PepsiCo to lower prices and spending in deal with activist investor

PepsiCo has reached a deal with investor Elliott Investment Management to save money and lower prices on some food products. 

The agreement avoids a long fight with Elliott, which owns a $4 billion stake in the food and beverage giant.

The company will reduce costs across its food and drink operations and cut 20% of its US product lineup.

Savings from factory closures and cost cuts will go toward making products more affordable and expanding offerings, including snacks with more protein and fiber.

CEO Ramon Laguarta said the changes are meant to help customers struggling with high prices. PepsiCo expects its 2026 sales to grow 2% to 4%, aiming for the higher end later in the year.

PepsiCo’s shares rose 0.4% on Monday as the deal was announced.