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PepsiCo CFO Hugh Johnston Leaving for Disney amid big changes at media giant

PepsiCo PEP shares slipped lower Monday after the drinks and snacks group said long-serving CFO Hugh Johnston would leave the group to take a similar role at media and entertainment giant Disney DIS. Johnston, who has been finance chief at PepsiCo since 2010, and served the group since 1987, will leave at the end of the month an assume the CFO role at Disney. He'll be replaced by current PepsiCo Foods North American CFO Jamie Caulfield. Disney has been without a CFO since the departure of veteran finance boss Christine McCarthy, who stepped down following a family medical leave in June. McCarthy, whom CEO Bog Iger called "one of the most admired financial executives in America", has been serving as a consultant to the firm during its transition. "Hugh's legacy will be with us for decades to come. He has exemplified and epitomized the leadership qualities which PepsiCo has nurtured for generations," said PepsiCo CEO Ramon Laguarta. "Under his financial leadership the company has transformed significantly, and he has been a strong partner to me for many years." "I will miss his calm guidance as well as his people-first and empathetic leadership qualities. Hugh goes on to the next stage of his career with all our best wishes," he added. PepsiCo shares were marked 0.7% lower in pre-market trading following news of Johnson's departure to indicate an opening bell price of $166.00 each. Disney shares, meanwhile, were marked 0.2% higher at $85.23 each. Disney, which reports its September quarter earnings Wednesday, is going through a host of significant changes under Iger's extended interim leadership, including the purchase of the remaining stake in streaming platform Hulu, and plans to double its theme park investments to more than $60 billion over the next ten years. The group is also facing a stepped-up battle from billionaire activist investor Nelson Peltz, who is now reportedly working with the support of former Disney executive Isaac Perlmutter, for seats on the entertainment giant's board. Peltz and Trian abandoned their proxy fight in February after Disney CEO Bob Iger said "everything’s on the table right now" with respect to the group's 66% stake in Hulu after Peltz said Disney should either buy the entire platform or exit streaming altogether. Action Alerts PLUS offers expert portfolio guidance to help you make informed investing decisions. Sign up now.
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*Why You Should Keep a Pants Hanger in the Shower*

It’s a simple, straightforward solution to a tricky issue. READ MORE...
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*Bud Light's boycott problem isn't what boycotters think it is*

People love to be morally outraged. That's not unique to either political party. It's generally true of anyone who has rigid views with limited room to be sympathetic to people who feel a different way. You see this on non-political, but polarizing issues all the time. For example, hop into a Facebook book for Royal Caribbean or Carnival and ask "Should smoking be allowed in the ship's casino?"Related: Bud Light has a new plan as boycotts continue after huge scandal That question will elicit responses that speak to both sides of the issue. Smokers will defend their right to smoke and tell people who don't like to not visit the casino while non-smokers will complain about being exposed to the smoke. It's very rare that you get a smoker who expresses an understanding of why people who don't smoke may not want to be around people smoking. And you almost never see non-smokers get vocal about smokers having rights too. Basically, on polarizing issues, people who strongly believe one way or the other usually speak up. What you don't see in that cruise ship example is people not gambling if non-smokers boycotted cruise ship casinos, then a change might take place, People, however, rarely give up something they like on moral grounds. That's because sacrificing for your principles causes you real pain without guaranteeing that any damage will be caused to whatever product or brand you're taking a moral stand against. That's why most boycotts fail. Outraged liberals still want their Chick-fil-A sandwiches and sometimes only Hobby Lobby has the craft items you need. Right-wing folks can act all up in arms about companies embracing Pride month but they're not skipping their Starbucks lattes, favorite Disney+, or the low prices offered at Target. Anheuser-Busch InBev BUD, however, has a whole different problem that has led to the Bud Light boycott not only working but having long legs. Bud Light isn't really a differentiated product. Image source: Shutterstock A Bud Light boycott is easy When your best quality is mediocrity, it's best to not make any enemies. Think of that in a professional sports setting. James Harden can be a jerk because he has been an All-Star-level player. The eighth guy on the bench has to be a good teammate who represents the organization well because he's very replaceable. Bud Light isn't some super offender that pushed its conservative customers too far with its partnership with transgender social media influencer Dylan Mulvaney. It's just a product that people can take a moral stand against because it's easy to replace. "Bud Light is a product that has lots of substitutes, such as new products that you can go to quite easily,” he says. “So, if you’re going to the grocery store to buy your pack of beer, right next to Bud Light in the refrigerator is Coors Light or Miller Lite. And for most people, the taste of those products is pretty indistinguishable.," Professor Brayden King of Northwestern University’s Kellogg School of Management told New York Magazine. When you boycott Disney, you can't watch the new "Star Wars" shows there's no comparable substitute. People might think Disney grooms kids or whatever other conspiracy theories political agitators like Florida Gov. Ron DeSantis allege with no actual proof, but boycotting means you don't get to see what happens to Baby Yoda. Switching one light beer for another under the guise of outrage that the beer's marketing team thought LGBTQ+ people might like mediocre, bland beer too, works because you get to be angry and pay no cost for that anger. Anheuser-Busch is hardly as "woke" as Disney, Starbucks, or Target, brands that actually have made a long-term commitment to supporting the LGBTQ+ community. Instead, it sells a replaceable product that's sold on shelves right next to its pretty much the same rivals.
[Read more...](https://www.thestreet.com/restaurants/bud-lights-boycott-problem-isnt-what-boycotters-think-it-is)
Bud Light's boycott problem isn't what boycotters think it is

