Franklin Street Advisors Buys $27 Million in PepsiCo Stock as Earnings Beat Forecasts
Key Points
Franklin Street Advisors bought 189,251 PepsiCo shares for an estimated $27 million in the third quarter.
The transaction represents 1.6% of the fund's 13F reportable assets under management for the quarter.
Franklin Street now owns 194,722 PepsiCo shares valued at $27.4 million, accounting for 1.6% of the fund's total assets.
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Franklin Street Advisors disclosed a significant purchase of PepsiCo shares in its quarterly SEC filing on Thursday.
What Happened
Franklin Street Advisors reported the addition of 189,251 shares of PepsiCo (NASDAQ:PEP) in a quarterly regulatory filing with the Securities and Exchange Commission (SEC filing). The estimated transaction value was $27 million for the period. Following the purchase, the fund held 194,722 shares in the company, with a market value of $27.4 million as of September 30.
What Else to Know
The stake now represents about 1.6% of Franklin Street Advisors’ $1.7 billion in reportable U.S. equity assets
Top holdings after the filing:
- NVDA: $132.2 million (7.6% of AUM)
- MSFT: $115.2 million (6.6% of AUM)
- AAPL: $110.4 million (6.4% of AUM)
- GOOGL: $91.2 million (5.3% of AUM)
- AMZN: $72.5 million (4.2% of AUM)
As of Thursday afternoon, PepsiCo shares were priced at $143.77, down 17% over the past year and far underperforming the S&P 500's 16% gain.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $92 billion |
| Net Income (TTM) | $7.5 billion |
| Dividend Yield | 3.9% |
| Price (as of Thursday afternoon) | $143.77 |
Company Snapshot
- PepsiCo produces and sells beverages, snacks, cereals, and convenience foods.
- It operates a diversified business model with revenue generated from both food and beverage segments, leveraging direct-store-delivery and distributor networks worldwide.
- The company serves wholesale distributors, foodservice providers, grocery and convenience stores, mass merchandisers, e-commerce platforms, and other retail channels globally.
PepsiCo, Inc. is a global leader in the consumer defensive sector, with a broad portfolio spanning beverages and convenient foods. The company leverages its scale and distribution capabilities to maintain a strong presence across multiple international markets.
Foolish take
Franklin Street Advisors’ disclosed purchase of PepsiCo shares comes right as the consumer giant reported better-than-expected third-quarter earnings on Thursday, underscoring renewed institutional interest even as the stock lags the broader market. PepsiCo’s shares are down 17% over the past year, while the S&P 500 gained 16%, highlighting investors’ shift toward higher-growth tech names—many of which dominate Franklin’s top holdings, including NVIDIA and Microsoft.
In its third-quarter 2025 results, PepsiCo posted GAAP earnings per share of $1.90, above consensus forecasts, on net revenue of $23.9 billion, up 3% year-over-year. Meanwhile, organic revenue grew 1.3%, buoyed by improving momentum in North America beverages and resilience in international markets. CEO Ramon Laguarta said the results reflected “portfolio reshaping actions” and pledged to “accelerate growth and aggressively optimize our cost structure.”
PepsiCo reaffirmed its 2025 guidance, expecting low-single-digit organic revenue growth and roughly flat core EPS in constant currency. For income-focused investors, the company’s dividend program and commitment to steady returns may outweigh its near-term growth headwinds—especially as Franklin seemingly leans in on defensive balance amid a tech-heavy portfolio.
Glossary
13F reportable assets: Securities that institutional investment managers must disclose quarterly to the SEC, showing their U.S. equity holdings.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Dividend yield: Annual dividends paid by a company divided by its share price, expressed as a percentage.
Direct-store-delivery: A distribution method where manufacturers deliver products directly to retail stores, bypassing warehouses.
Consumer defensive sector: Industry segment including companies that produce essential goods like food and beverages, less affected by economic cycles.
Quarterly SEC filing: A required report submitted to the SEC every three months, detailing a fund’s holdings and activities.
Stake: The ownership interest or number of shares held in a company by an investor or fund.
Convenience foods: Packaged foods that require minimal preparation, intended for quick and easy consumption.
Distributor networks: Systems of third-party companies or agents that help deliver products from manufacturers to retailers or customers.
TTM: The 12-month period ending with the most recent quarterly report.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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