PEP - Earnings call transcript Q2 2024

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Operator

Good morning, and welcome to PepsiCo's 2024 Second Quarter Earnings Question-and-Answer Session. [Operator Instructions] Today's call is being recorded and will be archived at www.pepsico.com.

It is now my pleasure to introduce Mr. Ravi Pamnani, Senior Vice President, Investor Relations. Mr. begin. may you Pamnani,

Ravi Pamnani

our Good this I press morning both available prepared operator. had release everyone a remarks, on are which chance to of morning, you, hope everyone. has and website. Thank review our

our Before may statement. call, about make note and plans today's We our on cautionary business we statements updated take begin, including please of forward-looking XXXX guidance.

July update. under risks and our of today, reflect no uncertainties view are we to only involve XX, and inherently and statements Forward-looking obligation XXXX, as

factors When we reported differ which Please second quarter non-GAAP results, on XX-Q discussing and certain refer including regarding exclude additional release that pepsico.com Form from actual information earnings of results, could to second measures, our results forward-looking definitions available for non-GAAP to refer cause our items and results. reconciliations statements. materially from XXXX of XXXX measures our quarter discussion and to a

are Vice Laguarta; PepsiCo's Ramon Chairman CEO, CFO, Joining Instructions] [Operator and me Caulfield. President today and Executive PepsiCo's and Jamie

And the question. operator it for over with to first turn the I that, will

Operator

Dara [Operator with question first comes Mohsenian Instructions] from Morgan Stanley. Our

Dara Mohsenian

of So digits the I focus on year guidance in get the to to guidance. the back just approximate of the organic X% sales to half implied wanted growth mid-single

last great the a couple U.S. But in of consumer Ramon, longer-term this had obviously from under quarters. You've softer single-digit low environment, record, track your growth tenure. we've seen

there? get what the gives can level back So you at confidence you corporate

a presumably QX. soft wanted in piece I volume down And specifically, Obviously, which Frito-Lay to dial pretty a America, to of that. North is result

some You initial had taken actions.

and and America top sort into you you from actions payback of Frito-Lay also? from understand implied get that So here. how the incremental line help a that recovery payback volume top gives confidence a line fits North What us

Ramon Laguarta

That's great, Dara.

around focus. to we're think talking about at more we -- area when I it's an in saying X% our least important X%, The were So minds.

X%. around talking we're Now

the adjustment, to consumer we and is bit it's can feedback in So little and talk There specifically U.S., that's we're making. a related an the the more.

cannot guidance? because I X our think Now a to earnings more comfortable why good gives it do disconnected cost about we half on our way our from back that our doing reinvest about the optionality And in we've us be in we feel the been work productivity and performance. reduction feel the performance much

So a confidence. couple of, that us would elements give I say,

almost Quaker, you're situation. Quaker. is at the We're By familiar chain. business obviously, because we're And be one the refilling materially point in supply that Now the in shelves the recovering growing with XXX% all QX, just we'll pipeline. the supply. be will

should that picture, and So be us. out a of it for impact the be will positive

can mathematical, we And second half. second in think that it's the -- half laps it gives to get growth much the a mid-single-digit a us The back we lapping. type of confidence are and is better has obviously, that in -- but second

element International is we've third and International. is materially for for us. is the been last The years investing few delivering an area

the Within half multiple continue level can diverse year. portfolio growth world that but second of the enough, Pluses -- of believe the will first parts year, of the we that same minuses around that the enough world, in X%. we half scaled of So profitable the or around that enough, we is deliver.

