PepsiCo had a mediocre Q1 2021 but the management provided a highly aggressive growth outlook for the year. The company’s organic revenue growth of 2% was below the 6% number reported in Q1 last year but the fact that PepsiCo was able to log a positive growth despite the fading of the Covid-19 tailwinds was a big positive for the shareholders. The company’s snack brands such as Doritos and Frito Lay are performing well and so are its beverage brands such as Mountain Dew and Bubly, which have contributed to this growth. While the company’s Quaker business is expected to be hit during 2021 on account of reduced at-home consumption, the company should witness an improvement in beverage consumption on account of the recovery in foodservice. To sum up, we give PepsiCo a ‘Hold’ rating after the recent price rise and we revise our price target.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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