PepsiCo says that it intends to slash prices on some of its most popular snack food offerings, as the company looks to appeal to price-pinched customers.

According to The New York Times, price cuts will likely include snacks like Cheetos, Doritos and Lay's among others, in response to pressure from activist investor Elliott Management, which has pushed PepsiCo to reduce costs and scale back its U.S. product lineup. PepsiCo reported a 2% year-over-year bump in revenues in the fourth quarter of 2025, although that increase was largely the result of price increases, while total sales volumes for snacks and drinks continued to dip.

The decision to roll back prices reportedly came after the company took in "extensive consumer feedback around affordability limitations," PepsiCo said in a statement. In a call with investors and analysts, CEO Ramon Laguarta also acknowledged that affordability had become the biggest barrier to buying more Pepsi products for low and middle-income consumers. This comes after the average price of PepsiCo products rose by 4% in 2025, matching a similar increase in 2024, and following double-digit bumps in 2022 and 2023.

PepsiCo has felt added pressure from the growing popularity of weight-loss medications, which have been shown to reduce household spending on savory snacks, as well as sweets, baked goods and cookies. However, Laguarta reported that the company has seen promising early returns for its recently-launched "Simply NKD" lines of Cheetos and Doritos, which contain no artificial flavors or dyes.