PepsiCo, Inc. (NASDAQ: PEP) is back in the spotlight on Friday, December 12, 2025, as investors digest a fast-moving mix of headlines: an Elliott-backed operating reset, a plan to cut roughly 20% of U.S. SKUs, and a newly detailed preliminary 2026 outlook that puts growth acceleration and margin expansion front and center. [1]
PEP traded around $149.55 on Friday, up modestly on the day, with an intraday range of roughly $148.71 to $150.32.
PepsiCo stock price check: where PEP stands on Dec. 12, 2025
On Dec. 12, PepsiCo shares traded near the $149 level—roughly mid-range versus the past year’s highs and lows cited by multiple market-data providers. For context, MarketBeat listed a 12‑month range of about $127.60 to $160.15 and a market cap around $200+ billion for PepsiCo. [2]
That “stuck in the middle” positioning matters, because the current debate around PEP stock is less about whether PepsiCo is a high-quality consumer staples name—and more about whether the company can re-ignite North America momentum without giving back too much in margins as it leans into affordability.
The big catalyst: PepsiCo’s Elliott-backed reset (and why it matters for PEP stock)
The headline that continues to shape sentiment into Dec. 12 is PepsiCo’s settlement and ongoing engagement with activist investor Elliott Investment Management, following Elliott’s disclosure of a roughly $4 billion stake earlier in 2025. [3]
This week’s news cycle has centered on how PepsiCo is responding:
- Sharper “everyday value” pricing and more targeted affordability tiers
- Innovation with simpler/functional ingredients (including protein-forward products)
- Cost reductions and operational streamlining, including plant/line actions
- A plan to reduce nearly 20% of U.S. SKUs by early next year
- A review of North America supply chain and go-to-market systems, with a broader update expected later [4]
For PEP stockholders, the strategic logic is straightforward: fewer SKUs can reduce complexity and cost, while “value tier” pricing aims to protect volumes in a consumer environment where shoppers are still sensitive to price.
The risk: affordability initiatives can pressure margins if execution isn’t tight—or if PepsiCo is forced into a deeper pricing response amid competitive moves.
PepsiCo’s 2026 forecast: the numbers investors are keying on
PepsiCo’s December 8, 2025 corporate update (still driving Dec. 12 coverage and analyst commentary) included a preliminary 2026 financial outlook and a set of operational priorities designed to improve growth, productivity, and profitability starting in fiscal 2026. [5]
Key 2026 outlook metrics (PepsiCo guidance)
According to PepsiCo’s release, the company expects:
- Organic revenue growth of 2% to 4% in fiscal 2026 (with expectations skewed toward the high end in the second half) [6]
- Reported net revenue growth implied in a 4% to 6% range, including contributions from acquisitions/divestitures and FX translation assumptions [7]
- Core EPS growth of about 5% to 7% in fiscal 2026, and approximately 7% to 9% excluding the impact of global minimum tax regulations [8]
- At least 100 basis points of core operating margin expansion in aggregate over the next three fiscal years [9]
- Free cash flow conversion of at least 80% in 2026 (and at least 90% in 2027), along with expectations for higher cash returns to shareholders in 2026 and 2027 (subject to board approval) [10]
The market is treating this as more than routine guidance: PepsiCo rarely provides such an early, detailed view unless management wants to reshape the narrative. That’s especially true in the wake of activist pressure and a period of comparatively muted North American growth.
SKU cuts and price moves: what today’s headlines are emphasizing
While the formal outlook came earlier in the week, Dec. 12 coverage is amplifying the consumer-facing implications—especially the plan to streamline the product portfolio.
A People.com report published Friday said PepsiCo is eliminating nearly 20% of its U.S. product lineup by early 2026, with changes likely to hit niche variations (flavors, sizes, packaging) rather than core franchises. [11]
Earlier reporting from AP also highlighted that PepsiCo plans to cut prices on some items and remove about 20% of offerings, with savings redirected toward marketing and consumer value—steps linked to the company’s agreement with Elliott. [12]
PepsiCo’s own language is even more explicit on the operational side: it cited plant closures and manufacturing line shutdowns and stated it is “in the process of reducing nearly 20 percent of SKUs in the U.S. by early next year.” [13]
Analyst forecasts and price targets: Wall Street’s view is splitting into two camps
1) The “turnaround traction” camp (upgrades and higher targets)
One of the most notable recent calls came from J.P. Morgan, which upgraded PepsiCo to Overweight from Neutral and raised its price target to $164 from $151. A Reuters/Refinitiv market note also pointed to margin expansion expectations and a potential FX tailwind in 2026 as supportive factors. [14]
2) The “show-me” camp (neutral stances, modest target tweaks)
At the same time, not all analysts are leaning in. Barclays, for instance, raised its price target to $144 from $142 while maintaining an Equal Weight stance, describing the 2026 framing as broadly in line with expectations. [15]
What the consensus says right now
MarketBeat’s aggregation (based on the analyst set it tracks) described PepsiCo’s consensus as “Hold” with an average price target around $158.35, reflecting a market that sees upside—but wants proof that the strategy translates into sustained revenue acceleration and margin expansion. [16]
Dividend and income angle: why PEP is still in the “core holdings” conversation
Even as the storyline shifts toward restructuring and affordability, PepsiCo continues to attract income-focused investors.
