11:23 AM EDT, 10/10/2025 (MT Newswires) -- PepsiCo's ( PEP ) recovery timeline remains uncertain after delivering fiscal Q3 results that reflected persisting domestic topline challenges and international "softness," along with improved bottom-line performance, RBC Capital Markets said in a note Friday.

The company seems to be "moving with a greater sense of urgency, but issues are by no means fixed," and the "timeline to recovery is cloudy at this point," RBC said.

RBC highlighted the fact that the company is launching product innovation projects in its food and beverage segments. "We view this as a step in the right direction, but time will tell if it can help reignite the top line," according to the note.

The investment firm also said that PepsiCo ( PEP ) anticipates a return to the company's long-term algorithm of 4% to 6% organic sales growth at some point next year. However, given the company's slow domestic growth and innovation plans still in the early stage, investors are likely to question its recovery timeline, RBC added.

RBC reiterated its sector perform rating on PepsiCo ( PEP ), with a $145 price target.

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