PepsiCo, Inc. (NASDAQ:PEP) Q3 2024 Earnings Conference Call October 8, 2024 8:15 AM ET

Company Participants

Ravi Pamnani - Senior Vice President, Investor Relations
Ramon Laguarta - Chairman & Chief Executive Officer
Jamie Caulfield - Executive Vice President & Chief Financial Officer

Conference Call Participants

Lauren Lieberman - Barclays
Bryan Spillane - BofA
Kaumil Gajrawala - Jefferies
Dara Mohsenian - Morgan Stanley
Filippo Falorni - Citi
Peter Grom - UBS
Robert Moskow - TD Cowen
Steve Powers - Deutsche Bank
Andrea Teixeira - JPMorgan
Chris Carey - Wells Fargo Securities
Robert Ottenstein - Evercore ISI
Kevin Grundy - BNP Paribas

Operator

Good morning, and welcome to PepsiCo's 2024 Third Quarter Earnings Question-and-Answer Session. Your lines have been placed on listen-only until it is your turn to ask the question. 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 may begin.

Ravi Pamnani

Thank you, Kevin. And good morning, everyone. I hope everyone has had a 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 and updated 2024 guidance. Forward-looking statements inherently involve risks and uncertainties and only reflect our view as of today, October 8, 2024, 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 third quarter 2024 earnings release and third quarter 2024 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 Executive Vice President and CFO, Jamie Caulfield. 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

Thank you. [Operator Instructions] Our first question comes from Lauren Lieberman with Barclays. Your line is open.

Lauren Lieberman

Thanks. Good morning, everyone. So in the release clear that Frito volumes trended in the right direction in the third quarter, category backdrop is still tough, and you offered a lot of detail in the prepared remarks and kind of the strategy from here. I wanted to maybe think about the building blocks to a return to volume growth for that business? And if we isolate it between, let's say, core Lays and some of the promotional work that you started this summer, the expansion efforts where you focus on kind of multicultural offerings and value offerings, and then the positive choice, more premium end of the spectrum. As we think about the path forward, what do you think about the growth rates for those three, if you will, segments or initiatives? Do we think that long-term Lays get back to, and that kind of core part of the business to be a positive volume contributor or is it more of a kind of hold the line and avoid losses there, but the other two are really what drives the turnaround as we move forward? Thanks.