Update shared on 21 Nov 2025
Since September, the picture hasn’t changed much at the top line, but a few developments are worth noting. Investor sentiment improved in October as PepsiCo signalled a more proactive stance, including the possibility of small “tuck-in” acquisitions to support growth in newer categories. However, that optimism faded in November as investors looked for clearer signs that these plans are translating into real progress.
Q3 results reinforced the same message: sales grew slightly and earnings beat expectations, but volumes were still weak, costs remained high, and full-year guidance stayed cautious. In short, PepsiCo is pointing in the right direction, but the business has yet to show the kind of improvement that would materially change the outlook.
As an investor (or someone following the stock), some key metrics to watch and to consider in future updates would be:
- Growth (and profitability) of the newer functional/health-oriented product lines.
- Trends in the legacy brand lines (snacks/sodas) – are they declining, stable, or growing?
- Margin and cost controls – supply chain improvements, productivity gains.
- Competitive dynamics (especially from The Coca‑Cola Company and other snack/health drink players) and regulatory/health-trend risk.
- Geographical exposure and portfolio mix shifts (how much growth is coming from non–US markets, which are often higher growth but higher risk).
Disclaimer
AshleighG is an employee of Simply Wall St, but has written this narrative in their capacity as an individual investor. AshleighG holds no position in NasdaqGS:PEP. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimate's are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.