$PEP

Crossbridge Capital's Manish Singh noted AI demand is real but returns may vary. Nvidia's CEO dismissed CoreWeave's financial concerns. Meta released Muse Spark Open. PepsiCo shares fell 1% after KFC's Coca-Cola partnership. EU officials may approve Project Bromo to counter SpaceX. Moderna shares hit a 52-week high after Goldman Sachs raised its price target.

KFC has signed Coca-Cola as its new beverage partner for US stores, replacing PepsiCo. The change will take effect by spring 2027. KFC operates 3,718 locations in the US, according to the company's website. PepsiCo is reportedly struggling to improve sales in the country.

PepsiCo (PEP) reported Q3 2026 revenue of $25.27B (+5.6% YoY), but core EPS grew only 2% to $2.34. Management cut 2026 core EPS growth guidance to 2.5%-3.5%. Dividend raised to $5.92/share (+4%), marking 54 years of increases, with a 4.65% yield. Free cash flow covered dividends by a narrow margin. Forward P/E is 14.86, down from 16.58 in June 2025. Growth slowdown and margin pressures are concerns.

Consumer goods companies increased their ad-to-sales ratio to 12.5% in 2024, up from 11.6% in 2023, to counter softer demand and invest in retail media. WARC reports their ad spending grew 36% from 2019 to 2025, outpacing 29% revenue growth. Tech firms like Alphabet and Meta reduced their ratio to 7.4% in 2025, despite 146% revenue growth. Six consumer goods companies, including Coca-Cola and Nike, were analyzed.

PepsiCo reported Q3 earnings beating expectations with $25.27B revenue and $2.34 EPS, but cut its 2026 EPS growth forecast to 2.5–3.5%. North American sales declined, while international growth accelerated. Shares are down 12% YTD. Elliott Management, which holds a $4B stake, is pressuring for a turnaround amid GLP-1 drug threats to snack and beverage demand.

Coca-Cola and PepsiCo reported Q2 2026 earnings, highlighting different strategies to cater to health-conscious consumers. Coca-Cola's net revenue rose 7% to $13.4B, driven by 16% growth in Coca-Cola Zero Sugar. PepsiCo's revenue increased 6.4% to $24.181B, with growth in snack brands like Doritos, Cheetos, and Lay's, focusing on simpler ingredients and portion control.

PepsiCo warned an Indian court that a continued ban on 'energy drink' labels could lead to nationwide stockouts of its top-selling products within two months. The Food Safety and Standards Authority of India (FSSAI) has barred the label, while rival Red Bull has secured a court reprieve. PepsiCo's lawyer argued that rebranding would disrupt its distribution system. The next hearing is scheduled for October 30.

Russian airstrikes have targeted facilities of U.S. companies like Coca-Cola, PepsiCo, McDonald's, and Oreo in Ukraine, according to the American Chamber of Commerce. The Trump administration has not responded, despite pressure on Ukraine to stop attacking Russian refineries. Attacks include a Coca-Cola plant, McDonald's warehouse, and PepsiCo production site.

Pepsi (PEP) shares declined from a February peak of $170 to $125.97. Q3 earnings were $2.34 per share on $25.27B revenue (+5.6% Y/Y). FY 2026 EPS growth is expected at 5.04%. Dividend yield is 4.6%. Beverage volume rose 3% in Q3, but beverage business decelerated. The company is investing in growth and cost reductions.

Russia has increased attacks on facilities of major U.S. companies in Ukraine, including Coca-Cola, PepsiCo, McDonald's, and Oreo, according to CNN. Attacks on a Coca-Cola plant, a McDonald's warehouse, and a PepsiCo facility have been reported. Ukrainian President Zelenskyy and the American Chamber of Commerce have criticized the lack of response from the U.S. administration.