Latest news with #FritoLay
Fox News
17 hours ago
- Entertainment
- Fox News
Lay's transforms beloved American classic into latest flavor: 'Like a cheese chip'
This summer, Lay's is offering an all-American favorite in potato chip form. Lay's Bacon Grilled Cheese potato chips were selected as the winner of the 2025 "Do Us a Flavor" fan contest. Paula George of Sapulpa, Oklahoma, submitted the winning flavor, which received the most fan votes, as Texas-based Frito-Lay announced earlier this week. George's winning flavor was inspired by her late father's recipe, the company said. The grilled cheese-flavored chips are made from butter, cheddar cheese, blue cheese and bacon fat, among other additions, according to the ingredient label. On Reddit, a group of chip lovers discussed the new snack, with people's reactions ranging from intrigue to hesitation. "I haven't tried the bacon ones, but I don't generally like 'bacon flavor,'" one hesitant commentator wrote. "I love the flavor of bacon, but 'bacon flavor' is often not that." The person added, "To be clear, I love the flavor of bacon, but 'bacon flavor' is often not that." "Always too smokey," someone else chimed in. Another user said, "[T]hese don't look worthy of buying." Some people said they hadn't tried the new flavor but were excited to do so. "Looks pretty good," another person said in part. A few users had already tasted the chips and shared their thoughts about them. One person noted that the new offering "tastes like a cheese chip." "They're OK, but I don't think they bring anything beyond the normal 'cheese' flavor," another Redditor said. "The bacon grilled cheese ones were surprisingly pretty good," another person said. "I liked them more than the others and I didn't think I would really like them at all." The two other 2025 fan-voted finalists were Valentina & Lime and Wavy Korean-Style Fried Chicken. Both flavors can also be found in the chip aisle of stores nationwide. Past fan-voted Lay's flavors include Chicken and Waffles, Southern Biscuits & Gravy, Cheesy Garlic Bread and Wavy Fried Green Tomato. Fox News Digital reached out to Frito-Lay for comment.
Yahoo
08-06-2025
- Business
- Yahoo
PepsiCo Inc: A Quiet Giant with More Firepower Than the Market Thinks
PepsiCo might not turn heads the way high-growth tech stocks do, but in the backdrop of inflation shocks, tightening monetary policy, and consumer uncertainty, it's the type of company that quietly keeps delivering. The market may not be giving it full credit, but underneath the surface, PepsiCo is a resilient cash-flow machine a diversified global operator with iconic brands and pricing power that's often underestimated. While competitors like Coca-Cola, Monster Beverage, and Keurig Dr Pepper dominate narrower categories or sport flashier growth stories, PepsiCo's strength lies in its balance across beverages and snacks, geographies and channels. PepsiCo's Q1 2025 earnings didn't cause a stir but that doesn't mean there's nothing to see. The company reported $18.25 billion in revenue, nudging up about 2.5% from a year ago. Most of that lift came from raising prices, not selling more. In fact, volume actually slipped by 2%, as shoppers, feeling the pinch from higher costs, started pulling back a bit. Core earnings per share ticked up to $1.58 just a 1% gain, but still in the black. The stronger U.S. dollar was a drag, trimming around 3% off the top and bottom lines. It's a recurring theme for PepsiCo, with so much of its sales happening outside North America. Frito-Lay North America continued to deliver, posting higher revenue and better margins. The gains came from adjusting product mix and trimming costs nothing flashy, just smart execution. Beverages didn't move the needle as much, but the segment held its ground. Demand for zero-sugar and health-focused drinks helped cushion slower volume trends. PepsiCo's dividend currently runs at $5.69 a share per year, giving it a yield of around 4.35% one of the highest among its peers. They've raised that payout every year for more than five decades. In 2024, they returned north of $8.5 billion to investors through dividends and buybacks not a flashy move, but consistent with how they've always handled capital. To get a sense of what the market thinks, it helps to see who owns the shares. When it comes to PepsiCo, it's mostly big-name institutional investors. Vanguard owns just under 9%. BlackRock's in for more than 8%. State Street? Over 4%. These aren't hedge funds chasing the next shiny thing they're the experienced institutional investors managing retirement plans, pensions, and endowments. This kind of backing doesn't happen by accident. It means the large, patient investors crowd sees PepsiCo as a reliable piece of the puzzle. Not exciting, maybe, but solid and in a shaky market, that counts for a lot. Now, flip to the inside. Executive ownership is low nothing unusual there for a company this size. CEO Ramon Laguarta and other top execs hold a minimal slice, mostly tied to equity compensation. Recent insider trades? Mostly pre-planned, automatic sales. No red flags. Name Hold Type Vanguard Group Inc 9.86% Institution BlackRock Inc 8.26% Institution State Street Corp 4.19% Institution JPMorgan Chase Co 2.58% Institution Geode Capital Management LLC 2.38% Institution Insider Ownership (e.g., CEO Ramon Laguarta) <1% Insider At first glance, PepsiCo's valuation may seem steep, especially relative to growth. But when placed next to its peers, a