PepsiCo May Be Leaving Behind $7 Doritos With Price Cuts

PepsiCo (PEP) CEO Ramon Laguarta promised that price cuts on snacks targeted toward more cost-conscious shoppers were coming when we last spoke on Yahoo Finance several months ago.

And while a recent Bloomberg article pointing out that PepsiCo was still selling a $7.29 party-size bag of Tostitos got some play on social media, the reality is the company’s early round of price cuts on snacks looks to be working.

As more of those snack price cuts — which could average more than 15% — appear this summer, PepsiCo’s business may be in a much better place by year-end.

AUSTIN, TEXAS - JUNE 04: Bags of Doritos sit on shelves at a Target store on June 04, 2025 in Austin, Texas. Texas Gov. Texas Senate Bill 25, a bipartisan bill in the Texas legislature, has proposed to implement warning labels on foods containing ingredients not recommended for human consumption. Ingredients include bleached flour, food dyes, sweeteners, oils and various preservatives. (Photo by Brandon Bell/Getty Images) — Bags of Doritos sit on shelves at a Target store on June 4, 2025, in Austin, Texas. (Brandon Bell/Getty Images) · Brandon Bell via Getty Images

I want to call attention to this nugget in PepsiCo’s better-than-expected earnings this morning.

The company said net revenue and organic revenue (excluding foreign exchange fluctuations) accelerated in its foods business in the first quarter versus the fourth quarter. Volume trends also improved in the food business.

“Innovation and affordability initiatives began to take hold,” PepsiCo said, explaining the renewed food growth momentum.

There’s more work for PepsiCo to do on its food business, but it was important to show that the initial snack price cuts were working in this earnings release. Check, done.

Here’s how PepsiCo’s quarter stacked up versus analyst estimates.

Net sales: +8.5% year over year to $19.44 billion vs. estimates for $18.93 billion
- North America food sales: $6.33 billion vs. estimates for $6.27 billion
- Latin America food sales: $1.9 billion vs. estimates for $1.86 billion
- Europe, Middle East & Africa sales: $2.8 billion vs. estimates for $2.68 billion
- International beverage sales: $824 million vs. estimates for $807.3 billion
- PepsiCo North America beverage sales: $6.4 billion vs. estimates for $6.24 billion
- Asia Pacific Sales: $1.1 billion vs. estimates for $1.09 billion
Organic sales growth: +2.6% year over year vs. estimates for +2.4%
Core earnings per share: +9% year over year to $1.61 vs. estimates for $1.55
Organic revenue guidance: +2% to +4% (reiterated) vs. estimates for a 2.89% increasee
Core earnings per share guidance: +4% to +6% (reiterated) vs. estimates for +5.8%

Brian Sozzi is Yahoo Finance’s Executive Editor and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.

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