PepsiCo Reports 2% Food Sales Decline as Consumer Spending Softens

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3▲2 ▼1Impact / 5
Summary · why it matters

PepsiCo reported a 2% revenue decline in its North American food business for the second quarter, with volume flat despite earlier price cuts of up to 15% on some brands. Chief Executive Officer Ramon Laguarta said results were weighed down as U.S. food and beverage category performance moderated under rising inflationary pressure. The company delivered adjusted earnings per share of $2.20, slightly ahead of the average analyst estimate, but RBC Capital Markets' Nik Modi noted that the pace of improvement appears to have stalled and said PepsiCo may continue losing beverage share to Coca-Cola and Keurig Dr Pepper. Chief Financial Officer Steve Schmitt said the North America business was weaker than expected in the second quarter, with improvement now likely to be more gradual through the rest of 2026. PepsiCo reaffirmed its full-year 2026 guidance, while shares fell 1.5% in Thursday premarket trading in New York after slipping about 1% this year through Wednesday's close versus a 9.3% gain for the S&P 500.

Impact on assets 5

Consumer Staples± Mixed
PepsiCo Inc
PEP
▼ NegativeDemandrelevance

PepsiCo reported 2% food sales decline and weaker North America business due to softening consumer spending.

Keurig Dr Pepper Inc
KDP
▲ PositiveCompetitionrelevance

PepsiCo may continue losing beverage share to Keurig Dr Pepper, benefiting KDP.

The Coca-Cola Company
KO
▲ PositiveCompetitionrelevance

PepsiCo may continue losing beverage share to Coca-Cola, benefiting KO.

Financials▲