The fund is demanding a thorough review of the company's North American business portfolio, following several quarters of below-expected financial results and a stock market valuation that allegedly "does not reflect the true potential" of Pepsi's parent company.
Elliott partners Jesse Cohn and Marc Steinberg stated: "PepsiCo is at a critical inflection point. It is time for it to become a more focused and efficient company." Their proposals include a possible refranchising of its North American beverage bottling network, as well as a review of its portfolio to offload unprofitable assets.
In 2024, PepsiCo recorded net revenues of €78.3 billion, up just 0.4% year-over-year. However, operating profit grew 7.5% to €11 billion, and net income was €8.17 billion, up 5.3%. However, the first half of 2025 showed a different picture, with virtually no year-on-year changes, and net income fell to €2.64 billion, compared to €4.37 billion in the same period.
