Elliott Pushes for PepsiCo Turnaround With $4 Billion Stake: Can the Snack-and-Soda Giant Get Its Fizz Back? Meta Description Activist investor Elliott has built a $4 billion stake in PepsiCo, pushing for bottling refranchising, cost cuts, and portfolio changes. Can Pepsi shares really jump 50%? SEO Tags pepsico, elliott investment, pepsico turnaround, activist investor, ramon laguarta, bottling refranchising, pepsico stock, corporate governance, nelson peltz, pepsico snacks, pepsico beverages PepsiCo Meets Elliott: When the Activist Knocks PepsiCo, the once-proud rival to Coca-Cola, has found itself flat. Soda sales are sagging, snacks are slowing, and the company’s market value has shrunk from $270 billion in 2023 to about $200 billion today. Enter Elliott Investment Management, one of the world’s most aggressive activists, with a $4 billion stake—making it one of PepsiCo’s largest shareholders. Elliott says shares could rise more than 50% if the company takes bold action. Translation: break out the tool kit, because the activist wants to remodel the PepsiCo house. Elliott’s Recipe for a PepsiCo Turnaround 1. Refranchise the Bottling Business Coca-Cola already did it in 2017. Elliott wants PepsiCo to follow suit—handing bottling operations back to local bottlers. Coke’s market cap is now near $300 billion, while Pepsi’s stock has lagged. The activist sees the math: less capital tied up, more focus on branding. 2. Cut the Dead Weight PepsiCo owns Mountain Dew, Gatorade, Lay’s, Doritos, Quaker Oats—and newer bets like Poppi and Siete Foods. But Elliott wants the company to review and trim underperformers, freeing up cash and marketing bandwidth for the winners. 3. Get Serious About Cost Structure Analysts estimate nearly $800 million in potential cost savings if PepsiCo retools its food division. Elliott’s message: less bloat, more bite. 4. Clarity for Investors Elliott doesn’t just want action—it wants a clear roadmap for how PepsiCo will restore growth. Less “we’re confident in our strategy,” more measurable goals that Wall Street can track. The State of PepsiCo: Fizz Fading, Snacks Stalling Soda Struggles: Pepsi just dropped to fourth place in U.S. sales volume, trailing Coke, Dr Pepper, and even Sprite. Once Coke’s heavyweight rival, Pepsi is now the undercard. Snacks Slowdown: Sales growth in the food unit has slowed every quarter since late 2022. Even Lay’s and Doritos aren’t crunching like they used to. Tariffs + Consumers: U.S. tariffs and penny-pinching shoppers are squeezing margins further. Leadership Response: CEO Ramon Laguarta has tried integrations (chips + soda delivered together), natural-ingredient relaunches (Lay’s, Tostitos), and fresh marketing campaigns. But Elliott thinks it’s not enough. The Activist Playbook: Why Elliott Thinks Pepsi Could Pop Elliott isn’t just tossing in a casual buy—it’s one of its largest equity stakes ever. The firm has history here: Starbucks: Elliott took a stake, helped drive CEO change, and pushed for new strategy. Honeywell: Elliott bought in, called for a breakup, and won a board seat. Now it’s PepsiCo’s turn. The activist sees three big levers: Bottling refranchising (unlock cash + margins). Cost cuts in food (potential $800M). Brand pruning (ditch the losers, double down on Zero Sugar, Gatorade, and the snack juggernauts). If Pepsi executes, Elliott believes shares could jump 50%+—taking Pepsi back toward Coke territory. Lessons From the Cola Wars, Round Two Coca-Cola pulled the refranchising trick early—and won. Its leaner structure left PepsiCo looking slow. Consumers are health-conscious. Pepsi Zero Sugar is finally gaining traction, but the brand has to pivot faster if it wants relevance with younger drinkers. Snacks are no longer untouchable. Even Lay’s and Doritos need reinvention as shoppers trade down and hunt for “value.” Final Word: Can Pepsi Get Its Pop Back? Elliott’s $4 billion bet isn’t just about soda—it’s about whether PepsiCo can shake off years of sluggishness and remind investors it’s more than Coke’s shadow. If the activist is right, Pepsi shares could rise by 50%. If management drags its feet, though, the company risks staying flat while Coke and Dr Pepper run away with the party. For PepsiCo, the fizz is gone. Elliott thinks it can be shaken back in. The only question now: will the board crack open the can—or let it go flat?