People love to be morally outraged. That's not unique to either political party. It's generally true of anyone who has rigid views with limited room to be sympathetic to people who feel a different way. You see this on non-political, but polarizing issues all the time. For example, hop into a Facebook book for Royal Caribbean or Carnival and ask "Should smoking be allowed in the ship's casino?"Related: Bud Light has a new plan as boycotts continue after huge scandal That question will elicit responses that speak to both sides of the issue. Smokers will defend their right to smoke and tell people who don't like to not visit the casino while non-smokers will complain about being exposed to the smoke. It's very rare that you get a smoker who expresses an understanding of why people who don't smoke may not want to be around people smoking. And you almost never see non-smokers get vocal about smokers having rights too. Basically, on polarizing issues, people who strongly believe one way or the other usually speak up. What you don't see in that cruise ship example is people not gambling if non-smokers boycotted cruise ship casinos, then a change might take place, People, however, rarely give up something they like on moral grounds. That's because sacrificing for your principles causes you real pain without guaranteeing that any damage will be caused to whatever product or brand you're taking a moral stand against. That's why most boycotts fail. Outraged liberals still want their Chick-fil-A sandwiches and sometimes only Hobby Lobby has the craft items you need. Right-wing folks can act all up in arms about companies embracing Pride month but they're not skipping their Starbucks lattes, favorite Disney+, or the low prices offered at Target. Anheuser-Busch InBev BUD, however, has a whole different problem that has led to the Bud Light boycott not only working but having long legs. Bud Light isn't really a differentiated product. Image source: Shutterstock A Bud Light boycott is easy When your best quality is mediocrity, it's best to not make any enemies. Think of that in a professional sports setting. James Harden can be a jerk because he has been an All-Star-level player. The eighth guy on the bench has to be a good teammate who represents the organization well because he's very replaceable. Bud Light isn't some super offender that pushed its conservative customers too far with its partnership with transgender social media influencer Dylan Mulvaney. It's just a product that people can take a moral stand against because it's easy to replace. "Bud Light is a product that has lots of substitutes, such as new products that you can go to quite easily,” he says. “So, if you’re going to the grocery store to buy your pack of beer, right next to Bud Light in the refrigerator is Coors Light or Miller Lite. And for most people, the taste of those products is pretty indistinguishable.," Professor Brayden King of Northwestern University’s Kellogg School of Management told New York Magazine. When you boycott Disney, you can't watch the new "Star Wars" shows there's no comparable substitute. People might think Disney grooms kids or whatever other conspiracy theories political agitators like Florida Gov. Ron DeSantis allege with no actual proof, but boycotting means you don't get to see what happens to Baby Yoda. Switching one light beer for another under the guise of outrage that the beer's marketing team thought LGBTQ+ people might like mediocre, bland beer too, works because you get to be angry and pay no cost for that anger. Anheuser-Busch is hardly as "woke" as Disney, Starbucks, or Target, brands that actually have made a long-term commitment to supporting the LGBTQ+ community. Instead, it sells a replaceable product that's sold on shelves right next to its pretty much the same rivals.
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*Morningstar's most undervalued consumer defensive stocks*

