PepsiCo Inc. doesn’t expect people to stop munching on Cheetos any time soon.
The company said it projects a gradual rebound in its soda business as Covid-19 vaccines roll out and consumers head back to restaurants and other venues, while growth in its food business will endure as people continue to work—and snack—at home.
“I think it’ll evolve slowly over time,” PepsiCo Chief Financial Officer Hugh Johnston said in an interview. “I’m not expecting any kind of a dramatic change.”
One of the habits Mr. Johnston said he expects people will keep, even as life returns to normal, is eating breakfast at home—a trend that has boosted the company’s Quaker Oats business. “What we’ve seen is people like breakfast at home and I think they’ll probably continue that pattern,” he said.
Sales of Cheetos, Tostitos, oatmeal and pancakes have propelled the snacks and beverage giant through the coronavirus pandemic, offsetting soda sales weakened by the shuttering of restaurants, movie theaters and sports stadiums. The company’s North America beverage sales volume fell by 1.5% in 2020 and was flat in the fourth quarter.
