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PepsiCo stock rises on earnings beat, turnaround plan
CNBC ^ | July 18, 2025 | Amelia Lucas

Posted on 07/18/2025 10:52:32 AM PDT by Red Badger

Key Points

PepsiCo’s quarterly earnings and revenue beat Wall Street’s expectations.

The company reiterated its full-year outlook.

The company also shared details on its turnaround plan, a quarter after it lowered its guidance due to lower consumer spending and President Donald Trump’s tariffs.

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PepsiCo on Thursday reported quarterly earnings and revenue that topped analysts’ expectations, as the company projected that weak North American demand will rebound as strategy changes take hold.

Executives shared more details on the quarterly conference call about how Pepsi plans to boost its brands, lean into healthier snacking trends and cut costs.

CEO Ramon Laguarta said the company will hit the low-end of its long-term organic revenue growth goal of 4% to 6% “in the next few quarters” due to those efforts.

Shares of the company rose more than 6% in morning trading.

Here’s what Pepsi reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

Earnings per share: $2.12 adjusted vs. $2.03 expected Revenue: $22.73 billion vs. $22.27 billion expected Pepsi reported second-quarter net income attributable to the company of $1.26 billion, or 92 cents per share, down from $3.08 billion, or $2.23 per share, a year earlier.

Excluding restructuring and impairment charges and other items, the company earned $2.12 per share.

Net sales rose 1% to $22.73 billion. Pepsi’s organic revenue, which excludes acquisitions, divestitures and foreign currency, increased 2.1% during the quarter.

But the company is still seeing softer demand for its products. Pepsi’s worldwide volume fell 1.5% for its food and was flat for its drinks. The metric strips out pricing and foreign exchange changes.

Volume dropped again in North America, although CEO Ramon Laguarta said in a statement that the domestic business is improving. The company’s North American food division, which includes both Frito-Lay and Quaker Foods, saw its volume shrink 1%.

Pepsi’s domestic drinks segment reported that its volume fell 2% in the quarter, although its namesake soda was one bright spot. Executives said in prepared remarks that volume for Pepsi rose during the quarter, and Pepsi Zero Sugar saw double-digit volume growth.

As part of Pepsi’s strategy to boost its North American sales, it’s leaning into the protein craze and multicultural product offerings, like those from Siete Foods and Sabra. Pepsi is also planning on relaunching Lay’s and Tostitos to focus more on their core ingredients: potatoes and corn. The company is also working on ensuring better in-store availability and placement of its products.

Pepsi is also cutting costs and trying to improve its profit margins. The company closed two manufacturing plants for its North American food business during the quarter. Pepsi also said it is trying to make its transportation and logistics more efficient.

The company added it is evaluating how it spends its marketing dollars to make sure it is getting the best return on its investment. And Pepsi is also looking for any overlap between its North American food and beverage businesses to cut down on duplication and better integrate the two divisions.

Pepsi reiterated its full-year outlook. It still expects its core constant currency earnings per share to be roughly unchanged from the prior year and organic revenue to grow by a low single-digit percentage.

Last quarter, the company cut its earnings forecast, citing new tariffs, economic volatility and a more cautious consumer.


TOPICS: Business/Economy; Food; Health/Medicine; Society
KEYWORDS:
https://www.youtube.com/watch?v=gXBB-63ZX9s

The best Pepsi commercial ever!

The only commercial Coca-Cola ever complained about to Pepsi Management and they pulled the ad!...............

1 posted on 07/18/2025 10:52:32 AM PDT by Red Badger
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To: Red Badger

The Frito-Lay division is getting its first serious challenge ever from Taki’s.
Gatorade is getting hit from all sorts of competitors.
Pepsi does own a chunk of Celsius, which appears to be doing well. We might see an outright buyout down the road.


2 posted on 07/18/2025 11:01:47 AM PDT by Dr. Sivana ("Whatsoever he shall say to you, do ye." (John 2:5))
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To: Dr. Sivana

Mayve if they would lower their prices for snacks, they might sell more. $7.99 for a bag of chips is ridiculous.


3 posted on 07/18/2025 11:09:02 AM PDT by packrat35 (Pureblood! No clot shot for me!)
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To: Red Badger

When the competition truly feels pain, double down.


