PepsiCo Plans Up to 15% Price Cut on Snacks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy PEP?
Source: Yahoo Finance
- Pricing Strategy: PepsiCo plans to reduce the suggested retail price of its core snack products by up to 15% in the U.S. to address ongoing consumer complaints about high prices, with adjustments expected on shelves this week, aiming to restore consumer trust and demand for its brands.
- Market Response: This price cut comes amid escalating consumer dissatisfaction with rising food costs, particularly among low- and middle-income households concerned about snack affordability, reflecting the company's responsiveness to market feedback.
- Sales Pressure: Sales volumes in the North American snacks business are under pressure, with recent quarterly figures showing declines in units sold; analysts view the price cuts as a strategic move to boost volume growth and compete with private-label brands, potentially attracting more consumers back to branded products.
- Retail Dynamics: The price reductions may influence retailers' pricing strategies and promotional planning, prompting competitive responses from other brands; buyers and merchandisers should closely monitor the speed of new price implementations and their impact on sales patterns ahead of key seasonal demand periods.
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Analyst Views on PEP
Wall Street analysts forecast PEP stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for PEP is 161.90 USD with a low forecast of 144.00 USD and a high forecast of 172.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
6 Buy
6 Hold
0 Sell
Moderate Buy
Current: 166.180
Low
144.00
Averages
161.90
High
172.00
Current: 166.180
Low
144.00
Averages
161.90
High
172.00
About PEP
PepsiCo, Inc. is a global beverage and convenient food company. The Company’s segments include PepsiCo Foods North America (PFNA), PepsiCo Beverages North America (PBNA), International Beverages Franchise (IB Franchise), Europe, Middle East and Africa (EMEA), Latin America Foods (LatAm Foods), and Asia Pacific Foods. PFNA segment includes all of its convenient food businesses in the United States and Canada. PBNA segment includes all of its beverage businesses in the United States and Canada. IB Franchise segment includes its international franchise beverage businesses, as well as its SodaStream business. EMEA segment includes its convenient food businesses and beverage businesses with Company-owned bottlers in Europe, the Middle East and Africa. LatAm Foods segment includes all of its convenient food businesses in Latin America. Asia Pacific Foods segment consists of its convenient food businesses in Asia Pacific, including China, Australia and New Zealand, as well as India.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
PepsiCo Plans Up to 15% Price Cut on Snacks
- Pricing Strategy: PepsiCo plans to reduce the suggested retail price of its core snack products by up to 15% in the U.S. to address ongoing consumer complaints about high prices, with adjustments expected on shelves this week, aiming to restore consumer trust and demand for its brands.
- Market Response: This price cut comes amid escalating consumer dissatisfaction with rising food costs, particularly among low- and middle-income households concerned about snack affordability, reflecting the company's responsiveness to market feedback.
- Sales Pressure: Sales volumes in the North American snacks business are under pressure, with recent quarterly figures showing declines in units sold; analysts view the price cuts as a strategic move to boost volume growth and compete with private-label brands, potentially attracting more consumers back to branded products.
- Retail Dynamics: The price reductions may influence retailers' pricing strategies and promotional planning, prompting competitive responses from other brands; buyers and merchandisers should closely monitor the speed of new price implementations and their impact on sales patterns ahead of key seasonal demand periods.
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- Recovery of Banks and Industrials: With growing investor confidence in AI's efficiency improvements, banks and industrial stocks such as Honeywell and Dover have also seen gains recently, reflecting optimistic expectations for these companies' future profitability.
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- Annual Dividend Growth: 2026 marks PepsiCo's 54th consecutive year of increasing its annual dividend, raising it from $5.42 to $5.69, demonstrating the company's confidence in future cash flows and commitment to shareholders.
- Payment Schedule: The dividend is set to be paid on March 31, 2026, with a record date of March 6, 2026, ensuring timely returns for shareholders and further enhancing investor confidence.
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- Stock Price Impact: Despite D'Amaro's appointment, Disney's stock has fallen over 40% in the past five years, while the S&P 500 has risen more than 80%, reflecting market concerns about Disney's future prospects amid ongoing challenges.
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Disney Appoints New CEO Amid Market Fluctuations
- Disney CEO Transition: Disney has announced that Josh D'Amaro will succeed Bob Iger as CEO on March 18, with D'Amaro having nearly three decades of experience at the company, most recently leading a division that achieved $10 billion in quarterly revenue, highlighting his strategic importance.
- Market Volatility: Technology stocks faced significant selling pressure yesterday, with the Nasdaq Composite falling over 1% and the S&P 500 also declining due to weakness in large-cap tech stocks, indicating investor concerns about the tech sector's performance.
- Chipotle Sales Decline: Chipotle reported a fourth consecutive quarter of declining traffic, leading to a more than 5% drop in its stock price, and it anticipates flat same-store sales in 2026, reflecting the challenges the fast-casual chain is currently facing.
- Novo Nordisk Downgrade: Novo Nordisk expects a drop in sales and profit growth this year, with shares plummeting over 14% on Tuesday due to a pricing deal with the Trump administration and loss of exclusivity for key drugs, indicating significant pressure on the company.
See More
PepsiCo Plans Up to 15% Price Cut on Snacks
- Pricing Strategy: PepsiCo plans to reduce the suggested retail price of its core snack products by up to 15% in the U.S. to address ongoing consumer complaints about high prices, with adjustments expected on shelves this week, aiming to restore consumer trust and demand for its brands.
- Market Response: This price cut comes amid escalating consumer dissatisfaction with rising food costs, particularly among low- and middle-income households concerned about snack affordability, reflecting the company's responsiveness to market feedback.
