Why Economic Reopenings Could Be a Headwind for PepsiCo

PepsiCo (NASDAQ: PEP) was a beneficiary of the coronavirus-induced pantry stuffing that occurred at the onset of the pandemic in early 2020. Understandably, folks had little information about the severity and the duration of lockdowns and rushed to grocery stores and bought up nonperishable items.

Simultaneously, dining at restaurants decreased immensely, and people prepared food and ate at home more often. This could have been bad news for PepsiCo, but the company has a lower market share of products sold through away-from-home channels like restaurants, movie theaters, and entertainment and sporting venues. That's an area where rival Coca-Cola (NYSE: KO) has a strong position and thus was hit harder. 

Fortunately, COVID-19 infection rates are decreasing in parts of the world where PepsiCo and Coca-Cola operate, and subsequently, governments are easing business restrictions and reopening economies. However, that could actually be a headwind for PepsiCo. 

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Source Fool.com