PepsiCo Jumps, Constellation Brands Slumps, Kraft Heinz Slides After Split News

On this edition of Stock Movers:

- PepsiCo (PEP) shares jumped today after activist investor Elliott Investment Management has built a stake of about $4 billion in PepsiCo Inc., with plans to call for changes at the struggling beverage maker. The position makes it one of PepsiCo’s largest investors, the activist said Tuesday in a letter to the company board of directors. PepsiCo said will review Elliott’s perspectives in the context of its growth strategy, which it said is positioned to accelerate growth and deliver long-term value for shareholders. The soda-and-snacks maker has struggled in the face of competitive pressure and changing consumer tastes, with its market value plunging more than 20% from a peak in May 2023. In a presentation released Tuesday, Elliott outlined its plans for PepsiCo, which include potentially restructuring its beverage unit and reviewing its snacks offerings.

- Constellation Brands (STZ) shares slumped today after the alcohol beverage company cut its fiscal 2026 guidance, citing weak consumer demand. Peers including Molson Coors, Anheuser-Busch ADRs, Boston Beer and Brown-Forman are also trading lower.

- Kraft Heinz (KHC) shares are sliding today after news broke that the company plans to split into two separate companies, undoing a mega-deal ushered in a decade ago that turned the maker of Kraft Mac & Cheese into one of the largest packaged food sellers in the world. Following the breakup, one company will sell Heinz ketchup, other iconic condiments and boxed meals that comprise its fastest-growing global brands with $15.4 billion in annual sales. The other firm will include slower-growing grocery products, such as Oscar Mayer hot dogs and Lunchables, which currently generate revenue of $10.4 billion.

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