the some for consumer that of particular And portfolio. that all more is with to portfolio, and parts in they brands. our U.S., the value consumers. That consumers. some more parts is the is a all then is in portfolio. the that consumer stay is not telling That It's now our clearly not us there want challenged of a It's for it's

have about, the it you targeted different we That's that a see positive in that has we And that and, long that food is making feel that sure the working referring, And tactics comfortable we P&L, good higher has business have be very to why -- category, a able net what to in ROI, working. deploy, what the want. were been consumer way, give we they we'll especially that, oxygen the we'll volume term the turn level with be about revenue. to thinking -- of around able the to given

we strong and been second business. how about feel that's we're the executing, good we activities has we've about of and thinking in very charge -- So July we're the for Again, half. us, have some with X the been been

we deliver category, we America North well same well. that to the growth, in is It's the think Actually, the profitable -- we've And delivery over the we're the improve in stay half. it sure but continue business time, want with Beverage compete make playbook to margins. said, profitable also a of the business Now be accelerating We highlighted. the executing time, should been business. at growth, our second we

put that you that We're if all we more of even And good that. what, start are year investing overall, momentum growing. in second with that's 'XX the feel about and and the platforms we'll advertising in together, it the half marketing the

Operator

Sachs. Our comes Bonnie next from question Herzog with Goldman

Bonnie Herzog

satisfied be on what the might PBNA. All I'd seeing shoots I just with bit. know question a had on reinvigorate touched are actually maybe PBNA, some green progress curious within hear business making of right. But to you to you Ramon. you if be it the I a and you're

I Are brand the disciplined in potential will for will promos opportunities? a guess, drivers to Essentially, maybe hoping we then, the terms mean growth this PBNA? structural Should And initiatives PBNA? assume for in commercial a the some And be you what reaccelerate of investments. repositioning? there step-up at need also for some you I'm on do highlighted see color

Ramon Laguarta

points example, of meaningfully, profitable part share That's portfolio. and I good. Yes. a a of core it are Gatorade, that Year-to-date, you accelerating. gaining portfolio give Bonnie, part I'll couple data our is It's been for a this year. our think relevant. of has very

So that's one data point.

branding, as on, more so and Propel. you paying much with not and that's were same Gatorade, back. The and in saying, innovation, investing discount, but execution promos been We've on

that think the I well. all that focus, It's it's been a is hydration of working think I always us. we're So but focus part space, now functional -- a for portfolio

challenges service behind have but I think we us. are some we're the peaks perfection. when for the perfection were there, -- levels and think better which be all -- much GX DSD in this I don't had the that we to part ready obviously that's last of where category to the way summer, year where early of

is that clear. part So

about If other back talking brand for been Dew, on to now. time, growth growth. Mountain we've It's you some is Mountain Dew think the

of flavors made made of incremental and That's strategic portfolio we think into driving have again, Baja better brand, the structural versus part brand a the I decision and the an the LTO. just multiple consumers execution. levels consumers, to driving

and some We where to just Zero Internationally, is know All part that we the they're So you eventually know here think the clearly, that's of right? examples. portfolio trends, going going. booming, happen about know the we If consumer U.S. in

not on soft only we're on are only on also So but not teas, coffees, Gatorade, on drinks, seeing on colas, Zero, consumers growing. that

execution stronger, profitability where better -- the restaurant of we're is additional feeling we've We're restaurant, And good and lot on being investing. which company consumers And that our the then the and that. part that been of we're is, the know channel, last foodservice getting business We interaction in every local fragmented and is about distribution. a where at a the is we're portfolio, have part becoming day. particular better becoming

Operator

question comes Lauren Barclays. next from with Our Lieberman

Lauren Lieberman

and know It's just of given trying it with to looks stay whole and wanted one may, brands. your our us, I being brands. I the a category to thing been but parse it's broader looks because the to category salty if a data one like Frito, Ramon, some to share, on they're the go more as to doing really we've that's like and valued lot your consumers back same, is through in I pressured. you there's a commented available it not snack sort issue. But

the the some to it we've like proving responsive at, is terribly Again, not promotion. data category of feels looked

you're seen it look is And you're and proving is consistent was comment that, there's far, seeing going feels different. So doesn't response. a hoping the that Because, we've so what lot be how like like to more doing I could just what if category isn't with you discretionary. will or of what it again, on be

thoughts your love on just that. So

Ramon Laguarta

Yes.

