PepsiCo's Frito-Lay Maintains Star Status Amid Challenging North American Market

PepsiCo's Frito-Lay snacks unit remains a key growth engine, with management focusing on stabilizing the snacking category and keeping consumers engaged through value, affordability, and innovation. The unit's flagship brands, such as Cheetos and Doritos, are performing well, and the "permissible" snacking portfolio has grown into a $2 billion business. PepsiCo is also actively refreshing its biggest snack brands and expanding its presence in the away-from-home channel, which is expected to drive long-term growth.

PepsiCo's Frito-Lay snacks unit has remained a key growth engine, with the company focusing on stabilizing the snacking category and keeping consumers engaged through value, affordability, and innovation. The unit's flagship brands, such as Cheetos and Doritos, continue to perform well, with the "permissible" snacking portfolio growing into a $2 billion business [1].

PepsiCo is actively refreshing its biggest snack brands and expanding its presence in the away-from-home channel, which is expected to drive long-term growth. The company's focus on these areas is evident in its latest quarterly earnings report, where it reported earnings per share of $2.12, beating analysts' consensus estimates of $2.03 by $0.09 [2].

Steward Partners Investment Advisory LLC, a significant institutional investor, has increased its stake in PepsiCo by 2.1% to 145,200 shares, valued at approximately $21.77 million, according to its latest SEC filing [1]. This move reflects the confidence of institutional investors in PepsiCo's growth prospects and the company's ability to navigate the competitive snacking market.

PepsiCo's stock has been the subject of several recent research reports. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating on shares of PepsiCo, while JPMorgan Chase & Co. set a "neutral" rating and lowered its price target to $139.00 [2]. Despite these mixed signals, the company's strong financial performance and strategic initiatives in the snacking category suggest that PepsiCo remains a solid investment choice for long-term investors.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-steward-partners-investment-advisory-llc-has-2177-million-position-in-pepsico-inc-nasdaqpep-2025-08-17/
[2] https://www.marketbeat.com/instant-alerts/pepsico-inc-earnings-report-q2-2025/