Price hikes lifted PepsiCo’s profits in the third quarter, but the company says those increases are likely to moderate in the coming year.
Pepsi raised prices 11% in the July-September period, the seventh straight quarter that the Purchase, New York, company has increased prices by double-digits.
The higher prices took a toll on demand, with sales volumes down 2.5%.
PepsiCo said some of that volume decline is strategic.
The company said it has been shrinking package sizes to meet consumer demand for convenience and portion control.
Units are growing much faster than volume, PepsiCo Chairman and CEO Ramon Laguarta said Tuesday in a conference call with investors.
But there is also some consumer pushback on prices. Consumers are looking for value and, in some cases, are trading down to cheaper stores.
I do think that we see the consumer right now being more selective, PepsiCo’s Chief Financial Officer Hugh Johnston said Tuesday on a conference call with investors.
Still, Johnston said convenience store sales and food service sales, which usually weaken in times of high consumer stress, are strong.
Johnston said Pepsi continues to see higher prices for commodities like grain and cooking oil.
In 2024, Pepsi expects inflation to be slightly higher than the 2% to 3% it was accustomed to before the pandemic.
Consumers should expect to see price increases roughly in line with inflation, he said.
Pepsi is watching the growing use of weight loss drugs like Ozempic, but so far their impact on the business has been negligible, Laguarta said.
They could be outweighed by other trends, including rising incomes in many countries and the growing popularity of snacking in place of meals.
Were seeing a lot of tailwinds that will continue to drive our categories, he said.
Pepsi shares were up 1.5% in morning trading.
In the third quarter, Frito-Lay North America sales volumes dropped 0.5% during the July-September period as net prices rose 8%.
North American beverage sales volumes dropped 6% as prices rose 12%.
Sales volumes in Europe were flat. Sales volumes in Latin America dropped 5%.
Net pricing includes price hikes as well as changes in the mix of products sold and smaller package sizes.
In prepared remarks Tuesday, PepsiCo said consumers are gravitating toward smaller packages for convenience and portion control.
Net revenue was $23.4 billion, the company said Tuesday. That was in line with Wall Streets expectations, according to analysts polled by FactSet.
Net income for Pepsi rose 14% to $3.1 billion, or $2.24 per share.
That beat the $2.15 per share that analysts had forecast.
Pepsi now expects its full-year earnings per share to increase 13%, up from previous projections of 12%, due to the strength of its sales and cost-cutting efforts.
Disgraced US film producer Harvey Weinstein is to be tried for a third time in a sexual assault case.
A jury in New York could not reach a verdict in June against the 73-year-old who was accused of raping actress Jessica Mann, and a mistrial was declared.
Judge Curtis Farber has said he wants the new trial to happen before the end of this year.
The same jury found Weinstein guilty in June of sexually assaulting former Project Runway production assistant Miriam Haley in 2006 and not guilty of assaulting Polish former runway model Kaja Sokola the same year.
Weinstein will be sentenced for the guilty verdict in Ms Haley’s case on 30 September.
He denied all of the charges. Throughout the retrial, his lawyers insisted the sexual encounters with his three accusers were “transactional” and “consensual,” and labelled the women as opportunists.
Weinstein was originally convicted of rape and criminal sexual act by the same court in 2020 and sentenced to 23 years in prison for the crimes.
Last year, however, New York’s highest court overturned the conviction, prompting Weinstein’s retrial this summer.
Weinstein was once one of the most powerful people in Hollywood – the co-founder of film and television production companies Miramax and The Weinstein Company, who produced films such as the Oscar-winning Shakespeare In Love, Pulp Fiction, and The Crying Game.
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In 2017, a series of sexual misconduct allegations against him propelled the #MeToo movement.
Some of those accusations later led to criminal charges and his convictions in New York and California.
Before the retrial, Weinstein was also serving a 16-year prison sentence after being found guilty of rape in California in December 2022. He has also denied this charge.
• Recruiting coordinator for ESPN RecruitingNation. • Nearly a decade of college coaching experience. • Has been evaluating prospects at ESPN since 2006.
Not every five-star recruit from the 2024 ESPN 300 was inserted into a starting role as a true freshman last fall, despite what their ranking might suggest. Numerous variables can take precedent over pure talent, and it often takes a year of seasoning or depth-chart movement before elite prospects break out in their second season.
Ohio State’s Jeremiah Smith and Alabama’s Ryan Williams became instant superstars as true freshmen in 2024, and we have a strong list of super sophomores ready to emerge in 2025, following the path of Notre Dame running back Jeremiyah Love, who made this list last year.
Note: These rankings omitted any player who started more than two games last season.
