PepsiCo Tops Q3 2018 Estimates On International Strength

11/27/2018 PepsiCo Tops Q3 2018 Estimates on International Strength
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
Must-know: An investor’s guide to PepsiCo
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PepsiCo’s three-channel distribution network
By Sharon Bailey
Dec 13, 2014 | 1:12 AM
 
(https://api.marketrealist.com/api/serie/2014/12/pepsicos-
Three distribution channels
three-
PepsiCo Inc. (PEP (/quote-page/PEP)) is a leading food and beverage company with an
channel-
impressive global presence. The company’s products reach the market through the
distribution-
following three channels: direct store delivery (or DSD), customer warehouse, and third-
network/pdf)
party distributor networks. PepsiCo chooses the relevant distribution channel based on
customer needs, product characteristics, and local trade practices.
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ACCEPT
(https://mr-uploads s3 amazonaws com/uploads/2014/12/distribution-network png)

https://marketrealist.com/2014/12/pepsicos-three-channel-distribution-network 1/19
(https://mr-uploads.s3.amazonaws.com/uploads/2014/12/distribution-network.png)
Direct store delivery


Under the DSD system, PepsiCo delivers products directly to retail stores. Of the three
channels, DSD enables PepsiCo to merchandise with maximum visibility. It’s more
suitable for products that are restocked often and are sensitive to promotions and
marketing.
Customer warehouse
The customer warehouse system is a less expensive distribution channel. It’s ideal for
products that are less fragile and perishable, have lower turnover, and are not
purchased impulsively.
Third-party distributor networks

PepsiCo distributes food and beverage products to restaurants, businesses, schools,
and stadiums through third-party food service and vending distributors and operators.
Leveraging its dominant position
PepsiCo is the second-largest nonalcoholic beverage maker in the United States with a
large scale of operations. The company’s dominant position helps it enjoy favorable
relationships with its retailers, who allow the company to have major shelf space. This
helps PepsiCo in uence consumer shopping patterns and increases the coincidence of
purchase of its complementary food and beverage products.
You can invest in PepsiCo through exchange-traded funds (or ETFs) such as the
Consumer Staples Select Sector Standard & Poors depositary receipt (or SPDR) Fund
(XLP (/quote-page/XLP)) and the SPDR MSCI World Quality Mix exchange-traded fund (or
ETF) (QWLD (/quote-page/QWLD)).
PepsiCo also manufactures and distributes certain brands licensed from Dr Pepper
Snapple Group, Inc. (DPS (/quote-page/DPS)) such as Dr Pepper, Crush, and Schweppes,
as well as certain juice brands licensed from Dole and Ocean Spray.
The extensive distribution of PepsiCo and The Coca-Cola Company (KO (/quote-
page/KO)) gives them a competitive edge against other nonalcoholic beverage makers.
In the next part of this series, we’ll discuss PepsiCo’s business segments.
Understanding PepsiCo’s segments


By Sharon Bailey
Dec 13, 2014 | 1:14 AM
 
(https://api.marketrealist.com/api/serie/2014/12/understanding-
PepsiCo’s business segments
pepsicos-
PepsiCo derives its revenues from the following six segments:
segments/pdf)
Frito-Lay North America
Quaker Foods North America
Latin America Foods
Americas Beverages
Europe
Asia, Middle East and Africa
The rst three business segments form the PepsiCo Americas foods business unit.
(htt // l d 3 / l
https://marketrealist.com/2014/12/pepsicos-three-channel-distribution-network d /2014/12/S t f ) 3/19
(https://mr-uploads.s3.amazonaws.com/uploads/2014/12/Segment-performance.png)
2013 segment performance


