PepsiCo did not immediately respond to Fortune’s request for comment.
The problem is Frito-Lay’s chip prices never went back down, despite Walmart reportedly pressuring the company to cut its prices and then cutting its shelf space, Bloomberg reported. Instead, the company implemented alternatives like cheaper multi-packs with fewer bags; new versions of snacks without artificial colors; and snacks with higher protein and fiber, the outlet reported.
Still, starting in 2023, consumers started to reject the high prices. Frito-Lay’s revenue turned negative in 2024 for the first time in more than a decade of growth. Dragged down by the chips and snacks subsidiary, PepsiCo’s market value collapsed by $50 billion by late 2025 from its peak in 2023. The company’s stock has also fallen by nearly 22% from its May 2023 peak of $196. The stock was trading at $153 as of Tuesday afternoon.
Despite a hesitation to lower prices, in September, activist investor Elliott Investment Management helped bring a new sense of urgency to affordability at PepsiCo. The hedge fund bought a $4 billion stake in the company and demanded more affordable prices.
Still, it’s unclear how effective the move will be and how the price cuts will be rolled out. A 14.5-ounce bag of Doritos on Walmart’s website was still listed at $5.94 as of Tuesday.
“The business is still navigating affordability concerns and competitive pressures in the market. To address this, PepsiCo is implementing sharper price points, expanding value offerings, and refreshing key brands, but the segment’s near-term growth trajectory remains somewhat constrained,” the note read.
