PepsiCo Reports Q4 Earnings and Growth Plans

PepsiCo reported a slight decline in fourth-quarter net revenue, down 0.2% to $27.78 billion, missing analysts' expectations for the third consecutive quarter. Despite this, the company saw a 17% increase in earnings per share to $1.11, surpassing market estimates, with core earnings reaching $1.96 per share. The decline was influenced by weakness in Frito-Lay and Quaker Foods in North America. Looking ahead to 2025, PepsiCo anticipates a low-single-digit increase in organic revenue and a mid-single-digit rise in core earnings per share, and it plans a 5% increase in its annualized dividend. While PepsiCo shares have underperformed the S&P 500 so far this year, the company's strong international performance and strategic initiatives aim to enhance overall profitability. PepsiCo's long-term growth strategy includes expanding its productivity plan through 2030 and returning $8.6 billion to shareholders in 2025.