The PepsiCo Americas Beverages segment continues to account for the largest
proportion of total revenues. It’s been experiencing declining revenues over the past
few years primarily due to lower carbonated soft drink volumes and challenging macro
conditions. The segment derives its revenues from the sale of beverage concentrates,
fountain syrups, and nished goods under brands such as Pepsi, Gatorade, and
Tropicana.
The Frito-Lay North America segment comprises branded snack foods such as Lay’s
chips and Doritos tortilla chips. Net revenues for the segment grew 4%, driven by
volume growth and favorable pricing. The Quaker Foods North America segment, which
includes cereals, rice, pasta, and other branded products, witnessed a 1% decline in
revenues as higher volumes were o set by an unfavorable product mix. The Latin
America Foods segment revenues surged by 7%, re ecting the impact of favorable
pricing.
The Europe segment’s net revenues increased by 2% due to higher pricing.
Despite favorable pricing and volume growth, revenues for the Asia, Middle East and
Africa segment declined by 2% due to the sale of bottling operations to Tingyi and the
Vietnam beverage refranchising.
Segment pro tability
Among all the segments, the Frito-Lay North America segment is the most pro table,
accounting for about 21% of total revenues. In 2013, the segment accounted for 35% of
the total division’s operating pro ts. The PepsiCo Americas Beverages segment
accounted for 32% of total revenues and around 26% of operating pro ts.
This shows that PepsiCo’s snack food business is more pro table than its beverage
business. Higher pro tability of the snack food business is the result of PepsiCo’s pricing
power given its dominant position in the US snack food business, its wide distribution
network, and huge economies of scale.
In a later part of this series, we’ll explore how PepsiCo and its peers in the food and
beverage industry, including The Coca-Cola Company (KO (/quote-page/KO)), Mondelez
International, Inc. (MDLZ (/quote-page/MDLZ)), and Dr Pepper Snapple Group, Inc. (DPS
(/quote-page/DPS)), are implementing productivity programs to improve pro tability.

You can invest in these companies through exchange-traded funds (or ETFs) like the
Consumer Staples Select Sector Standard & Poors depositary receipt (or SPDR) Fund
(XLP (/quote-page/XLP)).
Must-know: An investor’s guide to PepsiCo 
PepsiCo: One of the behemoths of beverage
By Sharon Bailey
Dec 13, 2014 | 1:15 AM
 
(https://api.marketrealist.com/api/serie/2014/12/pepsico-
Dominant beverage player
one-
PepsiCo Inc. (PEP (/quote-page/PEP)) and The Coca-Cola Company (KO (/quote-page/KO))
behemoths-
are the two behemoths of the liquid refreshment beverage (or LRB) industry. The LRB
beverage/pdf)
market includes carbonated drinks, water, and noncarbonated or still beverages like
ready-to-drink teas.
(https://mr-uploads.s3.amazonaws.com/uploads/2014/12/beverage-portfolio.png)
According to Beverage Digest, in 2013, PepsiCo held a 25.8% share of the US LRB market
in terms of volume, and Coca-Cola led with a 34.2% market share. Dr Pepper Snapple 
Group Inc. (DPS (/quote-page/DPS)) ranked third with a 10.9% share of the US LRB
volume.
Nonalcoholic beverage makers like PepsiCo and Coca-Cola are part of the consumer
staples sector. You can invest in this sector through exchange-traded funds (or ETFs)
such as the Consumer Staples Select Sector Standard & Poors depositary receipt (or
SPDR) Fund (XLP (/quote-page/XLP)). Indexes tracking ETFs, such as the SPDR S&P 500
ETF (SPY (/quote-page/SPY)), also have holdings in PepsiCo.
PepsiCo’s carbonated beverages
PepsiCo has a strong carbonated beverage portfolio that includes its leading brand,
Pepsi-Cola, and other brands such as Mountain Dew and Mirinda. PepsiCo and Coca-
Cola together hold about a 70% share of the US carbonated soft drink (or CSD) volumes.
Noncarbonated beverages
PepsiCo’s noncarbonated beverage portfolio includes leading brands such as Tropicana

