|Bid||134.19 x 800|
|Ask||134.20 x 1100|
|Day's Range||133.74 - 134.42|
|52 Week Range||104.53 - 135.24|
|Beta (3Y Monthly)||0.54|
|PE Ratio (TTM)||15.15|
|Earnings Date||Jul 9, 2019|
|Forward Dividend & Yield||3.82 (2.85%)|
|1y Target Est||127.84|
PepsiCo (PEP) is focusing on driving greater efficiency and effectiveness, by lowering costs and plowing back savings to develop scale and core capabilities.
Coca-Cola (KO) gains from continued innovation and investment in core categories and brands. These traits have been bolstering its quarterly performances. However, currency headwinds remain.
PepsiCo experienced strong organic revenue growth of 5.2% in the first quarter driven mainly by the performance of its Frito-Lay North America segment. However, the company doesn’t expect this impressive rate of growth to continue in the remainder of 2019.
PepsiCo (PEP) delivered higher margins in the first quarter of 2019 despite higher freight costs and commodity inflation. In the first quarter, PepsiCo’s gross margin expanded 87 basis points on a YoY (year-over-year) basis to 55.9%.
PepsiCo’s revenue rose 1.8% to $64.7 billion in 2018. Excluding the impact of structural items and currency fluctuations, the company’s revenue rose 3.7% on an organic basis in 2018. Its revenue rose 2.6% to $12.9 billion in the first quarter.
PepsiCo (PEP) stock has risen 21.4% YTD (year-to-date) as of June 20. The snack and beverage giant is ahead of its rival the Coca-Cola Company (KO) and the S&P 500 Index, which have risen 9.1% and 17.8%, respectively, since the start of this year.
Monster Beverage (MNST) is benefiting from brand strength, constant product launches and innovations. Further, the company is on track with growth in its international markets.
Keurig Dr Pepper (KDP) gains from long-term strategies and strong market share growth across portfolio. But soft CSD category, higher input costs and currency headwinds are hurting sales.
U.K. grocer J Sainsbury Plc sells a private-label alternative for a third of the price. It was also blindsided by production glitches and slowing sales of infant-nutrition products after acquiring Enfamil maker Mead Johnson. By turning to Narasimhan, a PepsiCo Inc. veteran, the company hopes to reconcile Kapoor’s vision with the reality that fickle shoppers are overwhelmingly turning away from big brands to cheaper alternatives.
(Bloomberg Opinion) -- Reckitt Benckiser Group Plc has appointed Laxman Narasimhan as its new chief executive officer, succeeding Rakesh Kapoor. An outsider should herald a fresh start for a group that was once a superstar, but has more recently become a laggard.Reckitt has eschewed some of the obvious candidates for the role, such as Tesco Plc’s Dave Lewis or Unilever’s Nitin Paranjpe. It has instead chosen Narasimhan, who joins from PepsiCo Inc., where he was global chief commercial officer.He’s an unknown quantity outside of the U.S. He had a career spanning almost 20 years at McKinsey, before moving to Pepsi. While he was well-regarded there, its change of CEO might have left him as one of the senior executives who missed out on the top job and was therefore looking for opportunities outside of the soft drinks maker.And Reckitt has some particular challenges. It has endured a tumultuous few years, following the $16.6 billion acquisition of Mead Johnson in 2017.Narasimhan should at least bring a burst energy to the group. Kapoor was increasingly worn down by Reckitt’s problems.The first task of the incoming leader is to revive sales expansion, which has stalled. He must also complete the integration of Mead Johnson. It did seem as if it was improving, but hit another bump in the road last year, in the form of disruption to a plant in the Netherlands. Not having been involved in the purchase, Narasimhan can take an impartial view on the best way to tackle what increasingly looks like the wrong deal to have done.Narasimhan must both fit in with Reckitt’s culture, and evolve it. It has a particular hard-driving approach, where cost-cutting to bolster margins is at the forefront. That has gone out of fashion with investors, who want a better balance between top line and bottom line growth. The new CEO will have more scope to warn that margins must come down to facilitate the investment needed to turbocharge sales.Kapoor reorganized Reckitt into two divisions: one focused on household products, such as Cillit Bang cleaner, and the other on consumer health treatments including Nurofen painkillers. As well as being CEO, Narasimhan will directly lead the health arm.But the outgoing CEO hadn't yet taken that to its logical conclusion: separating the two units, possibly through a sale of hygiene and home. While Kapoor had earmarked this as a job for mid-2020, it will fall to his successor to complete the task.A split is not a given: new leaders don’t usually like to take an ax to their empires. There is also a question mark over whether Narasimhan can break up the group, even if he wanted to.As my colleague Chris Hughes has argued, this reinvention could be hampered by the aftershocks from the Justice Department’s indictment of Indivior Plc, the pharma business Reckitt spun off back in 2014. The drugmaker faces a $3 billion fine after U.S. prosecutors alleged it lied about the dangers of its opioid addiction treatment.That Narisimhan didn’t have any hand in the Indivior spin off means he has no baggage associated with the original deal, which would impede finding a solution. Having been based in the U.S., he should also have experience of dealing with regulators there.Indeed, this underlines the benefit of appointing an outsider – to both the company and the broader European consumer goods sector – he has much more latitude to take the difficult decisions that Reckitt needs to regain its stellar status.To contact the author of this story: Andrea Felsted at email@example.comTo contact the editor responsible for this story: Jennifer Ryan at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Narasimhan, PepsiCo's global chief commercial officer, is the first external candidate to be appointed as CEO at Reckitt since the maker of Durex condoms, Nurofen tablets and Dettol cleaners was formed in 1999. The 52-year-old takes over as CEO on Sept. 1, replacing Rakesh Kapoor, 60, who has led Reckitt for more than eight years and said in January he would retire this year.
Brown-Forman (BF.B) agrees to buy The 86 Company, bringing the Fords Gin trademark to its growing portfolio of premium gins. This should fortify its strong spirits portfolio.
ROE helps investors distinguish profit-generating companies from profit burners and is useful in determining the financial health of a company.