PepsiCo stock pops, hitting 52-week high on earnings beat

Yahoo Finance Live discusses a rise in shares of PepsiCo as the company topped it's earnings and hit a 52-week high .

Video transcript

DAVE BRIGGS: PepsiCo. Pepsi is a trending ticker on Yahoo Finance today, topping earnings today and shares hitting a new 52 week high. A familiar refrain in recent quarters-- overall volumes were down 2% across all categories. But once again, prices were up 16%, which, of course, made-- more than made up for that decline.

The report makes clear the growth here is all in the snack side. We love snacks. It's up 68% versus a 12% increase in beverage. This is a snack company. Think Cheetos, Doritos, Lay's, Tostitos, Pop Corners. That's some good snacks.

On the heels of Coke, though, throwing their hat in the AI ring, you guessed it, Pepsi did as well. Their CFO telling us, quote, "the potential with AI is huge, which is why we are trying this in a very responsible way." Now, we see shares up-- solidly up 2.2% today and more than 5% year to date. I don't know if you want to weigh in on the AI side of this or the snacks, which is really driving it.

SEANA SMITH: I'll weigh in on all of it. AI, it makes a lot of Sense Coca-Cola, their competitor, talked about their push here into AI. PepsiCo, we know you can't stand on the sidelines when it comes to AI. That is what people want to hear. It's what investors want to hear.

DAVE BRIGGS: But do you really think it's something they'll--

SEANA SMITH: No, I don't think it's going to be a game changer for the company. But I do certainly think that maybe it could help in certain sectors within PepsiCo going forward. Whether or not it's going to make a huge difference, I don't think so.

Snacks, though, that makes a lot of sense to me just in terms of people, what they are spending on. Now, it's very-- in terms of some of the other options that are out there, obviously, spending $3, $4, $5 on a bag of chips is a lot cheaper than some of the other luxuries that you might consider on a day to day basis.

But the fact that PepsiCo is already raising its profit and its revenue guidance for the year really just speaks to the confidence of management right now and how they're positioned heading into the final three quarters.

- Right. And they said with those price increases, that was months ago. So that coming out in the numbers now. So they were really protective in when they put the price increases in. So-- you know, and they've said they haven't really seen the consumer trade down. The c-suite not seeing that with regard to what consumers are doing with regard to snacks.

They like PepsiCo's snacks lineup. So it's certainly working well for them on the price front. And inflation has come down since they've put those price increases in place. As for AI, as you mentioned, yeah, they have to mention it.

Every company has to. They said they're not doing ChatGPT, obviously. They can't do that. It's not the kind of company that can do that. But if Coca-Cola is doing it, they have to come up to the table with their piece of that as well.

DAVE BRIGGS: The earnings call drinking game. Every time you hear AI, have a sip.

SEANA SMITH: We're going to hear a lot of it tonight too.