PepsiCo Stock: Headwinds Intensify
PepsiCo is facing mounting pressure from legal action, investor sell-offs, and a major product overhaul. A class-action lawsuit filed on December 19 accuses the company of colluding with Walmart to inflate prices, affecting millions of U.S. shoppers. Meanwhile, institutional investors are cutting their stakes as the firm prepares to drop artificial ingredients and slash its product range by 2026.
The lawsuit, lodged in a New York court, claims PepsiCo worked with Walmart to manipulate soft drink prices since early 2015. It targets all U.S. consumers who bought Pepsi products from retailers other than Walmart during that period. The company has yet to respond publicly to the allegations.
Investor confidence appears to be wavering. Gradient Investments LLC slashed its PepsiCo holdings by 95.7% in the third quarter, offloading 86,626 shares and keeping just 3,867 worth around $543,000. Other unnamed institutional investors have also trimmed their positions, though exact figures remain undisclosed. The stock has dropped roughly 14% since January, sitting about 15% below its 52-week peak. Despite the decline, the gap to its moving averages stays relatively small. By early 2026, PepsiCo plans to remove artificial flavours and dyes from key snack brands. It will also discontinue around 20% of its stock-keeping units as part of a broader restructuring effort.
The combination of legal troubles, investor pullbacks, and a sweeping product revamp marks a turbulent period for PepsiCo. The lawsuit’s outcome, shareholder reactions, and consumer response to reformulated products will shape the company’s path forward. For now, the stock’s performance reflects the uncertainty ahead.
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