PepsiCo stock jumps 1.1% on Elliotts 4B stake as activist pushes overhaul surging to secondhighest volume

PepsiCo (PEP) saw a 1.10% rise in its stock price on Sept. 2, 2025, with a trading volume of $2.65 billion, marking a 129.85% increase from the previous day’s volume. The move follows Elliott Investment Management’s disclosed $4 billion stake in the company, representing a 2% ownership in PepsiCo’s market value. The activist firm has called for strategic overhauls to address underperformance in core beverage and snack segments, emphasizing the need for innovation, cost optimization, and portfolio streamlining.

Elliott’s letter highlighted weaknesses in PepsiCo’s North American beverage division, citing strategic missteps and market-share erosion against rivals like Coca-Cola. The firm proposed re-franchising bottling operations, akin to Coca-Cola’s model, and suggested divesting non-core assets in the food portfolio, including Quaker Foods. Analysts noted that recent investments in brands like Celsius and Poppi reflect PepsiCo’s push into healthier categories but warned of challenges from tariffs and shifting consumer preferences. The company’s second-quarter earnings, which exceeded estimates with $22.7 billion in revenue, underscored its ability to leverage cost savings and automation to offset pressure.

While PepsiCo’s management reiterated its focus on innovation and international growth, Elliott’s stake has intensified scrutiny over its long-term strategy. The firm’s call for a “critical inflection point” aligns with broader industry trends, as packaged food companies grapple with post-pandemic margin pressures and regulatory shifts toward natural ingredients. Despite cautious optimism from analysts, the stock’s performance remains tied to its ability to execute transformative changes without compromising core profitability. The activist’s involvement could serve as a catalyst for near-term reforms, though structural challenges in both beverage and snack divisions persist.