Engaged Capital Nominates Two Highly Qualified, Independent Candidates for Election to Portillo's Board of Directors
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 03 2025
0mins
Should l Buy PEP?
Source: Newsfilter
Board Nominations: Engaged Capital has nominated Charlie Morrison and Nicole Portwood for election to the Board of Directors of Portillo's Inc. at the 2025 Annual Meeting, citing their extensive experience in restaurant operations and marketing as essential for improving company performance.
Company Challenges: Despite Portillo's strong brand and growth potential, the company is facing issues such as outdated operations and ineffective marketing, which Engaged Capital believes can be resolved through strategic leadership changes and targeted initiatives.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy PEP?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on PEP
Wall Street analysts forecast PEP stock price to fall
12 Analyst Rating
6 Buy
6 Hold
0 Sell
Moderate Buy
Current: 164.590
Low
144.00
Averages
161.90
High
172.00
Current: 164.590
Low
144.00
Averages
161.90
High
172.00
About PEP
PepsiCo, Inc. is a global beverage and convenient food company. The Company’s segments include PepsiCo Foods North America (PFNA), PepsiCo Beverages North America (PBNA), International Beverages Franchise (IB Franchise), Europe, Middle East and Africa (EMEA), Latin America Foods (LatAm Foods), and Asia Pacific Foods. PFNA segment includes all of its convenient food businesses in the United States and Canada. PBNA segment includes all of its beverage businesses in the United States and Canada. IB Franchise segment includes its international franchise beverage businesses, as well as its SodaStream business. EMEA segment includes its convenient food businesses and beverage businesses with Company-owned bottlers in Europe, the Middle East and Africa. LatAm Foods segment includes all of its convenient food businesses in Latin America. Asia Pacific Foods segment consists of its convenient food businesses in Asia Pacific, including China, Australia and New Zealand, as well as India.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Tariff Ruling Impact: The Supreme Court's 6-3 decision deemed Trump's tariffs under the International Emergency Economic Powers Act unconstitutional, yet it does not affect tariffs under the Trade Expansion Act, leaving certain sectors to face ongoing cost pressures.
- Automotive Industry Strain: Major U.S. automakers like General Motors expect tariff costs between $3 billion and $4 billion this year, while Ford anticipates a flat $2 billion impact, although the Supreme Court ruling's immediate effects on these forecasts remain unclear.
- Pharmaceutical Uncertainty: The Trump administration has threatened tariffs on pharmaceuticals that could reach 250%, which, if enacted, would push drug companies to increase U.S. manufacturing, thereby impacting the industry's strategic direction despite current exemptions.
- Furniture Sector Challenges: The furniture industry continues to face a 25% tariff post-ruling, with expectations of an increase to 50% by 2027, disproportionately affecting smaller firms and leading to bankruptcies, such as that of American Signature Furniture.
See More
- Retailer Rally: Following the Supreme Court's tariff ruling, Amazon shares rose over 2% and Shopify climbed 4%, indicating retailers' resilience under tariff pressures, which could boost market confidence and consumer spending.
- Opendoor Beats Estimates: Opendoor reported fourth-quarter revenue of $736 million, exceeding the LSEG estimate of $549 million, although it anticipates a first-quarter adjusted EBITDA loss in the range of $30 million to $32 million; management aims for positive adjusted net income by the end of 2026, showcasing long-term growth potential.
- Comfort Systems Strong Performance: Comfort Systems reported a fourth-quarter EPS of $9.37, surpassing the FactSet estimate of $6.75, with revenue of $2.65 billion exceeding the $2.34 billion forecast, highlighting the company's robust performance in the HVAC and electrical services sector.
- Chemours Shares Plunge: Chemours' fourth-quarter EPS was only 5 cents, below the FactSet estimate of 7 cents, with revenue of $1.33 billion matching market expectations, reflecting challenges in the industrial and specialty chemicals sector, leading to an 18% drop in share price.