Consumer defensive stocks have struggled this year, as investors have opted for mega-cap technology titans instead. The Morningstar US Consumer Defensive index has produced a total return of negative 3.42% year to date, compared to positive 15.05% for the S&P 500. That may have created some buying opportunities among consumer defensive stocks. With this in mind, Morningstar put together a list of the seven most undervalued stocks (as of Oct. 23) among the 39 that it covers in the sector. Undervaluation is based on Morningstar fair value estimates. These are the sterling seven, starting with the most undervalued as of Nov. 3. 1. Tyson Foods TSN, the giant meat producer Morningstar moat (durable competitive advantage): none. Morningstar fair value estimate: $85. Friday’s closing price: $47.05. Despite the company’s recent struggles, “we don’t see any structural changes to its end markets that would alter our long-term outlook for low-single-digit percentage annual revenue growth and a return to mid- to high-single-digit adjusted operating margins,” wrote Morningstar analyst Kristoffer Inton. 2. Estee Lauder EL, the beauty products company Morningstar moat: wide. Morningstar fair value estimate: $200. Friday’s closing price: $110.95. Estee Lauder has suffered recently from weak demand in Asia. But, for fiscal 2025 onward, Morningstar analyst Dan Su still expects Estee to grow revenue at high-single-digit percentage rates on strong brands and premiumization trends. She sees operating margins rising to 18% by 2033, though that’s down from her prior estimate of 22%. 3. Kraft Heinz KHC, the food producer Morningstar moat: none. Morningstar fair value estimate: $53. Friday’s closing price: $33.27. “Since mid-2019, Kraft Heinz has prioritized: the pursuit of efficiencies that prove lasting,brand spending elevation (marketing and product innovation),the enhancement of capabilities (category management and e-commerce), andscale-leverage to more nimbly respond to changing market conditions,” said Morningstar analyst Erin Lash. She views that strategy as “prudent.” 4. Campbell Soup CPB, the soup maker Morningstar moat: wide. Morningstar fair value estimate: $61. Friday’s closing price: $41. 5. Kellanova K, the non-cereal side of what was formerly Kellogg Morningstar moat: narrow. Morningstar fair value estimate: $75. Friday’s closing price: $52.05. 6. Conagra Brands CAG, a food producer, including Birds Eye Morningstar moat: none. Morningstar fair value estimate: $33. Friday’s closing price: $27.80. Inton cut his fair value estimate last month from $46.50, mostly due to a 150-basis-point reduction in his operating margin forecast, as he expects competition to erode recent expansion. But investors are “overweighting Conagra’s near-term volume challenges,” he said. As price increases slow, “consumers will return to more normalized buying patterns.” 7. Dollar General DG, the discount retailer Morningstar moat: narrow. Morningstar fair value estimate: $140. Friday’s closing price: $119.25. The author of this story owns shares of Kraft Heinz.
[Read more...](https://www.thestreet.com/stocks/morningstar-undervalued-consumer-defensive-stocks)
Morningstar's most undervalued consumer defensive stocks

Consumer defensive stocks have struggled this year, as investors have opted for mega-cap technology titans instead. The Morningstar US Consumer Defensive index has produced a total return of negative 3.42% year to date, compared to positive 15.05% for the S&P 500. That may have created some buying opportunities among consumer defensive stocks. With this in mind, Morningstar put together a list of the seven most undervalued stocks (as of Oct. 23) among the 39 that it covers in the sector. Undervaluation is based on Morningstar fair value estimates. These are the sterling seven, starting with the most undervalued as of Nov. 3. 1. Tyson Foods TSN, the giant meat producer Morningstar moat (durable competitive advantage): none. Morningstar fair value estimate: $85. Friday’s closing price: $47.05. Despite the company’s recent struggles, “we don’t see any structural changes to its end markets that would alter our long-term outlook for low-single-digit percentage annual revenue growth and a return to mid- to high-single-digit adjusted operating margins,” wrote Morningstar analyst Kristoffer Inton. 2. Estee Lauder EL, the beauty products company Morningstar moat: wide. Morningstar fair value estimate: $200. Friday’s closing price: $110.95. Estee Lauder has suffered recently from weak demand in Asia. But, for fiscal 2025 onward, Morningstar analyst Dan Su still expects Estee to grow revenue at high-single-digit percentage rates on strong brands and premiumization trends. She sees operating margins rising to 18% by 2033, though that’s down from her prior estimate of 22%. 3. Kraft Heinz KHC, the food producer Morningstar moat: none. Morningstar fair value estimate: $53. Friday’s closing price: $33.27. “Since mid-2019, Kraft Heinz has prioritized: the pursuit of efficiencies that prove lasting,brand spending elevation (marketing and product innovation),the enhancement of capabilities (category management and e-commerce), andscale-leverage to more nimbly respond to changing market conditions,” said Morningstar analyst Erin Lash. She views that strategy as “prudent.” 4. Campbell Soup CPB, the soup maker Morningstar moat: wide. Morningstar fair value estimate: $61. Friday’s closing price: $41. 5. Kellanova K, the non-cereal side of what was formerly Kellogg Morningstar moat: narrow. Morningstar fair value estimate: $75. Friday’s closing price: $52.05. 6. Conagra Brands CAG, a food producer, including Birds Eye Morningstar moat: none. Morningstar fair value estimate: $33. Friday’s closing price: $27.80. Inton cut his fair value estimate last month from $46.50, mostly due to a 150-basis-point reduction in his operating margin forecast, as he expects competition to erode recent expansion. But investors are “overweighting Conagra’s near-term volume challenges,” he said. As price increases slow, “consumers will return to more normalized buying patterns.” 7. Dollar General DG, the discount retailer Morningstar moat: narrow. Morningstar fair value estimate: $140. Friday’s closing price: $119.25. The author of this story owns shares of Kraft Heinz.
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*PepsiCo CFO Johnston joining Disney amid big changes at media giant*

