Jim Cramer Points Out Mistakes PepsiCo, Inc. (PEP) Might Have Made

We recently published 10 Latest Stocks Jim Cramer Discussed Amidst Market Uncertainty. PepsiCo, Inc. (NASDAQ:PEP) is one of the stocks Jim Cramer recently discussed.

Tuesday was a cracker of a day for PepsiCo, Inc. (NASDAQ:PEP)’s shares as they jumped by 5% after activist investor Elliott Management announced a $4 billion stake in the firm. PepsiCo, Inc. (NASDAQ:PEP) has struggled lately due to what Cramer has described low demand stemming from the rise of GLP-1 drugs. The CNBC TV host was of mixed mind about the firm as he discussed it after the Elliott announcement:

“The good hand is the PepsiCo hand that Elliott’s going after. And that I think we have to spend a lot of time on. Because I think that Elliot wants to bring out value there. I don’t think you remove Ramon, I think you see what Ramon wants to do. Ramon Laguarta, who is trying mightily in an atmosphere where the Gen Zrs don’t want to gain weight and GLP makes it so you can eat just one.

“I spent a lot of time analyzing the Honeywell deal, where Vimal Kapur worked closely with Elliott and we’ve got three great companies coming up. So I say, hold on to PepsiCo, you ain’t seen nothing yet.

The guys from PepsiCo have a great hand. They could really augment that hand if I think they work with Elliott. Some people want to work with Elliott, some people don’t. I think it is worthwhile, because the actual deck is filled with stuff that says, it’s a bit of an indictment, because there’s a lot of things at they at PepsiCo in the last few years the price-to-earnings multiple has shrunk dramatically because the growth, I mean, if I had to outline what PepsiCo’s strategy is, it would be, raise price, make smaller pack.

“Now PepsiCo, by the way, they deserve to be heard. It was a, a great grower. But they bought Siete, they buy Poppi, they bought Sodastream, where is that? Look at the impairment in Rockstar. They have not used their brands, in the correct way as far as I’m concerned.”

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Disclosure: None. This article is originally published at Insider Monkey.