PepsiCo reported better-than-expected earnings and revenue in the second quarter and expressed confidence that new and revamped products can boost its lagging North American sales in the second half of this year.
In a conference call with investors Thursday, PepsiCo Chairman and CEO Ramon Laguarta said the company plans to introduce protein-enhanced versions of snacks like Pop Corners in the next few months and will eventually make high-protein versions of some of its biggest sellers. Protein beverages are also going on sale later this year.
“Consumers are adopting protein solutions in their diets at a pace that was not the case in a few years back,” Laguarta said. “We can provide democratized solutions at large scale. That’s what we’re trying to do.”
Laguarta said a relaunch of Lay's potato chips and Tostitos tortilla chips without artificial colors or ingredients is also coming later this year. PepsiCo said in April that it was accelerating a planned phase-out of artificial colors and ingredients after U.S. health officials called on companies to make that shift.
But Laguarta didn't say whether PepsiCo is planning a shift to real sugar in its U.S. sodas. Late Wednesday, President Donald Trump said in a social media post that Coca-Cola had agreed to use real cane sugar in its flagship product in the U.S. instead of high-fructose corn syrup. Coke didn't confirm the change but promised new offerings would be shared soon.
“If the consumer is telling us that they prefer products that have sugar and they prefer products that have natural ingredients, we will give the consumer products that have sugar and have natural ingredients,” Laguarta said. “So this is a journey of following the consumer, trying to be maybe one step ahead of the consumer but not too many steps.”
Sales of Frito-Lay and other snacks fell 1% in North America during the April-June period, PepsiCo said Thursday, while beverage sales slid 2% in the region.
Years of double-digit price increases from PepsiCo and changing consumer preferences has weakened demand for the company's drinks and snacks, the company said in February. It said Thursday that it's trying to combat perceptions that its products are too expensive by expanding distribution of value brands like Chester's and Santitas.
Sales rose in some other regions, including Latin America and Asia. PepsiCo said low- or no-sugar versions of its trademark Pepsi saw strong sales globally.
Revenue rose less than 1% to $22.7 billion in the April-June period. That was higher than the $22.3 billion Wall Street forecast, according to analysts polled by FactSet.
PepsiCo’s net income fell 59% to $1.3 billion. Adjusted for one-time items, including impairment charges related to its Rockstar and Be & Cheery brands, PepsiCo earned $2.12 per share. That was also higher than the $2.03 analysts had forecast.
PepsiCo shares rose nearly 6% in morning trading Thursday.
PepsiCo lowered its full-year earnings expectations in April, citing increased costs from tariffs and a pullback in consumer spending. The company reaffirmed that guidance Thursday.
Its tariff costs have risen since then. In June, the Trump administration hiked the tariff on imported aluminum from 25% to 50%.
FILE - Plastic bottles of Pepsi are displayed at a grocery store in New York on Nov. 15, 2023. (AP Photo/Ted Shaffrey, File)
LOS ANGELES (AP) — Federal authorities said Monday that they foiled a plot to bomb multiple U.S. companies on New Year’s Eve in Southern California, announcing the arrests of members of an extremist anti-capitalist and anti-government group.
The four suspects were arrested Friday as they were testing explosives in the desert east of Los Angeles, First Assistant U.S. Attorney Bill Essayli said during a news conference.
Officials showed reporters surveillance aerial footage of the four suspects moving a large black object in the desert to a table shortly before their arrests.
In the criminal complaint, the four suspects named are Audrey Illeene Carroll, 30; Zachary Aaron Page, 32; Dante Gaffield, 24; and Tina Lai, 41. They are all from the Los Angeles area, Essayli said.
Officials did not describe a motive but said they are members of an offshoot of a pro-Palestinian group dubbed the Turtle Island Liberation Front. Each faces charges including conspiracy and possession of a destructive device, Essayli said, adding that additional charges were expected in coming weeks.
It wasn’t immediately clear if they had attorneys and The Associated Press was unable to reach family members.
Essayli said Carroll last month created a detailed plan to bomb five or more locations across Southern California on New Year’s Eve and were trying to hit multiple companies. He declined to name the companies but described them as “Amazon-type” logistical centers.
“Carroll’s bomb plot was explicit,” Essayli said. “It included step-by-step instructions to build IEDs... and listed multiple targets across Orange County and Los Angeles."
The plan included planting backpacks filled with explosive devices at multiple businesses that were set to blow up simultaneously at midnight on New Year's Eve, according to officials and the criminal complaint.
Two of the group’s members also had discussed plans for future attacks including targeting Immigration and Customs Enforcement agents and vehicles with pipe bombs in 2026, according to the criminal complaint.
“Carroll stated that some of those plans would quote ‘take some of them out and scare the rest,’” Essayli said.
The plans were discussed both at an in-person meeting with members in Los Angeles and through an encrypted messaging app, Essayli said.
Evidence photos included in the court documents show a desert campsite with what investigators said were bomb-making materials strewn across plastic folding tables.
The suspects “all brought bomb-making components to the campsite, including various sizes of PVC pipes, suspected potassium nitrate, charcoal, charcoal powder, sulfur powder, and material to be used as fuses, among others,” the complaint states.
The plan stated that the backpacks would contain complex pipe bombs and included instructions on how to manufacture them and also how to avoid leaving evidence behind tracing anything back to the group, officials said. The suspects recently had acquired precursor chemicals and other items, they added.
Last week they were rehearsing their attack and testing devices in the desert near Twentynine Palms, California, before federal authorities moved in, officials said.
“They had everything they needed to make an operational bomb at that location,” he said.
Authorities issued search warrants and found posters for the Turtle Island Liberation Front at Carroll's home that called for “Death to America,” and “Death to ICE,” Essayli said. In Page's residence, police found a copy of the detailed bomb plan, he added.
Los Angeles Police Chief Jim McDonnell said while federal and local officials disagree on the Trump administration's immigration raids, they come together still to protect residents. The LAPD does not stop people or take action for any reason related to immigration status, and it doesn’t enforce immigration laws, a practice that has been in place for 45 years.
“The successful disruption of this plot is a powerful testament to the strength of our unified response,” McDonnell said.
The suspects, who were taken into custody without incident, were scheduled to appear in court in Los Angeles Monday afternoon.
Watson reported from San Diego.
First Assistant United States Attorney Bill Essayli, right, speaks in front of LAPD Chief Jim McDonnell during a press conference announcing developments on a terrorism investigation Monday, Dec. 15, 2025, in Los Angeles. (AP Photo/Damian Dovarganes)
FBI Assistant Director in Charge Akil Davis announces developments on a terrorism investigation during a press conference Monday, Dec. 15, 2025, in Los Angeles. (AP Photo/Damian Dovarganes)
First Assistant United States Attorney Bill Essayli, right, speaks during a press conference announcing developments on a terrorism investigation Monday, Dec. 15, 2025, in Los Angeles. (AP Photo/Damian Dovarganes)
FBI Assistant Director in Charge Akil Davis, right, speaks in front of LAPD Chief Jim McDonnell while announcing developments on a terrorism investigation during a press conference Monday, Dec. 15, 2025, in Los Angeles. (AP Photo/Damian Dovarganes)
Photos of suspects of a terror plot are shown on a screen during a press conference Monday, Dec. 15, 2025, in Los Angeles. (AP Photo/Damian Dovarganes)
