Jim Cramer flagged PepsiCo's Frito-Lay problem on the September 28 episode of Mad Money, saying the snack business is "a tough one right now" and that the stock's 10% decline this year suggests the dividend may not act as the trampoline he once expected. PepsiCo Foods North America reported a 2% decline in second-quarter revenue, with core constant-currency operating profit at PFNA falling 8%, and Reuters reported on September 24 that the company plans to raise prices on some chip brands by a low- to mid-single-digit percentage range after cutting prices by as much as 15% on products including Lay's and Doritos in February. PepsiCo is scheduled to report third-quarter results on October 8. Procter & Gamble, which Cramer noted has "nothing to do with food," reported fiscal 2026 net sales up 3% to $87 billion with flat fourth-quarter organic sales and core EPS up 1% to $6.89, and guided fiscal 2027 organic sales growth of 1% to 3% and core EPS of $6.89 to $7.11, while expecting an approximately $1 billion after-tax headwind from higher raw materials, energy, and transportation costs. P&G is set to report first-quarter fiscal 2027 results on October 22. Hedge fund holders of PepsiCo fell to 68 in the second quarter from 72 in the first, while P&G holders rose to 83 from 78, and PepsiCo trades at a forward P/E of 14.86 versus P&G's 21.23.
PepsiCo IncFrito-Lay North America Q2 revenue fell 2% and core operating profit dropped 8%, with Cramer calling the snack business 'a tough one right now'.
Procter & Gamble CompanyP&G reported fiscal 2026 net sales up 3% to $87B with flat Q4 organic sales and guided fiscal 2027 organic growth of 1-3%, while expecting a ~$1B after-tax cost headwind.
