Founded in 1898 and headquartered in Purchase, New York, PepsiCo, Inc. (PEP) is a global leader in the food and beverage industry. With a market cap of $198.3 billion, PepsiCo operates across multiple segments, offering a diverse portfolio of iconic brands, including Pepsi, Lay’s, Gatorade, and Quaker. The company delivers innovative and consumer-centric products to markets worldwide, leveraging its strong distribution network and commitment to sustainability.
Shares of this food & beverage company have underperformed the broader market over the past 52 weeks. PEP has declined 15.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 20.6%. In 2025, PEP is down 4.9% compared to SPX’s 2.5% gain on a YTD basis.
Zooming in further, PEP has underperformed the Nasdaq Food & Beverage ETF’s (FTXG) 7% decline over the past year and a 4.6% drop on a YTD basis.
PepsiCo's shares declined 4.5% on Feb. 4 after reporting mixed Q4 earnings. Revenue came in at $27.78 billion, flat year-over-year and slightly below analyst expectations of $27.91 billion. Adjusted EPS of $1.96 beat estimates marginally.
For fiscal 2025, the company forecasts low-single-digit organic revenue growth and mid-single-digit constant-FX EPS growth. Operating margin improved to 8.1% from 6% a year ago, while the free cash flow margin increased to 13.7% from 10.4%. Organic revenue rose 2.1% year-over-year, but sales volumes declined 1%, a notable improvement from the 4% decline in the same period last year.
For the current fiscal year, ending in December, analysts expect PEP’s EPS to grow 2.2% year over year to $8.34. The company’s earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
Among the 20 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, nine “Holds,” and one “Strong Sell.”
The configuration is more bullish than three months ago, with eight analysts suggesting a “Strong Buy.”
On Feb. 6, Barclays (BCS) lowered PepsiCo’s price target from $158 to $153 while maintaining an “Overweight” rating. Despite 2025 guidance meeting expectations, analysts remain skeptical about PepsiCo’s strategy to stabilize Frito-Lay North America and the broader salty snacks segment.
The mean price target of $167.58 represents a premium of 15.9% to PEP’s current levels. The Street-high price target of $189 implies a potential upside of 30.7% from the current price level.
