This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Jim Cramer's Mad Dash: PEP CSCO

(Adds Jim Cramer's comments on Cisco and corrects Nelson Peltz' first name.)

NEW YORK (TheStreet) -- PepsiCo (PEP) is slightly lower Thursday after beating on bottom-line estimates but failing to beat revenue expectations. The company increased its annual dividend to $2.62 per share from $2.27 and also raised its share buyback program to nearly $5 billion. 

TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said investors should definitely like the company's plans for its productivity, keeping to its current $1 billion per year to a projected five-year, $5 billion plan for 2015 to 2019. 

However, despite the productivity targets and return to shareholders, Cramer admitted it is a difficult environment for soda companies because carbonated drink sales have been taking a hit. 

He said it would be nice to see more organic growth from the company's Frito-Lay division, where revenue rose 4% for fiscal 2013. This shines in comparison to Quaker Foods' North American operating profits, which fell 15% for the quarter and 11% on the year. Cramer called it "unacceptable" for the company. 

He also disagrees with others, notably investor Nelson Peltz, who want PepsiCo to split its beverage business from its snack foods division. "Listen up, Nelson Peltz," Cramer said. "I like the combination." 

At current levels, Cramer likes the soda companies, such as Dr Pepper Snapple Group (DPS), because their shares have declined and the buybacks are big.

Cramer was far more negative about Cisco (CSCO), whose results are "not something I like to see." CEO John Chambers has "no leg to stand on" because "you have lower sales, you have lower gross margins... Look at these numbers," he said, scanning the company's report.

"They are getting their lunch eaten by, I believe, Alcatel-Lucent (ALU), of all things, and that's not good," Cramer said.

-- Written by Bret Kenwell in Petoskey, Mich.

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,122.01 +15.31 0.09%
S&P 500 2,000.12 +0.10 0.00%
NASDAQ 4,569.6210 -1.0160 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs