PepsiCo Inc.

Overview Key strengths Key risks Diverse portfolio of attractive brands. Potentially shifting consumer behavior. No. 1 snack food and No. 2 beverage company globally. Weak developed market growth prospects for carbonated soft drinks. Above-industry sales growth. Substantial scale. Solid and consistent free operating cash flow (FOCF). Net revenue for the 36 weeks ended Sept. 7, 2024, grew 1% year over year but declined 1% after a negative foreign currency impact. The growth was below expectations and below the company?s long-term target of 4%-6%. The underperformance continued to be negatively affected by mid-teen percent declines in Quaker Foods North America (QFNA) business following last year's recall of various Quaker Oats branded products. Moreover, the company had flat growth in its Core

...Sales growth has slowed reflecting a cautious consumer and underperformance in certain international markets. Net revenue for the 36 weeks ended Sept. 7, 2024, grew 1% year over year but declined 1% after a negative foreign currency impact. The growth was below expectations and below the company's long-term target of 4%-6%. The underperformance continued to be negatively affected by mid-teen percent declines in Quaker Foods North America (QFNA) business following last year's recall of various Quaker Oats branded products. Moreover, the company had flat growth in its Core U.S. snacking business (Frito Lay North America), and at Pepsi Bottling North America (PBNA) reflecting soft U.S. demand as consumers remain more value focused with less discretionary income. Performance outside North America...

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