Kaumil's Diario | United States

Research evidence excerpt

Kaumil's Diario | United States

USA | Beverage, Household & Personal Care

Products EquityJuneResearch17, 2026

Pepsi appears to be entering a different capital allocation regime. In '25, more

dollars went out to shareholders (repos + dividends) than were reinvested in the

business (marketing, R&D, net capex). This comes aftr a 5-year period where

reinvestment was higher. A focus on reallocating spend towards the highest

return opportunities is expected to yield better results. 2H may start to show

proof points. We have a Hold rating on PEP.

Stay Liquid.

Chart 1 - Pepsi is shifting its capital allocation split, sending out more dollars to shareholders than

reinvested back in the business

PEP Reinvestment/Shareholder Return Split

54% 55%

64%

46% 45%

36%

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Reinvestment Share Shareholder Return Share

.

Source: Company data, Jefferies

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