Oct 8, 2024 - Economy
Charted: PepsiCo lowers forecast
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Consumers are rethinking where and how they're spending their money, according to PepsiCo, and that contributed to a cut in the company's revenue outlook.
PepsiCo said today that its sales volume fell 2% in the third quarter for both beverages and food.
- "The consumer is reassessing patterns," CEO Ramon Laguarta said on a conference call, adding that it's a "very challenging" environment.
Threat level: The company also expects continued business disruption from instability in the Middle East, where "we have a big business," Laguarta said. "I don't think that's going to change in the coming months."
Yes, but: The company offset its volume declines with a 3% jump in effective prices.
- And PepsiCo retains the "pricing power to manage through the ongoing inflationary environment," Bank of America analyst Bryan Spillane wrote in a note, maintaining his buy rating on the stock.
