PepsiCo: Continued Share Losses Mandate A Downgrade
Summary
Downgrading PepsiCo to 'Hold', as my expectations for a 2025 growth recovery have not materialized with continued volume...
Downgrading PepsiCo to 'Hold', as my expectations for a 2025 growth recovery have not materialized with continued volume and earnings declines. Staple sector faces structural headwinds: minimal population growth, rising competition, health trends, and supply chain pressures are weighing on profitability and growth. PepsiCo is underperforming peers like Coca-Cola and Mondelez in both revenue and market share growth, with disappointing recent results and guidance.