PepsiCo, Inc. (PEP)[Tv]

Key Developments

• PepsiCo slashed its full-year core EPS guidance to 2.5%–3.5%, down from 5%–7%, despite a Q3 earnings beat, signaling a structural crisis in North American demand and a sharp reversal in investor confidence.
• The company issued a €1 billion Eurobond at a steep spread above mid-swaps, reflecting deteriorating investor trust in its domestic earnings power and raising red flags about underlying financial fragility.
• PepsiCo recorded a $12 million write-down of the Poppi earnout valuation, a dramatic collapse from an anticipated $278 million, marking a pivotal failure of its wellness strategy and exposing systemic misalignment with North American consumers.
• CEO Ramon Laguarta publicly admitted discomfort with the beverage business, a rare and alarming signal of deep-seated loss of confidence in the company’s core segment—a critical red flag for a $200B giant.
• Deutsche Bank downgraded PepsiCo to Hold from Buy, slashing its 2027 EPS forecast, joining JPMorgan in a broad institutional retreat that underscores growing skepticism over the sustainability of its turnaround.