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PepsiCo's global convenient foods organic volume rose 3%, while international volume increased 4%.
U.S. salty snacks posted volume growth for a third straight quarter, with share gains across categories.
Portion-control multipacks and permissible snacks delivered growth as PepsiCo broadened consumer choices.
PepsiCo, Inc. (PEP - Free Report) is seeing improving momentum across its snack portfolio, supported by stronger international demand, portfolio innovation and targeted affordability initiatives. In the second quarter of 2026, global convenient foods organic volume increased 3%, while international convenient foods organic volume rose 4%, underscoring broad-based demand across key markets.
In North America, PepsiCo Foods North America continued to improve volume share across both U.S. savory and salty categories, alongside better household penetration trends. The U.S. salty-snack category has now delivered volume growth for three consecutive quarters. PepsiCo gained volume share across multiple categories, including potato chips, tortilla chips, pretzels, curls and puffs, SunChips, Quaker rice snacks and other offerings. Doritos, Ruffles and Miss Vickie’s also generated both volume and net revenue growth during the quarter.
Portfolio diversification is another key driver. Portion-control multipacks, representing more than $3.5 billion in annual net revenues, delivered volume and revenue growth. Meanwhile, permissible offerings such as Baked, Simply, SunChips, Siete and Quaker Rice Cakes also posted strong gains. PepsiCo is further expanding choices through protein, fiber and diverse-ingredient products, including Doritos Protein, PopCorners Protein and SunChips Fiber.
Internationally, PepsiCo is scaling brands, sharpening price-pack architecture, and emphasizing locally relevant flavors and formats. Together, these initiatives are broadening consumer appeal and supporting volume growth despite pressure on household budgets.
Are PEP’s Snacking Peers Like MDLZ & HSY Gaining Traction?
PepsiCo’s snacking peers, including Mondelez International Inc. (MDLZ - Free Report) and The Hershey Company (HSY - Free Report) , are also leaning on portfolio innovation, brand strength and evolving consumer preferences to sustain momentum in the competitive snacks market.
Mondelez International is gaining traction across its snack portfolio, supported by emerging-market strength, broader distribution and innovation. Management cited strong volume in the second quarter of 2026, with North America delivering positive volume mix and share gains across categories. Growth was aided by Ritz, Oreo, Perfect Snacks, Tate’s and Hu, alongside value-channel and away-from-home expansion. Innovation in protein, gluten-free, zero-sugar and premium offerings is also helping broaden consumption occasions and sustain momentum globally.
Hershey’s snack portfolio is gaining momentum as strong consumer demand supports brands such as Dot’s Pretzels, SkinnyPop and LesserEvil. Management said that Dot’s continues to lead growth, with supply-chain constraints largely behind the business and automation helping improve throughput. Premium, permissible positioning is also resonating, while stronger activation around salty-snack occasions, including fall football, should help capture additional demand and support volume improvement.
PEP’s Price Performance, Valuation & Estimates
Shares of PepsiCo have lost 2.2% in the past three months against the industry’s rise of 4.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, PEP trades at a forward price-to-earnings ratio of 15.54X, below the industry’s average of 19.41X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PEP’s 2026 and 2027 earnings implies year-over-year growth of 5.3% and 4.9%, respectively. The company’s EPS estimate for 2026 has been unchanged in the past 30 days. Meanwhile, the consensus mark for 2027 EPS has moved down by a penny in the past seven days.
View the Zacks #1 Rank List
Image: Bigstock
PepsiCo's Snack Portfolio: What's Driving Volume Gains?
Key Takeaways
PepsiCo, Inc. (PEP - Free Report) is seeing improving momentum across its snack portfolio, supported by stronger international demand, portfolio innovation and targeted affordability initiatives. In the second quarter of 2026, global convenient foods organic volume increased 3%, while international convenient foods organic volume rose 4%, underscoring broad-based demand across key markets.
In North America, PepsiCo Foods North America continued to improve volume share across both U.S. savory and salty categories, alongside better household penetration trends. The U.S. salty-snack category has now delivered volume growth for three consecutive quarters. PepsiCo gained volume share across multiple categories, including potato chips, tortilla chips, pretzels, curls and puffs, SunChips, Quaker rice snacks and other offerings. Doritos, Ruffles and Miss Vickie’s also generated both volume and net revenue growth during the quarter.
Portfolio diversification is another key driver. Portion-control multipacks, representing more than $3.5 billion in annual net revenues, delivered volume and revenue growth. Meanwhile, permissible offerings such as Baked, Simply, SunChips, Siete and Quaker Rice Cakes also posted strong gains. PepsiCo is further expanding choices through protein, fiber and diverse-ingredient products, including Doritos Protein, PopCorners Protein and SunChips Fiber.
Internationally, PepsiCo is scaling brands, sharpening price-pack architecture, and emphasizing locally relevant flavors and formats. Together, these initiatives are broadening consumer appeal and supporting volume growth despite pressure on household budgets.
Are PEP’s Snacking Peers Like MDLZ & HSY Gaining Traction?
PepsiCo’s snacking peers, including Mondelez International Inc. (MDLZ - Free Report) and The Hershey Company (HSY - Free Report) , are also leaning on portfolio innovation, brand strength and evolving consumer preferences to sustain momentum in the competitive snacks market.
Mondelez International is gaining traction across its snack portfolio, supported by emerging-market strength, broader distribution and innovation. Management cited strong volume in the second quarter of 2026, with North America delivering positive volume mix and share gains across categories. Growth was aided by Ritz, Oreo, Perfect Snacks, Tate’s and Hu, alongside value-channel and away-from-home expansion. Innovation in protein, gluten-free, zero-sugar and premium offerings is also helping broaden consumption occasions and sustain momentum globally.
Hershey’s snack portfolio is gaining momentum as strong consumer demand supports brands such as Dot’s Pretzels, SkinnyPop and LesserEvil. Management said that Dot’s continues to lead growth, with supply-chain constraints largely behind the business and automation helping improve throughput. Premium, permissible positioning is also resonating, while stronger activation around salty-snack occasions, including fall football, should help capture additional demand and support volume improvement.
PEP’s Price Performance, Valuation & Estimates
Shares of PepsiCo have lost 2.2% in the past three months against the industry’s rise of 4.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, PEP trades at a forward price-to-earnings ratio of 15.54X, below the industry’s average of 19.41X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PEP’s 2026 and 2027 earnings implies year-over-year growth of 5.3% and 4.9%, respectively. The company’s EPS estimate for 2026 has been unchanged in the past 30 days. Meanwhile, the consensus mark for 2027 EPS has moved down by a penny in the past seven days.
Image Source: Zacks Investment Research
PEP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.