New York, February 9, 2026, 13:09 EST — Regular session
PepsiCo dropped roughly 2.4% to close at $166.41 on Monday, reversing an early climb. Shares kicked off the session at $169.50, then slid toward $165 before pulling back some of that decline.
This shift is key for PepsiCo, which has been under pressure as investors weigh whether cutting snack prices actually revives volumes—and if margins will hold up in the process. With shares jumping last week, the market’s focus has already shifted. Now, there’s less interest in the “affordability” narrative and more curiosity about what the next catalyst could be.
Broader markets offered little support. Both the S&P 500 and Nasdaq posted gains this day, with traders eyeing a packed U.S. data calendar—Wednesday brings the postponed January payrolls, while January CPI lands on Friday. 1
Consumer staples underperformed, with the XLP ETF slipping nearly 0.9%. PepsiCo was among the laggards by early afternoon. Coca-Cola shares dropped around 1.5%, Keurig Dr Pepper lost about 1.0%, while Monster Beverage fell close to 2.5%.
Shares of PepsiCo were up almost 10% between the Feb. 2 close and Friday, putting the stock in the crosshairs for profit-taking as staples slipped. 2
PepsiCo last week announced plans to slash prices on major snack lines like Lay’s and Doritos by as much as 15%, responding after earlier increases drew consumer backlash. The company maintained its full-year outlook, having beaten fourth-quarter expectations. “We’ve spent the past year listening closely to consumers,” said Rachel Ferdinando, CEO of PepsiCo Foods U.S. 3
Demand jitters around the rise of GLP-1 weight-loss drugs aren’t fading, with food companies airing those worries more frequently. PepsiCo CEO Ramon Laguarta said the company plans to act “with a sense of urgency,” aiming to lean into smaller package sizes and highlight products packed with more fiber and protein, according to Reuters on Sunday. 4
PepsiCo executives keep hammering on productivity and margins. “Strong productivity savings led to strong operating margin expansion,” CEO Ramon Laguarta said in the latest earnings release. The company stuck with its 2026 outlook, approved a 4% dividend hike to $5.92 a share, and rolled out a fresh $10 billion share buyback plan set to run through Feb. 28, 2030. 5
PepsiCo faces mounting calls to tighten up its North American operations. In December, during talks with activist investor Elliott, the company outlined plans to improve affordability and trim expenses. Marc Steinberg, a partner at Elliott, said he appreciated management’s sense of “urgency.” The company also announced its CEO and CFO are set to present at the CAGNY conference on Feb. 18. 6
The flip side isn’t complicated. Should cheaper prices fail to lift volumes, PepsiCo could end up trading its pricing strength for squeezed margins—right as consumers tighten spending and dietary trends evolve.
Investors now shift focus to Wednesday’s payrolls data and Friday’s CPI, looking for clues on interest rates and how consumers are holding up. For PepsiCo, the spotlight lands on Feb. 18 at CAGNY—analysts will be listening closely for any more specifics about price reductions, volumes, and just how much management plans to push the “value” message without jeopardizing the margin improvements they’ve just showcased.