Updated 9:47 am EST PepsiCo, PEP the drinks-and-snacks group, said long-serving Chief Financial Officer Hugh Johnston would leave the group to take a similar role at media and entertainment giant Disney DIS. Johnston, who has been finance chief at PepsiCo since 2010, and has served the group since 1987, will leave at the end of the month to assume the CFO role at Disney. He'll be succeeded by current PepsiCo Foods North American CFO Jamie Caulfield. Disney has been without a CFO since veteran finance boss Christine McCarthy stepped down following a family medical leave in June. McCarthy, whom CEO Bob Iger called "one of the most admired financial executives in America," has been serving as a consultant to the firm during its transition. "Hugh's legacy will be with us for decades to come. He has exemplified and epitomized the leadership qualities which PepsiCo has nurtured for generations," said PepsiCo CEO Ramon Laguarta. "Under his financial leadership the company has transformed significantly, and he has been a strong partner to me for many years." "I will miss his calm guidance as well as his people-first and empathetic leadership qualities. Hugh goes on to the next stage of his career with all our best wishes," he added. PepsiCo shares were marked 0.28% higher in early Monday trading to change hands at $167.19 each while edged 0.26% higher to $85.27 each.Disney making changes under Iger Disney, which reports its September-quarter earnings on Wednesday, is going through a host of significant changes under Iger's extended interim leadership. These include the purchase of the remaining stake in streaming platform Hulu and plans to double its theme-park investments to more than $60 billion over the next 10 years. The group is also facing a stepped-up battle from the billionaire activist investor Nelson Peltz, who is now reportedly working with the support of former Disney executive Isaac Perlmutter to gain seats on the entertainment giant's board. Peltz and Trian abandoned a proxy fight in February after Iger said "everything’s on the table right now" with respect to the group's 66% stake in Hulu. Peltz had said Disney should either buy the entire platform or exit streaming altogether. Action Alerts PLUS offers expert portfolio guidance to help you make informed investing decisions. Sign up now.
[Read more...](https://www.thestreet.com/investing/stocks/pepsico-cfo-hugh-johnston-leaving-for-disney-amid-big-changes-at-media-giant)
PepsiCo CFO Johnston joining Disney amid big changes at media giant

Updated 9:47 am EST PepsiCo, PEP the drinks-and-snacks group, said long-serving Chief Financial Officer Hugh Johnston would leave the group to take a similar role at media and entertainment giant Disney DIS. Johnston, who has been finance chief at PepsiCo since 2010, and has served the group since 1987, will leave at the end of the month to assume the CFO role at Disney. He'll be succeeded by current PepsiCo Foods North American CFO Jamie Caulfield. Disney has been without a CFO since veteran finance boss Christine McCarthy stepped down following a family medical leave in June. McCarthy, whom CEO Bob Iger called "one of the most admired financial executives in America," has been serving as a consultant to the firm during its transition. "Hugh's legacy will be with us for decades to come. He has exemplified and epitomized the leadership qualities which PepsiCo has nurtured for generations," said PepsiCo CEO Ramon Laguarta. "Under his financial leadership the company has transformed significantly, and he has been a strong partner to me for many years." "I will miss his calm guidance as well as his people-first and empathetic leadership qualities. Hugh goes on to the next stage of his career with all our best wishes," he added. PepsiCo shares were marked 0.28% higher in early Monday trading to change hands at $167.19 each while edged 0.26% higher to $85.27 each.Disney making changes under Iger Disney, which reports its September-quarter earnings on Wednesday, is going through a host of significant changes under Iger's extended interim leadership. These include the purchase of the remaining stake in streaming platform Hulu and plans to double its theme-park investments to more than $60 billion over the next 10 years. The group is also facing a stepped-up battle from the billionaire activist investor Nelson Peltz, who is now reportedly working with the support of former Disney executive Isaac Perlmutter to gain seats on the entertainment giant's board. Peltz and Trian abandoned a proxy fight in February after Iger said "everything’s on the table right now" with respect to the group's 66% stake in Hulu. Peltz had said Disney should either buy the entire platform or exit streaming altogether. Action Alerts PLUS offers expert portfolio guidance to help you make informed investing decisions. Sign up now.
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