WEALTH October 10, 2025 0 Comments

PepsiCo’s New CFO Steve Schmitt Steps In Just as Earnings Smash Wall Street Predictions—What’s Next for the Beverage Giant?

Ever wonder what happens when the finance mastermind from Walmart steps into the CFO shoes at PepsiCo? Well, buckle up — Steve Schmitt is about to stir the pot at one of the world’s snack and beverage giants, and just in time. PepsiCo’s latest quarter didn’t just meet expectations; it beat them, thanks to robust international demand and a surprising resilience in snacks and drinks amid shifting tastes. But here’s the kicker: this handoff isn’t just a routine corporate shuffle. It’s happening while activist investor Elliott Management is tapping its foot demanding speedier innovation, all while PepsiCo tweaks its product lineup and cuts costs to sharpen its edge. Is this the dawn of a new era for PepsiCo, or just another chapter in corporate dance? Let’s dive into what all this means for the company’s future growth and strategy. LEARN MORE

PepsiCo has appointed Walmart US finance chief Steve Schmitt as its new chief financial officer, effective November, as the company reported better-than-expected third-quarter earnings driven by strong international demand and resilient snack and beverage sales.

Schmitt will succeed Jamie Caulfield, who is retiring after more than 30 years with the company, including two years as CFO.

His appointment comes at a pivotal moment for PepsiCo, which is facing pressure from activist investor Elliott Management and shifting consumer preferences in the US market.

PepsiCo’s net revenue for the quarter reached $23.94bn, surpassing analyst expectations of $23.83bn, according to data from the London Stock Exchange Group (LSEG).

Adjusted earnings per share also exceeded forecasts by three cents, reflecting steady performance across key global markets and strength in the company’s healthier drink offerings in the US.

Greg Halter, director of research at Carnegie Investment Counsel – which holds shares in PepsiCo – said the results were encouraging but highlighted the impact of activist involvement.

“I would characterise it (the results beat) as mildly encouraging. Certainly they’re being shaken up by Elliot Management…. that’s probably got their attention and they’re working on costs and things like that to try and improve the business.”

Elliott Management recently disclosed a $4bn stake in PepsiCo, urging the company to accelerate its innovation pipeline.

In response, PepsiCo has made several strategic moves, including acquiring prebiotic soda brand Poppi and increasing its stake in energy drink maker Celsius.

Shares rose 2% in premarket trading following the results, with the company maintaining its annual organic revenue growth and profit targets. PepsiCo’s 12-month forward earnings multiple stood at 16.54, compared with 20.90 for rival Coca-Cola.

Chairman and CEO Ramon Laguarta said the company will “aggressively reduce costs” in its US snacks division, closing two plants and cutting nearly 15% of product lines in the fourth quarter.

Steve Schmitt — POLAND – 2024/11/18: In this photo illustration, the Pepsico company logo is seen displayed on a smartphone screen. (Photo Illustration by Piotr Swat/SOPA Images/LightRocket via Getty Images)

PepsiCo also plans a “healthier” rebrand of its Lay’s and Tostitos chips and is introducing smaller, more affordable pack sizes.

International markets — which account for around 40% of PepsiCo’s revenue — continued to perform strongly, helped by local flavours and tailored packaging, offsetting some of the impact from tariffs, which executives said were a roughly three-point drag on core earnings.