PepsiCo, Inc. (PEP) CEO Ramon Laguarta on Q2 2022 Results - Earnings Call Transcript

PepsiCo, Inc. (NASDAQ:PEP) Q2 2022 Earnings Conference Call July 12, 2022 8:15 AM ET

Company Participants

Ravi Pamnani - SVP, IR

Hugh Johnston - Vice Chairman & CFO

Ramon Laguarta - Chairman & CEO

Conference Call Participants

Lauren Lieberman - Barclays

Dara Mohsenian - Morgan Stanley

Andrea Teixeira - JPMorgan

Bryan Spillane - Bank of America

Bonnie Herzog - Goldman Sachs

Nik Modi - RBC Capital Markets

Kevin Grundy - Jefferies

Vivien Azer - Cowen and Company

Stephen Powers - Deutsche Bank

Kaumil Gajrawala - Credit Suisse

Brett Cooper - Consumer Edge Research

Christopher Carey - Wells Fargo

Peter Grom - UBS

Operator

Good morning, and welcome to PepsiCo's 2022 Second Quarter Earnings Question-and-Answer Session. [Operator Instructions] Today's call is being recorded and will be archived at www.pepsico.com.

It is now my pleasure to introduce Mr. Ravi Pamnani, Senior Vice President of Investor Relations. Mr. Pamnani, you may begin.

Ravi Pamnani

Thank you, operator. I hope everyone has had the chance this morning to review our press release and prepared remarks, both of which are available on our website. Before we begin, please take note of our cautionary statement. We may make forward-looking statements on today's call, including about our business plans, updated 2022 organic revenue guidance and the potential impact of both the COVID-19 pandemic and the deadly conflict in Ukraine on our business.

Forward-looking statements inherently involve risks and uncertainties and only reflect our views as of today, July 12, 2022, and we are under no obligation to update. When discussing our results, we refer to non-GAAP measures, which exclude certain items from reported results. Please refer to our second quarter 2022 earnings release and second quarter 2022 Form 10-Q available on pepsico.com for definitions and reconciliations of non-GAAP measures and additional information regarding our results, including a discussion of factors that could cause actual results to materially differ from forward-looking statements.

Joining me today are PepsiCo's Chairman and CEO, Ramon Laguarta; and PepsiCo's Vice Chairman and CFO, Hugh Johnston. We ask that you please limit yourself to one question.

And with that, I will turn it over to the operator for the first question.

Question-and-Answer Session

Operator

[Operator Instructions] Our first question comes from Lauren Lieberman with Barclays.

Lauren Lieberman

Such strong numbers across the board. But I was curious if we could talk a little bit about the convenience and gas channel in the U.S. I know that you've noted on one hand, consumers are making more frequent trips to get gas allows for more opportunities to go in and buy a snack or a drink. But on the other hand, they're spending a boatload of money to fill up their tank or to the degree they're filling it up, so the counter could be less extra money to spend when they go into the store. So I was just curious if you could talk about what it is that you're seeing currently? I know C&G has been an area of incremental investment for you in the last couple of months, particularly on the Frito side. And just an update on, I guess, yield from those investments and what you're seeing in terms of consumer purchasing behavior.