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Shoppers will soon pay more for some popular PepsiCo snacks and drinks, including Doritos, Ruffles, and SunChips. The company announced that prices on certain products will increase by a low- to mid-single-digit percentage by the end of the year or early 2027. PepsiCo attributes these hikes to inflation and higher costs for commodities, packaging, and transportation.
This decision comes just months after PepsiCo reduced prices on some larger snack bags by as much as 15%. Despite the upcoming increases, the prices on affected products are expected to remain below their levels before the earlier cuts.
PepsiCo operates in over 200 countries, with a portfolio that includes Pepsi, Gatorade, Lay’s, and Mountain Dew. The company’s second-quarter net revenues rose 6.4% to $24.18 billion, driven by effective pricing and volume gains across global convenient foods and beverages businesses. However, North America showed softer financial trends, with a 0.5% decline in organic revenue.
According to Zacks Investment Research, PepsiCo's international markets were the clearest growth engine, with organic revenue increasing 7% in the second quarter. PepsiCo's strategy includes automation, digitalization, and supply-chain simplification to offset inflation and fund brand investment.
Despite these efforts, PepsiCo faces challenges in North America due to soft demand and input-cost pressures. The company reaffirmed its 2026 outlook for organic revenue growth of 2-4% and core earnings per share growth of 4-6%. However, analysts remain cautious about the near-term stock selection due to unfavorable earnings estimate revision trends.
StockStory reports that PepsiCo's sales volumes increased by 1% year on year in Q2 2026, a positive turnaround from historical levels. While the company narrowly topped analysts’ revenue expectations, its organic revenue growth and earnings per share fell slightly short of estimates.