value. -- think I feel not an we obviously. I of of -- It's we issue have anything issue else. And issue is that of an the data, lot a

where how needed do address the approach to to is Now come. needs it promotion. promote, in versus you And will the who to promote consumers to that for blanket is gap know-how do? what the think us versus want the products to spot I it's sweet -- not but a that it's value

of So we're investing lot that's a time. where

more with from it also capable and our view more customers. interventions, all granularly from much be these or particular to channels I ability think we're point it be of insights execute diagnostic and the digital,

To frequency or parts buying we brands, pretty our chips are part staying give and as reset if that value intervention our and staying of you Consumers we think our about feel tortilla they're in an other that the high about flavored some some the potato for potato When no. example, are with in chips portfolio, category, or portfolio, in needs of past. value think you right, chips, consumers. unsalted the

is fast, those the especially we of the portfolio, call other all Smartfood, part are Eaten growing Choices. Simply the of This Off you PopCorners, There permissible what growing. brands about a range, brands -- are think when like are parts Positive very portfolio that the -- permissible SunChips, Path,

it's value. I marketing, going there, availability. approach it way And about think investment, it's we're about and not There, -- execution awareness, more is to the more

tools the So using drive growth. to we'll be that there's different category

participation the think past. through given To category and in this our for as brands, value snacks your I growing on this responsibility it's to the is our have done massive point the ways have the above brands, I PepsiCo structurally manage at continue food savory in different think category the categories long category many to to multiple term, we in providing -- it consumers

in trends tells consumer there not Now terms nothing that's long-term of that, that is possible. us

and adjustments term, in that small the and execution innovation drive about actually very will in but it's ability think and our do strong short in And not in the investment new it. I areas in QX feel in term, long QX. that, in we to value

testing already inflection has it levers, in we're and reflects and and And that we our the revenue. executing a bit that's little returns net see these guidance volume of some because why

Operator

with Bryan Our next question BofA. comes Spillane from

Bryan Spillane

you're Just into the on guess, And productivity wanted able it fund I deeper other places back organization. back, of reset of of drilling just some Frito. sort reservoirs the with the to in to and in stepping circle margins

Does related productivity -- having that affect you you're does that given comment just One, that. more deep? flow how if So Or year? I it affect guess, does to tapping that through? productivity can year, to not is X much maybe on very that next as things this reservoir

back stepping major the step is, And to about Or the the year, expect Frito a be we're is the then step-change we future? of as and you'd back margins half base thinking to of should have off the that Frito in up that of now second then another new grow thinking down gradually? maybe as in maybe

Ramon Laguarta

Yes.

about So talked in operating And we've keep Bryan, improving you've seen, me let total margin. PepsiCo managing past, tell margin. as me, the the we're I we think and this

margin last This bps operating consistent was And quarter for improvement. the XXX been it's of years. few almost

the based about on It's the it's and strategic on super is standardization, not digitalization, And it's based good models of multiyear. feel productivity our tactical. pipeline. different service simplification to business. automation, It's company, We

is productivity productivity ideas in the don't will of that a are we multiyear whole coming we down slow nature, in years. portfolio that and our there So think

overall tremendously we're I delivered that. we And us value we've -- say. International a our is been its grow mid-teens, term. to or the always of us XX.X that said very it's continued Frito much on big side is and for Now into about accretive It's always would or want for relevant, vocal as XX to that margin, you so long moving business has whether That very that not we've margin. XX.X. have has our PBNA think from going --

our and for biggest that focus, X% to -- is value or our X% get creation Frito be sure And make consumers very And expansion channel above grows Frito to that bringing keep to be do for continue healthy Frito, levels. terms that continues the be grow category, we focus. of strategic at the how -- in continue category it to opportunities to growth, occasions is a our new channel make and the will going to to

right. investing until get We'll keep we it

with that's And And feel of particular, International, PBNA way down and the that the around about every good But strap every to International. triggers that we rather overall business strategies. right the going every kind obviously, expectations it And world every good are in have -- for getting line We about we'll soon. company. different keep growth. profitability deliver talk the Frito, very of playbook road of in and when on profitability market we a you country, maps country and managing to

