PepsiCo lowers revenue forecast on "subdued" sales in US, China and elsewhere

PepsiCo lowered its sales forecast for the year as consumers in the U.S., China and elsewhere continued to pull back on buying its snacks and drinks.

The company, based in Purchase, New York, said Tuesday it now expects its organic revenue to increase in the low single-digit range for the year. It had expected an increase of 4%. Organic revenue is adjusted for foreign currency exchanges and the impact of product acquisitions or divestments. PepsiCo said its organic revenue rose 1.9% in the first three quarters of this year.

PepsiCo said its third quarter performance in North America was “subdued,” hurt by a big recall of its Quaker Oats granola bars and cereals as well as weak demand for its Frito-Lay snacks and drinks.

Consumers began to push back on higher prices this summer after years of increases. PepsiCo's price increases have even attracted notice from Congress. This week, Democratic Sen. Elizabeth Warren of Massachusetts and Rep. Madeleine Dean of Pennsylvania sent letters to PepsiCo, Coca-Cola and General Mills accusing them of price gouging through shrinking package sizes.