PepsiCo: Decreasing Sales Volumes Are A Short-Term Trend

  • PepsiCo is a dividend king with a 52-year track record of increases, making it a strong long-term investment despite recent underperformance. The company's revenue growth is driven by retail price hikes due to inflation, not increased sales volumes, raising concerns about future growth sustainability. PEP's high debt levels are manageable but limit the company's ability to return value to investors through share repurchases and dividends.