(Photo courtesy hearstapps.com)
Today, PepsiCo reported that its quarterly revenue fell as fewer consumers bought its drinks at restaurants and convenience stores because of – you guessed it – the coronavirus pandemic.
PepsiCo’s CEO Ramon Laguarta said the company spent nearly $400 million on costs related to the pandemic, including personal protective equipment for employees.
It’s not all bad. PepsiCo’s food business, which includes products such as Cheetos and oatmeal, fared much better. PepsiCo’s snack boost allowed their earnings to beat Wall Street’s expectations.
Here are the earnings and revenue PepsiCo reported compared to what Wall Street was expecting:
- Actual earnings per share: $1.32, adjusted vs. Expected earnings per share: $1.25
- Actual revenue: $15.95 billion vs. Expected revenue: $15.38 billion
The company saw signs of improvement in May and June as the economy began to reopen. But PepsiCo doesn’t want everything to go back to normal. The company is hoping to hold onto some of consumers’ new habits, like ordering online. “Whoever wins in e-commerce now I think is going to win in the future, so we’re investing heavily to try to be the first in that channel,” Laguarta said.