PepsiCo Reports Mixed Results as Consumers 'Become More Value-Conscious'

PepsiCo (PEP) shares slipped successful intraday trading Thursday aft nan institution delivered mixed second-quarter results and lowered its full-year integrated maturation outlook.

The food and beverage giant posted adjusted earnings per stock (EPS) of $2.28 connected gross of $22.5 billion, compared pinch an analysts’ statement estimates of adjusted EPS of $2.15 connected gross of $22.6 billion. 

Chief Executive Officer (CEO) Ramon Laguarta acknowledged a “subdued class capacity wrong North America." PepsiCo’s Frito-Lay North America section saw measurement diminution 4% year-over-year, its North American beverage portion measurement autumn 3%, and its Quaker Foods North America measurement dip 17%. 

'Consumers Have Become More Value-Conscious'

In prepared remarks, PepsiCo guidance discussed nan effect of rising costs connected consumers’ expertise to spend.

"The impacts of persistent inflationary pressures and higher borrowing costs complete nan past fewer years person resulted successful tighter family financial conditions,” nan executives said. “Accordingly, nan year-to-date capacity crossed galore nutrient categories, including snacks, has been subdued and consumers person go much value-conscious pinch their spending patterns and preferences crossed brands, packages, and channels.”

Looking ahead, Pepsi now projects full-year integrated gross maturation of astir 4%, compared to its anterior estimate of "at slightest 4%." The institution continues to expect adjusted EPS of astatine slightest $8.15, which would beryllium a 7% summation from 2023. 

Shares of PepsiCo slipped 1% to $162.03 arsenic of 10:40 a.m. ET Thursday. They are down astir 4.5% this year.