Research Update: PepsiCo Inc. Management And Governance Assessment Revised To Positive; 'A+' Rating Affirmed; Outlook Stable

We expect Purchase, New York-based PepsiCo Inc. will continue to generate strong operating performance due to its attractive portfolio and operating scale, despite expected slowing consumer demand. We revised our management and governance (M&G) assessment on the company to positive from neutral due to its proven resilience over the last several years managing risks associated with a difficult supply chain, foreign exchange, and high inflation environment. We affirmed all of our ratings on the global beverage and snack company, including our 'A+' long-term and 'A-1' short-term issuer credit ratings. The stable outlook reflects our expectation that PepsiCo will continue to add innovative products to its portfolio, improve volume performance in 2024 while using targeted pricing to protect profitability, and generate

...- We expect Purchase, New York-based PepsiCo Inc. will continue to generate strong operating performance due to its attractive portfolio and operating scale, despite expected slowing consumer demand. - We revised our management and governance (M&G) assessment on the company to positive from neutral due to its proven resilience over the last several years managing risks associated with a difficult supply chain, foreign exchange, and high inflation environment. - We affirmed all of our ratings on the global beverage and snack company, including our 'A+' long-term and 'A-1' short-term issuer credit ratings. - The stable outlook reflects our expectation that PepsiCo will continue to add innovative products to its portfolio, improve volume performance in 2024 while using targeted pricing to protect profitability, and generate healthy free operating cash flow (FOCF) to pay its sizable dividend and fund share repurchase activity. We also expect the company to sustain S&P Global Ratings-adjusted...

Research Update