See More
- Tariff Ruling Impact: The Supreme Court's ruling that Trump's 'reciprocal' tariffs are unconstitutional provides some relief for consumer companies facing high import costs, yet it does not eliminate the burden of existing tariffs across various sectors.
- Automotive Industry Pressure: The automotive sector continues to face billions in tariff costs, with a 25% tariff imposed on imported vehicles and parts last year, although some countries have negotiated reductions to 10%-15%, the overall impact on the industry remains unclear.
- Pharmaceutical Uncertainty: The pharmaceutical industry is at risk of potential tariffs reaching 250%, as Trump has threatened such measures, which, if enacted, would compel drug manufacturers to produce domestically, adding significant uncertainty to the sector.
- Furniture Industry Struggles: The furniture industry still faces a 25% tariff post-ruling, with expectations of an increase to 50% by 2027, severely impacting smaller companies and leading to bankruptcies, highlighting the ongoing challenges in this sector.
See More
- Market Share Growth: Celsius's energy drinks now represent 20% of liquid refreshment beverage sales, up approximately 14% from five years ago, indicating a strong consumer shift towards health-conscious options and reinforcing Celsius's position in a rapidly growing market.
- Significant Stock Surge: Celsius shares soared 74% in 2025 following the acquisition of energy drink brand Alani Nu, and after the CAGNY conference, the stock jumped over 8% in after-hours trading, reflecting investor optimism about the company's growth prospects.
- Retail Strategy Optimization: By expanding its product assortment, Celsius has increased shelf space by over 25% and cooler placements, with a 6% rise in sales velocity, demonstrating strong retail execution and positive outcomes for the company.
- Investor Sentiment Shift: Retail sentiment on Celsius shifted from 'bearish' to 'bullish' according to Stocktwits data, with message volumes surging 224% in the last 24 hours, indicating strong market confidence in Celsius's future performance.
See More
- Dividend Growth Record: Federal Realty Investment Trust (FRT) has increased its dividend for 58 consecutive years, making it a leader in the REIT sector with 104 properties and 28.8 million square feet of commercial space, focusing on high-quality shopping centers to ensure steady earnings growth that supports ongoing dividend increases.
- Global Beverage Giant: PepsiCo (PEP) recently raised its dividend by 4%, extending its growth streak to 54 years, and with its strong brand portfolio and consistent cash flow, it is expected to continue achieving 4% to 6% annual organic revenue growth, ensuring the sustainability of its dividends.
- Utility Stability: Black Hills Corporation (BKH) provides electric and natural gas services to nearly 1.4 million customers across eight states, boasting a 56-year dividend growth record, and plans to invest $4.7 billion by 2030 to meet growing energy demands, supporting its ongoing dividend growth.
- Acquisition Expansion Plans: Black Hills plans to expand its scale through acquisitions, recently agreeing to merge with NorthWestern Energy, which is expected to increase the combined company's annual earnings growth rate to 5% to 7%, further enhancing its dividend payment capacity.
See More
- Lululemon's International Strength: Lululemon Athletica's international revenue surged 33% year-over-year, with China alone growing 46%, indicating that despite a 3% decline in the U.S. market, international operations are becoming the main revenue driver, expected to boost overall performance moving forward.
- Hershey's Sales Growth Surprises: Hershey anticipates net sales growth of 4% to 5% in 2026, significantly exceeding analysts' expectations of 2.69%, while the CEO is pushing for innovation in healthier, zero-sugar products, which is likely to enhance market share and brand competitiveness.
- Nike's Attractive Valuation: Currently trading at a P/E of 20, Nike is well below its historical average of 31, and despite weak performance in Greater China, North America saw a 9% sales increase, with the upcoming 2026 FIFA World Cup expected to drive demand and profit growth.
- Market Rebound Potential: All three companies possess strong brand influence and market share in their respective sectors, and their current stock prices appear undervalued, presenting investors with an opportunity to capitalize on future rebounds through diversified investments.
See More