clearer picture starts to emerge. PepsiCo is currently trading at a forward P/E of 20.8, an EV/EBITDA of 16.2, and a price-to-sales ratio of 2.7. On the surface, those figures suggest a modest premium. But when you break it down, that premium is tied to a more diversified revenue model and better defensive positioning. Coca-Cola, for example, trades at a forward P/E of 21.2, an EV/EBITDA of 18.3, and a P/S ratio of 6.1 considerably higher in terms of sales multiple, despite a narrower product focus. Monster Beverage, the favorite among momentum investors of the sector, sports a P/E of 29.5, EV/EBITDA of 24.4, and a P/S north of 7.4. Keurig Dr Pepper comes in at a P/E of 19.1, an EV/EBITDA of 14.6, and a P/S of 3.2 more modest, but reflective of its smaller scale and regional concentration. What this tells us is that PepsiCo sits in a reasonable valuation relative to its strengths. It's not priced like a pure-play growth stock, but it's also not treated like a business that's stopped evolving. Its reflects its ability to weather storms and grow, modest growth, and consistent capital returns and compared to Coke's lofty sales multiple or Monster's dependence on one category, that's not a bad deal. Company P/E EV/EBITDA P/S PepsiCo 20.8 16.2 2.7 Coca-Cola 21.2 18.3 6.1 Monster 29.5 24.4 7.4 Keurig Dr Pepper 19.1 14.6 3.2 PepsiCo operates in a sector that's as saturated as it is scrutinized, and while it brings scale and diversification, the specific moves and strengths of its key competitors may be skewing investor sentiment and weighing on its valuation. Coca-Cola's 46%+ market share in carbonated soft drinks dwarfs Pepsi's \~25%, and its international dominance only widens that gap. Its highly integrated bottling network, deeper brand penetration, and global consistency make it a more "pure-play" beverage investment and that singular focus tends to earn it a valuation premium. Monster Beverage, meanwhile, controls about 40% of the U.S. energy drink market, operates with sky-high margins over 30%, and continues to expand globally. PepsiCo's energy portfolio Rockstar, Celsius, and other partners still hasn't cracked the top tier. That gap in profitability alone is a reason some growth investors lean toward MNST instead of the blended PepsiCo model. Keurig Dr Pepper is also playing a different game. With an EBITDA margin near 28% and a firm position in the market on the at-home beverage category through Keurig brewers, it's more nimble, more focused, and doesn't have the global FX drag that PepsiCo faces. Dividend strategy is another competitive signal. PepsiCo's forward yield of 4.35% is the highest among peers, backed by a 53-year streak of increases. Coca-Cola offers 2.83% with a 63-year streak, while Keurig Dr Pepper offers 2.73%. Monster doesn't pay a dividend at all. This not only positions PepsiCo as a stable income source, but highlights show its potential as a stable income generator may be compared to growth-focused peers. PepsiCo's business, while steady, has its share of pressure points. One of the most immediate challenges is tariff exposure. The company relies on soda concentrate imports from Ireland, now subject to a 10% tariff, and also faces a 25% import tax on aluminum both of which inflate production costs. In Q1 2025, PepsiCo lowered its full-year earnings guidance, citing these pressures directly. Consumer behavior is also shifting. Inflation-weary shoppers are trading down, cutting into volume even as prices rise. In Q1, organic volumes dropped 2% despite a 3% average pricing lift signaling that consumers are beginning to push back on price. Regulatory challenges are also bubbling up. The FDA is pushing to phase out several food dyes and additives used in products like Cheetos, which could require reformulations and carry additional R\&D and marketing costs. Currency risk remains a ongoing challenge. A stronger U.S. dollar trimmed roughly 3% from revenue and EPS growth last quarter. With over 40% of its sales coming from outside North America, FX volatility is a real constraint. Add in competitive pressure, rising interest rates, and the need for ongoing innovation and the road ahead, while manageable, is far from frictionless. PepsiCo isn't chasing headlines. It's not the flashiest stock in consumer staples, nor is it trying to be. What it does offer, though, is a rare combination of global scale, diversified revenue streams, and durable brand equity and right now, it may not be getting full credit for that. Competitors like Coca-Cola, Monster, and Keurig Dr Pepper each have clear advantages in focus, speed, or category dominance. But what PepsiCo brings is balance and that balance becomes more valuable when volatility creeps in. The risks are visible: tariffs, shifting consumer tastes, FX pressure, regulatory noise but the playbook to manage them is already in motion. If PepsiCo continues executing on cost controls, pivots faster toward health-conscious innovation, and leverages its international footprint smartly, the market's current hesitation could look like a missed opportunity in hindsight. This isn't a turnaround story or a moonshot growth play. It's a global consumer machine priced like a regional challenger. And that disconnect between performance and perception is where long-term value investors may want to start paying attention. This article first appeared on GuruFocus. Sign in to access your portfolio
Bloomberg
05-06-2025
- Automotive
- Bloomberg
Next Stop: Rancho Cucamonga!
