Food companies are finally cutting prices. PepsiCo shows it’s worth it

After accepting the reality that its inflation-weary customers had had enough of price increases in recent years, PepsiCo slashed U.S. prices on Lay’s, Doritos, Cheetos, and Tostitos chips by up to 15% in February. It seems to have worked: The move is helping bring back some of the food and beverage maker’s customers who had gone AWOL, according to the company’s latest results.

The company said on Thursday that revenue had jumped 8.5% to $19.4 billion in the first quarter of 2026 compared to the same period a year earlier, noting a strong performance in its North American snacks business. “The consumer is coming back multiple times to our brands,” PepsiCo CEO Ramon Laguarta said Thursday during a conference call with investors.

PepsiCo’s price cuts echoed those of other food companies and restaurant chains in the last year as customers have struggled with........

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