PepsiCo

PepsiCo has informed employees that, starting in October, prescription medications for weight loss will no longer be reimbursed through the company health plan. The company cites sharply rising costs of these therapies and the need to maintain a sustainable, affordable health program for all employees. Affected workers can still pay for the drugs privately; PepsiCo is following a trend among other employers limiting benefits due to long-term costs. » More on de.investing.com

Demand for PepsiCo snacks and refreshments is weakening in North America as the use of GLP‑1 weight-loss drugs leads households to consume fewer sweet and salty products. Despite price cuts, volumes remained stable and revenue in the North American grocery business fell by 2% in the second quarter of 2026. International growth and a broad brand portfolio mitigate the impact, while PepsiCo is investing in higher‑protein and reduced‑sugar products. The dividend track record remains intact and the dividend yield is currently around 4.1%. » More on deraktionaer.de

PepsiCo's new $5.92 annualized dividend consumes roughly 90% of FY2025 core earnings and about 100% of reported free cash flow, raising sustainability concerns. Recent Q1 and Q2 beats, an 84% jump in net income, strong international profit growth (EMEA +29%, Asia Pacific Foods +35%) and reduced CapEx have improved free cash flow coverage and support management's 2–4% organic revenue and 4–6% core EPS guidance. A second earnings slip would force tougher decisions on the dividend, but current productivity gains and a $10 billion buyback authorization provide additional backstops. » More on finance.yahoo.com