Americans aren't buying enough Pepsi and Doritos to satisfy Pepsi Co executives, despite lowered prices.
"We're not satisfied with the performance in the U.S.," said Ramon Laguarta, CEO of Pepsi Co, on an earnings call Thursday. Sales rose in the most recent quarter, but executives face growing pressure to improve the snack and beverage business in the U.S., which has struggled as consumers pull back on spending and change snacking habits.
With the company's stock down 12 percent in the past year and shares trading at six-year lows, investors are pushing for structural changes. Options include splitting operations by geography or business lines, or re-franchising bottling operations. Mr. Laguarta, who faced similar pressure from activist investor Elliott Investment Management a year ago, said the company is open to revisiting every option but clarified it is not considering splitting operations.
Revenues for the quarter ending Sept. 5 rose 5.6 percent to $25.2 billion, with core operating profit up 3 percent to $4.3 billion. However, much of the growth came from international markets, which now account for 41 percent of revenues. Investors warn that North America must improve or more disruptive changes may follow.
Source: New York Times Business · Summarized by HeadlinesBriefing