PepsiCo Announces Major Leadership Overhaul Amid Strategic Shift

PepsiCo is implementing a sweeping reorganization of its executive team, with significant personnel changes across its operational business set to take effect on December 28. This restructuring comes as several major financial institutions have raised their price targets for the company's shares, despite a year of weak performance for the stock.

The beverage and snack giant's management reshuffle appears to be driven, in part, by pressure from activist investor Elliott Investment Management. In early December, PepsiCo outlined preliminary financial targets for 2026, aiming for organic revenue growth of 2 to 4 percent and adjusted earnings per share growth of 5 to 7 percent.

To achieve these goals, the company is pursuing aggressive efficiency measures. In the United States, plans are in place to eliminate nearly 20 percent of product variants, a move designed to reduce operational complexity and cut costs.

New Leadership Appointments Detailed

The company has announced a comprehensive realignment of its management structure, intended to accelerate growth and create a more efficient commercial organization.

Key appointments include:

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• Steven Williams will assume the newly created role of Executive Vice President and Global Chief Commercial Officer.
• Ram Krishnan is appointed as the new Chief Executive Officer for PepsiCo North America.
• Athina Kanioura will now also oversee the Latin America food business.
• Mike Del Pozzo is promoted to President of the US Beverage division.

This leadership transition is occurring at a challenging time for the stock, which has declined by approximately 14 percent since the start of the year.

Analysts Revise Ratings Upward

In response to the strategic changes, investment banks have updated their valuations with a generally positive tone.

• JPMorgan upgraded the stock to "Overweight" with a price target of $164.
• Citi maintained a "Buy" rating while increasing its target to $170.
• Bank of America raised its target to $164, accompanied by a "Neutral" stance.

The average analyst price target now stands at $158.75. Currently, the majority of market experts recommend holding the shares.

Institutional Investors Show Diverging Views

The activity of large institutional shareholders reveals no clear consensus. Recent filings show mixed signals:
* Douglas Lane & Associates increased its position by 27.4 percent in the third quarter.
* Flputnam Investment Management reduced its stake by 15.1 percent.
* Voya Investment Management sold off 13 percent of its holding.

PepsiCo offers a dividend yield of 3.8 percent. The next quarterly dividend of $1.42 per share is scheduled for payment on January 6, 2026. The company will report its fourth-quarter earnings on February 3, which may provide early indications of the new leadership's impact.