New York, Feb 5, 2026, 21:26 EST — Market closed
- On Thursday, PepsiCo shares climbed 0.8%, ending the day at $167.53.
- The company priced a four-tranche €2.5 billion euro notes deal to refinance its short-term debt.
- PepsiCo announced a quarterly dividend of $1.4225 per share, set to be paid on March 31.
PepsiCo’s shares ended Thursday up 0.8%, closing at $167.53, after the company priced a €2.5 billion euro bond and announced a higher quarterly dividend.
This bond deal reveals PepsiCo’s funding strategy heading into 2026—replacing short-term debt with longer-dated euro-denominated loans. For shareholders, it signals steady cash management: borrowing more, paying dividends out.
U.S. markets are closed today, putting the spotlight on whether this financing will fuel the steady demand seen in consumer staples heading into Friday, or if it will be shrugged off as just routine balance-sheet activity that disappears fast.
PepsiCo plans to issue €500 million in floating-rate notes maturing Feb. 11, 2028, alongside three fixed-rate tranches, according to a prospectus supplement dated Feb. 4. The fixed-rate notes include €650 million at 3.300% due Feb. 11, 2034; €850 million at 3.700% due Feb. 11, 2038; and €500 million at 4.150% due Feb. 11, 2047. The floating-rate notes will reset quarterly, tied to three-month EURIBOR plus 0.230%. PepsiCo expects net proceeds around €2.48 billion ($2.95 billion), earmarked for general corporate use and repaying commercial paper, the filing showed. (SEC)
PepsiCo announced its board approved a quarterly dividend of $1.4225 per share, up 5% from the same quarter last year. The payout is set for March 31 to shareholders recorded by the close of business on March 6. The company also noted that 2026 marks its 54th straight year of raising dividends. (Pepsico)
PepsiCo’s latest moves come on the heels of its announcement earlier this week that it would slash prices on key snack lines like Lay’s and Doritos by up to 15%, responding to consumer concerns over cost. (Reuters)
Traders see the bond structure as a key factor. PepsiCo has combined fixed-rate debt with a floating-rate portion tied to EURIBOR, a setup that pays off when rates drop but can sting when they rise.
The downside is straightforward: if euro benchmark rates remain elevated or credit spreads widen, funding costs will rise. PepsiCo’s floating-rate debt leaves it vulnerable to these swings in interest expenses. Plus, price moves aimed at defending market share could hurt margins if sales volumes don’t pick up.
The next key dates are fast approaching. The notes should settle on or around Feb. 11, with PepsiCo anticipating trading on the Nasdaq Bond Exchange to kick off within 30 days of the original issue date. On the equity front, March 6 marks the record date for the dividend, followed by the payment on March 31.