in the juice category and Aqua na in the bottled water category. The company’s Naked
Juice brand comprises premium juices and protein smoothies.
The company also sells ready-to-drink teas such as Lipton and co ee products through
joint ventures with Unilever and Starbucks. In the fast-growing sports and energy drinks
category, the company owns the popular Gatorade brand.
Because of continually declining carbonated sales volumes and rising health awareness,
PepsiCo is looking to expand into healthier beverages. PepsiCo’s Tropicana brand
launched three new avors of Farmstand 100% juice, which is made of one serving of
fruit and one serving of vegetables per 8 ounces. PepsiCo’s Naked Juice introduced the
Chia Sweet Peach and Chia Cherry Lime avors, which include chia seeds that are rich in
omega-3 oils, antioxidants, protein, and ber. Naked Juice also introduced the Kale
Blazer with green vegetables.
In a later part of this series, we’ll discuss how rising health awareness is in uencing
PepsiCo’s business approach.


A guide to AnPepsiCo’s food business

Must-know: investor’s guide to PepsiCo
By Sharon Bailey
Dec 13, 2014 | 1:16 AM
 
(https://api.marketrealist.com/api/serie/2014/12/guide-
Leading snack food company
pepsicos-
PepsiCo Inc. (PEP (/quote-page/PEP)) is the market leader in the US snack food business.
food-
The company derived 52%, or $34.5 billion, of its 2013 revenues from its food business.
business/pdf)
(https://mr-uploads.s3.amazonaws.com/uploads/2014/12/snacks-market-share.png)
Dominant market share
Information Resources, Inc. (or IRI) estimated that PepsiCo held 36.6% market share of
the US savory snacks retail sales in 2013, way ahead of competitors like Kraft Foods
Group Inc. (KRFT (/quote-page/KRFT)) and Mondelez International, Inc. (MDLZ (/quote-
page/MDLZ))
page/MDLZ)).


The company’s future prospects also look promising. Euromonitor International

estimates the US sweet and savory snacks market to grow at a compounded annual
growth rate (or CAGR) of 3% and 1% in constant value and volume terms, respectively,
over the 2013–2018 period.
(https://mr-uploads.s3.amazonaws.com/uploads/2014/12/food-portfolio.png)
Snack foods
PepsiCo’s Frito-Lay unit manufactures some of the most popular snacks, including Lay’s
potato chips, Doritos tortilla chips, Cheetos cheese avored snacks, Tostitos tortilla chips
and branded dips, Ru es potato chips, Fritos corn chips, and Santitas tortilla chips.
Frito-Lay North America’s joint venture with Strauss Group manufactures Sabra
refrigerated dips and spreads.
Health foods
In 2001, PepsiCo merged with The Quaker Oats Company. Today, the company’s food
o erings comprise ready-to-eat cereals, rice, pasta, dairy, and other products. Key
brands include Quaker oatmeal, Quaker Chewy Granola Bars, Cap’n Crunch cereal, Life
cereal, and Rice-A-Roni
Must-know: An investor’sside dishes.
guide to PepsiCo 
With consumers shifting to healthier foods, PepsiCo is focused on developing new

products with lower sodium and fat levels. The company is also using new technologies
such as air popping to bring out lower-fat products. In air popping, the snacks are
heated and pressurized until they pop. Since 2013, the company has introduced the
following three air-popped potato chip products: Walkers Pops in the United Kingdom,
Smith’s Popped in Australia, and Lay’s Air Pops in the United States. These air-popped
chips contain half the fat of regular potato chips.
In a later part of this series, we’ll read more about PepsiCo’s e orts to make healthier
snacks and beverages.
PepsiCo and its peers, including Kraft Foods Group Inc. (KRFT (/quote-page/KRFT)), are
part of the consumer staples sector. You can invest in the consumer staples sector
through exchange-traded funds (or ETFs) like the Consumer Staples Select Sector
Standard & Poors depositary receipt (or SPDR) Fund (XLP (/quote-page/XLP)). Another
ETF that has holdings in PepsiCo is the SPDR MSCI World Quality Mix ETF (QWLD (/quote-
page/QWLD)).
TO READ MORE TAKE A 10-DAY FREE TRIAL NOW! (/SIGNUP?RETURN=%2F2014%2F12%2FGUIDE-PEPSICOS-FOOD-BUSINESS)
PepsiCo Tops Q3 2018 Estimates on International Strength
By Sharon Bailey
Oct 2, 2018 | 8:39 PM
 
