With its core soda business struggling and high inflation putting pressure on its snacks business, tougher days may lie ahead for PepsiCo (PEP).
That could include many layoffs, executives hinted Thursday in prepared remarks about the mixed third-quarter results.
“To help support these investment priorities, structural cost reduction actions that reduce layoffs and discretionary spending are being identified,” the company said. “Examples include company cost reductions and other initiatives that are not directly linked to growth. These incremental measures will complement our existing company-wide productivity initiatives and will begin to take effect in the coming months.”
This comes as PepsiCo cut its core earnings per share growth forecast for 2026 to 2.5%-3.5%, from 5%-7%.
The company said its net sales would be at the high end of its range, up about 6% amid momentum in sugar-free drinks and healthier snacks.
Shares rose 1% in premarket trading. The stock is down 13% since the start of the year, compared to a 23% increase for its rival Coca-Cola (KO).
126.18 +2.44 (+1.98%)
At 2:22:24 p.m. EDT. Open market.
DYNAMISM KO
Brian Sozzi is the editor-in-chief of Yahoo Finance, host of the Sozzi unleashed morning show, the ‘Powerful actors with Brian Sozzi podcast and member of the Yahoo Finance editorial leadership team. Follow Sozzi on @BrianSozzi, InstagramAnd LinkedIn. Any advice on stories? Email brian.sozzi@yahoofinance.com.
Click here for in-depth analysis of the latest stock market news and events that move stock prices.
Read the latest financial and business news from Yahoo Finance
Gn bussni
