PepsiCo Lags Coca-Cola as Domestic Sales Stumble Insider Monkey Team Thu, August 6, 2026 at 7:03 PM GMT+2 4 min read PEP KO PepsiCo (NASDAQ:PEP) has spent close to a year going nowhere while the broader market climbed steadily, and shares recently traded near a 52-week low even after the company posted higher revenue and earnings. That gap between decent headline numbers and a beaten-down stock price is the whole story right now. Investors are trying to figure out whether a business that looks strong overseas and stuck at home is worth paying up for, all while collecting one of the most dependable dividends around.
Is PepsiCo (PEP) One of the 10 Best Dividend Stocks to Buy for Passive Income? ja-san-miguel-xYSp0kkIUio-unsplash A Turnaround Built On Volume And Overseas Strength Outside the United States, PepsiCo's business is humming. International beverage volume climbed 5% last quarter and revenue jumped 11%, or 9% once currency swings are stripped out, and none of that came from acquisitions since those deals were concentrated on U.S. brands. Snacks told a similar story abroad, with Asia Pacific revenue up 15% and Latin America up 12%.
That geographic spread matters because it's cushioning a domestic business that isn't pulling its weight. On top of that, volume is finally moving in the right direction everywhere: PepsiCo posted its fastest volume sales growth since 2022, and global organic sales volume through the first half of fiscal 2026 was the highest in four years, a sign that recent price cuts aimed at cost-conscious shoppers are working rather than just squeezing margins. The stock's price tag adds to the case.
Shares trade around 16 times forward earnings, a discount to its five-year median near 22. Layer on a dividend that's been raised for 54 straight years, with the payout still covered by adjusted earnings. Management is "restaging" four core brands, Lay's, Tostitos, Gatorade, and Quaker, with new packaging, marketing, and ingredients, while rolling out products like protein chips and probiotic drinks.
Activist investor Elliott Investment Management has also been in the mix, pushing the company to move faster on growth and cost cuts. The North American Slog Investors Can't Ignore The trouble is that PepsiCo's biggest market is still shrinking in the ways that matter. North American food sales fell 2% last quarter, and beverage volume in that region dropped 4% even as reported beverage revenue ticked up.
Management pointed to higher gas prices as one culprit, arguing that pricier fill-ups are cutting into convenience store traffic, a channel where impulse buys of chips and soda matter a lot. Strip out acquisitions, and organic growth in North American beverages was just 1%. Story Continues There's a structural worry underneath that too.
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