Ayrshire Exits PepsiCo Position in Q2, Sells 36,000 Shares

Key Points

• Sold 36,032 shares of PepsiCo in Q2; transaction value as of June 30, 2025: $4.76 million.

• Represented 2.61% of 13F reportable assets under management in Q2 2025.

• Post-trade stake: zero shares, valued at $0.

• The move reduced Ayrshire's total reportable positions to 92 as of June 30, 2025.

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What happened

Ayrshire Capital Management reported in a July 9, 2025, Securities and Exchange Commission (SEC) filing that it sold its entire PepsiCo stake during the second quarter, amounting to 36,032 shares. The value of those shares as of the close of trading June 30, 2025 was $4.76 million. After this transaction, the fund no longer held PepsiCo shares among its 13F reportable assets as of June 30, 2025.

What else to know

Top holdings after the filing:

• MSFT: $31.04 million (14.9% of AUM) as of June 30, 2025
• APH: $28.63 million (13.7% of AUM) as of June 30, 2025
• AMZN: $19.23 million (9.2% of AUM) as of June 30, 2025
• COST: $17.02 million (8.2% of AUM) as of June 30, 2025
• AAPL: $16.99 million (8.2% of AUM) as of June 30, 2025

PepsiCo stock closed at $136.08 on July 10, 2025, down 15.95% for the past year and trailing the S&P 500 by 29.25 percentage points

Dividend yield: 4.09% as of June 30, 2025; forward P/E: 17.00 as of June 30, 2025; EV/EBITDA: 13.53 for the 12 months ended June 30, 2025

The stock was 25.8% below its 52-week high as of July 10, 2025

Company overview

Company snapshot

• Offers a diverse portfolio of beverages and convenient foods, including snacks, cereals, ready-to-drink teas and coffees, and dairy products.
• Generates revenue through manufacturing, marketing, and distributing branded consumer packaged goods across global markets, leveraging direct-store-delivery and distributor networks.
• Serves wholesale distributors, foodservice operators, grocery and convenience stores, mass merchandisers, e-commerce retailers, and authorized bottlers worldwide.

PepsiCo is a leading global provider of beverages and convenient foods, operating at significant scale with a broad international footprint. The company maintains a diversified portfolio across multiple categories and geographies. It serves a broad range of customers through an extensive distribution network.

Foolish take

Having slid by more than 15% so far this year, Pepsico stock hit a 52-week low of $127.60 per share on June 26, 2025. The beverage and snacks giant faced a series of headwinds in 2024, among them, rising costs, and delivered only 2% organic revenue growth. Sluggish demand and changing consumer preferences, especially for snacks, have hurt Pepsico’s sales.

Pepsico just released its fiscal 2025 second-quarter results. Although its numbers beat analysts’ estimates marginally, the company’s net sales grew only 1% while net income fell to $1.2 billion from $3 billion year over year largely because of impairments on its Rockstar and Be & Cheery brands.

Pepsico, however, reiterated its full-year outlook of low-single-digit percentage organic revenue growth and flat earnings per share excluding foreign currency fluctuations.

Meanwhile, management has initiated several actions to boost profitability and growth. Examples include diversifying Pepsico’s portfolio with healthier choices like whole-grain ingredients, no-sugar beverages, protein products, and hydration offerings in Gatorade and Propel powders. The company is also expanding its “away-from-home” business through partnerships with local restaurants, popular chains like Subway, and food trucks.

Pepsico also remains committed to dividends and recently increased its dividend for the 53rd straight year. So while Pepsico stock may continue to appeal to income investors, its decelerating top line could remain a growth hurdle for the company and its stock price.

Glossary

Exited position: When an investor sells all shares of a particular holding, leaving no ownership in that asset.
13F reportable assets: Securities that institutional investment managers must disclose in quarterly SEC Form 13F filings.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Reportable positions: Investment holdings that must be disclosed in regulatory filings due to size or type.
Dividend yield: Annual dividends paid by a company divided by its share price, shown as a percentage.
Forward P/E: Price-to-earnings ratio using forecasted earnings for the next year, indicating expected valuation.
EV/EBITDA: Enterprise value divided by earnings before interest, taxes, depreciation, and amortization; used to assess company valuation.
52-week high: The highest price at which a stock traded during the past year.
Direct-store-delivery: A distribution method where manufacturers deliver products directly to retail stores, bypassing warehouses.
Branded consumer packaged goods: Products sold under a recognized brand, typically pre-packaged for consumer use.
Wholesale distributors: Companies that purchase goods in bulk from manufacturers and resell them to retailers or other businesses.
Authorized bottlers: Companies licensed to bottle and distribute beverages for a brand owner within specific territories.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Costco Wholesale, and Microsoft. 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.