Full Breakdown
PepsiCo to Raise Prices on Doritos, Ruffles, SunChips and Select Sodas
By Drooid · · How we work
Price Increases After a Weak North America Quarter
PepsiCo announced single-digit price hikes on several Frito-Lay snack brands—including Doritos, Ruffles and SunChips—and on some soda products. The company said the adjustments are needed to offset higher fuel, aluminum and agricultural commodity costs. Despite the increase, the new prices will remain below the levels seen at the start of the year.
Recent Pricing History and Investor Influence
During 2022 and 2023, PepsiCo implemented double-digit price increases for eight consecutive quarters to manage post-pandemic inflation. In February, activist investor Elliott Investment Management, which holds a $4 billion stake, pressed the company to lower prices. PepsiCo responded with cuts of up to 15 % on Lay’s, Doritos, Cheetos and Tostitos ahead of the Super Bowl, a move the firm said helped win back some consumers. The latest hikes mark a reversal of that strategy.
Financial Results and Volume Trends
- Net revenue rose 5.6 % to $25.27 billion in the July-September period, beating the $24.95 billion Wall Street forecast (FactSet).
- Net income increased 17 % to $3.07 billion.
- Adjusted earnings per share were $2.34, above the $2.29 estimate.
- Global snack-food volumes grew 4 %—the strongest rate since 2021—while U.S. snack volumes were flat and beverage volumes slipped 2 %.
- The company lowered its full-year earnings-per-share growth outlook to 2.5 %–3.5 % (previously 5 %–7 %) but kept its revenue growth target at the high end of the prior 4 %–6 % range, now expecting 6 % growth.
- Shares rose roughly 2 % after the release.
Official Statements & Responses
He linked the price moves to the need for cost recovery and to fund continued investment in newer brands such as the probiotic soda Poppi and high-protein snack lines.
Verbatim Quotes
- “We're putting all the urgency of the business and the focus in improving our performance in soft drinks,” — Super Bowl. Laguarta, pepsico CEO
- “We don’t feel good about the beverage business,” — Super Bowl. Laguarta, pepsico CEO