PepsiCo, Inc. (PEP) is a global leader in the food and beverage industry, headquartered in Purchase, New York. With a market cap of around $191.2 billion, the company operates in the Consumer Staples sector, specifically within the beverages-non-alcoholic industry.  

PepsiCo stock has posted a year-to-date decline of approximately 5.4%, while its 52-week performance also remained negative, down about 16.2%. This performance significantly lags the broader market, with the S&P 500 Index ($SPX) rising 7.8% YTD and 21.9% over the past year.

Also, within its own sector, PepsiCo’s performance has not been promising, as the Consumer Staples Select Sector SPDR ETF (XLP) gained 4.6% YTD and around 5% over the past year. 

Major drivers behind PepsiCo’s subdued performance include rising costs, sluggish volume growth, and a consumer shift away from packaged food and beverages in favor of fresher, healthier, or lower-cost alternatives. 

While PepsiCo has successfully implemented price hikes, this strategy is reaching its limits as elasticity begins to weigh on demand. In the longer term, concerns over health trends have also capped investor enthusiasm. However, the company’s strong brand portfolio and global footprint continue to provide stability during broader market volatility. 

On July 24, the company declared a quarterly dividend of $1.4225 per share, representing a 5% increase from last year, payable on September 30, 2025, to shareholders of record as of September 5. This marks PepsiCo’s 53rd straight annual dividend increase since 1965. However, shares declined marginally post announcement given the macroeconomic headwinds. 

Analysts project PEP to report an EPS decline of 1.7% year-over-year to $8.02, on a diluted basis, for the current fiscal year, ending in December 2025. The company has topped the earnings consensus estimate in three out of the four trailing quarters, while missing on another occasion.  

Among the 20 analysts covering PEP stock, the consensus rating is a “Moderate Buy.” That’s based on six “Strong Buy,” 13 “Hold,” and one “Strong Sell” ratings. 

The current configuration has remained consistent over the past few months. 

Last month, UBS Group AG (UBS) reaffirmed its “Buy” rating on PepsiCo, citing improved confidence in the company’s growth outlook. After Q2 earnings, UBS noted PepsiCo is now on a stronger trajectory, with potential for high single-digit bottom-line growth by 2026. While organic sales recovery may take time, the firm views PepsiCo’s risk/reward profile as one of the most attractive in the sector.  

The mean price target of $152.05 represents 5.6% upside to PEP’s current price, while the Street-high price target of $169 suggests an upside potential of 17.4%.