PepsiCo Raises Snack Prices as Costs Climb and Demand Weakens

PepsiCo plans to increase prices by single-digit percentages on select snacks and beverages as higher production costs and sluggish North American demand pressure its business. The Purchase, New York-based company is adjusting prices on products including Doritos, Ruffles and SunChips while pursuing cost reductions and marketing investments to revive sales, according to reports published by Fox Business and CNBC on October 8 and 9, 2026.

PepsiCo said the new prices will remain below levels recorded at the beginning of the year. The increases follow price cuts of up to 15% announced in February for selected products, including Lay's and Doritos, after earlier increases drew consumer backlash, according to Reuters reporting cited by Fox Business.

The company attributed the latest pricing changes partly to higher fuel, aluminum and agricultural input costs. Fox Business also reported that PepsiCo cited expenses associated with the conflict involving Iran and tariffs.

PepsiCo reported third-quarter net revenue of $25.27 billion, up 5.6% from a year earlier, exceeding the $24.95 billion analysts surveyed by FactSet had expected, according to ABC News. Net income increased 17% to $3.07 billion, while adjusted earnings reached $2.34 per share, above analysts' $2.29 estimate.

Despite the stronger quarterly results, PepsiCo reduced its full-year adjusted earnings-per-share growth forecast to 2.5% to 3.5%, down from its previous range of 5% to 7%. The company raised its full-year revenue growth outlook to 6%, the upper end of its earlier 4% to 6% range, while maintaining its forecast for organic revenue growth of 3%, CNBC reported.

International markets provided much of the growth. Global snack volumes increased 4%, the strongest rate since 2021, with international operations accounting for 41% of company revenue. ABC News reported that snack volumes rose 11% in the Asia-Pacific region, while demand for Lay's associated with the World Cup supported sales and the company gained market share in China and Brazil.

North America remained a weak spot, with Frito-Lay snack volumes unchanged from the year-earlier period and beverage volumes declining 2%. Growth in US salty-snack sales was offset by declines in Canada, according to ABC News. PepsiCo also faces changing consumer habits, including concerns about the potential effects of GLP-1 weight-loss drugs on snack consumption, CNBC reported.

During a conference call Thursday, CEO Ramon Laguarta acknowledged the challenges facing the beverage business and outlined plans to improve performance. He said lower prices had helped attract some customers, but the recovery had not progressed as quickly as the company had expected.

"We don’t feel good about the beverage business," said Ramon Laguarta, PepsiCo CEO.

Laguarta said the company would concentrate on improving its soft-drink operations as it works to strengthen demand. PepsiCo plans to reduce corporate expenses and direct savings toward brands including Poppi, Mountain Dew and Pepsi, according to Fox Business.

CNBC reported that Jim Cramer viewed improving sales trends and investments in advertising, innovation and pricing as encouraging, while cautioning that PepsiCo still faced substantial challenges. The company's shares rose about 3% after its earnings report, as investors weighed stronger revenue performance against the reduced earnings outlook.