Jim Cramer Says “It’s Been a Very Tough Time for Shareholders of PepsiCo”

PepsiCo, Inc. (NASDAQ:PEP) is one of the stocks in Jim Cramer’s game plan for this week. Cramer showed concern about the company’s snack business in light of GLP-1 drugs and the younger generation’s healthier choices. He stated:

“Now we’ve got a couple of important earnings reports on Thursday, including PepsiCo and Delta in the morning. Now, recently, Elliott Management, a hard-charging and thoughtful activist fund, took a big stake in PepsiCo. They want changes. Will management go with Elliott, or is it going to fight Elliott? We’ll probably find out when PEP reports. It’s been a very tough time for shareholders of PepsiCo, but the stock now does yield 4% and it has a very solid snack franchise in Frito-Lay.

My concern, as usual, is with a younger generation that cares more about their health than their parents, and with the GLP-1 weight loss drugs that cut back craving, including cravings for Frito-Lay’s big business, which is potato chips. I think CEO Ramon Laguarta hasn’t been able to deliver of late with the stock down almost 7% for the year, while Coca-Cola’s up 7%. Comparisons are odious unless they’re in the stock business.”

ja-san-miguel-xYSp0kkIUio-unsplash

PepsiCo, Inc. (NASDAQ:PEP) manufactures, markets, and sells beverages and convenient foods. Some of the company brands are Pepsi, Mountain Dew, Lay’s, Gatorade, Doritos, Quaker, and Cheetos.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.