PepsiCo showed lower than expected sales figures in the third quarter of 2024. The company was originally targeting 4% growth, but has now lowered that to a low single-digit increase.

In Q3, PepsiCo generated $23.32 billion in net revenue, a 0.6% decline from the same period a year ago.

PepsiCo is more than just a cola beverage, the industry behemoth has a wide range of brands under its umbrella including Pepsi, Gatorade, Doritos, Mountain Dew and Quaker. Their brands and products can be found in over 200 countries around the world.

PepsiCo factored in inflation and geopolitical tensions into its forecast

Even companies as big as PepsiCo aren’t immune to the effects of inflation and geopolitical tensions. Inflation makes consumers more conscious about what they buy. Tensions not only can cause a pull back in global consumer spending, but also disrupt supply chains.

“We expect consumers to remain choiceful and value conscious as the cumulative effects of inflationary pressures continue to impact budgets and spending patterns,” Laguarta and CFO James Caulfield said. “Pockets of elevated geopolitical tension and macroeconomic pressure are also expected to persist in certain international markets.”