PEP | Weekly | Haru Insights

PepsiCo’s strategic pivot toward international markets—particularly LatAm Foods and EMEA—has solidified into a core growth engine, now driving the majority of its volumes and profits, supported by a $106.6B revenue target by 2026 and $12.4B in earnings by 2029.
The company’s $600 million multi-year partnership with Gatik to deploy fully driverless trucks for last-mile delivery of Frito-Lay products marks a transformative shift in supply chain operations, signaling a bold bet on automation to reduce logistics costs and future-proof its distribution model.

PepsiCo’s international expansion is delivering tangible, double-digit growth and is now the dominant force behind its revenue and profit engine, validating its long-term global strategy and proving resilience amid North American stagnation.
The Gatik autonomous delivery partnership is a high-impact, scalable innovation that could redefine supply chain efficiency, unlock margin expansion, and establish PepsiCo as a tech-forward industrial leader in consumer goods.
Activist pressure from Elliott Investment Management has driven concrete action—price cuts, product simplification, and network streamlining—that are already yielding a 2.4% YoY revenue gain and 1% volume growth, proving that structural change can deliver results.
PepsiCo’s 4.05% dividend yield, 54-year streak of increases, and undervalued 16.35x–18x P/E ratio make it a rare value play in a high-rate environment, offering unmatched stability and income resilience.
Strong macro tailwinds from falling oil prices could boost consumer spending at convenience stores—key distribution channels—potentially accelerating volume recovery in North America.

PepsiCo, Inc. (PEP)[Tv]