Diageo (LSE:DGE) shares haven’t been terrific performers in recent years. And so far in 2026, that pattern hasn’t really changed.

Even with a new CEO at the helm, a dividend cut in February as part of the turnaround strategy sent the beverage giant’s shares even lower. And although the FTSE 100 giant has since bounced back, Diageo still remains roughly flat compared to where it started in January.

But if my hunch is right, that could soon change…

Resetting the business

Looking at the group’s latest full-year results, organic sales fell 2%, dragged down by persistent weakness in North America as well as Asia. In turn, operating profits sank by a sharper 27%, after incurring $900m in…