PepsiCo aims for healthier profits

Article Excerpt

PEPSICO INC. $107 (New York symbol PEP; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.4 billion; Market cap: $149.8 billion; Price-to-sales ratio: 2.5; Dividend yield: 2.9%; TSINetwork Rating: Above Average; www. pepsico.com) continues to see weaker demand for its sodas and snack foods as consumers switch to healthier products. In response, the company will cut the sugar in its soft drinks. By 2025, at least two-thirds of its global beverage volumes should have no more than 100 calories of sugar per 12 ounces of beverage. That’s up from the current 40%. The company also plans to cut the sodium levels in its foods. These moves improve PepsiCo’s prospects. However, the stock trades at a very high 22.3 times this year’s projected earnings of $4.80 a share. PepsiCo is a hold. hold…