Consumers draw the line at $7 Doritos, costing PepsiCo billions

Doritos retail prices have jumped nearly 50% since 2021, reaching about $7 a bag, and some consumers are refusing to pay the higher price — a shift cited as costing PepsiCo billions. This demand resistance to elevated snack prices is a downside risk to PepsiCo's near-term revenue and margin outlook and should be monitored ahead of upcoming earnings and guidance.

Analysis

Doritos retail prices have jumped nearly 50% since 2021, reaching about $7 a bag, and some consumers are refusing to pay the higher price — a shift cited as costing PepsiCo billions. This demand resistance to elevated snack prices is a downside risk to PepsiCo's near-term revenue and margin outlook and should be monitored ahead of upcoming earnings and guidance.