PepsiCo has been performing well over the last quarter and management has guided for 4% organic revenue growth for 2019. The company’s strong cash flow generation has given management the flexibility to invest in the growth of the business and they expect free cash flow of $5 billion for 2019. Increases in daily snacking habits have more than offset declines in the consumption of carbonated beverages. PepsiCo is making strides to be more environmentally conscious with a new target of reducing first-use plastic by 35% across their beverage portfolio by 2025. Management is working to make their business more sustainable to fit in with the shifting priorities of consumers. PepsiCo plans to continue to create new types of products to bolster their portfolio and keep up with changing market trends.
From Jeff Auxier (Trades, Portfolio)'s third-quarter 2019 commentary.