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Elliott Pushes for PepsiCo Turnaround With $4 Billion Stake: Can the Snack-and-Soda Giant Get Its Fizz Back?

PepsiCo Meets Elliott: When the Activist Knocks

PepsiCo, the once-proud rival to Coca-Cola, has found itself flat. Soda sales are sagging, snacks are slowing, and the company’s market value has shrunk from $270 billion in 2023 to about $200 billion today.

Enter Elliott Investment Management, one of the world’s most aggressive activists, with a $4 billion stake—making it one of PepsiCo’s largest shareholders. Elliott says shares could rise more than 50% if the company takes bold action. Translation: break out the tool kit, because the activist wants to remodel the PepsiCo house.

Elliott’s Recipe for a PepsiCo Turnaround

1. Refranchise the Bottling Business

Coca-Cola already did it in 2017. Elliott wants PepsiCo to follow suit—handing bottling operations back to local bottlers. Coke’s market cap is now near $300 billion, while Pepsi’s stock has lagged. The activist sees the math: less capital tied up, more focus on branding.

2. Cut the Dead Weight

PepsiCo owns Mountain Dew, Gatorade, Lay’s, Doritos, Quaker Oats—and newer bets like Poppi and Siete Foods. But Elliott wants the company to review and trim underperformers, freeing up cash and marketing bandwidth for the winners.

3. Get Serious About Cost Structure

Analysts estimate nearly $800 million in potential cost savings if PepsiCo retools its food division. Elliott’s message: less bloat, more bite.

4. Clarity for Investors

Elliott doesn’t just want action—it wants a clear roadmap for how PepsiCo will restore growth. Less “we’re confident in our strategy,” more measurable goals that Wall Street can track.

The State of PepsiCo: Fizz Fading, Snacks Stalling

Soda Struggles: Pepsi just dropped to fourth place in U.S. sales volume, trailing Coke, Dr Pepper, and even Sprite. Once Coke’s heavyweight rival, Pepsi is now the undercard.
Snacks Slowdown: Sales growth in the food unit has slowed every quarter since late 2022. Even Lay’s and Doritos aren’t crunching like they used to.
Tariffs + Consumers: U.S. tariffs and penny-pinching shoppers are squeezing margins further.
Leadership Response: CEO Ramon Laguarta has tried integrations (chips + soda delivered together), natural-ingredient relaunches (Lay’s, Tostitos), and fresh marketing campaigns. But Elliott thinks it’s not enough.

The Activist Playbook: Why Elliott Thinks Pepsi Could Pop

Elliott isn’t just tossing in a casual buy—it’s one of its largest equity stakes ever. The firm has history here:

Starbucks: Elliott took a stake, helped drive CEO change, and pushed for new strategy.
Honeywell: Elliott bought in, called for a breakup, and won a board seat.
Now it’s PepsiCo’s turn.

The activist sees three big levers:

Bottling refranchising (unlock cash + margins).
Cost cuts in food (potential $800M).
Brand pruning (ditch the losers, double down on Zero Sugar, Gatorade, and the snack juggernauts).

If Pepsi executes, Elliott believes shares could jump 50%+—taking Pepsi back toward Coke territory.

Lessons From the Cola Wars, Round Two

Coca-Cola pulled the refranchising trick early—and won. Its leaner structure left PepsiCo looking slow.
Consumers are health-conscious. Pepsi Zero Sugar is finally gaining traction, but the brand has to pivot faster if it wants relevance with younger drinkers.
Snacks are no longer untouchable. Even Lay’s and Doritos need reinvention as shoppers trade down and hunt for “value.”

Final Word: Can Pepsi Get Its Pop Back?

Elliott’s $4 billion bet isn’t just about soda—it’s about whether PepsiCo can shake off years of sluggishness and remind investors it’s more than Coke’s shadow.

If the activist is right, Pepsi shares could rise by 50%. If management drags its feet, though, the company risks staying flat while Coke and Dr Pepper run away with the party.

For PepsiCo, the fizz is gone. Elliott thinks it can be shaken back in. The only question now: will the board crack open the can—or let it go flat?

DISCLAIMER: This analysis of the aforementioned stock security is in no way to be construed, understood, or seen as formal, professional, or any other form of investment advice. We are simply expressing our opinions regarding a publicly traded entity.

MACROHINT

MACROHINT