PepsiCo’s North American Snack And Drink Sales Decline

PepsiCo’s revenue dipped slightly in the fourth quarter as North American consumers continued to cut back on purchases of Frito-Lay snacks and soft drinks, Associated Press reporter Dee-Ann Durbin wrote.

The downturn reflects broader consumer trends, with customers either skipping snacks or switching to cheaper brands after years of rising prices. I Photo: Pepsico Pakistan

The Purchase, New York-based company reported $27.78 billion in revenue for the October-December period—falling short of Wall Street’s forecast of $27.89 billion, according to analysts polled by FactSet.

PepsiCo shares fell 2.6% in premarket trading on Tuesday.

The company had warned last fall of “subdued” demand in North America, in part due to a major recall of Quaker Oats granola bars and cereals. However, the downturn also reflects broader consumer trends, with customers either skipping snacks or switching to cheaper brands after years of rising prices.