PepsiCo is changing its financial leadership as it works to improve slow sales in snacks and sodas while dealing with an activist investor advocating for change.
Executive PepsiCo appoints Walmart Appointment and Background
PepsiCo named Steve Schmitt as Executive Vice President and Chief Financial Officer effective November 10, 2025, succeeding Jamie Caulfield, who is retiring after more than 30 years with the company. Caulfield will assist Schmitt in an advisory role until May 2026.[1][2]
Schmitt joins PepsiCo from Walmart U.S., where he served as CFO and led financial operations for Walmart’s omnichannel business. His leadership at Walmart focused on digital transformation, cost discipline, and supply chain efficiency. Earlier in his career, he held leadership roles at Yum! Brands and UPS, bringing extensive experience in retail finance, consumer goods, and operational excellence.[3][4][5]
Company Performance and Market Context
In Q3 2025, PepsiCo reported revenue of $23.94 billion, beating forecasts by $340 million, with earnings per share of $2.29, surpassing expectations. This growth of 2.6% was driven by international expansion and resilience in North American beverages, despite a 1% global volume decline. Profit was pressured by inflation, changes to packaging sizes, and softer demand in core North American markets.[6][7][8][9]
Strategic Priorities Under Schmitt
PepsiCo aims to improve organic growth by optimizing cost structures, increasing operational efficiency, and maximizing brand investments in health-conscious and premium products. Schmitt’s retail and digital expertise aligns with PepsiCo’s strategic focus on expanding digital and omnichannel capabilities to better meet evolving consumer demands.[10][4][3]
Activist Investor Influence
Elliott Investment Management, holding about a $4 billion stake, has pushed PepsiCo to accelerate revenue growth and raise profitability. Elliott recommends refranchising PepsiCo’s bottling operations to independent bottlers, similar to Coca-Cola’s model, and divesting underperforming food assets. While some investors support cost-cutting and brand focus, there is caution about the complexity and cost of bottling separation.[11][12][13][14][15]
Industry Trends and Outlook
PepsiCo’s leadership change mirrors broader shifts in consumer packaged goods companies facing volume pressures and shifting consumer preferences toward healthier and sustainable options. Analysts view Schmitt’s arrival as vital for driving operational discipline and strategic reinvention, helping PepsiCo remain competitive and enhance shareholder value.[13][10]
