PepsiCo Faces Market Skepticism Ahead of Q3 Earnings Amid Growth Challenges

PepsiCo investors brace for another turbulent earnings release as the beverage giant struggles to regain market confidence. The stock's 15% annual decline starkly contrasts with the S&P 500's 18% gain and Coca-Cola's relatively modest 5% drop. Analysts remain divided on whether upcoming strategic initiatives can offset fundamental weaknesses in the Frito-Lay division.

Wall Street anticipates $23.86 billion in revenue and $2.26 EPS for Q3, representing significant downward revisions over the past year. While PepsiCo boasts an impressive track record of beating revenue estimates, market focus has shifted to Elliott Management's proposed restructuring plans. The activist investor's push for bottler refranchising and cost-cutting measures appears insufficient to address Core growth constraints.