PepsiCo shares declined on April 7. Investors expressed concern that Frito-Lay price reductions are insufficient to recover customers lost to previous price hikes.
The company previously increased prices on products like Doritos to counter inflation. These hikes resulted in lower sales volumes and prompted Walmart to reduce shelf space.
The Frito-Lay division missed internal revenue targets for two consecutive years. Current price cuts have not satisfied analysts or consumers facing high cost-of-living pressures.
PepsiCo expects to evaluate the success of its new pricing strategy by this summer. The company aims to determine if the shift can rebuild sales momentum and market share.