What caused PEP's Q3 2024 earnings to miss forecasts?

PepsiCo's Q3 2024 earnings missed forecasts due to slowing demand for snacks and sodas, especially in the U.S. market. Here are the key reasons:

1. Declining Demand in North America: PepsiCo faced weak demand for its snacks and beverages, primarily in its largest market, the U.S. The company's three North American business units reported declining volumes.
2. Impact of Price Hikes and Competition: PepsiCo had previously raised product prices due to increased production and raw material costs. However, these price hikes, combined with competition from private-label brands, led to a decline in sales volumes. Consumers, influenced by inflation concerns, reduced their spending on sodas and salty snacks, opting for smaller packs and cheaper alternatives.
3. Global Sales Volumes Down: PepsiCo reported that sales volumes were down in every market except Europe. This decline was evident in the third quarter, where revenue remained flat at $23.3 billion, missing the expected $23.8 billion.

In summary, PepsiCo's Q3 2024 earnings miss was primarily due to declining demand in its core market, the U.S., combined with the impact of price hikes and competition. This resulted in lower sales volumes and revenue, which missed the forecast.