PepsiCo Stock: Analyst Estimates & Ratings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 09 2025
0mins
Source: NASDAQ.COM
PepsiCo's Market Performance: PepsiCo, Inc. has a market cap of $180.9 billion but has underperformed the broader market, with shares declining 25.9% over the past year compared to a 9.2% increase in the S&P 500 Index. The stock recently hit a 52-week low due to weak consumer demand and other challenges.
Analyst Ratings and Price Targets: Analysts have a consensus rating of "Moderate Buy" for PepsiCo, with a mean price target of $150.47, suggesting a potential upside. Recent downgrades from Morgan Stanley reflect concerns over disappointing earnings and ongoing challenges in sales growth.
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 rise
12 Analyst Rating
6 Buy
6 Hold
0 Sell
Moderate Buy
Current: 146.120
Low
144.00
Averages
161.90
High
172.00
Current: 146.120
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.
Analysis of Beyond Meat's Stock Price Collapse
- Revenue Decline: Beyond Meat's revenue has plummeted from $465 million in 2021 to $276 million in 2025, indicating four consecutive years of no growth, which reflects a challenging market environment with declining demand and increased competition.
- Gross Margin Erosion: The company's aggressive markdowns to liquidate inventory have led to a drastic reduction in gross margin from 25.2% in 2021 to 2.8% in 2025, severely impacting profitability and exacerbating its financial struggles.
- Strategic Transformation Challenges: Beyond Meat aims to rebrand itself with new products like
See More
Yum Brands Sells Pizza Hut for $1.5 Billion to LongRange Capital
- Transaction Overview: Yum Brands announced the sale of Pizza Hut to private equity firm LongRange Capital for approximately $1.5 billion, excluding mainland China locations, which will be acquired separately by Yum China for about $1.2 billion, with the overall deal expected to yield around $2.3 billion in net proceeds, highlighting the company's focus on asset restructuring.
- Competitive Market Pressure: Pizza Hut faces ongoing market share erosion from rival Domino's Pizza in the U.S., while third-party delivery platforms like DoorDash have further diminished its sales, reflecting the company's struggle to adapt to market demands during its transition, negatively impacting overall financial performance.
- Strategic Restructuring Decision: Yum's management determined that selling Pizza Hut represents the strongest path to maximize shareholder value, aiming to provide the brand with an ownership structure better aligned with its market characteristics and long-term priorities, indicating a strategic shift in response to competitive pressures.
- Historical Context and Future Outlook: Founded in 1958, Pizza Hut was once the largest pizza chain globally but lost that title in 2017; with the completion of this sale, it will sever its long-standing ties with Yum's other brands like Taco Bell and KFC, allowing it to focus on new market strategies moving forward.
See More
Yum Brands Sells Pizza Hut, Ending Years of Struggles
- Sale Announcement: Yum Brands has announced the sale of Pizza Hut to private equity firm LongRange Capital, marking the end of years of struggles for the brand that have negatively impacted Yum's overall financial performance.
- Market Competition: In the U.S., Pizza Hut has shifted from traditional dine-in formats to focus on delivery and carryout, yet it has been losing market share to rival Domino's Pizza, highlighting its lag in adapting to industry changes.
- Historical Context: Founded in 1958 in Wichita, Kansas, Pizza Hut went public in 1969 and became the largest pizza chain by 1971, but it lost that title to Domino's in 2017, reflecting significant market challenges for the brand.
- Brand Relationship Break: This deal severs Pizza Hut's long-standing ties with Yum's other brands like Taco Bell and KFC, indicating a shift towards an independent operational structure that may influence its future strategic direction.
See More
Consumer Stocks Face Challenges but Remain Promising
- Nike's Challenges and Opportunities: Nike (NYSE: NKE) has faced several years of struggles, with its stock price declining from its 2021 peak, currently offering a 3.6% dividend yield; analysts predict earnings will rebound to $2.40 per share by the end of the next fiscal year, indicating potential for recovery.
- PepsiCo's Brand Strength: PepsiCo (NASDAQ: PEP), a 'Dividend King' with 54 consecutive annual increases, faces challenges in sales growth, yet its 4.1% dividend yield and a projected 6% annual earnings growth make it attractive in the current market.