(https://api.marketrealist.com/api/serie/2018/10/pepsico-
PepsiCo’s scal 2018 third quarter
tops-
Snack food and beverage giant PepsiCo (PEP (/quote-page/PEP)) delivered better-than-
scal-
expected revenue and earnings in the third quarter of scal 2018, which ended on
q3-
September 8. PepsiCo generated revenue of $16.49 billion and exceeded analysts’
2018-
expectation of $16.36 billion.
estimates-
The company’s revenue rose 1.5% year-over-year in the quarter compared to the 2.4%
on-
rise it saw in the second quarter of scal 2018 and the 1.3% rise it saw in the third
11/27/2018
q PepsiCo Tops Q3 2018 Estimates on International Strength
international-
quarter of scal 2017. PepsiCo attributed this growth to its strong performance in
strength/pdf)and emerging markets.
developing

PepsiCo’s adjusted EPS rose 7.4% to $1.59 in the scal 2018 third quarter driven by
higher revenue and a lower adjusted e ective tax rate. Analysts had expected its
adjusted EPS to be $1.57. The company’s margins remained under pressure in the
quarter due to higher commodity and transportation costs.
Despite PepsiCo’s beating estimates, its stock was down 1.5% as of 9:42 AM EDT on
October 2 as the company trimmed its scal 2018 earnings guidance due to the
estimated adverse impact of foreign currency movements.
Adverse foreign currency movements had a two-percentage-point unfavorable impact

on the company’s top line. Excluding the impact of structural items and acquisitions and
divestitures, PepsiCo’s organic revenue growth was 4.9% in the quarter. After falling in
11/27/2018
p g g q
PepsiCo Tops Q3 2018 Estimates on International Strength
g
the rst two quarters of scal 2018, PepsiCo’s North America Beverages segment’s
revenue rose 2.3% to $5.46 billion. Innovation and aggressive marketing e orts drove
this growth. However, the segment’s pro t was adversely a ected by higher input costs,
increased
Must-know:transportation
An investor’s guidecosts, and advertising expenses.
to PepsiCo 
Updated guidance
Pepsi now expects its scal 2018 organic revenue growth to be at least 3% compared to
its previous estimate of at least 2.3%. The company has lowered its scal 2018 adjusted
EPS outlook to $5.65 compared to its previous guidance of $5.70 due to the expected
unfavorable impact of foreign currency movements. This new guidance re ects
estimated growth of 8.0% compared to $5.23 in scal 2017.
TAKE A 10-DAY FREE TRIAL NOW! (/SIGNUP?RETURN=%2F2018%2F10%2FPEPSICO-TOPS-FISCAL-Q3-2018-ESTIMATES-ON-
INTERNATIONAL-STRENGTH)
What Caused the Consumer Sector to Rise Last Week?
By Sue Miller
Jul 16, 2018 | 8:45 PM
 
(https://api.marketrealist.com/api/serie/2018/07/what-
What happened in the market and the consumer sector last week?
caused-
Amid the ongoing second-quarter earnings season, last week was a stable one for the
the-
market after the US Department of Labor released its in ation data.
consumer-
After
sector-falling in the previous week, the S&P 500 Index (SPY (/quote-page/SPY)) rose 1.5%
in
to-the week that ended on July 13. Most sectors gained last week except for the utility
and retail sectors.
rise-
last-
week/pdf)


