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PepsiCo said Thursday its push to make snacks more affordable is bringing customers back, offering an early sign that consumers are starting to return after pulling back in recent years.
The company reported stronger-than-expected quarterly results, with both revenue and profit rising. A notable change came in its North American food business, where demand for products like chips and snacks showed early signs of recovery.
After a stretch where higher prices weighed on buying habits, PepsiCo said its efforts to improve affordability are beginning to resonate with shoppers. That shift helped drive growth in volumes, indicating consumers are buying more – not just paying higher prices.
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Executives pointed to a broader strategy that combines pricing adjustments with new products and marketing efforts aimed at keeping brands relevant while easing pressure on consumers.
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The turnaround is still early, but it suggests PepsiCo may be finding the right balance after a period when price increases across the industry tested customer loyalty.
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At the same time, the company’s beverage business in North America remains under pressure, with softer demand highlighting uneven performance across its portfolio.
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Going forward, PepsiCo said it expects steady growth this year, even as the broader economic backdrop remains uncertain, and consumer spending patterns remain in focus.