Operator

Our with next Jefferies. question from Gajrawala comes Kaumil

Kaumil Gajrawala

that the too high years? given believe Frito the over increases you Do are prices at recent

Ramon Laguarta

kind Kaumil, parts I of of earlier. the some need value adjustments, think don't. I on parts point touched the of the some But portfolio portfolio

in purchase of be expect and for points new that a the probably some to entry price -- cash salty. we kind particular don't for parts portfolio so need to the some mechanics need of Some consumer of much promotional invest consumers, new

to of for make -- we portfolio. So to some there's have the consumers, that parts certain adjustments

think a don't overall -- the is portfolio reset. I needs

be is I this to going that's the we're And be good to full about think chain. prepared of to execution well granularity. that think It's what's going I do value granularity. about -- throughout

value years a of So lot back yes, of to is to there given consumers or be X after X inflation. some

be coming There's be where be wherever us but will investments the that in to we'll that, in the going Our will think marketing. be we And it we do. business better making growth do to one. investments in structured overall, going drive will to be execution one only to years. the interventions the half, cost to There's allows second of not in that the choose that

Operator

question Our from with Peter comes UBS. Grom next

Peter Grom

So Mexico time I color and in was Organic the some some weakest to think America. we've seem I revenue hoping get Latin in the was And seen remarks, on here. solid. Brazil prepared

what of kind curious the quarter. weakness just in So drove the

America should you we growth back Ramon, then, as the And expect expect continue? into from you strong International more anticipate year. performance muted ahead, Would the you Latin that in How of just Or equation? fit we still look half to mentioned does improvement?

Ramon Laguarta

No.

Mexico, say, than I -- business funds those think at situation, that the In given second because LatAm our a rather of all elections, International months. disposable Year. in is related abnormalities case, X in the moving the in again, in between have first LatAm In government X quarter, And created, would particular, the pieces I to quarter, I the Chinese look the New months there's income by of the and months, changes some to lot Mexico. would some been distributed. there way families were X

that, in And that's impacted last demand in in Mexico in the that last -- back have X to what we're Mexico come the demand our has back been to seeing funds the again category. those as given weeks consumers

in developing building not the and markets. only Mexico LatAm across between continues margins see to region, factor, LatAm. countries. businesses, a value where for our minuses So we LatAm, any keep in issue expanding foresee be we and plus as and again, we to always has in a keep don't be LatAm. We'll but us continues multiple a categories scale as the high-performing region been But and different Brazil,

Operator

next with Our Falorni Citi. comes from Filippo question

Filippo Falorni

International So just on the the business. potential confident -- you growth talk you Maybe what in more sounded International regions business. do see about International. staying that on you Ramon, the on greater in growth can pretty

acceleration driven mainly on North organic And for International? can the give going will Is in helpful. or color top back it the line America guidance you by the sales half. second improvement in improvement be question some in on there, to If an an

Ramon Laguarta

for America both in business drive North interventions X the laps you get the Those X Quaker the acceleration I Filippo, North should factors. right, volume. some get then the America, better and comes will to of assume incremental value mostly mentioned. additional of and growth, factors we're of in from the should back making, that the Yes. additional most and are A&M

accelerating, broad of overall, portfolio assuming will some we're bit half. the But of the point a in of stabilizing, seeing the this half again, the softer. that enough. first portfolio of them for being the second is rate parts growth Internationally, at portfolio of little continue we're the And kind part

we're across scale enough multiple markets have of hedged geographically. We that kind

per that's So we're assuming category will seeing the we're of growth that cap's and what the what continue.

meaningfully We why execution and continue see incremental don't to both any and reason not. invest brand funds to we development,

reasons big year. it the have mind in and course, later why Of stability But we could the best be our geopolitical of information that's today. we about countries, geopolitics change with guess our today

