PURCHASE, NY. — PepsiCo, Inc. is lowering the price of some of its snacks and food products to improve the performance of its PepsiCo Foods North America (PFNA) business. The effort is intended to capitalize on PFNA’s momentum during the fourth quarter of fiscal 2026.
“We think that for some consumers, low- and middle-income consumers, the biggest friction they have today in our category for faster penetration is affordability,” said Ramon Laguarta, chairman and chief executive officer, during a Feb. 3 conference call to discuss financial results. “So, we have been testing multiple ways to give them affordability.”
Laguarta added that the lower pricing will be “surgical,” focused on specific brands like Cheetos, Doritos, Lay’s and Tostitos, formats and channels. He said PepsiCo has been testing the program at scale in multiple markets and it has delivered a “very good” return on investment. Savings from productivity programs will be used to fund the program in fiscal 2026.
“For fiscal 2026, we remain encouraged by the trajectory of PepsiCo Foods North America and expect it to deliver both organic revenue growth and core operating margin expansion,” Laguarta said in prepared remarks published Feb. 3. “We expect PepsiCo Beverages North America to build business momentum and deliver its sixth consecutive year of core operating margin expansion. PepsiCo’s International business is also expected to remain resilient and perform well.”
During the fourth quarter ended Dec. 27, 2025, PepsiCo, Inc. earned $2.5 billion, equal to $1.85 per share on the common stock, and up significantly when compared with the same period the year before when the company earned $1.5 billion.
Quarterly sales rose to $29.3 billion from $27.8 billion.
For the year, the company earned $8.2 billion, or $6 per share, and down from fiscal 2024 when the company earned $9.6 billion, or $6.95 per share.
PepsiCo will be restaging several brands in fiscal 2026, including Gatorade, Lay’s, Quaker and Tostitos.
Annual sales were $94 billion compared with $92 billion the year before.
Impacting the fiscal 2025 results was an almost $2 billion impairment charge taken against the company’s Rockstar brand.
PepsiCo Foods North America sales rose 1.5% to $8.3 billion during the quarter from $8.2 billion the year before. Laguarta said the increase reflected improving organic sales and volume trends.
“We were also encouraged to see US savory and salty category retail sales growth accelerating sequentially, with category growth rates improving as 2025 progressed,” he said.
PepsiCo Beverages North America sales rose 4% during the quarter to $8.2 billion from $8 billion the year before. Acquisitions contributed 2% while organic volume declined 4%, according to the company.
For fiscal 2026, PepsiCo is guiding organic sales growth of 2% to 4% and earnings per share on a constant currency basis to increase between 4% and 6%.
Supporting the organic sales growth will be the restaging of several major brands during the year, including Gatorade, Lay’s, Quaker and Tostitos.
“ … We did it with Pepsi two years ago (and) we’re still getting very good returns on that investment,” Laguarta said.
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Innovations at the show included new formats and formulations.
Taste and texture innovation were on display at the annual tradeshow.