PepsiCo Reports Mixed Financial Results

Shares of PepsiCo (PEP) are under pressure after the beverage giant reported mixed financial results for the fourth and final quarter of 2024. The Harrison, New York-based company known for its signature Pepsi soft drink announced earnings per share (EPS) of $1.96 U.S., which was ahead of consensus estimates of $1.94 U.S. However, revenue of $27.78 billion U.S. came in below forecasts of $27.89 billion U.S. Sales were down 0.2% from a year earlier. PepsiCo said that its snack and drink sales in North America declined for a fifth consecutive quarter.However, the company’s worldwide sales increased 1% for convenient foods and 1% for beverages. The metric strips out pricing and foreign exchange rates.Management at PepsiCo said that shoppers in the U.S. have grown more cautious, snacking less and making fewer purchases at convenience stores.Frito-Lay North America’s potato chip sales fell 3% during the quarter. Consumers have been snacking less as they watch their grocery budgets due to higher food prices and interest rates.The company’s North American beverage unit reported a 3% sales decline, although the Gatorade sports drink gained market share during the period.Quaker Foods North America, which is still feeling the impacts of a recall in December 2023, saw its sales volume fall 6% during the quarter. Looking ahead to this year, PepsiCo is projecting a low-single digit increase in its revenue and a mid-single digit increase in its earnings per share.PepsiCo products include soft drinks such as Mountain Dew, as well as snacks such as Lay’s potato chips and Doritos. The company also owns Quaker oatmeal. The stock of PepsiCo is down 2% after its financial results were made public. Over the last year, the company’s share price has declined 12% to $150.27 U.S.