Why Is PepsiCo's Stock Down 10% While the S&P 500 Is Up 13% in 2026? Here's the Only Answer I Can Think of.

Investors have punished PepsiCo (NASDAQ: PEP) stock. Not only is it down roughly 10% so far in 2026, but it has also fallen 33% from its 2023 high as of this writing. The S&P 500 index has gained 13% so far this year, while PepsiCo competitor Coca-Cola (NYSE: KO) has risen nearly 25%. That last comparison is probably more important than the comparison to the S&P 500. Here's why.

The consumer staples sector is facing some material headwinds. Inflation is increasing operating costs. Consumers are tightening their belts, putting pressure on revenues. And consumer tastes are shifting in a healthy direction, which is a headwind for snack makers and packaged food companies like PepsiCo.

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