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PepsiCo Faces A $4 Billion Shake-Up: Is Elliott About To Break The Bottles?

PepsiCo’s third-quarter 2025 earnings call highlighted several key aspects of the company’s performance and strategic direction. The company reported growth in beverages after adjusting for changes in its case pack water business, but noted some challenges within the food segment due to a new promotional strategy. This shift from brand-specific discounts to an everyday low-value approach impacted volumes but improved revenue realization. Looking forward, PepsiCo is optimistic about its growth, driven by innovations and improved service levels, but there are uncertainties regarding when exactly volume improvements will materialize. Investment in innovation is central to PepsiCo’s strategy for reinvigorating top-line growth, particularly in 2026. The focus is on permissible snacks, zero sugar products, and expanding functional hydration offerings. PepsiCo plans to relaunch major brands like Lay’s and Gatorade and explore growth in away-from-home channels where it has seen higher growth rates compared to retail.