A bag of Doritos hit $7 at Walmart. And it cost PepsiCo a lot more.
The snack firm's hard pricing cut over $50 billion in worth - and it took years of lost sales before anyone did something. Doritos prices rose nearly 50% in four years, about double the pace of overall food price growth.
Staff began warning in 2023 about high prices. But top leaders didn't want to cut them. Instead, the firm tried other things - sales, smaller sizes, cheaper packs, new lines.
It didn't work. Frito-Lay missed its own profit goals for two years by over $1 billion. Its streak of 53 straight quarters of growth - more than 13 years - finally broke.
Walmart didn't wait. The retailer cut Frito-Lay's shelf space and gave it to cheap choices, with its own brand and rivals like Takis.
That got notice. Activist investor Elliott bought a $4 billion stake in Sept and pushed for cuts. By Feb 2026, PepsiCo cut prices by up to 15% on some salty snacks. In return, it got bigger shelf spots at Walmart, Costco, and Target.
The cuts might not be enough. The Iran war has pushed oil prices up, which raises costs for boxes and ships. The same buyers PepsiCo wants back are being squeezed from all sides.
Seven-dollar Doritos didn't just lose buyers. They lost a 13-year win streak.
