Snack food sales have outperformed soda sales in recent years, giving Pepsi an advantage over pure-play soda companies like Coke. Quaker has also given the company additional exposure to the supermarket channel.
However, a recall of dozens of Quaker granola products weighed on the 2024 results, and the company also faced business disruptions and other geopolitical tensions. As a result, revenue growth was underwhelming in 2024, but its cost controls helped drive core constant-currency EPS up 9% for the year.
There are also fears that weight-loss drugs like Ozempic could hurt junk-food purveyors like PepsiCo, but CEO Ramon Laguarta has said they aren't having an effect so far.