Jim Cramer Discusses Elliot Management's Stake in PepsiCo

PepsiCo, Inc. (NASDAQ:PEP) is one of the stocks that Jim Cramer put under a microscope. Discussing Elliott Management’s stake in the stock during the episode, Cramer said:

“If you study Elliott, as I have, you recognize that these guys aren’t gunslingers and they aren’t pirates. They’re thoughtful, intelligent people who do a tremendous amount of work, and they want the stock they invest in to go higher, something that the company CEO should want too. When CEOs discover that smart activists… have taken a stake and want change, I tell them to welcome thoughtful activists, sit down with them, work with them…

PepsiCo has tremendous brands that could be worth a lot more than the company stock is selling… PepsiCo had always supported a premium price-to-earnings multiple to Coca-Cola in part because FritoLay is a remarkable food brand and PepsiCo is a great growth beverage company. But that’s no longer the case, and that’s a real negative turnaround. PepsiCo has assets all over the place, and turning a company into, it’s like an array of cats and dogs that cannot stand…

Frankly, I’m not sure what I would do. I don’t really have a solution for [the] GLP-1 problem… There has to be a core to the business, and I don’t feel there’s a core there anymore. Otherwise, we’d still own PEP for the Charitable Trust like we used to.

I don’t know what will happen here, but I would say that the stock isn’t up enough after today, given the agitation I expect from the smartest activists in the business. I would say, though, that if I were running the company, I’d definitely want to brainstorm with Elliott. PepsiCo can and again will be, if they listen, the premium food and beverage company, but not if it keeps being run the way it’s managed now.”

PepsiCo, Inc. (NASDAQ:PEP) produces and markets a wide range of beverages and convenient foods, including snacks, cereals, dairy, and ready-to-drink products. Its portfolio includes brands like Lay’s, Doritos, Gatorade, Quaker, Mountain Dew, and Pepsi.

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