PepsiCo Says Gas Prices Cutting Into US Consumer Food Spending

PepsiCo reported Q2 revenue of $24.2B, up 6.4% YoY, but noted that higher consumer costs “at the pump” are deterring shoppers from buying snacks in-store. The company’s commentary points to a modest demand headwind despite topline growth, warranting a cautious read-through for near-term discretionary consumption.

Analysis

PepsiCo reported Q2 revenue of $24.2B, up 6.4% YoY, but noted that higher consumer costs “at the pump” are deterring shoppers from buying snacks in-store. The company’s commentary points to a modest demand headwind despite topline growth, warranting a cautious read-through for near-term discretionary consumption.