Wall Street Breakfast Activists target Pepsi
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Sep 2, 2025 Elliott Investment Management's $4 billion stake in PepsiCo is shaking up the beverage market. This strategic move coincides with Kraft Heinz's decision to split into two companies, creating waves within the food sector. Meanwhile, the global bond market is experiencing a significant selloff, prompting discussions about its impact on investment strategies. The podcast also dives into which stock markets might be overbought, offering listeners a glimpse into potential investment opportunities.
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Activist Pressure On PepsiCo
- Elliott Investment has taken a reported $4 billion stake in PepsiCo aiming to push changes to lift its share price.
- Pepsi faces weak beverage demand, lost snack share, and a 14% Y/Y stock decline that worries long-term investors.
Market Share Slide Explains Activist Moves
- Pepsi has slipped to fourth in U.S. beverage sales volumes and trails rivals in snack market share.
- These distribution and demand shifts explain why activists see structural fixes like asset changes or splits as value drivers.
Structural Options To Unlock Value
- The Wall Street Journal suggests Pepsi could return bottling to local partners or split food and beverage businesses to unlock value.
- Such strategic moves mirror tactics Coca-Cola used to refresh focus and shareholder returns.