PepsiCo, Inc. recently held its 2025 Annual Meeting of Shareholders on May 7, 2025, at the company's headquarters in Purchase, New York. This pivotal meeting addressed several significant proposals that were put to a vote among shareholders, shaping the company's future direction and governance.
One of the key outcomes was the election of 15 individuals to serve as directors of PepsiCo. This move ensures that the company continues to benefit from a diverse and experienced board, guiding its strategic direction and governance. The shareholders also ratified the appointment of KPMG LLP as the independent registered public accounting firm for the fiscal year 2025. This ratification underscores PepsiCo's commitment to maintaining transparency and integrity in its financial reporting.
Furthermore, shareholders approved PepsiCo's executive compensation plan on an advisory basis, reflecting confidence in the company's leadership and its alignment with shareholder interests. However, several shareholder proposals did not pass. These included proposals for a third-party assessment on non-sugar sweetener risks, a racial equity audit, a report on risks related to biodiversity and nature loss, and sustainable packaging policies for plastics. The rejection of these proposals indicates the current priorities and strategic focus of PepsiCo's shareholder base.
The outcomes of the meeting highlight the ongoing dialogue between PepsiCo and its shareholders, as well as the company's commitment to addressing key issues while focusing on its core business objectives.
In addition to the shareholder meeting, recent trading activity has shown a slight decline in PepsiCo's stock. On May 9, 2025, shares of NASDAQ: PEP traded down $0.99, reaching $130.44 during midday trading. This decline comes amid a backdrop of varied institutional investment activity. Capital Advantage Inc. recently purchased a new stake in PepsiCo, acquiring 4,560 shares valued at approximately $693,000. Other institutional investors have also been active, including Vanguard Group Inc., which raised its stake in PepsiCo by 1.0% in the fourth quarter, now owning 133,371,504 shares valued at $20,280,471,000.
Moreover, Geode Capital Management LLC lifted its stake in PepsiCo by 1.9% during the same period, now owning 31,079,522 shares worth $4,717,069,000. Charles Schwab Investment Management Inc. boosted its holdings in shares of PepsiCo by 18.1%, now owning 25,217,043 shares valued at $3,834,504,000. Norges Bank also acquired a new position in shares of PepsiCo during the fourth quarter worth $2,729,565,000, while Northern Trust Corp lifted its position by 8.7%, now owning 16,403,395 shares worth $2,494,300,000. Notably, 73.07% of the stock is owned by institutional investors and hedge funds.
Despite the recent dip in share price, PepsiCo's market capitalization stands at a robust $178.84 billion, with a price-to-earnings ratio of 18.77 and a beta of 0.47. The company has a fifty-two week low of $130.16 and a high of $183.41. Analysts forecast that PepsiCo, Inc. will post 8.3 earnings per share for the current year.
PepsiCo recently disclosed its quarterly earnings results on April 24, 2025, reporting $1.48 earnings per share (EPS) for the quarter. This figure missed analysts' consensus estimates of $1.49 by a narrow margin of $0.01. The company had a return on equity of 58.87% and a net margin of 10.43%. Revenue for the quarter was reported at $17.92 billion, slightly above the consensus estimate of $17.81 billion, although this represented a year-over-year decline of 1.8%.
In an effort to reward shareholders, PepsiCo announced a quarterly dividend of $1.4225 per share, scheduled to be paid on June 30, 2025. Stockholders of record on June 6, 2025, will benefit from this dividend, which represents an annualized payout of $5.69 and a dividend yield of 4.36%. This marks an increase from PepsiCo's previous quarterly dividend of $1.36, with a dividend payout ratio of 83.68%.
In light of the company’s performance and changing market conditions, several research analysts have recently commented on PepsiCo's stock. Morgan Stanley reduced their target price on shares from $168.00 to $153.00, while maintaining an "equal weight" rating in a report released on April 25, 2025. CICC Research restated a "market perform" rating in a report on February 7, 2025. Additionally, BNP Paribas lowered their price target from $162.00 to $160.00, setting a "neutral" rating in early February.
Barclays also cut their price objective on PepsiCo from $143.00 to $135.00, maintaining an "equal weight" rating. Wells Fargo & Company adjusted their target price from $155.00 to $150.00, also setting an "equal weight" rating. Currently, one investment analyst has rated the stock with a sell rating, fourteen have assigned a hold rating, and four have given it a buy rating. According to MarketBeat, PepsiCo has an average rating of "Hold" and an average price target of $160.69.
As PepsiCo navigates the complexities of market dynamics and shareholder expectations, its commitment to maintaining strong governance and financial integrity remains a focal point. The recent shareholder meeting and ongoing trading activity reflect the company's efforts to balance growth with responsibility, ensuring it remains a key player in the global food and beverage industry.
