PepsiCo's second quarter profits jump but customers slow their purchases after years of price hikes
PepsiCo reported higher-than-expected earnings in the second quarter but acknowledged that after raising prices every quarter for more than two years, customers are not buying as many of its snacks and drinks
By DEE-ANN DURBIN
Published - Jul 11, 2024, 10:51 AM ET
Last Updated - Jul 11, 2024, 10:51 AM EDT
PepsiCo reported higher-than-expected earnings in the second quarter but acknowledged that after raising prices every quarter for more than two years, customers are not buying as many of its snacks and drinks.
PepsiCo said Thursday that North American demand for its Frito-Lay snacks was “subdued” during the quarter and sales volumes dropped 4%. Chairman and CEO Ramon Laguarta said the company is seeing customers of all income levels pull back on snack purchases or shift to cheaper store brands.
The average U.S. price for a 16-ounce bag of potato chips hit $6.63 in May, according to data from the U.S. Federal Reserve, up 18% from two years ago.
