Core Insights - PepsiCo is acquiring Siete Foods for $1.2 billion, marking its first food acquisition in approximately five years [1] - The acquisition aligns with PepsiCo's strategy to diversify its portfolio towards healthier food options [1][4] - Siete Foods, founded in 2014, offers a range of grain-free products catering to various dietary needs, and its products are available at major retailers [2] Company Strategy - The acquisition is part of a broader trend among packaged food companies seeking growth through acquisitions as consumer purchasing patterns shift [4] - PepsiCo aims to enhance its multicultural portfolio with Siete's products, which are designed to appeal to a diverse consumer base [3] Market Context - The deal is expected to close in the first half of 2025, pending regulatory approval [3] - Other recent significant acquisitions in the industry include Mars' planned acquisition of Kellanova for nearly $36 billion and Campbell Soup's acquisition of Sovos Brands for $2.7 billion [4]

Core Viewpoint - PepsiCo has announced a definitive agreement to acquire Garza Food Ventures LLC, known as Siete Foods, for $1.2 billion, enhancing its portfolio with an authentic Mexican-American brand and expanding its better-for-you food offerings [1][2]. Company Overview - PepsiCo's acquisition of Siete Foods will complement its existing portfolio by adding a brand that focuses on heritage-inspired Mexican-American foods, which are increasingly popular among consumers [2]. - Founded in 2014, Siete Foods specializes in a variety of products including tortillas, salsas, seasonings, sauces, cookies, and snacks, primarily available in the U.S. [2][7]. - Siete Foods aims to inspire inclusivity around the dining table by offering delicious foods that cater to various dietary needs and preferences [7]. Strategic Intent - The acquisition aligns with PepsiCo's vision to expand its multicultural portfolio and reach more consumers with Siete's products, which are rooted in authenticity and cultural heritage [3]. - PepsiCo's CEO expressed excitement about carrying on the legacy of the Garza family and believes in the spirit of the Siete brand [3]. Financial and Transaction Details - The transaction is subject to customary closing conditions, including regulatory approval, and is expected to close in the first half of 2025 [3]. - Financial advisory roles were filled by Centerview Partners LLC and Citi for PepsiCo, while Lazard advised Siete Foods [4]. Market Position - PepsiCo generated over $91 billion in net revenue in 2023, driven by a diverse portfolio that includes iconic brands such as Lay's, Doritos, and Gatorade [5]. - The acquisition of Siete Foods is expected to enhance PepsiCo's offerings in the better-for-you food segment, which is increasingly important to consumers [2].

PepsiCo Inc. (PEP) stock is trading at a discount compared with the Zacks Beverages – Soft Drinks industry. With a forward 12-month Price/Earnings ratio of 19.8X, it sits below the industry average of 21.5X and the Consumer Staples sector's 18.4X. The stock also trades below the S&P 500's multiple of 21.9X. The soft drink behemoth has a market capitalization of $233.5 billion. The average volume of shares traded in the last three months was 5.4 million. Image Source: Zacks Investment Research The stock is a ...

These two leaders in consumer staples have taken different approaches to their thriving businesses. There aren't many places you can visit globally and not run into products from Coca-Cola (KO 0.55%) or PepsiCo (PEP 0.18%). They both have a stronghold on nonalcoholic beverages, and PepsiCo has built a solid portfolio of snack brands. It's one of the more iconic rivalries in any industry. Over the years, both Coca-Cola and PepsiCo have rewarded their investors. However, if you were to choose one in a bull ma ...

PepsiCo Foundation Awards Nearly 6,000 Scholarships PURCHASE, N.Y., Sept. 24, 2024 /PRNewswire/ -- The PepsiCo Foundation is helping to create future employees and entrepreneurs in the U.S through scholarship and workforce development programs, providing students with financial support, networking opportunities, and career guidance. As part of its ongoing mission to drive positive change in our communities, in the last five years the PepsiCo Foundation is proud to have awarded nearly 6,000 scholarships in t ...

PepsiCo is an iconic consumer staples company that doesn't go on sale very often. It is on sale right now. If you have ever looked at PepsiCo (PEP -1.99%) and wished the stock price was lower, then you need to examine it again right now. While shares are only about 10% below their high water mark, other metrics suggest that this iconic consumer staples maker is attractively priced today. A good price for a great company is an awesome reason to buy PepsiCo stock like there's no tomorrow. Here is a slew of re ...

PepsiCo has badly lagged the S&P 500 over the last year. Does this represent a buying opportunity? When a stock doesn't perform well, it's natural to ask whether you should buy, hold, or sell the shares. After all, it could present an opportunity, or the market might sense there are continuing challenges with the company. PepsiCo's (PEP -1.99%) shareholders face such a decision. The share price has badly underperformed the market, falling 1.5% over the past year even as the S&P 500 gained 26.6% during this ...

PepsiCo (PEP) closed the latest trading day at $174.66, indicating a -0.31% change from the previous session's end. This change lagged the S&P 500's 1.7% gain on the day. Meanwhile, the Dow experienced a rise of 1.26%, and the technology-dominated Nasdaq saw an increase of 2.51%. Prior to today's trading, shares of the food and beverage company had 0% over the past month. This has lagged the Consumer Staples sector's gain of 2.99% and the S&P 500's gain of 1.27% in that time. Market participants will be clo ...

When you're an income investor, one of the key attractive features is dividend stability. It's nice to have a company that has an iconic product, and steady income that will allow them to maintain a dividend payout at or above I'm Jason Ditz and I have 20 years of experience in foreign policy research. My work has appeared in Forbes, Toronto Star, Minneapolis Star-Tribune, Providence Journal, Washington Times and the Detroit Free Press, as well as American Conservative Magazine and the Quincy Institute for ...

Join iREIT on Alpha today to get the most in-depth research that includes REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, and other income alternatives. 438 testimonials and most are 5 stars. Nothing to lose with our FREE 2-week trial . After being significantly undervalued last year, the Consumer Staples Select Sector SPDR ETF ( XLP ) has returned roughly 17% year-to-date. This has pushed its forward P/E ratio to roughly 21.5x, the highest multiple since Analyst's Disclosure: I/we have a beneficial long posit ...