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

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What happened

On July 9, 2025, Ayrshire Capital Management disclosed in an SEC filing that they had offloaded all their PepsiCo stock during the second quarter, which consisted of 36,032 shares. At the market close on June 30, 2025, these shares were worth $4.76 million. Consequently, following this deal, Ayrshire Capital Management no longer owned any PepsiCo shares among their reportable assets as stated in their 13F report for 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

On July 10, 2025, PepsiCo’s stock ended at $136.08. Over the last year, it has experienced a decrease of 15.95%, while the S&P 500 is currently outperforming it by a significant margin of 29.25 percentage points.

As of June 30, 2025, the dividend yield stands at 4.09%. Additionally, the forward Price-to-Earnings (P/E) ratio is reported as 17.00 on the same date. Furthermore, the Enterprise Value to EBITDA (EV/EBITDA) for the 12 months up to June 30, 2025, amounts to 13.53.

By simplifying some of the financial jargon and providing more context, we can make the information easier for readers to digest.

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

Company overview

Metric Value
Market capitalization (July 10) $186 billion
Revenue (TTM) $91.52 billion
Net income (TTM) $9.37 billion
Dividend yield 4.09%

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 major worldwide supplier of both beverages and easy-to-consume foods, operating on a large scale with a wide international presence. The company keeps its product lineup varied by catering to various markets and regions. It provides products to numerous consumers through an extensive distribution system.

Foolish take

This year, PepsiCo’s stock has dropped by over 15%, reaching a 52-week low of $127.60 per share on June 26, 2025. Facing multiple challenges in 2024 such as increasing expenses and minimal 2% organic revenue growth, the beverage and snack titan has struggled. Decreased consumer demand and shifting preferences, particularly for snacks, have negatively impacted PepsiCo’s sales.

I’m thrilled to share that PepsiCo has unveiled its Q2 results for fiscal 2025! While the figures surpassed analysts’ predictions by a hair, it’s noteworthy that the company’s net sales inched up a modest 1%. However, the net income took a significant dip, plummeting from a whopping $3 billion to $1.2 billion year over year. This substantial decline is mainly attributed to write-offs on its Rockstar and Be & Cheery brands. It’s an intriguing development in the saga of these iconic beverage giants!

PepsiCo continues to affirm its projection for moderate growth in organic revenues (around 1-5%) for the entire year, along with a stable Earnings Per Share figure (excluding impacts from foreign exchange rates).

In the meantime, leadership has undertaken various strategies to enhance profitability and expansion. For instance, PepsiCo is broadening its product range with healthier options such as items containing whole grains, sugar-free drinks, protein-rich products, and hydration solutions in Gatorade and Propel powders. Additionally, the company is expanding its “off-premise” business by collaborating with local eateries, well-known chains like Subway, and food trucks.

PepsiCo continues to prioritize dividend payments, even raising them for the 53rd consecutive year. This makes it an attractive option for income-focused investors. However, the slowing sales growth might pose a challenge for both the company and its share price in terms of overall expansion.

Glossary

1. Exited position: When an investor sells all the shares of a specific investment, no longer owning any stake in that asset.
2. 13F reportable assets: Securities that institutional investment managers are required to disclose in their quarterly SEC Form 13F filings due to their significance or type.
3. Assets under management (AUM): The total market value of the investments managed by a fund or firm on behalf of its clients.
4. Reportable positions: Investments that must be disclosed in regulatory filings due to their size or type.
5. Dividend yield: The percentage representing the annual dividends paid by a company relative to its share price.
6. Forward P/E: The Price-to-Earnings ratio calculated using projected earnings for the next year, signifying expected valuation.
7. EV/EBITDA: The Enterprise Value divided by Earnings Before Interest, Taxes, Depreciation, and Amortization; used to evaluate a company’s valuation.
8. 52-week high: The highest price at which the stock has been traded during the past year.
9. Direct-store-delivery: A distribution method where manufacturers deliver products directly to retail stores, cutting out warehouses in the process.
10. Branded consumer packaged goods: Products marketed under a well-known brand and usually pre-packaged for individual consumer use.
11. Wholesale distributors: Companies that buy goods in bulk from manufacturers and then resell them to retailers or other businesses.
12. Authorized bottlers: Companies granted a license to bottle and distribute beverages for a brand owner within specific territories.

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2025-07-23 04:52