US EditionPepsiCo tops quarterly revenue estimates as price cuts drive demand
Price cuts and new products helped revive North America snack volumes, while PepsiCo raised its dividend for a 54th straight year.
- On Thursday, PepsiCo Inc. reported first-quarter net income of $2.33 billion, with revenue jumping 8.5% to $19.44 billion, surpassing Wall Street expectations.
- Price reductions of up to 15% on Lay's, Tostitos, Doritos, and Cheetos helped the combined Frito-Lay and Quaker Oats division log 2% volume growth after a 1% decline last quarter.
- New products like Cheetos NKD and Smartfood FiberPop are attracting shoppers. At a Michigan Walmart on Thursday, a 9.25-ounce bag of Doritos was advertising a price rollback to $3.97, down from $4.48.
- PepsiCo kept its full-year targets unchanged, expecting organic revenue to grow 2% to 4% and earnings per share to rise 4% to 6%. The company's hedging strategy covering nine to twelve months should protect against short-term cost increases.
- CFO Steve Schmitt noted that the global outlook remains uncertain due to geopolitical conflicts. The company intends to broaden Gatorade's appeal by rolling out a reduced-sugar formulation and phasing out artificial colors from the product line.
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60 Articles
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PepsiCo says its price cuts are bringing shoppers back
PepsiCo said Thursday its push to make snacks more affordable is bringing customers back, offering an early sign that consumers are starting to return after pulling back in recent years.The company reported stronger-than-expected quarterly results, with both revenue and profit rising. A notable change came in its North American food business, where demand for products like chips and snacks showed early signs of recovery.After a stretch where hig…
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