Medicare part D coverage started July 1st is rapidly eroding Pepsi Co's profit center in American snacks.

Pepsi Co stock among the cheapest funding shorts available. Not a single rat on Pepsi Co’s Q2 earnings call mentioned the start of this program in July. It has not been included in guidance. It is the largest subsidy ever paid out for GLP-1 products. These subsidies will directly impact their operating profits and you’re left with a consumer dicretionary with earnings that are falling, trading above 20x forward earnings and soon to be their first dividend cut ever unless they wanted to support a > 100% payout ratio (which they definitely could manage).