Operator

with comes Cowen. next TD Robert Our Moskow question from

Robert Moskow

there give dramatically was you U.S. consumers of that A premium I Growth has little Do couple value think lot trading priced see making I of could drinks more any on carbonated a as is, you your decision get wanted color hoping drinks? you higher of slowed There's are the and maybe down to questions. perspective the One do drinks to ask, in just energy caffeine a well? category. a there. evidence

Ramon Laguarta

Listen, provide I industry. for to continues category think fundamentally, the prospects long-term our energy good

it's multiple will we think a to need there. will options, to whether are I grow. satisfy continue And through that able to that be consumer that continue

case, small ups it to parts moving that in LRB hot portfolio seeing, argue. in our always of channel it's Is dynamics? subcategories because, and it's of There's weeks, portfolio? been in obviously, massive of Is Like growth hydration you we're the within recent and example, are the for a in could very our X the other U.S. it very hot because people because downs

some hydration to do between consumers, is there some for and prefer they guess, energy that. I So cannibalization and

mentioned. term of consumer needs a as to we're category. If way, to energy So the provide would I the try you price, I energy. able consumer-friendly in wouldn't the probably this into if overread short about as including think

for labels, I there for the it's And been of be participate lot would it, working think things should runway category. brand owners. us has creating retailer say and segment category been a lot of value I on, that a partners including But the good a the in that that like of the functionality, clean

Operator

Teixeira comes question Andrea JPMorgan. from with next Our

Andrea Teixeira

is sales question mid-single-digit growth My to on the half. organic the in the bridge second

Assuming you of course, and, of the good about should PBNA. implies progress? a inflection How we for into do and mid-single into understanding Frito still just it the International, be half kind you thinking same mentioned, easy digits grows second the Ramon, comps the think Quaker,

in What for at-home? a and away-for-home And if channel perspective, the seems away-from-home to perhaps about the would is related like-for-like to from you from distribution. what basically growing that, think it by a you be channel, sales

Jamie Caulfield

Jamie. the back mostly from focused going in and Andrea, Quaker. that's And we on America Ramon investment, Yes, the the it's the got as to the easier laps acceleration We've North in we're come reasons half, for mentioned, cited. North America. making primarily

So us that lot a gives of confidence.

been away-from-home our balance investment portfolio. area the and us. that, it's On outgrowing focus for channels, look, has behind a of We've put

So expect continue. that we'd to

Operator

Our next Carey question Fargo comes from Wells Securities. Chris with

Christopher Carey

X-month on you could know I if was wondering, comment at be Ramon, specific regions. some on mentioned I however, cadence. International you looked could

Just your been in why, resilient? portfolio. your it's Europe, trends just I to don't so mind, think have

in for think been region than has general resilient the expected. longer I many more

quarter any think for last progress in right were there China? have was saw I then And Asia, benefit. that comments quarter. that the on do you the rate you What's this in And we division? clear some Clearly, this normalize timing run

Ramon Laguarta

Yes.

looking not here. as growing portfolio it's a we're when at kind we again, of International so the geographies much portfolio of and markets. listen, And see So

opportunity about an portfolio end, we the the to International the as that gives a us talk business we've So business historically, at total. that diversified, Obviously, quite the is run locally. learned and

very management And and, has resilient a performing Now parts -- world, well, our that of you on some line for different importantly, margin time. very the business both focus in is and and the in improvement. go resilient been of quite down Europe team is has to top share been very is -- when

the We're in opportunity Europe, which coming And cycle, lot giving top the we is of continue very reinvest, getting years. obviously a think case, a in the traction. business I drives which positive to in also That's expect to the our also line.

