The purveyor of Gatorade and Cheetos boosted operating profit 14%, to about $4 billion, after hiking prices by at least 10% for the seventh consecutive quarter.
The quantity of drinks and snacks sold is slumping, however, and anti-obesity drugs are just starting to make their mark.
Pepsi’s shares have tumbled 14% since May, lagging the 5% gain in the S&P 500 Index (.SPX) over the same period.
The head of Walmart’s (WMT.N) U.S. drugstores told Bloomberg that customers taking Ozempic, Wegovy and others are pulling back on junk-food purchases.
The latest results from Pepsi quelled fears of any immediate impact, but also raise questions about the future.
Persons:
Brendan McDermid, Eli Lilly, drugstores, Morgan Stanley, Boss Ramon Laguarta, Laguarta, Lay, Hugh Johnston, Jeffrey Goldfarb, Sharon Lam
Organizations:
REUTERS, Reuters, PepsiCo, Gatorade, Novo Nordisk, Bloomberg, Pepsi, Frito, Thomson
Locations:
New York City, U.S, Wegovy