Dive Brief:

• PepsiCo on Thursday said it appointed Walmart finance executive Steve Schmitt to become its CFO, effective Nov. 10.
• Schmitt currently serves as CFO for Walmart U.S. He will replace PepsiCo CFO Jamie Caulfield, who has decided to retire next year after a more than 30-year career with the beverage and food giant, the company said.
• “Steve's experience working with complex supply chains, adapting to the dynamic retail landscape and omnichannel consumers, and delivering operational excellence on a large scale will be impactful at PepsiCo,” Ramon Laguarta, the company’s chairman and CEO, said in the release. “He will play a crucial role as we accelerate growth, optimize our cost structure, and create greater value for our shareholders.”

Dive Insight:

The maker of popular soft drinks such as Pepsi and snacks such as Doritos announced the finance leadership change as it also released a better-than-expected quarterly earnings report. The company said it generated $23.94 billion during the third quarter, an increase of about 2.6% compared with the year-earlier period.

Organic revenue, which excludes acquisitions, divestitures and foreign exchange, increased 1.3% in the quarter. A price increase of 4% “more than offset a 3% volume drop,” mostly in North America, according to Morningstar analyst Dan Su.

“Although weak volumes in North America persisted amid macro headwinds, management is prudent to step up investments in innovation and the away-from-home channels to better engage consumers,” Su said in a client’s note.

With a likely rebound in the company’s North America volumes in the coming quarters as recipe innovation and affordability initiatives bear fruit, coupled with international expansion, organic sales growth could jump back to the 4%-6% long-term range, the analyst said.

Also, as Schmitt comes on board as the company’s new finance chief, he will be able to “leverage his omnichannel retail expertise and cost discipline to aid PepsiCo's turnaround,” according to the Morningstar note.

Schmitt, 52, will receive an annual base salary of $900,000 in his new role, according to a securities filing. He’s also set to receive a hefty sign-on bonus of which $2 million will be paid immediately and $1.5 million will be paid on the anniversary of his start date.

Schmitt has spent the last six years at Walmart, becoming CFO of its U.S. finance organization in October 2021, according to his LinkedIn page. According to PepsiCo, Schmitt played “an important role in the transformation of Walmart into an omnichannel retailer enabled by digital transformation and led cost discipline initiatives.” 

Prior to joining Walmart, Schmitt held a variety of roles at Yum! Brands from 2006 to 2016, where he developed “expertise in quick service restaurants and the away-from-home business and evaluated long-term strategies, including strategic opportunities to support growth,” according to PepsiCo's securities filing.

Caulfield will remain CFO until Nov. 10, at which time he will assume an advisory role and assist with the transition through May 15, 2026, according to the Thursday release.