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Analyst Likes PepsiCo’s Cornell, New Ad Spending
CNBC.com | March 12, 2012 | 01:40 PM EDT

Recent management changes at PepsiCo were “a good step” but other factors could impact the stock over the next year or so, one analyst said Monday.

PepsiCo named former Sam’s Club President Brian Cornell to the CEO spot in its snack division — “probably not enough in the short-term, but definitely a good incremental step,” Deutsche Bank analyst Bill Schmitz said on “ Fast Money .”

“They cut a ton of advertising spending,” he said. “If you’re not going to spend behind them, you’re clearly not going to grow sales. I think they came to that realization, and now they’re dumping a ton of money back into the business.”

Schmitz noted that the company recently announced that it would look to turn around its soft-drink business in the next 12 to 18 months, possibly spinning off its U.S.-based division if that did not occur.

“If they do decide to split it up, you’re going to get a very big multiple on that Frito business so I do think it would be value-enhancing, but let’s just see if this reinvestment behind the soda business works,” Schmitz said.

Last month, PepsiCo CEO Indra Nooyi said there were no plans to split the company .

Pete Najarian of OptionMonster.com, already a shareholder, remained positive.

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