Pepsico (PEP)

Add a New Bears Reason Company: Pepsico (PEP) Current price: Headline: (100 character max) Analysis: Cancel 28% agree 14 votes   Big chunk of sales still come from carbonated soft drinks Created when NYSE:PEP was $64.86 | Edit | History Though PepsiCo has lead the industry in non-carbonated innovations, a sizable percentage of its beverage sales still come from carbonated soft drinks. PEP could be harmed by continued decline in demand for CSD. (100 character max) Cancel 41% agree 39 votes   Slowdown in core North American market bad news for Pepsi Top Contributor: Vincent McPhillip | Created when NYSE:PEP was $51.25 | Edit | History North America which is suffering from a sharp pullback in consumer spending (especially in the U.S.) accounts for about 68% of Pepsi's operating income. Pepsi has seen a market deterioration in this critical market over the past couple quarters. In the third quarter of fiscal 2008, Pepsi's American beverage business saw a 11% drop in operating profit amid a 2.5% volume decline. Quaker Foods' North America volume slumped 9%. (100 character max) Cancel 23% agree 13 votes   Increasing commodity costs can negatively impact profits Top Contributor: Vincent McPhillip | Created when NYSE:PEP was $64.86 | Edit | History Increasing commodity costs continue to squeeze profit magins. In the latest quarter gross margins decreased from 55.4% to 54% as prices for everything from corn to vegetable oils and grains rose. The company now sees worldwide commodity costs rising by 9% to 10% up from a February estimate of a 6% increase.[1] (100 character max) Cancel

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