PepsiCo Faces Challenges in Core Snacks Business with 3% Revenue Decline in Q3 2025
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
- Core Business Pressure: PepsiCo is experiencing persistent headwinds in its North American snacks business, with a 3% decline in organic revenues for PFNA in Q3 2025, reflecting weakened consumer demand for traditional snacks and prompting management to reassess strategy and cost structures.
- Health Snack Transformation: In response to market challenges, PepsiCo is increasing its focus on healthier snack offerings, launching cleaner ingredient products to attract consumers, aiming to boost volumes and regain growth momentum within PFNA.
- Strong Beverage Performance: Despite the struggles in the snacks segment, PepsiCo's Beverages North America reported a 2% organic revenue growth in Q3 2025, driven by strong performance in zero-sugar colas and functional drinks, showcasing the company's competitiveness in the health beverage market.
- Intensifying Market Competition: PepsiCo faces pressure from competitors like Coca-Cola and Monster Beverage, which maintain market share through diversified product portfolios and innovative strategies, further intensifying the competitive landscape in both snacks and beverages.
Analyst Views on KO
Wall Street analysts forecast KO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KO is 79.33 USD with a low forecast of 71.00 USD and a high forecast of 85.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
13 Buy
1 Hold
0 Sell
Strong Buy
Current: 73.550
Low
71.00
Averages
79.33
High
85.00
Current: 73.550
Low
71.00
Averages
79.33
High
85.00
About KO
The Coca-Cola Company is a beverage company. The Company's segments include Europe, Middle East and Africa; Latin America; North America; Asia Pacific; Global Ventures; and Bottling Investments. It sells multiple brands across several beverage categories worldwide. Its portfolio of sparkling soft drink brands includes Coca-Cola, Sprite and Fanta. Its water, sports, coffee and tea brands include Dasani, smartwater, vitaminwater, Topo Chico, BODYARMOR, Powerade, Costa, Georgia, Fuze Tea, Gold Peak and Ayataka. Its juice, value-added dairy and plant-based beverage brands include Minute Maid, Simply, innocent, Del Valle, fairlife and AdeS. It operates in two lines of business: concentrate operations and finished product operations. Its concentrate operations sell beverage concentrates, syrups, including fountain syrups, and certain finished beverages to authorized bottling operations. Its finished product operations sell sparkling soft drinks and a variety of other finished beverages.
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.
