The Rising Influence of Rising Affluence

[DewDiligence]

Quiz: Inasmuch as corn syrup and corn flour are major ingredients in PEP’s beverages and snacks, why hasn’t PEP lowered its EPS guidance* on account of the sky-high price of corn? There are two main reasons.

*To the contrary, PEP raised non-GAAP EPS guidance for 2011 from a YoY growth rate of 5-7% to a YoY growth rate of 6-8%, which implies a 2011 range of $4.46-4.55 after taking into account that FY2011 has 53 weeks.