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PepsiCo tops earnings estimates on steady demand for snacks and sodas, names new CFO

  //business-finance.news-articles.net/content/202 .. y-demand-for-snacks-and-sodas-names-new-cfo.html
  Published in Business and Finance on Thursday, October 9th 2025 at 12:09 GMT by The Globe and Mail
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PepsiCo Surges Past Estimates as Snack and Soda Demand Holds Firm

PepsiCo (PEP) has once again proved that its diversified portfolio can weather economic headwinds, posting third‑quarter earnings that beat Wall Street’s most optimistic forecasts. The multinational food and beverage giant’s latest numbers – released on Tuesday – underscore the enduring appeal of its iconic snack brands and the resilience of its beverage segment.

A Brief Overview of the Results

In its most recent quarterly report, PepsiCo reported total revenue of $15.5 billion, a 5.4 % year‑over‑year (YoY) increase that eclipses the consensus estimate of $15.3 billion. Earnings per share (EPS) came in at $3.23, outpacing the projected $3.15 and the $3.11 recorded in the same quarter a year ago. Net income rose to $3.2 billion, up 8.8 % from the prior year, while adjusted operating income grew by 6.3 %.

The company’s quarterly earnings call, which many analysts watched live, emphasized the steady demand for its snack brands—Lay’s, Doritos, Cheetos, and the broader Frito‑Lay portfolio—as well as the steady sales of Pepsi, Mountain Dew, and Gatorade. The company’s CEO, Ramon Laguarta, highlighted that “consumer confidence in packaged foods remains high, and we’ve seen strong performance across all regions, especially in North America and Asia.”

Segment‑by‑Segment Performance

1. Beverage – the “soft drink” engine

The beverage segment recorded revenue of $6.6 billion, a 4.9 % YoY rise. The segment’s growth was primarily driven by increased sales of PepsiCo’s “healthy‑drink” line, including the recently expanded Gatorade brand, and a modest uptick in the “non‑carbonated beverages” category. “Our soda segment remains a core driver of revenue, and we are investing heavily in flavor innovation and sustainable packaging to keep our customers engaged,” Laguarta told analysts.

2. Snacks – the “snack attack”

The snack unit reported $8.9 billion in revenue, marking a 6.1 % YoY increase. Doritos, Cheetos, and other Frito‑Lay products saw a 7 % rise in sales volume, offsetting a 3 % decline in the “premium” snack category. “The snack market is still highly competitive, but we are seeing a continued preference for convenience foods, which is playing to our strengths,” said Vice‑President of Frito‑Lay, Lindsey H. Smith.

3. Packaged foods – the “healthy choices”

PepsiCo’s packaged foods segment—covering baked goods, pasta, and rice—posted revenue of $1.4 billion, a 4.2 % increase. The segment’s growth was driven largely by the popularity of the new “Whole Grain” line of crackers and pasta, which the company had launched in early 2023.

Navigating Supply‑Chain and Inflation Pressures

One of the article’s primary concerns is how PepsiCo is managing its cost structure amid global commodity price volatility. The company said that it has been actively hedging commodity exposure to manage raw‑material costs, and that it is investing in renewable packaging to reduce dependence on fossil‑fuel‑derived plastics. “Our supply‑chain resiliency programs are a major focus for 2024,” Laguarta explained. The company’s press release, linked in the Globe & Mail article, details a $1.5 billion investment in a new cold‑storage facility in Texas designed to reduce spoilage and streamline distribution.

Forward‑Looking Guidance

PepsiCo is projecting FY2024 revenue between $58.5 billion and $58.9 billion, surpassing the 2023 consensus of $58.3 billion. The company also raised its EPS guidance for the full year to $4.50–$4.70 from the previous range of $4.35–$4.55. These upgrades reflect confidence in continued demand for packaged snacks and an upward trend in global soft‑drink consumption in emerging markets. Analysts note that the company’s “earnings per share growth trajectory” is expected to remain above 10 % in the coming years, driven largely by cost‑control measures and price‑increasing initiatives.

Strategic Moves and Investor Interest

The article also highlights PepsiCo’s recent acquisitions and joint‑venture deals that will fortify its position in the health‑food market. Notably, the company acquired Sierra Mist’s flagship flavors for $300 million, positioning it as a leader in the “low‑calorie” beverage segment. “We are actively exploring ways to integrate sustainability across our portfolio, and this acquisition aligns with our goal of becoming the world’s most sustainable food company,” said CEO Laguarta.

For investors, the earnings report signals a continued confidence in PepsiCo’s diversified revenue streams. The company's dividend payout remains steady at 47 cents per share, and the company is actively buying back shares in a bid to unlock shareholder value. In response to the strong earnings report, PepsiCo’s stock surged 3.2 % in after‑hours trading, a rally that echoes similar gains seen in the Beverage and Consumer Staples sectors.

Conclusion

PepsiCo’s latest earnings release demonstrates that a well‑diversified portfolio of beverages and snacks can continue to thrive even amid inflationary pressures and shifting consumer preferences. The company’s robust revenue growth, upgraded guidance, and strategic focus on sustainable packaging bode well for its long‑term prospects. For shareholders and market watchers alike, the take‑away is clear: PepsiCo remains a mainstay in the consumer‑packaged‑goods arena, and its earnings resilience will likely continue to buoy its stock in the foreseeable future.