Now I will not so mention I talked Latin America, about much.

a parts and a of big of -- see lot take massive The for is region. particular, in it's space on think an many to our what continue perspective. us, build In think, we're brands, market growth demand We a area if for opportunity many the a you infrastructure -- to decade going years. the is investment and AMESA India if in putting we growth high make a the And sure. we're of you is many, ground for I investing capture lot be, that scale sure putting to

Then and we're to when consumer consumer Asia, than saving, more clearly it that in has many is saving seeing an very categories. a for cautious China. implication spending, comes The

of Our performance category is continue to categories. good a low-ticket item, our we so see

in regions China, It's share. an we we quite especially different food in the country. gaining advantaged what to have side. the business We're of And on continue invest

get has We more That driver. additional big continue distribution. a penetration, been to

snacking, additional brands, has penetration, coming additional and been very that consumers our coming the to So to of habit positive.

So grow consumer, in the cautious levers continue we of spite some business, availability. to to a of that have physical

Some of brands. our penetration share and of of that market better is

have advantaged advantage strong R&D companies. have develops we We've very East us is China there. we been that for in products, East center giving an that and I a other versus think -- products

how we're that's parts world. the different of seeing So the

in business company side our on so opportunity very $XX the decade, business. International putting $XX -- higher both our continue growth time. of think think PepsiCo. the We it's much again, largest particular you This growing if to billion. it's for the years we'll we so growth next accretive part investment. beverage right? It's billion focus, and that the of where It's about us. believe that's that about the clearly is than have almost food been if many on side, for we're business, and average to much And we it's And fast that, already, a PepsiCo. of margin over It's you invest almost So the

Operator

comes with ISI. Ottenstein question next Our Evercore from Robert

Robert Ottenstein

why little to maybe get look that rather at to more it perhaps for than your sense want I transaction Carlsberg-Britvic buy a and thoughts bit Britvic the more structural is Carlsberg talk a made to and question, you. strategic around type

your Does thinking any of And sense we in terms own fact that U.S., generally the fact think CSDs about component? combining makes bottlers? have that Given regulatory more you How U.S. outside of in why the for that the U.S., maybe beer the obviously, not the that implications about bottlers should does Britvic? reasons? how and you're

Ramon Laguarta

is extrapolate lot with wouldn't investment much. too I other make makes are And Carlsberg geographies. This multiple a by in partner reasons. for in to business. decision Yes, Carlsberg an U.K. -- of sense a we Carlsberg It for the we

We are very happy with the partnership. We trust business. them as a partner to grow our

And of the supported course, we transaction.

wouldn't I yes, it. So over -- extrapolate

it by relationship we Let's great decision Carlsberg. a U.K. because them. and And we transaction we the make Carlsberg, decided to a endorse have with trust

Operator

Our Laboy with next HSBC. Carlos question from comes

Carlos Alberto Laboy

in keeping with made the clarity are you side do in you discuss thinking to other franchise how the In the deal, Ramon, you've doctrine is keep, of X allowed of last can terms words, of Britvic international what in right? each PepsiCo? comments to supposed and

investments the independent territories these growth see you how growth of get of to great for returns. in bottlers sense compelling you're step trying bottling and revenue that purpose up I'm to a system accelerating

Ramon Laguarta

growth bottlers Yes, we of one of few with for the Carlos. international pleased this with has our strategic relationship engines last been the of most company beverage we're Actually, Listen, have the the business very alignment. and years. the

specifically, we've products consumer internationally. keep innovating great very we appeal. have with business our So that nonsugar And been successful building and

also is has we great that Pepsi around. years. another a nonsugar moving many are of Our growth platform been driver Gatorade great for

it's the and invest. to growing So we'll historically, continue XX% -- last

that we course, part up infrastructure, of scale -- even this is improve focus more. statistically our our The very to It's a put opportunities term. to invest our part markets know, there the to well. we're platforms Are to that of But business that business on which the investments. some always is are and opportunities think there's for I growing which working Now of are going prepared our bottlers and we're aligned our of bottlers? a obviously they we long are in and

earlier. referring story that part a and as markets in our the story to there's international was And combination I story it's said, term. playing we're think, There's of some there's I of food a X a long that beverage I and story,

kind question. I had answering implications hopefully, other there. I'm So some your of if you know don't

