Stock Pulse
PepsiCo is reportedly in advanced talks to acquire Poppi, a prebiotic soda brand, for over $1.5 billion, aiming to expand its presence in the health-conscious beverage market [1]. This comes as PepsiCo faces challenges with slow organic sales growth (2%) and declining sales volume (1%), attributed to price sensitivity and rising ingredient costs [4]. While the company delivered respectable earnings growth in 2024 and offers a high dividend yield (3.5%), its projected EPS and revenue for Q1 2025 show year-over-year declines [5], [6]. The company is also lobbying for tariff exemptions on imported ingredients, indicating potential cost pressures [7]. Despite these challenges, some analysts highlight PepsiCo's consistent performance and dividend history as attractive for long-term investors [2], [8]. The company has issued $3.5 billion in senior notes for general corporate purposes [12], [13].