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Public Markets Investor, Opportunistic Buying & Cost-Basis Management
PepsiCo stock looks preferable to Coca-Cola here, though neither has matched former Pepsi CEO Indra Nooyi's leadership. Pepsi CEO Ramon Laguarta has had eight years to perform and cannot blame GLP-1 drugs alone; Coke's James Quincey was unappealing from the start, while the view on his successor remains undecided. x.comÂ
Insider buying points to opportunity in PepsiCo shares despite the market's pessimism. Former PepsiAmericas CEO Robert Pohlad spent $23.7 million on the stock during its deepest drawdown since the 2008 financial crisis. x.comÂ
Director Robert Pohlad's $23.7 million open-market share purchase bolsters PepsiCo's risk/reward case. Buying this very solid company near its 200-month moving average looks like a solid setup. x.comÂ
PepsiCo's forecast for another year of just 3% growth leaves it nowhere close to cheap. It trades at 16 times 2027 earnings. x.comÂ
Coca-Cola looks like a great funding short, since nothing makes it immune to the risks that battered its staples peers. GLP-1 drugs, store brands, new entrants and supply-chain inflation should hit it too, and non-sugar drinks only slow the U.S. decline, though international has held up better. About 2% revenue growth is thin support for 25x earnings while peers sit at 2008 valuations; it could fall to 15x unless the other staples rebound dramatically. x.com x.com x.com x.com x.com x.com x.com … Show more
PepsiCo is an easy buy for a long-term dividend portfolio because its diversified brands can adapt to shifting health trends. Gatorade, soda, snacks and energy drinks are categories people will never stop consuming, and the recent Poppi purchase shows that adaptability, making PepsiCo preferable even to McDonald's. @TheRonnieVShow notes the stock sits on a 17-year trendline that has held since 2009. x.com x.comÂ
PepsiCo faces a permanent headwind from GLP-1 drugs, which it has already said are affecting its business, as are alcohol companies. A post the author replies to expects fast food and snacking to be hit hard. x.comÂ
Coca-Cola's retained earnings do little for shareholders when management does not distribute much of the growth. At 27 times earnings, a 2.3% yield with no expected large dividend hikes, special dividend or meaningful buybacks makes look-through earnings a poor basis for the price: EPS rose about $1 in five years while dividends rose only 52 cents. x.com x.com x.com x.comÂ
PepsiCo's valuation discount to Coca-Cola doesn't make sense: it trades at 17.75x earnings versus Coca-Cola's 26.70x, whatever one thinks of their sodas. x.comÂ
PepsiCo faces a death spiral as GLP-1 drugs shrink snack volumes while it raises prices. Per @wallstengine, citing Bloomberg, PepsiCo plans to lift prices on select chips, soda and dips by year-end or early 2027, months after cutting snack prices by up to 15% to revive demand. North American food revenue fell 2% last quarter on flat volumes. Less volume and higher prices together will destroy the snack companies. x.comÂ
PepsiCo offers a share-price recovery bet as international growth continues and North American demand has room to improve. It owns Pepsi, Lay's, Doritos and Gatorade; Q2 revenue rose 6.4% to $24.2 billion, international beverages organic revenue grew 9%, and management still expects 5-7% core EPS growth in 2026. The recovery still has to happen, as North American beverage volume fell 4% last quarter. x.comÂ