The consumer staples sector enjoyed a good week, rising 1.0%. Walmart (WMT (/quote-
page/WMT)), Costco (COST (/quote-page/COST)), and a few other stocks drove the rise in
the sector. Only PepsiCo (PEP (/quote-page/PEP)) reported earnings in the consumer
staples sector last week, rising ~3.0%. In the consumer discretionary sector, Amazon
(AMZN (/quote-page/AMZN)), Wynn Resorts (WYNN (/quote-page/WYNN)), and VF
Corporation (VFC (/quote-page/VFC)) rose last week.
The in ation data released by the US Bureau of Labor Statistics on July 12 also drove the
markets last week. According to the data, the consumer price index rose 2.9%, while
average hourly earnings rose 2.7% compared to a year earlier in June.
The consumer staples sector reported a gain of 1.0%, while the consumer discretionary
sector rose 2.1%. As per a July 13 Factset report, the S&P 500’s blended earnings growth
rate forOverviews
Company the second quarter stands at 19.9%.
(/category/company-description)

Consumer sector ETFs’ performances were mediocre
Consumer sector–based ETFs had an average week last week. The SPDR S&P Retail ETF
(XRT (/quote-page/XRT)) was yet again the underperformer, falling 1.2% in the week.
On the other hand, the Consumer Staples Select Sector SPDR ETF (XLP (/quote-
page/XLP)) rose 1.0%, and the Consumer Discretionary Select Sector SPDR ETF (XLY
(/quote-page/XLY)) rose 2.1% in the week.
A Glance at Key Updates from the Consumer Sector Last Week
By Sue Miller
Jul 16, 2018 | 8:45 PM
 
(https://api.marketrealist.com/api/serie/2018/07/a-
Indexes’ performances YTD
glance-
In terms of YTD (year-to-date) performance, the consumer discretionary sector has
at-
performed better than the consumer staples sector and the S&P 500 Index.
key-
The S&P 500 Consumer Discretionary Index (14.2%) has outperformed the S&P 500
updates-
Index
from- (4.7%) and the S&P 500 Consumer Staples Index (-7.8%) YTD.
the-
consumer-
sector-
last-
week/pdf)


Key updates from last week

On July 10, Amazon (AMZN (/quote-page/AMZN)) announced its plans for a new
ful llment center in the eastern suburb of Orleans in Ottawa, Ontario. The company
plans to create more than 600 full-time jobs at this one-million-square-foot ful llment
center.
To reinforce its strategy in the US beer market, on July 11, Constellation Brands (STZ
(/quote-page/STZ)) announced its purchase of Four Corners Brewing, a beverage alcohol
company. Four Corners Brewing consists of brands such as Local Buzz Honey-Rye
Golden Ale and El Chingon IPA. It will complement Constellation’s existing portfolio by
joining its Craft & Specialty Beer Group.
On its investor day last week, General Mills (GIS (/quote-page/GIS)) discussed its global
growth priorities, focusing on its consumer- rst strategy. The company mentioned that
its top line growth would continue but that it would also focus on e ciency and margin

support through holistic margin management savings and its Strategic Revenue
Management program. According to the company, it aims to reshape its portfolio
through strategic acquisitions and divestitures.
On July 9, The J.M. Smucker Company (SJM (/quote-page/SJM)) announced its plan to sell
its US (https://marketrealist.com/2018/07/why-j-m-smucker-is-divesting-its-baking-
business) baking business to Brynwood Partners for $375 million. The divestiture
includes products sold in the United States under the brand names Hungry Jack,
Pillsbury, Martha White, White Lily, and Jim Dandy. The deal does not include its baking
business in Canada.
On July 13, the company also announced a 9% increase in its quarterly dividend from
$0.78 to $$0.85 per common share. The increased dividend will be paid on September 4
to shareholders of record at the close of business on August 17.
On July 12, Papa John’s Pizza (PZZA (/quote-page/PZZA)) announced that John H.
Schnatter had resigned as the chair of its board. The company will be appointing a new
chair in the coming weeks.
On July 13, Ingredion (INGR (/quote-page/INGR)) announced a $125 million target for the
acceleration of its Cost Smart savings program through the reduction of its cost of sales
and SG&A (selling, general, and administrative) expenses by the end of 2021. The
company also revised its 2018 adjusted EPS guidance to the range of $7.50–$7.80 from
its previous guidance of $7.90–$8.20.
On July 9, Booking Holdings (BKNG (/quote-page/BKNG)) announced that it had entered

