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  "documentTitle": "PepsiCo (PEP)",
  "authorId": "06_Trian_Partners",
  "authorName": "Nelson Peltz",
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  "presentationDate": "2014-02-19 00:00:00",
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      "text": "Since 2006 when the current leadership team took control, PepsiCo's TSR of 47% (5% per annum) is less than half of Coca-Cola's TSR of 115% (11% per annum) and the overall Consumer Staples Index TSR of 103% (10% per annum).",
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      "text": "Total shareholder returns (TSR) have substantially underperformed peers... Since 2006... PepsiCo's TSR of 47%... is less than half of Coca-Cola's TSR of 115%... and the overall Consumer Staples Index TSR of 103%.",
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      "text": "Earnings per share (EPS) growth has trailed peers... From 2006-2013, PepsiCo grew EPS at a significantly lower rate than Coca-Cola and the Consumer Staples Index (PepsiCo grew EPS 46%, Coca-Cola grew EPS 75% and the Consumer Staples Index grew EPS 81%).",
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      "text": "Significant margin gap versus peers... PepsiCo's consolidated operating profit margin... of 19% is 679 basis points (bps) below the peer average. Likewise... global beverage operating profit margin of 12% is 670 bps below the peer average.",
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      "text": "Total shareholder returns (TSR): 47%",
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      "kind": "paragraph",
      "text": "Several times last year, management appeared on television after earnings calls to celebrate 2013 performance. Trian does not see much to celebrate. The company “re-set” earnings",
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      "text": "We hope that if the Board takes one aspect of our analysis to heart, it is that PepsiCo’s beverage and snacks businesses must recapture the key parts of their identity that allowed them to thrive for generations. The beverage business must return to its role as a fast-moving \"industry disruptor,\" as it will never be competitive following the same path as Coke. And Frito-Lay will lose its dominance over time if management is not given the autonomy to invest for growth without interference from corporate. Changing culture is difficult. In our experience, it is best catalyzed with a decisive corporate event - in this case, a spin-off that empowers two standalone management teams to make change happen.",
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      "text": "Whereas PepsiCo was once an incubator of top management talent, the company has lost numerous key personnel in recent years. We believe PepsiCo’s holding company structure, with power concentrated centrally at corporate, is an impediment to attracting, developing and retaining top management.",
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