PepsiCo Just Beat the Street, but Does That Make It a Buy?
The headlines have wailed about rising inflation in fuel and housing prices, but what about snack foods and soda? Like practically every other consumer goods business in America, PepsiCo (NASDAQ: PEP) has had its fair share of woes in 2022 due to rising costs for basic materials.
PepsiCo won't win any popularity contests for passing those higher commodity costs on to the consumer. The company's investors, on the other hand, may understand its move to hike product prices, and this strategy may have saved PepsiCo from a potentially disappointing second quarter.
Indeed, even if investors weren't necessarily exuberant about PepsiCo beating Wall Street's quarterly expectations, it's notable that the company is making headway in softening the blow of inflation. As the business signals further product price hikes, investors will likely be looking to see if PepsiCo can continue to demonstrate impressive top-line growth.
Source Fool.com
