PepsiCo says it will cut prices on Cheetos, Doritos and Lay’s

PepsiCo said on Tuesday, Feb. 3, 2026, that it would cut prices on some of its most popular snacks, including Cheetos, Doritos and Lay’s, as it seeks to win back price-conscious consumers. The company said the pledged cuts followed “extensive consumer feedback around affordability limitations.” PepsiCo has also “begun offering greater affordability on certain packages of iconic brands,” including Doritos and Cheetos, the company said.

The move comes after pressure from the activist investor Elliott Management, which took a stake last year and urged cost cuts and a smaller U.S. product lineup. In the fourth quarter, PepsiCo reported revenues rose 2 percent from a year earlier to $29.3 billion, with most gains coming from price increases while sales volumes for snacks and drinks continued to decline.

PepsiCo acknowledged that higher prices had left some consumers feeling pinched and said it had been testing approaches such as smaller packages and multi-packs to reach them. Ramon Laguarta, the chief executive, told analysts the “biggest friction” for low- and middle-income consumers was affordability and said the company had been “testing multiple ways” to make offerings more affordable.

The company also cited changing demand patterns, including the popularity of weight-loss medications and federal initiatives such as the Trump administration’s Make America Healthy Again push.

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