LONDON, 14 April 2026 — PepsiCo Inc. (NASDAQ:PEP) is under pressure to show that its turnaround strategy is gaining traction, seven months after activist investor Elliott Investment Management disclosed a roughly US$4 billion stake in the company.
Investors are closely watching whether measures such as price cuts, brand relaunches and cost reductions can reverse declining volumes and restore growth.
PepsiCo has reported declining annual volumes since 2021, while its shares have lagged rival Coca-Cola Co. (NYSE:KO) over the past five years, as inflation-weary consumers shifted toward smaller packs and healthier snack options.
Turnaround Measures Under Scrutiny
Chief executive Ramon Laguarta announced a review of PepsiCo’s North America supply chain in December, alongside aggressive cost-cutting initiatives aimed at reviving growth.
The actions followed discussions with Elliott, which has urged the company to consider refranchising bottling operations and divesting non-core food assets.
In February, PepsiCo also said it would cut prices on key snack brands such as Lay’s and Doritos by up to 15% after consumer backlash over earlier price increases.
The company expects double-digit shelf-space growth for Frito-Lay in March and April, reflecting efforts to regain market share.
Investors Watching Volume Recovery
Investors are looking for signs that pricing adjustments and brand refreshes can drive stronger organic growth, particularly in North America.
PepsiCo currently trades at a discount to its historical earnings multiple, adding urgency to demonstrate progress in execution.
Stephanie Ling, chief investment officer at Hightower Advisors, said investors would be satisfied if PepsiCo delivers organic growth of around 0% to 2%, noting that cooperation with Elliott is viewed positively.
She also highlighted the appointment of former Walmart executive Steve Schmitt as chief financial officer as part of broader efforts to strengthen execution.
