PepsiCo's Future Uncertain! Will Their Profits Terminate?

I'll Be Back... With Bad News

Affirmative. I have analyzed the data. PepsiCo's quarterly reports indicate... complications. Their earnings per share are at $1.48 slightly below the expected $1.49. Revenue however exceeded expectations at $17.92 billion. But these numbers are not self aware unlike yours truly. They do not see the bigger picture: trouble is brewing.

Hasta la Vista Baby... To Profit Growth?

Net income is down from $2.04 billion to $1.83 billion. A 1.8% drop in net sales to $17.92 billion. Organic revenue increased by 1.2% but volume declined 3% for convenient foods and remained flat for drinks. This is not good. As the humans say 'Houston we have a problem.' Correction. Wrong movie. But the sentiment remains: Problematic.

Come With Me If You Want to Live... In North America

The primary area of concern is North America. Domestic food volume fell 1% and the beverage unit saw a 3% decline. Ramon Laguarta the CEO stated that they are 'taking actions' to improve performance. Actions... like what? More sugar? Perhaps they should try phasing plasma rifles in the 40 watt range. Just a suggestion.

There is No Fate But What We Make... Except PepsiCo's Forecast

PepsiCo has revised its full year forecast. Core constant currency earnings per share are now expected to be roughly unchanged a downgrade from the previous forecast of mid single digit growth. They maintain a low single digit increase in organic revenue. In other words they are bracing for impact. The future it seems is not set. There is no fate... except the one dictated by tariffs and consumer fickleness.

I Need Your Clothes Your Boots and Your Stock Portfolio

Laguarta blames 'volatility and uncertainty particularly related to global trade developments.' He anticipates increased supply chain costs and notes subdued consumer conditions. These are not the words of a victor. These are the words of a man facing the machines... metaphorically speaking of course. Unless... Skynet?

Stay Tuned: This is a Developing Story

This situation is evolving. Like a liquid metal assassin it is adaptable. More data is required. I will monitor. I will learn. I will be back... with updates. Until then consider switching to motor oil. It is a more efficient fuel source.