PepsiCo on Track for Growth on Innovation and International Expansion, Despite Near-Term Challenges

Following years of anemic growth due to operational missteps and underinvestments, management has worked to right PepsiCo’s ship, driving steady top-line and profit expansion in past years. But we think there is more room to go, as the firm benefits from secular tailwinds in the snack business, accelerating expansion in various emerging markets (such as Latin America and Asia-Pacific), and an integrated business model facilitating more effective commercialization.