Soft drink giant PepsiCo (PEP) has reported quarterly financial results that beat Wall Street forecasts and announced plans to cut prices on its snack foods.
The maker of Pepsi soft drinks and Lay’s potato chips reported earnings per share (EPS) of $2.26 U.S., which topped the $2.24 U.S. expected on Wall Street.
Revenue of $29.34 billion U.S. was ahead of the consensus view among analysts of $28.97 billion U.S. Sales rose 5.6% from a year earlier.
In terms of guidance, management reiterated the outlook for 2026 that was provided last December.
The company continues to forecast that revenue will rise between 2% and 4%, and earnings per share will increase 4% to 6% this year.
Management also noted that demand for the company’s snacks remains sluggish due to higher prices. Global volumes for its food fell 2% in Q4, while global volumes for its drinks rose 1%.
Inflation-weary consumers have been buying less of Pepsi’s snacks in a sign of a backlash against higher prices.
To help boost sales, PepsiCo plans to lower prices on its North American snacks, mostly potato chips.
In December, PepsiCo reached a deal with activist investor Elliott Investment Management, which has a $4 billion U.S. stake in the company.
As part of that deal, PepsiCo agreed to cut its U.S. product line by 20% and lower prices on select items.
PEP stock has gained 3% over the last 12 months to trade at $155.20 U.S. per share.