A heralded quarterback recruit in 2024, Sayin has the physical tools, poise and supporting cast in Columbus to be one of the top passers in the country. Yes, we understand he still has to win the job, but we are doubling down on the former five-star recruit. Sayin, who was the No. 2 QB behind DJ Lagway in the 2024 rankings, possesses outstanding arm talent, both in strength and accuracy, and he can move the chains with his legs. He is seasoned and polished, with arguably the best receiving corps in the country. We project he will win the job, opening the season with steady production and developing down the stretch into one of the best quarterbacks in the Big Ten.
We got a taste of what Marshall brings to the table at the ReliaQuest Bowl. The No. 7 back in the 2024 ESPN 300, he went for 100 yards on 23 carries in the first and only start of his young career. The former Ohio Mr. Football will team up with Alabama transfer Justice Haynes in the Wolverines backfield. Early in preseason camp, it appears the reps will be shared, with Haynes as 1a and Marshall 1b. Marshall is elusive in tight quarters, fast in the open field and powerful on contact with a low center of gravity. He boasted the top verified shuttle (5-10-5) out of high school with 4.1 seconds, which would have been second among running backs at this year’s NFL combine.
While many expected greater impact from Robinson as the No. 1-ranked player in the ESPN 300, Georgia’s defense had three players selected in the first round of the NFL draft. Even this season, Robinson is not projected to start on the outside, but he’ll see plenty of meaningful snaps at nickel and has the skills to take over the perimeter as a lockdown corner at any point. Word from Athens is that the light has come on. Robinson is seeing the game more clearly, allowing him to play faster. Reminder: Robinson possesses a rare blend of length, speed and ball skills. He just happens to be part of a defense where that’s the norm.
Miami fans may have expected more from Trader a season ago as the No. 6 receiver in the ESPN 300, but he was part of a very experienced and productive receiving room. He had only six receptions on the year but did start the Pop-Tarts Bowl and made three catches for 61 yards and a touchdown. That flash will become more consistent this year for the Canes. Trader is 6-foot-1 with smooth, fluid movements and quick hands to pluck the ball on the run for big gainers. He’s a legitimate three-level threat. Trader will team up with tight end Elija Lofton to give Miami two breakout stars on offense for Carson Beck to work with.
Yes, we are hedging our bet with this pick. We expect Matthews or Staley to break out this year as a top SEC receiver. Who that will be depends on who stays healthy, as both have been injury prone. They both have flashed as well. Matthews is as expected. Sudden and elusive after the catch, the No. 5 wide receiver in the ESPN 300 headlined the Vols’ No. 15 class. Staley was inside the top 300 but as the No. 21 receiver. A former state champion in the 200 meters and triple jump, Staley, who redshirted last season, has excellent short-area quickness, explosive movements and elite ball skills. This WR room needs to produce for the Vols to return to the College Football Playoff.
Lopa has one of the best blends of size and range of any back-end defender in the country, and the Ducks have production voids to fill at safety. The No. 13 safety in the 2024 ESPN 300 had limited reps last season, but in the Big Ten championship game against Penn State he was in third-down packages matching up with All-America tight end Tyler Warren. Lopa is 6-foot-5 and 210 pounds but covers ground fast with his long stride. He will come up inside the box and tackles soundly as well. In high school he played both sides of the ball, tallying four interceptions and 16 receiving touchdowns. Lopa will need to develop as the season progresses with his reads and recognition, but we project he will begin to reach his potential this fall.
There may not be a more highly scrutinized job in college sports than the starting quarterback at Notre Dame. Carr, the grandson of former Michigan coach Lloyd Carr, has been well prepared on and off the field and will be ready for the challenge. Carr is still locked in a battle with Kenny Minchey for the starting job coming off a strong spring practice, but we think he will be handed the keys before Week 1. Carr was ranked as the No. 2 pocket passer in the class of 2024 in part because of his great accuracy and acumen. With running backs Jeremiyah Love and Jadarian Price returning and an experienced offensive line, the Irish might not need Carr to break out with huge production. But he will need to anticipate, get the ball out and push it downfield to his targets. All of this is within his skill set, which is why he’s on this list.
Wisconsin didn’t dip into the portal to help replace Tawee Walker and Chez Mellusi’s production; it felt good about the underclassmen still in the running back room. So do we. Jones arrived in Madison with SEC offers and blue-chip skills. The No. 8 running back in the ESPN 300, Jones ran through his high school competition, and we project he’s ready to do the same in the Big Ten. He’s got an impressive size-to-speed ratio and good change-of-direction skills. Jones isn’t just a classic bruising back that Badgers fans are accustomed to. He can also hit the home run and make tackles miss in the open field. It’s a good RB unit and Jones won’t have to carry the load, which should keep him fresh and healthy as the Badgers look to bounce back from a disappointing 2024 season.