into an agreement to acquire hotel metasearch site HotelsCombined. The acquisition
will be an addition to the company’s travel metasearch brand, KAYAK, and it should help
to further expand the company’s worldwide metasearch strategy.
On July 11, Omnicom Group (OMC (/quote-page/OMC)) announced that it had entered
into an agreement to divest Sellbytel Group to Webhelp Group. The deal is expected to
close in the third quarter.
Who Caught Analysts' Eye in the Consumer Sector Last Week?

By Sue Miller
Jul 16, 2018 | 8:45 PM
  Overviews (/category/company-description)
Company

(https://api.marketrealist.com/api/serie/2018/07/who-
Top gainers last week
On July 12, Costco Wholesale (COST (/quote-page/COST)) reported its June sales results
caught-
(https://marketrealist.com/2018/07/costco-had-solid-comparable-store-sales-in-june).
analysts-
The company reported an 11.7% rise in net sales to $13.5 billion in June compared to its
eye-
net sales of $12.13 billion in the same period last year.
in-
The
the- company’s sales rose 9.7% compared to 6.0% in June 2017. Regionwise, its
comparable
consumer- sales rose 10.8% in the United States, 6.0% in Canada, and 7.3% in other
international locations. Its stock rose 3.3% last week after it released its sales results.
sector-
last-
week/pdf)
On July 12, Bloomberg reported that a report by Reorg Research had stated that US
antitrust enforcers might not challenge the CVS-Aetna merger deal. CVS Health (CVS
(/quote-page/CVS)) stock rose 3.2% last week.
On July 12, media speculation ared up after Reuters reported that Nikkei Business Daily
had said that US retailer Walmart (https://marketrealist.com/2018/07/why-walmart-is-
reshaping-its-international-business) (WMT (/quote-page/WMT)) was planning to sell its
11/27/2018p g qEstimatespongInternational Strength p
PepsiCo Tops Q3 2018 g
Japanese supermarket chain, Seiyu. However, on July 13, Reuters reported that Walmart
had ended the speculation by announcing that it would not be selling the chain and in
fact had plans to develop its business in Japan. Walmart stock rose 3.8% last week.

Amazon (AMZN (/quote-page/AMZN)) stock hit a record high last week after many
brokerage companies raised its target price. Cowen and Company raised the stock’s
target price to $2,100 from $2,000 and rated it as an “outperform.” Canaccord Genuity
raised its target price to $2,000 from $1,800. Independent Research raised the stock’s
target price to $2,050 from $1,850 with a “buy” rating. Barclays raised AMZN’s price to
$1,850 from $1,700.
On July 10, Stifel upgraded Wynn Resorts (WYNN (/quote-page/WYNN)) to a “buy” from a
“hold” and cut its target price to $207 from $209. The stock rose 5.3% last week.
On July 13, Bank of America Merrill Lynch upgraded VF Corporation (VFC (/quote-
page/VFC)) to a “buy” from a “neutral” and raised its price target to $96 from $65. Analyst
Robert F. Ohmes at Merrill Lynch believes that the Vans brand’s momentum and
recognition will be fruitful to the company’s overall performance. The stock rose 4.1%
last week.
Who Failed to Garner Attention in the Consumer Sector Last

Week?
By Sue Miller
Jul 16, 2018 | 8:45 PM
 
(https://api.marketrealist.com/api/serie/2018/07/who-
Underperformers last week
failed-
On July 9, the Kroger Company (KR (/quote-page/KR)) announced a $17 million
to-
investment in its distribution center on Mount Zion Road in Florence, Kentucky. The
garner-
distribution center is located in Boone County. This investment is expected to create 250
attention- new jobs by ramping up production.
full-time
in-
The company also announced its new brand, Dip, which was developed in partnership
the-
with fashion designer Joe Mimran. Kroger stock fell 3.7% last week.
consumer-
sector-
last-
week/pdf)


