Thursday, April 26, 2012

Seeking Alpha: PepsiCo Okay On Volumes, But When's The Leverage Coming Back?

These are trying times for food and beverage companies, as managements try to find the right balance between offsetting cost inflation through price increases and maintaining stable volumes. While volumes were a little challenged at PepsiCo (PEP) this quarter, that's not the major challenge in front of the company. The real key to the stock breaking out of a five-year funk may have less to do with matching Coca-Cola (KO) or extending its lead over Kraft (KFT) as it does improving upon margins and free cash flow.

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PepsiCo Okay On Volumes, But When's The Leverage Coming Back?

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