As Its Snack Prices Fall, PepsiCo's Stock Is Rising

By Catie Hogan – Apr 19, 2026 at 1:55PM ESTKey PointsPepsiCo revenue increased 8.5% in the first quarter of 2026.Activist investor Elliott Investment Management pushed PepsiCo to reduce the retail cost of many brands after prolonged price hikes.Over the last few years, PepsiCo (PEP 0.45%) has raised prices on its snack product line to help maintain margins amid rising production costs, particularly during the pandemic. Consumers finally started pushing back, and PepsiCo saw sales start to decline. Because of this and a few other reasons related to inventory management, PepsiCo's stock price fell by over 15% through 2024 and 2025. ExpandNASDAQ: PEPPepsiCoToday's Change(-0.45%) $-0.71Current Price$157.67Key Data PointsMarket Cap$216BDay's Range$156.47 - $160.0352wk Range$127.60 - $171.48Volume7.8MAvg Vol7.6MGross Margin54.22%Dividend Yield3.61% Activist investor Elliott Investment Management saw this price drop as an opportunity to buy into the stock and then convince management to initiate efforts that might bring customers back and improve PepsiCo's performance. In September 2025, Elliott acquired a $4 billion stake in PepsiCo and began pushing the beverage and snack company to improve operations. Specifically, it advised the company to slash the prices of brands such as Lay's, Doritos, Cheetos, and Tostitos by up to 15% to lure back snack-loving consumers. Image source: Getty Images. PepsiCo's management may have been pressured into some of its recent actions, but following the directives appears to be paying off. PepsiCo's first-quarter 2026 revenue increased 8.5% year over year, and operating profit rose 24%. In its earnings release, the company's Chairman and CEO, Ramon Laguarta, told investors, "An extensive commercial agenda, which includes the staging of large global brands, innovation activity, and certain affordability initiatives, is being executed well and business performance improved." PepsiCo management has reaffirmed its full-year guidance and expects organic revenue to increase 2% to 4%, while returning nearly $9 billion to shareholders through stock buybacks and dividends. PepsiCo's stock is up nearly 10% this year and maintains a solid dividend yield of 3.59% as of this writing on April 17. The iconic beverage company appears to be in full turnaround mode. Investors will be snacking on this good news in the long term. Read NextApr 19, 2026 •By Brett SchaferLooking for Passive Income in 2026? 2 Dividend Kings to Buy Hand Over Fist.Apr 16, 2026 •By Kristi WaterworthBest Real Estate Stocks for 2026 and How to InvestApr 16, 2026 •By Jeremy BowmanBest Consumer Staples Stocks to Buy in 2026 and How to Invest in ThemApr 16, 2026 •By Motley Fool TranscribingPepsiCo (PEP) Q1 2026 Earnings Call TranscriptApr 15, 2026 •By Jason HallDividend Kings of 2026Apr 15, 2026 •By Todd ShriberShould You Buy Pepsi Stock Before April 16?About the AuthorCatie is a contributing Motley Fool stock market analyst covering technology, consumer goods, transportation, industrials, materials, and energy. She's the founder of the family finances newsletter, Cents of Humor. Catie was formerly the Head of Advice & Coaching at Parthean and an advisor at Element Financial Group. She's the writer and a producer of the hit off-Broadway show, Vape!

The Grease Parody. Catie has a degree in journalism from Emerson College.TMFCatieHoganStocks MentionedPepsiCoNASDAQ: PEP$157.65(-0.46%)-$0.73*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.