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PepsiCo Beats Q1 Forecasts as Snack Price Cuts Lift Volumes

Early gains from snack price cuts signal the affordability push is drawing shoppers back.

Overview

  • PepsiCo, which reported results Thursday, posted $19.44 billion in revenue and $1.61 adjusted EPS that topped forecasts while keeping its full-year organic sales and profit goals.
  • North America foods volumes rose 2% for the first time in more than two years after up to 15% price cuts on Lay’s, Doritos, Cheetos and Tostitos helped win back shelf space.
  • North America beverage volumes fell about 2.5% even with contributions from the Poppi acquisition and wider distribution of Alani Nu energy drinks.
  • The company said it will restage Gatorade with lower-sugar formulas and a new product using its own electrolyte blend that begins rolling out later this year.
  • Several Wall Street firms raised price targets after the beat, citing early traction in snacks even as management flagged a more uncertain global backdrop.