time.
    • McDonald's has recently increased the exposure of Minute Maid juice products. Minute Maid is owned by Coca-Cola.
    | Tue, Mar. 10, 9:24 AM | 6 Comments
  • Mon, Mar. 9, 7:37 AM
    • Wheat prices took a sharp turn lower last week as traders weighed the large amount of global supply versus a tightening of demand in the U.S.
    • Prices have recovered a bit today in front of a Department of Agriculture report, but are expected to see more downward pressure.
    • The development should bring some relief for food companies as supplying contracts are reworked.
    • Related stocks: SJM, FLO, CAG, POST, CPB, GIS, K, PEP, BUD.
    • Related ETF: WEAT.
    • Wheat daily price wheat chart.
    | Mon, Mar. 9, 7:37 AM | 5 Comments
  • Thu, Mar. 5, 11:13 AM
    • Umami Burger announces it will partner with PepsiCo (PEP) to make the company its exclusive soft drinks partner.
    • The arrangement will see the restaurant chain offer "real sugar" Pepsi products which will complement its philosophy of using ingredients made in-house in a natural fashion.
    • Though the high-end burger chain only has a small national footprint, it's a nice win for PepsiCo with Umami Burger delivering a high return on consumer buzz.
    | Thu, Mar. 5, 11:13 AM | 1 Comment
  • 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)
    | Fri, Feb. 27, 11:31 AM | 16 Comments
  • 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.
    • 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.
    | Thu, Feb. 19, 3:06 PM | 13 Comments
  • 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 coffee watch: GMCR, SBUX, JVA, SJM, KRFT, DNKN, QSR, MCD.
    • Craft soda watch: PEP, KO, MNST, COT, DPS, OTCQB:JSDA, REED, SODA,  FIZZ.
    | Sat, Feb. 14, 10:13 AM | 24 Comments
  • 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
    | Thu, Feb. 12, 7:18 AM | Comment!
  • 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, 7:20 AM | 4 Comments
  • Wed, Feb. 11, 7:05 AM
    • PepsiCo (NYSE:PEP): Q4 EPS of $1.12 beats by $0.04.
    • Revenue of $19.95B (-0.8% Y/Y) beats by $290M.
    • Shares +1.03% PM.
    • Press Release
    | Wed, Feb. 11, 7:05 AM | Comment!
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Company Description
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.