- Sales Pressure: Sales volumes in the North American snacks business are under pressure, with recent quarterly figures showing declines in units sold; analysts view the price cuts as a strategic move to boost volume growth and compete with private-label brands, potentially attracting more consumers back to branded products.
- Retail Dynamics: The price reductions may influence retailers' pricing strategies and promotional planning, prompting competitive responses from other brands; buyers and merchandisers should closely monitor the speed of new price implementations and their impact on sales patterns ahead of key seasonal demand periods.
See More
Wall Street Volatility Highlights Importance of Portfolio Diversification
- Tech Stock Decline: Tech stocks have been severely impacted by recent volatility, with AMD's share price plummeting 17% as investor confidence in the enterprise software sector wanes, highlighting the risks of over-reliance on tech investments.
- Strong Performance of Blue-Chip Stocks: In stark contrast to tech stocks, the Dow Jones Industrial Average rose by 260 points, or 0.5%, indicating that old-economy companies are demonstrating greater resilience during market turmoil, attracting investors seeking stability.
- Winners Across Industries: Companies like Campbell, PepsiCo, Smuckers, and Kraft Heinz have seen their stock prices rise despite the threat of GLP-1, reflecting ongoing consumer demand and confidence in the food sector amidst market fluctuations.
- Recovery in Banks and Industrials: Recent gains in bank stocks and industrials such as Honeywell, Dover, and Emerson Electric suggest that investors believe these firms will benefit from efficiency improvements brought by artificial intelligence, enhancing their investment appeal.
See More
Investors Should Focus on Diversification
- Tech Stock Pullback: Tech stocks have faced significant declines recently, with AMD dropping 17% as investor confidence wanes in the enterprise software sector, highlighting the risks of over-reliance on tech investments.
- Strong Performance in Traditional Sectors: In contrast, the blue-chip Dow Jones Industrial Average rose by 260 points, or 0.5%, indicating that traditional sectors like banking and industrials are attracting investor interest in the current market environment.
- Investment Value in Healthcare: Companies like Johnson & Johnson, Merck, and Amgen have performed well, and despite their stock price increases this year, they are still considered valuable investments relative to the broader market, showcasing the stability and appeal of the healthcare sector.
- Recovery of Banks and Industrials: With growing investor confidence in AI's efficiency improvements, banks and industrial stocks such as Honeywell and Dover have also seen gains recently, reflecting optimistic expectations for these companies' future profitability.
See More
PepsiCo Declares 5% Increase in Quarterly Dividend
- Quarterly Dividend Increase: PepsiCo's Board of Directors declared a quarterly dividend of $1.4225 per share, reflecting a 5% increase compared to the same period last year, indicating strong performance in profitability and shareholder returns.
- Annual Dividend Growth: 2026 marks PepsiCo's 54th consecutive year of increasing its annual dividend, raising it from $5.42 to $5.69, demonstrating the company's confidence in future cash flows and commitment to shareholders.
- Payment Schedule: The dividend is set to be paid on March 31, 2026, with a record date of March 6, 2026, ensuring timely returns for shareholders and further enhancing investor confidence.
- Global Market Performance: PepsiCo generated nearly $94 billion in net revenue in 2025, driven by its diverse portfolio of beverages and convenient foods, showcasing the company's strong competitive position and ongoing growth potential in the global market.
See More
Disney Appoints New CEO Amid Market Fluctuations
- Disney CEO Transition: Disney announced that Josh D'Amaro will succeed Bob Iger as CEO on March 18, 2024, after nearly 30 years at the company, with his recent leadership of the experiences division achieving over $10 billion in quarterly revenue for the first time, highlighting his strategic importance for the company's future.
- Stock Price Impact: Despite D'Amaro's appointment, Disney's stock has fallen over 40% in the past five years, while the S&P 500 has risen more than 80%, reflecting market concerns about Disney's future prospects amid ongoing challenges.
- Chipotle Traffic Decline: Chipotle reported a more than 5% drop in shares after experiencing declining traffic for the fourth consecutive quarter, with same-store sales down 1.7% in 2025, marking its first annual decline since 2016, and flat sales expected in 2026, indicating significant market challenges ahead.
- Novo Nordisk Downgrade: Novo Nordisk expects a drop in sales and profit growth this year, leading to a more than 14% plunge in its U.S.-listed shares on Tuesday, primarily due to a price-cutting deal with the Trump administration and loss of exclusivity for its popular drugs, indicating substantial pressure on the company.
See More
Disney Appoints New CEO Amid Market Fluctuations
- Disney CEO Transition: Disney has announced that Josh D'Amaro will succeed Bob Iger as CEO on March 18, with D'Amaro having nearly three decades of experience at the company, most recently leading a division that achieved $10 billion in quarterly revenue, highlighting his strategic importance.
- Market Volatility: Technology stocks faced significant selling pressure yesterday, with the Nasdaq Composite falling over 1% and the S&P 500 also declining due to weakness in large-cap tech stocks, indicating investor concerns about the tech sector's performance.
- Chipotle Sales Decline: Chipotle reported a fourth consecutive quarter of declining traffic, leading to a more than 5% drop in its stock price, and it anticipates flat same-store sales in 2026, reflecting the challenges the fast-casual chain is currently facing.
- Novo Nordisk Downgrade: Novo Nordisk expects a drop in sales and profit growth this year, with shares plummeting over 14% on Tuesday due to a pricing deal with the Trump administration and loss of exclusivity for key drugs, indicating significant pressure on the company.
See More
