PepsiCo is raising prices on Doritos and more after a weak quarter in North America

Key Points:

• PepsiCo plans to raise prices on select snacks and drinks, including Doritos, Ruffles, SunChips, and some sodas, by single-digit percentages to offset rising costs for fuel, aluminum, and agricultural commodities. Despite the hikes, prices remain lower than at the start of the year.
• The company faced disappointing third-quarter results in North America, with flat Frito-Lay snack volumes and a 2% decline in beverage volumes, partly due to weak sales in Canada and slumping soda sales.
• PepsiCo lowered its full-year earnings growth forecast to 2.5%-3.5%, down from 5%-7%, but expects revenue growth at the high end of its 4%-6% range, driven by strong international performance, where snack volumes increased 4% globally and 11% in the Asia-Pacific region.
• The company reported better-than-expected third-quarter revenue of $25.27 billion and a 17% rise in net income to $3.07 billion, with adjusted earnings per share of $2.34 surpassing analyst estimates.
• PepsiCo is focusing efforts on improving its soft drink business and sees growth opportunities in products with simpler ingredients and protein-enhanced snacks, responding to shifting consumer preferences and activist investor pressure to lower prices.