Elliott reveals $4B PepsiCo stake, calls for strategic overhaul

Activist investor Elliott Investment Management disclosed a roughly $4 billion stake in PepsiCo on Tuesday and urged the beverage and snack giant to pursue strategic changes to revive growth, saying recent performance has depressed the companys value. Elliott told PepsiCos board in a letter that lack of strategic clarity, decelerating growth and eroding profitability in North America have created a historic opportunity to unlock shareholder value if management adopts an ambitious turnaround plan.

Elliotts intervention comes as PepsiCos market value has fallen by more than 25 percent since peaking in May 2023, and its flagship soda has slipped to fourth place in U.S. sales behind several rivals, industry sales data show. In its letter, Elliott outlined measures it believes could lift the share price substantially, including refranchising bottling operations to local independent owners and pruning underperforming brands. The firm said its goals are to sharpen focus, drive innovation, improve efficiency and unlock value from PepsiCos brands and scale.

Shares of PepsiCo jumped after the disclosure, climbing as much as 6 percent during the session and trading higher in early markets,...