For Immediate Release
Chicago, IL – August 18, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: PepsiCo Inc. PEP, Keurig Dr Pepper Inc. KDP and The Coca-Cola Co. KO.
Here are highlights from Monday’s Analyst Blog:
PepsiCo's Brand Refresh: Enough to Win Back Consumers?
PepsiCo Inc. is stepping up efforts to refresh its portfolio as changing consumer preferences and tighter household budgets reshape demand, particularly in North America. The company’s strategy combines brand restaging, product innovation, affordability initiatives and sharper marketing to reconnect with consumers.
A major element is modernizing established brands. PepsiCo is restaging Lay’s and Tostitos with new visuals and messaging centered on simple, quality ingredients, while a Quaker refresh is planned. Gatorade is also receiving simplified packaging and clearer communication around hydration benefits, alongside the gradual removal of artificial colors. Lay’s, meanwhile, is being repositioned across international markets with new visuals and an emphasis on no artificial flavors or colors.
The refresh extends beyond packaging. PepsiCo is expanding products aligned with protein, fiber, hydration, diverse ingredients and zero sugar. In foods, innovations include Doritos Protein, SunChips Fiber and products made with alternative oils. These moves appear to be gaining traction: PepsiCo Foods North America improved volume share and household penetration, while permissible offerings, such as Baked, Simply, SunChips, Siete and Quaker Rice Cakes, posted strong volume and revenue growth.
Still, winning consumers back may take time. North America organic revenues declined 0.5% in the second quarter of 2026 as category performance moderated, while beverage organic volume fell 4%. With consumer budgets under pressure, PepsiCo’s refresh looks directionally promising, but its success will depend on whether stronger brands, innovation and affordability can translate into sustained North American volume growth.
How Peer Brand Strategies at Keurig Dr Pepper & Coca-Cola Are Evolving
Keurig Dr Pepper Inc. and The Coca-Cola Co. are evolving their brand strategies by sharpening portfolio priorities, expanding into high-growth beverage categories and leveraging innovation to keep pace with shifting consumer preferences.
Keurig Dr Pepper is sharpening its brand playbook as consumers grow increasingly value-conscious. C4’s packaging refresh, featuring clearer benefit communication and bolder flavor cues, is already driving double-digit sales lift in select markets. Meanwhile, Keurig’s “Great Coffee Without the Grind” campaign helped brewer shipments return to growth. Yet, with U.S. Coffee volumes pressured by category softness and private-label shifts, sustained marketing, innovation and value investments remain critical to winning consumers back.
PepsiCo is refreshing key brands to reconnect with value-conscious consumers amid softer North American demand. Lay’s and Tostitos are getting new visuals and simpler-ingredient messaging, while Gatorade is being restaged with simplified packaging and sharper hydration claims. PepsiCo is pairing these moves with affordability initiatives and higher marketing investment. Early household-penetration gains in foods are encouraging, though subdued beverage volumes suggest a consumer comeback may remain gradual.
PEP’s Price Performance, Valuation & Estimates
Shares of PepsiCo have lost 5.6% in the past three months against the industry’s rise of 3.4%.
From a valuation standpoint, PEP trades at a forward price-to-earnings ratio of 15.93X, below the industry’s average of 19.66X.
The Zacks Consensus Estimate for PEP’s 2026 and 2027 earnings implies year-over-year growth of 5.4% and 5.3%, respectively. The company’s EPS estimates for 2026 and 2027 have moved southward in the past 30 days.
PEP stock currently carries a Zacks Rank #3 (Hold).
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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