On July 12, L Brands (LB (/quote-page/LB)) reported its June sales results. Net sales for
the month rose 6% to $1.28 billion compared to $1.21 billion a year ago. Its comparable
sales for June rose 3% compared to a year ago. Although the numbers rose for June,
they fell behind May’s increase, taking a toll on the stock. The stock plummeted 13.6%
last week.
The Hershey Company (HSY (/quote-page/HSY)) fell 1.6% last week after Bernstein
reduced the target price on its stock to $109 from $111.
Goodyear Tire & Rubber Company (GT (/quote-page/GT)) stock fell 4.7% last week after
Je eries reduced its target price to $32 from $36.
Word on the Street last week

On July 9, CNBC reported that Je eries had downgraded Procter & Gamble (PG (/quote-
page/PG)) to a “hold” from a “buy” and had reduced its target price to $79 from $83. This
downgrade came on the back of predictions that the company would miss forecasts for18/19
https://marketrealist.com/2014/12/pepsicos-three-channel-distribution-network
downgrade came on the back of predictions that the company would miss forecasts for
the next scal year due to rising commodity costs.
On July Overviews
Company 9, JPMorgan Chase upgraded Archer Daniels Midland (ADM (/quote-page/ADM))
(/category/company-description)
stock to a “neutral”
Must-know: from
An investor’s an to
guide “underweight”
PepsiCo and raised the stock’s target price to $48

from $42.
On July 9, Morgan Stanley upgraded Delphi Automotive PLC (DLPH (/quote-page/DLPH))
to an “overweight” from an “equal-weight” rating.
After PepsiCo (PEP (/quote-page/PEP)) reported its second-quarter results on July 10,
many brokerage companies raised the stock’s target price. Je eries raised its target
price to $107 from $103 with a “hold” rating. Morgan Stanley increased its target price to
$127 from $123. Susquehanna raised its target price to $132 from $128. Cowen and
Company raised its target price to $124 from $120. Barclays raised its target price to
$111 from $108.
On July 10, Evercore ISI downgraded Walgreens Boots Alliance (WBA (/quote-page/WBA))
to an “in-line” from an “outperform” rating.
On July 11, Barclays upgraded TripAdvisor (TRIP (/quote-page/TRIP)) to an “overweight”

from an “equal-weight” rating and raised its target price to $70 from $49.
On July 13, Citigroup downgraded Ingredion (INGR (/quote-page/INGR)) to a “sell” from a

“neutral.”
TO READ MORE TAKE A 10-DAY FREE TRIAL NOW! (/SIGNUP?RETURN=%2F2018%2F07%2FWHO-FAILED-TO-GARNER-
ATTENTION-IN-THE-CONSUMER-SECTOR-LAST-WEEK)

PepsiCo Tops Q3 2018 Estimates On International Strength

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11/27/2018 PepsiCo Tops Q3 2018 Estimates on International Strength

PepsiCo’s three-channel distribution network

(https://mr-uploads s3 amazonaws com/uploads/2014/12/distribution-network png)

Direct store delivery

Third-party distributor networks

Leveraging its dominant position

Understanding PepsiCo’s segments

2013 segment performance

The Europe segment’s net revenues increased by 2% due to higher pricing.

Segment pro tability

(/quote-page/DPS)), are implementing productivity programs to improve pro tability.

PepsiCo: One of the behemoths of beverage

PepsiCo’s carbonated beverages

PepsiCo’s noncarbonated beverage portfolio includes leading brands such as Tropicana

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Dominant market share

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The company’s future prospects also look promising. Euromonitor International

With consumers shifting to healthier foods, PepsiCo is focused on developing new

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