Core Insights - PepsiCo is a Dividend King with a 52-year streak of annual dividend increases, indicating a strong business model [2] - Kraft Heinz offers a higher dividend yield of 5.4%, but its dividend has been stagnant at $0.40 per share since 2019, raising concerns for income investors [3][7] - PepsiCo is currently facing a business slowdown and broader industry challenges, yet it reported a 2% increase in organic sales and a 9% rise in core earnings per share for 2024 [4][5] Company Performance - PepsiCo's outlook for 2025 is subdued, with management guiding for similar organic sales growth and earnings rates, reflecting a return to slow and steady growth [6] - Kraft Heinz's organic sales among its key brands fell by 4.5% in Q3 2024 and another 5.2% in Q4 2024, indicating ongoing challenges [9] - PepsiCo appears to be managing its short-term issues effectively, while Kraft Heinz is still in a turnaround phase, which may prolong its stagnant dividend situation [10][11] Investment Considerations - Long-term dividend investors may find PepsiCo's consistent dividend growth more appealing compared to Kraft Heinz's stagnant dividend and ongoing turnaround efforts [11] - The current high yield of PepsiCo, despite its lower yield compared to Kraft Heinz, may attract income-focused investors looking for stability [3][6]

Core Viewpoint - The performance disparity between Coca-Cola (KO) and PepsiCo (PEP) has become evident, with KO outperforming PEP over the last year, raising questions about which stock is the better buy currently [2][4][17]. Company Performance - PepsiCo reported mixed results in its latest quarterly release, exceeding EPS estimates but falling short on sales expectations, with FY24 organic sales increasing by 2% year-over-year compared to 9.5% in 2023, and adjusted EPS of $8.16 rising by 9% [5][12]. - North America results for PepsiCo were soft, with Frito-Lay sales declining by 0.5% year-over-year, a significant slowdown from the previous year's 9% growth [6][18]. - The decline in Frito-Lay sales is attributed to a shift in consumer preferences towards dining out, with Quaker Foods North America experiencing a 14% decline in organic sales due to an oatmeal recall [7][18]. - Despite the challenges in North America, PepsiCo's international results were strong, with organic sales climbing by 6% in FY24 [9]. - Analysts have adopted a bearish outlook on PepsiCo following its results, resulting in a Zacks Rank 4 (Sell) due to concerns over North America's performance [11]. - Coca-Cola exceeded both EPS and sales expectations, reporting growth rates of 12% and 6% respectively, and gained market share in the nonalcoholic ready-to-drink beverage sector in North America [12][13]. - Coca-Cola's overall price/mix increased by 11% in FY24, with unit case volume growing by 1% year-over-year, benefiting from its lower exposure to the snacks market compared to PepsiCo [13][14]. - Coca-Cola also performed well internationally, gaining market share in regions such as Latin America, Europe, the Middle East, and Africa [14]. Valuation - Coca-Cola shares currently trade at a forward 12-month earnings multiple of 21.8X, representing a 27% premium over PepsiCo's 17.2X, marking the steepest premium in the past five years [15]. - EPS for PepsiCo is expected to increase by 2% in FY25, while Coca-Cola is forecasted to see a 6% increase [15]. Summary - The recent financial results of both companies highlight a stark contrast, with Coca-Cola showing positive growth and market share gains, while PepsiCo faces challenges in its North American segment and a bearish outlook from analysts [17][18].

