PEP Stock Heads For Worst Month Since May: PepsiCo Commits $1B To Colombia Expansion, Targets Higher Prices Ahead Of Q3 Earnings

• The Colombian president announced PepsiCo will invest $1 billion over five years. 
• Morningstar said PepsiCo’s strong brands, distribution network, and international growth support its long-term outlook. 
• For Q3, analysts expect $24.99 billion in revenue with earnings of $2.3 per share.

PepsiCo Inc. stock (PEP) is on track for its worst month since May, with shares down more than 7% in September, as the company adjusts pricing and prepares for fiscal third-quarter (Q3) 2026 results. Meanwhile, Colombia announced PepsiCo will invest $1 billion over five years to expand production, modernize operations and strengthen distribution.

PepsiCo stock edged 0.5% lower overnight, ahead of Monday. The stock has been declining for five straight weeks. 

PepsiCo Invests $1 Billion In Colombia 

On Sept.27, Colombia President Abelardo De La Espriella announced on X that PepsiCo will invest $1 billion.

“It's a resounding decision: to expand production, modernize its operations, and strengthen distribution in the country. Confidence is shown through investment. This commitment boosts employment, supports more than 2,000 farmers, and strengthens Colombian shopkeepers.”

For PepsiCo, the investment shows its long-term focus on Latin America. Expanding production and upgrading operations could help the company meet local demand, while a stronger distribution network could increase its reach among small neighborhood stores. 

The pledge is one of the most important corporate commitments the new Colombian government has secured. It arrives as PepsiCo adjusts its pricing at home and prepares to report Q3 earnings on Oct. 8, giving investors a view of where the company is placing its long-term bets.

Higher Costs Complicate PepsiCo’s Affordability Push 

Last week, a Bloomberg report said PepsiCo plans to raise prices on some chips, sodas, and dips after cutting prices earlier this year. Chip prices could rise by low-to-mid single-digit percentages, though PepsiCo says they will remain below pre-cut levels. The company is trying to balance affordability with rising costs.

PepsiCo is facing weak North American snack sales and pressure from higher costs. Its North American food revenue fell 2% to $6.37 billion in Q2, while prices for some Tostitos and Fritos dips have already increased. According to Fiscal.ai data, analysts expect $24.99 billion revenue with earnings of $2.3 per share. 

International Markets Provide A Growth Opportunity For PepsiCo

Last week, Morningstar analyst Kristoffer Inton said PepsiCo has strong snack and beverage brands, a large distribution network and good relationships with retailers, which support its long-term competitive position. Its international business is growing steadily, especially in Latin America, Asia and Africa.

However, growth in North America has slowed because of weak snack demand and higher costs. PepsiCo is trying to improve sales through healthier products, lower-priced options, digital marketing and a more focused product lineup. Analysts say these efforts could help, but results may take time. 

PEP Stock: Retail View 

On Stocktwits, retail sentiment around the stock remained in ‘bullish territory’. 

PEP stock has declined 10% year-to-date. 

Also see: Why Did AMD, HPE, MRNA Stocks Surge To 52-Week Highs Last Week?

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