Pepsi's Europe CEO Guimaraes to Lead Global Operations
PepsiCo, Inc. (PEP) recently announced that it is promoting Enderson Guimaraes, currently the chief executive officer (CEO) of its Europe unit as the head of its global operations business.
Guimaraes, who has served Pepsi since 2011, has been given the title of Executive Vice President, Global Categories and Operations. He will be succeeded by Ramon Laguarta, currently President of the developing & emerging markets units.
Guimaraes will look after Pepsi’s Global Beverage, Global Snacks and Global Nutrition Groups; Business & Information Solutions function; Global Procurement; Productivity; Supply Chain; and Corporate Strategy. He will succeed Zein Abdalla, who is retiring at the end of this year.
Despite a difficult operating environment in the developed countries and nagging volatility in the emerging ones, the Zacks Rank #3 (Hold) company has had a solid run so far this year delivering positive earnings and revenue surprises in the first three quarters of 2014. Strong global snacks performance, solid emerging market performance and impressive margin growth boosted the company’s results in all the three quarters.
Pepsi even raised the earnings guidance twice this year to reflect strong year-to-date performance and an optimistic outlook for the rest of the year. Shares of the company have surged 24% year-to-date.
We believe that Pepsi would continue the strong momentum in the fourth quarter as well as the next year backed by the strong snacks business, robust international growth and aggressive cost savings.
Other Stocks to Consider
Some better-ranked beverage companies include Monster Beverage Corporation (MNST), Keurig Green Mountain, Inc. (GMCR) and Dr Pepper Snapple Group, Inc. (DPS). While Monster sports a Zacks Rank #1 (Strong Buy), Keurig and Dr Pepper carry a Zacks Rank #2 (Buy).
Read the Full Research Report on DPS
Read the Full Research Report on PEP
Read the Full Research Report on GMCR
Read the Full Research Report on MNST
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