- PepsiCo declared a quarterly dividend of $1.4225 per share, payable January 6, 2026 to shareholders of record as of December 5, 2025, and noted 2025 marked its 53rd consecutive annual dividend increase. [17]
- Commentary published Dec. 12 from The Motley Fool highlighted PepsiCo as a “forever” dividend stock, citing a forward yield near 4% (based on its calculations at the time). [18]
For SEO-minded investors searching “PepsiCo stock dividend” or “PEP dividend date,” the key takeaway is simple: the income component remains intact, but the market’s multiple will increasingly hinge on whether the 2026 plan delivers real volume and productivity gains.
Quiet but notable: institutional rebalancing headlines hitting on Dec. 12
Beyond strategy and analyst notes, Dec. 12 also brought routine—but sometimes sentiment-influencing—ownership headlines tied to SEC filings.
MarketBeat reported that MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. reduced its PepsiCo position during the period referenced in its filing, while other filings showed new or adjusted positions by additional managers. [19]
These moves don’t automatically signal a fundamental view on PepsiCo’s outlook (portfolio construction matters), but they can contribute to short-term flows—especially when a mega-cap consumer staples name is already under a narrative microscope.
Competitive backdrop: Coca-Cola, pricing, and the “value” chess match
PepsiCo’s affordability push is arriving as the broader beverage space keeps evolving. Reuters reported Coca-Cola’s incoming CEO transition and noted the competitive tension as PepsiCo reviews its supply chain and considers actions that could influence pricing dynamics. [20]
For PepsiCo investors, the implication is clear: if PEP leans harder into lower price points to regain frequency and share, it may win volume—but it could also trigger a more aggressive competitive response, which would make productivity savings and operational execution even more critical.
What to watch next for PepsiCo stock
If you’re tracking PEP stock news into year-end and early 2026, these are the next catalysts most likely to matter:
- Fourth-quarter and full-year 2025 earnings: PepsiCo said it will report results on Tuesday, February 3, 2026, with materials posted early that morning and an analyst Q&A scheduled. [21]
- Evidence that SKU rationalization is improving execution: fewer items should mean better on-shelf availability, cleaner marketing messages, and improved supply chain productivity—but investors will want to see it in metrics. [22]
- North America supply chain and go-to-market review: PepsiCo said a comprehensive update is intended for late 2026, which suggests 2026 may be a transition year with incremental disclosures. [23]
- Follow-through on 2026 financial targets: the market will closely watch progress toward the 2–4% organic revenue range and the 5–7% core EPS growth outlook. [24]
Bottom line: PepsiCo stock is trading like a “prove-it” story—despite defensive-sector DNA
On Dec. 12, 2025, PepsiCo stock sits at the intersection of two familiar investor narratives:
- Classic consumer-staples durability (cash generation, global scale, dividend continuity) [25]
- A renewed execution challenge in North America, now under sharper scrutiny after Elliott’s involvement and PepsiCo’s decision to pair affordability moves with portfolio simplification and a supply chain review [26]
References
1. www.pepsico.com, 2. www.marketbeat.com, 3. www.reuters.com, 4. www.pepsico.com, 5. www.pepsico.com, 6. www.pepsico.com, 7. www.pepsico.com, 8. www.pepsico.com, 9. www.pepsico.com, 10. www.pepsico.com, 11. people.com, 12. apnews.com, 13. www.pepsico.com, 14. www.tradingview.com, 15. www.tipranks.com, 16. www.marketbeat.com, 17. www.pepsico.com, 18. www.fool.com, 19. www.marketbeat.com, 20. www.reuters.com, 21. www.pepsico.com, 22. www.pepsico.com, 23. www.pepsico.com, 24. www.pepsico.com, 25. www.pepsico.com, 26. www.pepsico.com
