PepsiCo Lowers 2024 Revenue Forecast Amid Challenges

PepsiCo has lowered its full-year organic revenue forecast for 2024, now expecting a low-single-digit increase due to reduced consumer demand and disruptions from geopolitical tensions. U.S. sales were particularly affected by recalls at Quaker Foods North America and weaker demand for Frito-Lay snacks and beverages, amid inflationary pressures. Despite these challenges, PepsiCo reported strong growth in emerging markets like India and Southeast Asia, with double-digit revenue increases. The company's adjusted earnings per share of $2.31 slightly exceeded expectations, though overall revenue of $23.32 billion fell short of forecasts. PepsiCo remains optimistic about maintaining an 8% increase in core constant currency earnings per share and is focusing on product affordability and market share improvements. Analysts maintain a positive outlook on PepsiCo's stock, citing its strong pricing power and productivity efforts as key advantages in navigating the current economic climate.