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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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  "notes": "Includes specific analyst quotes from Bernstein and Consumer Edge regarding earnings quality.",
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      "text": "2013 Constant Currency EPS Growth, Normalized For Tax, is Below Peers and Long-Term Guidance (Despite 2012 Reset)",
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      "text": "2013 Constant Currency EPS Growth, Normalized For Tax, is Below Peers and Long-Term Guidance",
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      "text": "PepsiCo 2012 Consensus EPS Estimate Over Time",
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      "text": "PepsiCo reset EPS in 2012 to $4.10, well-below prior consensus expectations of $5.00, partly due to $500-$600m in additional brand support. Despite the reset and significant brand investment, 2013 EPS grew only 7%, when normalized for tax, below the peer average and at the low-end of PepsiCo's long-term guidance. Excluding the gain related to refranchising the Company's bottling operations in Vietnam, EPS increased only 5%. As a result, 2013 EPS is 1% lower than 2011 levels (3% below excluding the Vietnam gain).",
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      "text": "EPS growth: 5.1%",
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      "text": "Research Commentary on Q2 2013 Earnings Results (Including Vietnam Gain)",
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      "kind": "quote",
      "text": "PepsiCo is now guiding to ~5% FX neutral EPS growth (ex Vietnam benefit) lapping 5% declines a year ago... In our view, this is an unsustainable long-term financial equation... (Consumer Edge, 7/25/13)",
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      "kind": "quote",
      "text": "'Recurring' Beat Driven by 'One-time' Gain? Same Guidance Costs More... We found the company's inclusion in 'core' of this one time item [Vietnam gain] as rather bothersome. (Bernstein, 7/25/13)",
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      "text": "\"Recurring' Beat Driven by 'One-time' Gain? Same Guidance Costs More... We found the company's inclusion in 'core' of this one time item [Vietnam gain] as rather bothersome.\" — Bernstein, 7/25/13; \"PepsiCo is now guiding to ~5% FX neutral EPS growth (ex Vietnam benefit) lapping 5% declines a year ago... Given what we see as low-quality earnings, we would prefer to put money to work elsewhere.\" — Consumer Edge, 7/25/13",
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      "text": "Source: Capital IQ and SEC Filings. Note: The estimates, projections, pro-forma information... (1) Assumes 2013 effective tax rate is equal to 2012 tax rate (2) Peers include Coca-Cola, Dr Pepper Snapple, Mondelez, Hershey and Coca-Cola Enterprises.",
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      "text": "Appendix D: Despite 2012 EPS Reset, 2013 EPS Growth was Below Peers",
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