PepsiCo Misses Revenue Estimates, Shares Fall 2%

PepsiCo's fourth-quarter earnings report revealed a mixed performance, with revenue of $27.78 billion falling short of expectations for the third consecutive quarter. The company reported a net income of $1.52 billion, or $1.11 per share, an increase from the previous year but below the consensus estimate of $1.90 per share. Sales declines were notable in PepsiCo's North American segments, particularly in its snack food divisions, while international operations showed some growth. Executives indicated that consumers are increasingly opting for cheaper alternatives amid rising prices, prompting the company to focus on promotions and product overhauls to regain market share. Looking ahead, PepsiCo anticipates low-single digit organic revenue growth and mid-single digit increases in adjusted earnings per share for fiscal 2025. Despite the challenges, CEO Ramon Laguarta expressed confidence in the company's resilience moving forward.