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The service offers a free two-week trial for potential investors to explore exclusive income-focused portfolios [1] Group 2 - The market is characterized as one where stocks are available at various price points, suggesting opportunities for patient investors [2] - The focus is on defensive stocks with a medium- to long-term investment horizon [2]

Core Insights - The performance of PepsiCo's international operations is crucial for assessing its financial resilience and growth prospects, especially in the context of a global economy [1][2] International Revenue Performance - For the quarter ended December 2024, PepsiCo's total revenue was $27.78 billion, a slight decline of 0.2% year over year [4] - Europe generated $4.48 billion, representing 16.11% of total revenue, exceeding the consensus estimate of $4.41 billion by 1.59% [5] - Africa, Middle East, and South Asia contributed $2.03 billion, or 7.32% of total revenue, surpassing expectations by 2.37% [6] - Latin America accounted for $3.69 billion, or 13.28% of total revenue, falling short of the expected $3.76 billion by 1.84% [7] - Asia Pacific, Australia, and New Zealand and China Region generated $1.48 billion, constituting 5.34% of total revenue, slightly below the forecast of $1.49 billion by 0.62% [8] Future Revenue Forecasts - Analysts project total revenue of $18.15 billion for the current fiscal quarter, indicating a decline of 0.6% from the previous year [9] - For the full year, total revenue is expected to reach $93.01 billion, reflecting a 1.3% increase compared to last year [10] - Projected contributions from various regions include Europe at 15.1% ($14.02 billion), Africa, Middle East, and South Asia at 6.8% ($6.33 billion), Latin America at 12.6% ($11.68 billion), and Asia Pacific at 5.4% ($4.99 billion) [10] Conclusion - PepsiCo's reliance on international markets presents both opportunities and challenges, making it essential to monitor international revenue trends for future projections [11]

PURCHASE, N.Y., Feb. 10, 2025 /PRNewswire/ -- PepsiCo, Inc. (NASDAQ: PEP) today announced that Ramon Laguarta, Chairman and Chief Executive Officer, and Jamie Caulfield, Executive Vice President and Chief Financial Officer, will present at the Consumer Analyst Group of New York (CAGNY) Conference on Wednesday, February 19, 2025 at approximately 9:00 a.m. ET.A live audio webcast and replay of the presentation will be accessible at the date and time noted above at www.pepsico.com in the "Investors" section un ...

With PepsiCo's (NASDAQ: PEP ) recent Q4 and full-year earnings now in the books, it's apparent the company continues and will likely continue to face headwinds, at least for the near to medium term.Contributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due diligence. I'm a ...

PepsiCo (PEP -0.53%) stock fell 4.5% on Tuesday, putting it within just a couple of percentage points of a 52-week low.The food and beverage titan reported fairly weak full-year 2024 results. 2025 guidance calls for a prolonged slowdown across its business units, with a low single-digit increase in organic revenue and a mid-single-digit rise in core constant currency earnings per share (EPS).Despite the poor results and bleak outlook, here are three reasons why PepsiCo is a dividend stock worth buying now. ...

When searching for new stocks to invest in, dividend investors usually try to find a good compromise between income, income stability, and growth potential. There's no perfect investment that scores high on all three at once, so trade-offs have to be made. Right now, PepsiCo (PEP -0.53%) looks like it is offering investors a good combination of positives because it is facing some near-term negatives that seem likely to be temporary headwinds.Here's why buying PepsiCo today could help to set you up for a lif ...

PepsiCo Inc. (PEP) has risen 1.3% since reporting fourth-quarter 2024 results on Feb. 4, 2025. This reflects an outperformance compared with its industry peers, the broader sector and the S&P 500 index. The Zacks Beverages – Soft Drinks industry and the Consumer Staples sector have grown 0.7% and 0.2% in the same period. Meanwhile, the S&P 500 has risen 0.02% since Feb. 4.The stock’s modest growth since its earnings release reflects mixed sentiments among investors following the release. PepsiCo exceeded th ...

PepsiCo (PEP 1.51%) fell 4.5% on Tuesday after the beverage and snack giant reported fourth-quarter and full-year 2024 results.Pepsi also announced its 53rd consecutive dividend raise, pole-vaulting its forward dividend yield to 4%. Throw in a mere 20.6 price-to-earnings (P/E) ratio, and Pepsi is a unique Dividend King that combines a track record for dividend raises with a high yield and an inexpensive valuation.Here's what's driving the sell-off in Pepsi stock along with the actions management is taking t ...