PepsiCo exceeded expectations in Q3, with sales and profits surpassing analyst forecasts. Bank of America upgraded its price target to $155, citing “encouraging progress,” but maintained a neutral rating due to concerns about North American sales. Despite strong global performance, core U.S. business struggles persist.

Flat sales for Frito-Lay North America and declining beverage volumes highlight challenges. Tariffs, inflation, and supply chain costs continue to squeeze margins. Activist investor Elliott Management’s pressure for cost-cutting and divestitures adds complexity. Structural changes aim to streamline operations and boost profitability.

PepsiCo’s strategic acquisitions, like prebiotic soda brand Poppi and a new distribution center in Texas, signal a focus on innovation and efficiency. Bank of America forecasts continued growth in EPS and organic sales, with sequential increases expected through fiscal 2026. The company’s long-term success hinges on sustained volume growth amid evolving consumer preferences.

While PepsiCo’s progress is positive, sustained growth and innovation will be key to long-term success. Investors are cautious, awaiting tangible results beyond FX-driven boosts. The company’s playbook shows promise, but continued execution will determine if this marks a true resurgence or a temporary reprieve.

Read more at Yahoo Finance: PepsiCo is fixing what broke, but shoppers may not care