4 posted on 07/18/2025 11:11:22 AM PDT by HombreSecreto (The life of a repo man is always intense)
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To: packrat35
Mayve if they would lower their prices for snacks, they might sell more.

The historic pattern in this segment is to have a higher retail price to increase perceived value, and let the supermarkets perform heavy discounting. The convenience stores want the higher price to grab people in a hurry and potheads with the munchies.
5 posted on 07/18/2025 11:11:28 AM PDT by Dr. Sivana ("Whatsoever he shall say to you, do ye." (John 2:5))
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To: Red Badger

“due to lower consumer spending and President Donald Trump’s tariffs ... Executives shared more details on the quarterly conference call about how Pepsi plans to boost its brands, lean into healthier snacking trends”

got it, healthier snacking trends are DEFINITELY the fault of President Trump’s tariffs ...


6 posted on 07/18/2025 11:14:19 AM PDT by catnipman ((A Vote For The Lesser Of Two Evils Still Counts As A Vote For Evil))
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To: Red Badger

Sugar (High Fructose Corn Syrup) water.


7 posted on 07/18/2025 11:22:13 AM PDT by glorgau
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To: Dr. Sivana

Only the stores actually discounted them more, you would have a point. They are over $5.00 a bag at the grocery store. I saw a 3 oz bag for $2.48 at Wal-Mart.


8 posted on 07/18/2025 11:30:21 AM PDT by packrat35 (Pureblood! No clot shot for me!)
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To: glorgau
Yes, but it's carbonated sugar water! I wonder if Pepsi will follow Coke's lead and switch to real sugar?
9 posted on 07/18/2025 12:19:16 PM PDT by Blurb2350 (posted from my 1500-watt blow dryer)
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To: Red Badger
In the South:
Want a Coke?
Yeah.
What kind of Coke you want?
Sprite.

Also in the south:
Want a Coke?
Yeah.
What kind of Coke you want?
Pepsi.

Way back in my Drum Corps days, I had the privilege of marching in the Coca-Cola 100th Anniversary Parade. Downtown Atlanta. Longest, hottest parade I've ever done.

10 posted on 07/18/2025 12:25:20 PM PDT by real saxophonist (Michael Bennet claps on 1 and 3.)
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To: real saxophonist

Also in the south:
Want a Coke?
Yeah.
What kind of Coke you want?
Dr. Pepper.........................


11 posted on 07/18/2025 12:29:10 PM PDT by Red Badger (Homeless veterans camp in the streets while illegals are put up in 5 Star hotels....................)
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To: Red Badger

Between Coke and Pepsi, I’ll go with a Dr. Pepper.


12 posted on 07/18/2025 12:35:10 PM PDT by wally_bert (I cannot be sure for certain, but in my personal opinion I am certain that I am not sure..)
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To: Red Badger

Yep, same thing.


13 posted on 07/18/2025 12:36:28 PM PDT by real saxophonist (Michael Bennet claps on 1 and 3.)
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To: Blurb2350
Pepsi did it first.


14 posted on 07/18/2025 1:01:18 PM PDT by Rio
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To: Red Badger
This is in reference to the Kendel Jenner ad...


15 posted on 07/18/2025 1:03:26 PM PDT by xp38
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To: Red Badger
Also in the south:
Want a Coke?
Yeah.
What kind of Coke you want?
Dr. Pepper.....



I always heard that was how it was in the South, but then we moved to Columbus, Georgia, for four years. Never heard it there. Never even heard it over the border in Phenix City, AL, which is pretty deep south.
16 posted on 07/18/2025 2:50:21 PM PDT by Dr. Sivana ("Whatsoever he shall say to you, do ye." (John 2:5))
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To: catnipman

No, but tariffs do impact the importation of aluminum for the production of aluminum cans.


17 posted on 07/18/2025 3:24:09 PM PDT by SpirituTuo ( )
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To: Red Badger

I just bought a big chunk of Pepsi stock when it dropped below $130 a share. It has a yield of 4.5%. Buy, buy, buy.


18 posted on 07/18/2025 4:04:12 PM PDT by bort
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