PepsiCo’s Strategic Pivot: Leadership Reshuffle and Analyst Confidence

PepsiCo is drawing fresh attention from market experts as it undertakes a significant realignment of its executive leadership. The global food and beverage giant is leveraging the challenging backdrop of 2025 to better integrate its worldwide operations and enhance commercial execution. This strategic shift, combining a management overhaul, an upgraded rating from Citigroup, and ongoing portfolio adjustments, presents a compelling narrative for investors.

The leadership changes are accompanied by a more optimistic stance from Wall Street. On Wednesday, Citigroup raised its price target for PepsiCo shares from $165 to $170, reiterating its "Buy" recommendation. This new target implies a double-digit upside from current levels and sits notably above the average analyst target of $158.50, where the consensus leans more toward a "Hold" rating. Citigroup's move signals confidence in the company's ongoing transformation plan.

Institutional investor activity paints a mixed but ultimately constructive picture. ARS Wealth Advisors Group LLC notably reduced its stake by 41.3% in the third quarter. Conversely, Assenagon Asset Management S.A. aggressively expanded its position, increasing its holdings by 60.2%. This included a purchase of nearly 1.9 million shares, valued at approximately $709.4 million. While these flows indicate differing near-term assessments, they demonstrate that substantial capital continues to find its way into the stock.

In European trading, PepsiCo shares are currently stable, quoted at around €128, virtually unchanged from the previous session but still down for the year.

A Comprehensive Management Reshuffle

Effective December 28, 2025, PepsiCo will implement a sweeping reorganization of its top management. The centerpiece is the promotion of Steven Williams. Previously the CEO of PepsiCo North America, he will assume the new role of Executive Vice President, Vice Chairman, Global Chief Commercial Officer, and head of Corporate Affairs. This places an experienced operator in charge of worldwide commercial strategy and cross-regional alignment.

The crucial North American market will receive new leadership, with Ram Krishnan stepping into the role of CEO for PepsiCo North America. As a central revenue driver, this appointment underscores a heightened focus on integrating the food and beverage divisions more closely. Simultaneously, Athina Kanioura will become the new CEO of Latin America Foods, succeeding the retiring Paula Santilli.

This structure effectively blends regional and global oversight: Williams ascends to a worldwide strategic role, while Krishnan and Kanioura take command of key operational growth markets. The realignment supports a strategy to internationalize successful approaches pioneered in North America.

Should investors sell immediately? Or is it worth buying Pepsi?

Navigating a Challenging 2025 with Strategic Moves

The executive reshuffle does not occur in a vacuum. Operationally, 2025 has been a difficult period for PepsiCo. In its core North American market, the Quaker Oats division faced particular pressure, with sales and volume declining by approximately 14% year-over-year, weighing on the overall corporate momentum.

The newly announced personnel decisions fit into a broader transformation agenda that PepsiCo has been advancing throughout the year under its "Brand Transformation" initiative. Key steps include:
* The full acquisition of the hummus brand Sabra.
* The purchase of prebiotic soda maker Poppi in March 2025.
* The July launch of dye-free variants of major snack brands like Cheetos and Doritos.

Concurrently, PepsiCo is streamlining its beverage portfolio, planning to eliminate roughly 20% of its Stock-Keeping Units (SKUs). This effort aims to reduce complexity and costs, freeing up resources for marketing initiatives. Elevating Steven Williams to a global commercial role is likely intended to accelerate the transfer of successful efficiency and branding strategies from North America to other regions.

Despite operational headwinds, PepsiCo remains a financially reliable dividend payer. The board has declared a quarterly dividend of $1.4225 per share (annualized $5.69), yielding approximately 3.8%. For many investors, this consistent payout is a key reason to maintain their position, even amid a sluggish share price performance over the past three years.

Technical Perspective and Forward Look

A key date for the market is December 28, 2025, when the new leadership structure officially takes effect. Starting in early 2026, attention will turn to how Ram Krishnan articulates his North American strategy and whether the company can address the Quaker business weakness while accelerating food and beverage integration. The next dividend payment is scheduled for January 6, offering predictable short-term income for existing shareholders.

From a chart perspective, the setup appears constructive. The share price is trading above key moving averages, and the Relative Strength Index (RSI) reading near 35 indicates a neutral, not overbought, condition. In U.S. charts, a resistance band is observed between approximately $150.9 and $156.3. A daily close decisively above $151 would bolster Citigroup's positive call and open a path toward the analyst consensus near $158. On the downside, the zone around $145.5 to $148.1 is viewed as critical support, with its defense being crucial for maintaining the current constructive outlook.