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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.

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NHL fines Senators, Cousins for pregame conduct

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NHL fines Senators, Cousins for pregame conduct

The NHL fined the Ottawa Senators $25,000 and forward Nick Cousins $2,083.33 for an incident of “unsportsmanlike conduct” in warmups ahead of Game 3 of the team’s first-round Stanley Cup playoff series against the Toronto Maple Leafs on Thursday.

Cousins’ fine is the maximum allowed to a player under the NHL/NHLPA collective bargaining agreement.

With warmups underway, Cousins was spotted flipping a puck across the center ice line at Maple Leafs goaltender Anthony Stolarz as he went through his pregame routine.

The two players have history as teammates with Philadelphia Flyers from 2016-17 and with the Stanley Cup-winning Florida Panthers last season. Senators coach Travis Green emphasized that familiarity when asked about the NHL’s investigation Friday, while otherwise keeping his answer lighthearted.

“It’s an active investigation. I don’t know if I should be commenting,” said Green, drawing laughter from the gathered media. “I have people that have advised me maybe not to comment on it.

“I’m kidding. I saw the video. Stolarz and Cousins have played together. [Cousins] is probably trying to laugh at him or make a joke or get him off his game. It is what it is.”

Green went on to confirm he had spoken to Cousins about the puck flip.

“[He just said] I know him,” Green said of Cousins’ reasoning. “Game within the game. Happens probably a lot more than you think.”

Toronto took a commanding 3-0 lead in the best-of-seven series with a 3-2 overtime victory. Ottawa will try to stave off elimination in Game 4 on Saturday.

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Canadiens keep injured Laine out for Game 3

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Canadiens keep injured Laine out for Game 3

MONTREAL — Montreal‘s Patrik Laine is out for Friday’s Game 3 of the Canadiens’ first-round playoff series against Washington because of an upper-body injury.

Laine missed the team’s morning skate, and the Canadiens said he will be evaluated daily.

Laine, 27, was benched for the third period of Wednesday’s 3-1 loss in Game 2 after a difficult first two periods. Kasperi Kapanen replaced Laine, while defenseman Arber Xhekaj was inserted into the lineup for Jayden Struble.

The Capitals lead the best-of-seven series 2-0.

Laine, known for his dangerous shot, hasn’t scored in his past seven games.

The Canadiens acquired Laine and a second-round draft pick from the Columbus Blue Jackets last summer for defenseman Jordan Harris.

Laine had 20 goals, including 15 on the power play, and 13 assists in 52 games this season after missing the first two months with a knee injury.

“We have some guys battling things, so we’ll see what we start with tonight,” Canadiens coach Martin St. Louis said earlier Friday. “Obviously in a series, during games, you make adjustments. That’s part of a best-of-seven.”

Montreal is hosting its first playoff game in front of a sold-out crowd since 2017. The Canadiens played in an empty, or reduced-capacity, Bell Centre during their run to the Stanley Cup Final in 2021.

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Oilers turn to Pickard in goal to avoid 3-0 hole

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Oilers turn to Pickard in goal to avoid 3-0 hole

The Edmonton Oilers are making a goaltender change, putting Calvin Pickard in the crease for Game 3 of their Western Conference first-round series against the visiting Los Angeles Kings.

Looking to avoid being pushed to the brink of elimination, the Oilers are turning to Pickard after Stuart Skinner yielded 11 goals on 58 shots as the Kings captured a 2-0 lead in the best-of-seven series.

Pickard relieved Skinner midway through the third period of Game 2 on Wednesday, allowing one goal on three shots.

The journeyman goaltender was asked Friday afternoon how he plans to approach Game 3.

“The same way I’ve approached every game as an Oiler: go out and do my job and give our team a chance to win,” Pickard said. “Obviously the last two games didn’t go as planned in all facets, but we know we have a better effort in this locker room and we know we’re going to do that tonight.”

Oilers coach Kris Knoblauch said after Game 2 that he would get together with his coaching staff and decide on a starting goaltender. But Knoblauch added that he believed Skinner was not at fault for the team’s defensive troubles in this series.

“I don’t think there’s been any bad goals. There’s been a lot of goals, but the chances that we’re giving up are Grade A’s,” Knoblauch said. “I’m not sure that are many, ‘Geez, where’s the save there?’ It’s been very difficult for a goaltender playing. More structure and the less we’re giving up those opportunities, it’s a lot easier for Stuart Skinner or Calvin Pickard playing.”

Pickard, 33, posted a 22-10-1 record with a 2.71 goals-against average and .900 save percentage in 36 games (31 starts) during the regular season. Skinner, 26, was 26-18-4 with a 2.81 GAA and a .896 save percentage over 51 games (50 starts) during the regular season.

Information from ESPN’s Ryan S. Clark and Field Level Media was used in this report.

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