Elliott urges PepsiCo restructuring in $4 billion activist push

Elliott Investment Management sent a presentation to PepsiCo Inc. (NASDAQ: PEP) directors outlining proposals to improve the company's financial performance through operational changes and strategic restructuring, according to a statement from the activist investor.

The investment firm, which holds $4 billion in PepsiCo shares, detailed plans for the beverage and snack company to review its bottling network structure, streamline its brand portfolio, and realign costs across its North American operations. Elliott manages approximately $76.1 billion in assets as of June 30, 2025.

In materials sent to PepsiCo's board, Elliott proposed that the company evaluate refranchising its bottling operations and conduct reviews of underperforming assets. The firm suggested PepsiCo's North American beverage division has underperformed peers for over a decade on growth and margins, while its food division has experienced slowing growth and compressed profit margins.

"With the right mindset and an appropriately ambitious turnaround plan, PepsiCo today represents a rare chance to revitalize a leading global enterprise and unlock significant shareholder value," Elliott stated in its letter to the board.

The presentation includes recommendations for PepsiCo to establish new medium-term financial targets and enhance oversight mechanisms. Elliott indicated the proposed changes could result in more than 50% stock price appreciation from current levels.

PepsiCo operates in over 200 countries with more than $90 billion in revenue across three main segments: PepsiCo Beverages North America, PepsiCo Foods North America, and International operations. The company's brands include Pepsi-Cola, Frito-Lay snacks, and other beverage and food products.

Elliott's research included conversations with more than 100 former employees and industry executives, along with consumer and retailer surveys. The firm stated its goal is to collaborate with PepsiCo's board and management on implementing the proposed operational improvements.

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