Operator

Our Nik next question RBC. Modi comes with from

Nik Modi

hoping volume, that's because across Ramon, just volume been going. much of I is was of volumes. lot under overall pressure about board snacks some questions a where just the around share been right, pretty It's asked not in perspective can have kind you salty terms food of the

And so actually migrating. I think on suggest, is think was know might I where volume the curious thoughts. on views your just that's of what I it's kind I your don't love some GLP-X. you but

Ramon Laguarta

know is input went the Yes. know the take, Listen, I lot had multiple-year we about food inflation -- perception and Nik, I expensive. some to all created up, don't for I some categories. that that reality many our that categories, has because costs a in households of

cook finished lowest question for make I a and finished they versus think feed and address goods they the to or choices, their day making the spend are can budget. And they the themselves decisions around of how to companies. food every -- lot money choices buy products. that's make consumers Or fundamental can how do And they with

our very, our kind in costs, case, our going has are for that this input we've and of very cost Now at normalizing, us. all productivity, strategic been been a focus

Now those a again, approach. be best the reignite we It will approach. segmented what a levers And be not are it blanket how deploy growth? resources to against do will

our data. it based It In will be case, on very will rational. be

category have segmentation. can for the destroy that with again, we think -- increase And net and create have data, the value, I we category. with as think revenue we I we don't of value the a execute we so lot precision of great but we

it. consumers. economic we It's them half an have and about we're relationship value material of this in point, this of impacting impact our conversations will a for I how have Nik, we second us. of that's at our year. lot a thinking it's sure. categories, And category, not has for and point, with think a So don't the GLP we lot panels At address in the

Operator

Paribas. BNB Our Grundy last with question comes from Kevin

Kevin Grundy

of drill areas, And lot Ramon, horse, on in a the a if not to snacks. could, dead ground. a but couple to we Covered down of demand just weakness beat

So not of but if you consumers. I mentioned the missed I this. some parts apologize all portfolio,

you you're frankly, seen consumer? management consumer? low-income And the which with seeing So depends specifically of beyond high-end where also the middle What and are well? the is what what are cohort you listening or weakness as the seeing industry, consumer. focus a being call lot that among Is on to on

anything so close longer-term I which an for you're been question staying do of And with there Is that to so this you're as you strong pause view is business, know for there any well, Frito I research entirely pause? important gives in the kind you Or that the anything -- gives there market think transitory? then long. consumer seeing be to the has outlook you your

Ramon Laguarta

-- Kevin. value the is in consciousness, I impacting every Thanks, think, this need Listen, Yes. I the household think value U.S. for or more

it So of different income. is levels

impacting And income different we're it's think seeing everybody. I behaviors in levels.

for across. I is more value conscious, would that. looking is price consumer aggregate all much The more

create at moments moments that going you their higher-income the see they consumers they to their affordable adjusting Or expensive are more and then or fun to behavior home at not entertainment home. they maybe They're own stay So restaurants. restaurant.

behaviors everywhere. happening different see you So

more I think in see in more was I category, they're would of consumer be also -- where is decisions. category, the their value. is line our of areas category other more willing that and see some cautious, to but they the the willing referring it the value more parts for asking consumer the to. in parts compromise we consumer connecting to the And they're is choiceful, But for of right, the the spend

to problem the that's So address.

situation, we the we'll feel resources about would address tools be once I So and that the we think have of And performance that we're we're taking. encouraged growth. the back there. And stay we And pretty by business. in good the I recent actions and quite

Okay.

think this question. we the -- I last So is

placed investments. joining you've you, and buy has questions us that for thank confidence us summer your your PepsiCo you everybody products. and that the a obviously, thoughtful and in also, great we And today So everyone, lot a for of with hope

you. thank So

Operator

today's conclude does this gentlemen, and presentation. Ladies

and have disconnect, now may day. wonderful You a

PepsiCo (PEP) 11 Jul 242024 Q2 Earnings call transcript