PepsiCo is raising prices on Doritos and more after a weak quarter in
North America
[October 09, 2026] By
DEE-ANN DURBIN
PepsiCo plans to raise prices on some snacks and drinks and slash
corporate costs after a disappointing performance in North America
during the third quarter.
The price hikes, which will hit Doritos, Ruffles, SunChips and some
sodas, will be in the single-digit percentage range, and prices will
still be lower than they were at the start of this year. PepsiCo said
Thursday that it must raise prices to recoup rising costs for fuel,
aluminum and agricultural commodities.
Many companies, including PepsiCo, have offset rising costs this year by
using tariff refunds issued by the U.S. government after the Supreme
Court struck down President Donald Trump’s far-reaching global tariffs.
PepsiCo used its $178 million refund to do just that during the most
recent quarter, but said that money will not be available in coming
quarters.
Yet there are risks for U.S. companies that raise prices in the current
economic environment, with so many American households already stretched
financially.
PepsiCo leaned heavily into price increases to combat inflation in the
aftermath of the COVID-19 pandemic. The company hiked prices by
double-digit percentages for eight straight quarters in 2022 and 2023
before settling into more moderate price increases.
Consumers revolted, and sales of PepsiCo’s drinks and Frito-Lay snacks
fell. Last fall, activist investor Elliott Investment Management took a
$4 billion stake in the company and began pressing for even lower
prices. PepsiCo agreed, and it slashed prices on Lay’s, Doritos, Cheetos
and Tostitos chips by up to 15% before the Super Bowl.
Laguarta said the lower prices have brought back some consumers, but the
third-quarter results remained weaker than hoped, partly due to tepid
sales in Canada. Frito-Lay snack food volumes were flat in the
July-September period compared with the same period last year. Beverage
volumes fell 2%.
Laguarta also said during a conference call that “we don’t feel good
about the beverage business.”
Sales of hydration drinks like Gatorade and energy drinks like Celsius
were stronger in North America, but soda sales slumped.
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Plastic bottles of Pepsi are displayed at a grocery store in New
York on Nov. 15, 2023. (AP Photo/Ted Shaffrey, File)
 “We’re putting all the urgency of
the business and the focus in improving our performance in soft
drinks,” Laguarta said.
PepsiCo lowered its earnings expectations for the year, saying it
now expects adjusted earnings per share to grow 2.5% to 3.5%.
Previously, it had expected growth between 5% and 7%. The company
now expects full-year revenue growth of 6%, the high end of its
earlier forecast of between 4% and 6%.
Still, PepsiCo reported better-than-expected revenue for the quarter
on the strength of its international business, which makes up 41% of
the company's revenue. Net revenue rose 5.6% to $25.27 billion in
the July-September period. Wall Street had expected revenue of
$24.95 billion, according to analysts polled by FactSet.
The company, based in Purchase, New York, said its global snack food
volumes increased 4%, the highest rate of growth since 2021. World
Cup-related demand for Lay's snacks was strong, the company said,
and PepsiCo gained share in key markets like China and Brazil. Snack
food volumes rose 11% in the Asia-Pacific region, PepsiCo said.
Fast-growing categories include snacks with simpler ingredients,
like Doritos and Gatorade Lower Sugar with no artificial colors or
flavors, as well as protein-enhanced snacks, the company said.
Net income rose 17% to $3.07 billion in the third quarter. Adjusted
for one-time items, the company earned $2.34 per share. That was
higher than the $2.29 per-share earnings analysts expected.
PepsiCo shares rose 2% Thursday.
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