Key Takeaways

• PepsiCo executives said they’re seeing a “slower” recovery of the U.S. consumer as the snack-and-drink giant turned in its latest quarterly results.

• PepsiCo is one of the first major consumer-oriented earnings reports to land this fall.

• Commentary from the large financial institutions whose results are landing soon could also offer insights into the health of the consumer.
  

PepsiCo (PEP) executives said they’re seeing a “slower” recovery of the U.S. consumer as the snack-and-drink giant turned in its latest quarterly results, one of the first major reports to arrive in the new earnings season.

The company on Tuesday said it would scale back its full-year outlook for organic sales growth, pointing to a “low-single-digit” rise instead of the roughly 4% that was previously announced (which was itself a cut from an earlier forecast).

The “recovery of the consumer in the US, frankly, has been slower than we had anticipated,” said CFO Jamie Caulfield on a conference call with analysts, a transcript of which was made available by AlphaSense. His comments followed sentiments discussed in July, when CEO Ramon Laguarta said the company was contending with “a consumer that is more challenged.”

PepsiCo is one of the first consumer-oriented earnings reports to land this fall, with Domino’s Pizza (DPZ) due Thursday and Walgreens Boots Alliance (WBA) among those coming next week.

Commentary from the large financial institutions whose results are landing soon could also offer insights into the health of the consumer, building on the surprisingly strong job and wage data reported last Friday.

Earlier this month, spice and flavorings company McCormick (MKC) said its latest results showed a consumer that was "challenged" but "resilient.”

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