Short-term concerns over slower growth in the US, where the consumer is feeling the inflationary pinch, and the potential negative long-term impact of anti-obesity drugs on demand for sugary snacks and drinks mean PepsiCo’s (PEP:NASDAQ) shares have lacked fizz over the past year.

As such, investors will be hoping the food and beverage giant can maintain full year 2024 guidance for ‘at least’ 4% organic sales growth and a bare minimum of 8% earnings per share growth when it serves up second quarter earnings on 11 July; Wall Street is calling for a 1.4% year-on-year rise in sales to $22.63 billion and earnings per share up 3.4% to $2.16.

PepsiCo bulls will be counting on a solid overseas markets showing to counterbalance the expected weaker performance in North America, where price hikes from the New York-based company and arch-competitor Coca-Cola (KO:NYSE) have led price-sensitive consumers to trade down to cheaper alternatives or purchase PepsiCo’s products less frequently.

For the first quarter to 23 March, the dividend aristocrat suffered a 5% volume decline in its North America beverages business, as well as a plunge in sales and an earnings crunch at its Quaker Foods North America arm following product recalls. In summary, the pressure is on well-regarded CEO Ramon Laguarta to pep up PepsiCo’s performance on home turf in the quarters ahead.

US UPDATES OVER THE NEXT 7 DAYS

QUARTERLY RESULTS

11 July: PepisCo, Progressive, Cintas, Conagra Brands

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