Pepsi Looks to Quiet Critics After Earnings
Disparities in Pepsico’s (NYSE:PEP) soft drink and snack performance have led to calls for splitting the company. However, the company’s CFO, Hugh Johnston, doesn’t see the value in such a move. Advocates for the break-up believe that creating two separate entities would allow each to focus solely on one specific product line as well as giving the Frito-Lay snack line the stock price it deserves rather than being held back by soft drink performance.
Pepsi (NYSE:PEP) CEO Indra Nooyi hopes to quiet critics with reports of third quarter earnings that were released this morning. “We had strong revenue growth, across our product portfolio and across our key geographic markets. We were able to achieve pricing to partially offset commodity cost inflation and at the same time stimulate consumer demand for our products. The result in the quarter was well-balanced top-line and bottom-line growth,” states Nooyi. Nooyi also stated that he believed the company would be better off remaining as one, echoing the sentiments of Johnston.
Pepsico (NYSE:PEP) stock is up 2.87% to $62.70 on the news. Shares are down 4.69% over the last year with a 52-week range of $58.50 to $71.89.
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