PepsiCo, Inc. (PEP)

Executive Summary

We at T&T Capital Management believe PepsiCo, Inc. is one of the most attractive risk-adjusted opportunities in U.S. consumer staples today, and arguably the cheapest the franchise has been at any point in the last decade outside the very bottom of the 2022-2023 bear market. PEP trades at roughly 18x our estimate of 2026 core earnings, an EV/EBITDA in the low-15s, and a forward dividend yield near 3.9% — a yield it has only exceeded briefly during major macro dislocations. The market has punished Pepsi for three legitimate but, in our view, over-extrapolated concerns: (1) GLP-1 weight-loss drugs supposedly killing salty snacks; (2) volume softness and share losses at PepsiCo Beverages North America; and (3) packaged-food de-rating as private-label gains shelf space.

What’s Inside The Full Report

• 15-year financial summary table — revenue, net income, GAAP & adjusted EPS
• Valuation framework — current multiples vs. 5-year historical range
• Peer comparison table — multiples, margins, balance-sheet metrics
• Base case, bull case, bear case price targets with explicit math
• Competitive position and economic moat analysis
• Management and capital allocation track record
• Balance sheet review — leverage, credit ratings, distribution coverage
• Insider activity — recent open-market buys / sells with interpretation
• Strategic acquisitions and divestitures history
• Sell-side consensus and where TTCM differs
• Detailed risk factors specific to the name
• Bull case and forward catalysts to watch
• TTCM rating with explicit ADD / TRIM price triggers