Rancho Cucamonga, about 40 miles east of Los Angeles in California's Inland Empire, was made by the automobile. After Interstate 15 opened here in the 1960s, this rural expanse of citrus orchards and vineyards transformed into a commuter town and logistics hub. Families flocked to the single-family homes that replaced farmland, while companies like Reyes Coca-Cola Bottling, flavor maker T. Hasegawa, Frito-Lay, and Amphastar Pharmaceuticals exploited its strategic location at the confluence of three major freeways and the Ontario International Airport. Now this car-based city may be remade by the train. The private rail company Brightline has broken ground on a high-speed rail line between Las Vegas and Southern California, making Rancho Cucamonga the western terminus of its $12 billion Brightline West project. In a full-circle moment, the city was chosen because of its location along the I-15 freeway, in the median of which the majority of the 218-mile track will run.
The Hill
02-06-2025
- Business
- The Hill
Campbell's Co. says sales rise as more Americans cook meals at home
The Campbell's Co. said Monday it saw stronger sales of broth and condensed soup in its latest quarter as more Americans cooked their meals at home. 'Consumers continue to cook at home and focus their spending on products that help them stretch their food budgets, and they're increasingly intentional about their discretionary snack purchases,' Campbell's President and CEO Mick Beekhuizen said during a conference call with investors. Beekhuizen said Campbell's saw the highest level of meals cooked at home since early 2020 in its fiscal third quarter, which ended April 27. Campbell's noted sales of its broths rose 15% during the quarter while sales of its Rao's pasta sauces were up 2%. But Campbell's said sales of its snacks, including Goldfish crackers and Cape Cod potato chips, fell 4% during the quarter. Other big companies, including McDonald's, have also noted that Americans are increasingly eating at home as uncertainty over the economy grows. Grocery prices have also moderated. In 2024, prices for food eaten at home rose 1.2%, while prices for food away from home rose 4.1%, according to the U.S. Department of Agriculture. Snack makers like PepsiCo, which makes Frito Lay chips, and General Mills, which makes Bugles chips and Golden Grahams, have also noted lower demand for snacks in recent quarters. Campbell's net sales rose 4% to $2.5 billion for the fiscal third quarter, which was in line with Wall Street's expectations, according to analysts polled by FactSet.
San Francisco Chronicle
02-06-2025
- Business
- San Francisco Chronicle
Campbell's Co. says sales rise as more Americans cook meals at home
The Campbell's Co. said Monday it saw stronger sales of broth and condensed soup in its latest quarter as more Americans cooked their meals at home. 'Consumers continue to cook at home and focus their spending on products that help them stretch their food budgets, and they're increasingly intentional about their discretionary snack purchases,' Campbell's President and CEO Mick Beekhuizen said during a conference call with investors. Beekhuizen said Campbell's saw the highest level of meals cooked at home since early 2020 in its fiscal third quarter, which ended April 27. Campbell's noted sales of its broths rose 15% during the quarter while sales of its Rao's pasta sauces were up 2%. But Campbell's said sales of its snacks, including Goldfish crackers and Cape Cod potato chips, fell 4% during the quarter. Other big companies, including McDonald's, have also noted that Americans are increasingly eating at home as uncertainty over the economy grows. Grocery prices have also moderated. In 2024, prices for food eaten at home rose 1.2%, while prices for food away from home rose 4.1%, according to the U.S. Department of Agriculture. Snack makers like PepsiCo, which makes Frito Lay chips, and General Mills, which makes Bugles chips and Golden Grahams, have also noted lower demand for snacks in recent quarters. Campbell's net sales rose 4% to $2.5 billion for the fiscal third quarter, which was in line with Wall Street's expectations, according to analysts polled by FactSet.