- Hershey's Transformation Strategy: Hershey (NYSE: HSY) has been pressured by soaring cocoa prices affecting profit margins; although it did not raise its dividend last year, new CEO Kirk Tanner aims to expand into salty snacks and nutrition bars, which could drive future growth.
- Kimberly-Clark's Merger Strategy: Kimberly-Clark (NASDAQ: KMB) is merging with Kenvue in a $48.7 billion deal, creating a global consumer products giant; despite integration risks, both companies are Dividend Kings, likely prioritizing dividend maintenance and growth, with a current yield of 5%.
See More
Analysis of Four Declining Consumer Brand Stocks
- Nike's Struggles: Nike (NKE) has seen a 74% decline in stock price due to a misguided direct-to-consumer strategy that led to the firing of its CEO; despite raising dividends for 24 consecutive years, the company's earnings have deteriorated, presenting a buying opportunity at a 3.6% dividend yield.
- PepsiCo's Realignment: PepsiCo (PEP) is down 26%, but with a history of 54 consecutive annual dividend increases, the company has adjusted its pricing strategy after aggressive hikes post-COVID, and analysts expect 6% annualized earnings growth, with a dividend yield of 4.1%.
- Hershey's Transition: Hershey (HSY) has dropped 34% due to a severe cocoa shortage impacting profit margins; with a new CEO focusing on growth in salty snacks and nutrition bars, investors should watch for recovery in its core business, currently offering a 3.12% dividend yield.
- Kimberly-Clark's Merger: Kimberly-Clark (KMB) is down 35% as it merges with Kenvue in a $48.7 billion deal, creating a global consumer products giant; while the merger poses risks, both companies are Dividend Kings, and investors can expect a 5% dividend yield during the integration phase.
See More
Electronic Arts Launches EA Advertising Platform for Brands
- Ecosystem Expansion: Electronic Arts has launched the EA Advertising platform, enabling brands to integrate dynamic, real-time ads directly into gameplay, enhancing player immersion and brand visibility.
- Interactive Ad Integration: The new platform allows brands to utilize native ad units in sports simulation games, leveraging advanced targeting technologies to gain insights into advertising campaigns, thereby fostering closer connections with players.
- Brand Partnership Examples: EA has previously collaborated with brands like Visa, Lowe's, and Red Bull to deliver customized in-game experiences, showcasing its successful practices and market potential in ad integration.
- Player Experience Focus: EA Advertising aims to incorporate brands into games in a way that does not disrupt player experience, reflecting how brands interact with players in real-world contexts, thus enhancing the relevance and effectiveness of advertising.
See More
Analysis of Beyond Meat's Stock Price Collapse
- Revenue Decline: Beyond Meat's revenue has plummeted from $465 million in 2021 to $276 million in 2025, indicating four consecutive years of no growth, which reflects a challenging market environment with declining demand and increased competition.
- Gross Margin Erosion: The company's aggressive markdowns to liquidate inventory have led to a drastic reduction in gross margin from 25.2% in 2021 to 2.8% in 2025, severely impacting profitability and exacerbating its financial struggles.
- Strategic Transformation Challenges: Beyond Meat aims to rebrand itself with new products like
See More
Yum Brands Sells Pizza Hut for $1.5 Billion to LongRange Capital
- Transaction Overview: Yum Brands announced the sale of Pizza Hut to private equity firm LongRange Capital for approximately $1.5 billion, excluding mainland China locations, which will be acquired separately by Yum China for about $1.2 billion, with the overall deal expected to yield around $2.3 billion in net proceeds, highlighting the company's focus on asset restructuring.
- Competitive Market Pressure: Pizza Hut faces ongoing market share erosion from rival Domino's Pizza in the U.S., while third-party delivery platforms like DoorDash have further diminished its sales, reflecting the company's struggle to adapt to market demands during its transition, negatively impacting overall financial performance.
- Strategic Restructuring Decision: Yum's management determined that selling Pizza Hut represents the strongest path to maximize shareholder value, aiming to provide the brand with an ownership structure better aligned with its market characteristics and long-term priorities, indicating a strategic shift in response to competitive pressures.
- Historical Context and Future Outlook: Founded in 1958, Pizza Hut was once the largest pizza chain globally but lost that title in 2017; with the completion of this sale, it will sever its long-standing ties with Yum's other brands like Taco Bell and KFC, allowing it to focus on new market strategies moving forward.
