Thread: Consumers are buying less snacks due to high prices, Pepsi Co.'s earnings suggest


+1 Hero
  1. PC
  2. Xbox
  3. PlayStation
  4. Nintendo

The company noted that foreign exchange rates negatively impacted revenue by 1.5%. Organic revenue was up 4.5% as Pepsi boosted prices. However, those higher prices reduced volumes for both its convenience foods and beverages units, which fell 3% and 2%, respectively.

Yeah, no shit when a 24-pack soda is nearly $15 bucks and $6 for a bag of chips and air no one is going to buy your crap anymore.
12-pack sodas are about $11 now and I buy them when they're marked down, usually under $6. I probably can completely give up soda but going those couple weeks without drinking any soda is tough. So I just drink more water instead and view soda more as a treat.

McDonald's will focus on making its food more affordable going forward after company leaders reported that spending by lower-income customers has gone down.

In a recent earnings call, McDonald's CEO Chris Kempczinski, said customers who made $45,000 or less have recently spent much less, finding that "eating at home has become more affordable."

He noted that lower-income Americans are particularly the hardest hit by high inflation.

"That consumer is pressured," he said of customers who make less than $45,000 a year. "From an industry standpoint, we actually saw that cohort decrease in the most recent quarter, particularly I think as eating at home has become more affordable."

Kempczinski said that in the coming months, the company plans to focus on "affordability" and "absolute price point" rather than temporary deals.

Several viral posts in recent months have featured the high cost of certain McDonald's, especially one at a rest stop in Darien, Connecticut, where a Big Mac meal costs $18 in person.

The meal from that specific restaurant on Grubhub is even more expensive, listed at $21.59 at press time.

Most McDonald's locations are owned by franchisees who are generally able to select their own prices, the company says.

Food prices have gone insane for sure. Especially at many restaurants. 30-50% on most items. So many places I have stop patronizing because of these exorbitant increase. Its just not even worth it anymore. I can make better food at home for <half the cost.

What amazes me is how stable the beer market has remained. Austin Beerworks Fire Eagle was $8-9/6-pack pre COVID and today its still $8-9.
  • Like
Reactions: TaySan