Expectations are sky high in Austin as Texas ranks No. 1 in the preseason AP Top 25 for the first time in program history. While the roster is loaded, there is turnover at key spots — and offensive tackle is one of them. Baker was a highly touted 2024 prospect (No. 2 OT in the ESPN 300) and was in a battle to start this season. Unfortunately for Texas, Andre Cojoe recently went down with a season-ending injury, which means Baker has more than likely won the starting spot. He has improved his strength this offseason and has worked hard at the technical points of the position. He will be tasked with protecting the most anticipated player in all of college football in Arch Manning.
The 11th-rated pocket passer in the ESPN 300, Brown saw limited action last year and was able to preserve a redshirt season. He is a winner above all his great physical traits. He’s the only quarterback from national power Mater Dei High School (Santa Ana, California) to win two state championships. He threw for more than 8,000 yards and 100 touchdowns, and now has the challenge of leading Stanford back to its storied levels. While young, he will have one of the better quarterback tutors in Frank Reich and a GM, Andrew Luck, who knows a thing or two about winning in Palo Alto. Brown has pro-style skills that fit well in Reich’s scheme. While experienced sixth-year transfer Ben Gulbranson was just named the starter in a close battle, we still expect Brown behind center early this season.
Boise State lost Heisman Trophy runner-up Ashton Jeanty to the NFL, but the Broncos have another under-the-radar recruit ready to emerge. Gaines was ranked the 45th running back out of high school and originally projected as a linebacker. He combines great downhill power and physicality between the tackles with 10.9 100-meter speed and polished receiving skills. He has gone from 6 feet, 195 pounds to close to 220, and early reports indicate he looks ultra-fast and explosive as he regains his form from an injury that kept him out most of last season and this spring. We got a glimpse of what he can do when he ran for 110 yards and added 44 yards on three receptions in his collegiate debut against Georgia Southern. Boise barely made the cut in the preseason AP Top 25 but Gaines could help them climb the poll.
The University of Kansas has received an unprecedented $300 million gift from donor David Booth, believed to be among the largest single gifts in the history of college athletics and the largest in school history.
Kansas plans to allocate $75 million of Booth’s gift toward launching the second phase of its ongoing transformation of David Booth Kansas Memorial Stadium and construction of the surrounding Gateway District, Kansas athletic director Travis Goff told ESPN.
Though school officials have not revealed a timetable for construction and completion of Phase 2, the funds will allow Kansas to move forward with renovating the east side of the stadium after the 2025 football season.
The remainder of Booth’s gift will establish an annual additional revenue stream for Kansas athletics, Goff said.
“I’d say it’s transformative and a game changer,” Goff told ESPN. “This gift makes an immediate impact on our top priority in a profound way, and it also provides us with an incredible revenue stream that gives us a chance to really invest in unique ways in the future of Kansas athletics.”
Kansas has already invested $450 million in the first phase of the Gateway District project, which included an overhaul of the southwest, west and north sides of the stadium and a major renovation of the Anderson Family Football Complex. Stadium construction got underway at the end of the 2023 football season and will be completed in time for the Jayhawks’ season opener later this month.
The second phase of the Gateway District project would also bring the development of a new hotel, outdoor event plaza, student housing, retail and restaurant spaces and parking located east of Kansas Memorial Stadium.
The total cost of Phase 2 — finishing the stadium and the mixed-use development — is estimated to be $360 million. Lawrence city commissioners voted Tuesday night to approve a package of financial and tax incentives worth around $94 million to support the project.
Kansas Memorial Stadium was named after Booth, a KU graduate and founder of global investment firm Dimensional Fund Advisors, in 2018. The Lawrence, Kansas, native previously provided a foundational gift of $50 million in 2017 to kick off renovations of Memorial Stadium, but the university didn’t move forward with renovating its more than 100-year-old stadium until Goff and chancellor Douglas Girod announced plans for the Gateway District in 2022.
“One of life’s greatest privileges is being able to give back to the people and places that gave so much to you,” Booth said in a statement. “KU and Lawrence are a big part of my story, and it means a lot to support the community that invested in me. Philanthropy, like investing, pays dividends over time. Each gift compounds, creating opportunities not just for today, but for years to come. This is really about the future we’re building.”
After playing their six home games in the Kansas City area during the 2024 season, the Jayhawks will open the season with their first home game inside the renovated Kansas Memorial Stadium on Aug. 23 against Fresno State.