See More
Yum Brands Sells Pizza Hut, Ending Years of Struggles
- Sale Announcement: Yum Brands has announced the sale of Pizza Hut to private equity firm LongRange Capital, marking the end of years of struggles for the brand that have negatively impacted Yum's overall financial performance.
- Market Competition: In the U.S., Pizza Hut has shifted from traditional dine-in formats to focus on delivery and carryout, yet it has been losing market share to rival Domino's Pizza, highlighting its lag in adapting to industry changes.
- Historical Context: Founded in 1958 in Wichita, Kansas, Pizza Hut went public in 1969 and became the largest pizza chain by 1971, but it lost that title to Domino's in 2017, reflecting significant market challenges for the brand.
- Brand Relationship Break: This deal severs Pizza Hut's long-standing ties with Yum's other brands like Taco Bell and KFC, indicating a shift towards an independent operational structure that may influence its future strategic direction.
See More
Consumer Stocks Face Challenges but Remain Promising
- Nike's Challenges and Opportunities: Nike (NYSE: NKE) has faced several years of struggles, with its stock price declining from its 2021 peak, currently offering a 3.6% dividend yield; analysts predict earnings will rebound to $2.40 per share by the end of the next fiscal year, indicating potential for recovery.
- PepsiCo's Brand Strength: PepsiCo (NASDAQ: PEP), a 'Dividend King' with 54 consecutive annual increases, faces challenges in sales growth, yet its 4.1% dividend yield and a projected 6% annual earnings growth make it attractive in the current market.
- Hershey's Transformation Strategy: Hershey (NYSE: HSY) has been pressured by soaring cocoa prices affecting profit margins; although it did not raise its dividend last year, new CEO Kirk Tanner aims to expand into salty snacks and nutrition bars, which could drive future growth.
- Kimberly-Clark's Merger Strategy: Kimberly-Clark (NASDAQ: KMB) is merging with Kenvue in a $48.7 billion deal, creating a global consumer products giant; despite integration risks, both companies are Dividend Kings, likely prioritizing dividend maintenance and growth, with a current yield of 5%.
See More
Analysis of Four Declining Consumer Brand Stocks
- Nike's Struggles: Nike (NKE) has seen a 74% decline in stock price due to a misguided direct-to-consumer strategy that led to the firing of its CEO; despite raising dividends for 24 consecutive years, the company's earnings have deteriorated, presenting a buying opportunity at a 3.6% dividend yield.
- PepsiCo's Realignment: PepsiCo (PEP) is down 26%, but with a history of 54 consecutive annual dividend increases, the company has adjusted its pricing strategy after aggressive hikes post-COVID, and analysts expect 6% annualized earnings growth, with a dividend yield of 4.1%.
- Hershey's Transition: Hershey (HSY) has dropped 34% due to a severe cocoa shortage impacting profit margins; with a new CEO focusing on growth in salty snacks and nutrition bars, investors should watch for recovery in its core business, currently offering a 3.12% dividend yield.
- Kimberly-Clark's Merger: Kimberly-Clark (KMB) is down 35% as it merges with Kenvue in a $48.7 billion deal, creating a global consumer products giant; while the merger poses risks, both companies are Dividend Kings, and investors can expect a 5% dividend yield during the integration phase.
See More
Electronic Arts Launches EA Advertising Platform for Brands
- Ecosystem Expansion: Electronic Arts has launched the EA Advertising platform, enabling brands to integrate dynamic, real-time ads directly into gameplay, enhancing player immersion and brand visibility.
- Interactive Ad Integration: The new platform allows brands to utilize native ad units in sports simulation games, leveraging advanced targeting technologies to gain insights into advertising campaigns, thereby fostering closer connections with players.
- Brand Partnership Examples: EA has previously collaborated with brands like Visa, Lowe's, and Red Bull to deliver customized in-game experiences, showcasing its successful practices and market potential in ad integration.
- Player Experience Focus: EA Advertising aims to incorporate brands into games in a way that does not disrupt player experience, reflecting how brands interact with players in real-world contexts, thus enhancing the relevance and effectiveness of advertising.
See More
