PepsiCo shares drop 0.5% on planned snack price increases

PepsiCo shares fell 0.5% on Thursday following a Bloomberg report that the company plans to raise prices on certain chips, sodas, and dips. The decision comes after earlier price reductions failed to lift sales growth.

The price increases will apply to grocery-store-sized bags of brands such as Doritos, Ruffles, and SunChips, which had seen price cuts earlier this year, according to people familiar with the matter cited by Bloomberg. The changes are expected to take effect late this year or in early 2027.

A PepsiCo spokesperson said the prices of certain chips will rise by a low-to-mid single-digit percentage, in line with inflation. The spokesperson noted that the adjusted prices will remain below the levels seen before the price cuts made earlier this year.

The company stated that it is still working to maintain lower prices where possible and remains committed to affordability, as packaged goods makers balance inflationary costs against consumer demand.