PepsiCo (PEP) reported 2nd quarter earnings on the 11th before the market opened, by the end of the day, shares were down nearly half a percentage point in reaction to this news. In my view, the numbers for the 2nd quarter were good, but that does not even matter, what does matter is the extremely positive direction this company is going in. I think that even if we do judge this quarter by the numbers themselves, PepsiCo did fantastic. Revenue and earnings per share both beat analyst expectations for this quarter, this was the 21st consecutive quarter where earnings per share beat analyst expectations. However, one earnings report is not even close to a good enough reason to justify selling PepsiCo stock, investors need to look at the bigger picture. They need to understand that PepsiCo is adapting to a changing consumer and is radically changing as a company for the better. Their product pipeline is more well adapted and diversified to changing consumer tastes versus the pipeline of their competitor, Coca-Cola (KO). PepsiCo is changing to capitalize on changing consumer tastes, this one quarter is insignificant in the grand scheme of things. As this transformation occurs, PepsiCo shareholders can enjoy a solid 2.83 percent dividend which has a consistent history of increasing. With all of this in mind, let's dive into this earnings report.