PepsiCo Inc Corporate Business Update Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Bonnie Herzog - Goldman Sachs & Co. LLC - Analyst : I had a question on your '26 guidance. I guess I was hoping for some more color on your growth expectations and drivers next year. For instance, how should we think about the balance between volume and price mix next year? And then you laid out a lot of initiatives last night with, I guess, many of them already being implemented or discussed. So hoping to hear from you where you expect to see the greatest lift? Will it be from the robust innovation pipeline? Is it the greater focus on price pack architecture, et cetera?

Question: Lauren Lieberman - Barclays Services Corp - Analyst : So just following up on that, I'll be honest, it still feels a little bit early, if you will, to be ready to kind of draw a line in the sand on acceleration and stabilization and then acceleration on the North America Foods business. Yes, we've seen some stabilization in Nielsen. But to be honest, it's like hard to tell what's because of comparisons versus what's actually happening in the marketplace. And then all the innovation you've got, which seems really exciting, the ultimate proof is going to be consumer takeaway. So just wanted to revisit, I know you mentioned once or twice the decision to go -- to share this now is about internal accountability. But I just want to push on that a little bit. Like why is it not too early first week of December to kind of draw a line in the sand on guidance that you usually would be offering not until February?

Question: Peter K. Grom - UBS Investment Bank - Analyst : Steve, I wanted to ask you a question. And I guess, I know you've only been here for a few weeks, but would love some just initial perspectives on just the opportunity as you see it today. And maybe it's a little bit too soon from a broader business standpoint. But just maybe as we think about cash flow, capital allocation, any initial views on what we should expect as you step into this role? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 12:30PM, PEP.OQ - PepsiCo Inc Corporate Business Update

Question: Dara Mohsenian - Morgan Stanley - Analyst : So Steve, maybe I'll build on that question just beyond capital allocation. Any initial impressions on area of opportunity at Pepsi now that you've joined the organization? I realize we're not even a month into your tenure, so it's early. But just any insights from a revenue or cost perspective coming as an outsider from a key customer that have come up so far? And Ramon, any additional insights as you've gotten to work with Steve? And what are the biggest focus points you ask Steve with at this point?

Question: Filippo Falorni - Citibank Cameroon SA (Douala Branch) - Analyst : I wanted to go back to some of your comments on the Pepsi Food North America business, especially on the sharper everyday value and the innovation. Maybe on the value point, is your strategy a combination of increased promo and lower list price? And what gives you the confidence that the volume actually responds to that because the prior promos that you tried last summer didn't get as much as a volume uplift? And then on the innovation, maybe what is the confidence in the recent innovation that you launched? Do you have any early positive results from conversation with your customers, especially with the Naked line recently launched? And what expectation you have for the contribution from innovation?

Question: Michael Lavery - Piper Sandler - Analyst : I just want to unpack the volume piece of that maybe just a little bit further where you talked about some of the distribution gains you've gotten with these new customer plans. Can you give us a sense maybe of how much that's permanent sort of primary just facing versus maybe secondary displays? And then when you talk about the accelerated innovation in the release, we obviously know a lot of what is in the works near term that you've mentioned before. But how should we think about accelerated innovation and what that might mean for what comes next?

Question: Andrea Teixeira - JPMorgan Chase & Co - Analyst : And just to think about international as you think of these reinvestments in AEM as well as in global. So for international first are you also embedding some sort of -- you commented in the release, expect to continue momentum. But I was hoping to see if you can talk about some of the Western European deceleration, how we should be thinking of that and to offset and how the tactics that you're using and the strategy using in the US can lift and shift too?

Question: Andrea Teixeira - JPMorgan Chase & Co - Analyst : You said?

Question: Andrea Teixeira - JPMorgan Chase & Co - Analyst : Yes. On the AEM, Ramon, just to think about how much the investment you said that you're going to reinvest, how we should be thinking? Because to be fair, you have been investing double digits over the years. So how to think about the level of investment that you're embedding in your guide?

Question: Steve Powers - Deutsche Bank Securities, Inc. - Analyst : Ramon, maybe picking up on those prior comments, but at the enterprise level, one could argue that there's a pretty aggressive agenda and set of assumptions in this preliminary '26 outlook just in terms of both driving the -- waited for acceleration in top line and 7% to 9% underlying EPS growth adjusting for the tax implications. So just maybe can you give us a better sense of how much incremental demand-building investment really exists in these plans netted against the record productivity and your confidence that it's enough. I guess the question I've been thinking about overnight and I've been getting this morning is just your confidence that's enough. And I guess maybe alternatively, why not reinvest more initially in the top line acceleration to ensure success, and then let the profit flow through thereafter? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 12:30PM, PEP.OQ - PepsiCo Inc Corporate Business Update