PepsiCo Sales Disappoint as US Consumers Cut Back on Snacks
What caused PepsiCo's revenue growth to disappoint?
PepsiCo's revenue growth disappointed due to increasingly budget-focused shoppers and a recent Quaker Foods recall1. Organic revenue rose 1.9% in the second quarter, missing the 2.9% average estimate of analysts. The volume of food products sold in the period was down 2% from a year earlier, including steeper drops for the Frito-Lay and Quaker Foods businesses in North America.
How much did PepsiCo's organic revenue rise in Q2?
PepsiCo's organic revenue rose by 1.9% in Q2, which was lower than the 2.9% average estimate of analysts surveyed by Bloomberg. The company's food products' volume also declined by 2% from the previous year, with steeper drops for the Frito-Lay and Quaker Foods businesses in North America.
Why are US consumers cutting back on snacks?
US consumers are cutting back on snacks due to persistent inflation and economic uncertainty, causing them to become more budget-conscious and opt for cheaper alternatives or reduce their spending on non-essential items like snacks. Additionally, consumers are focusing more on nutrition and affordability, leading to a shift towards healthier and less expensive options.