펩시코(PEP) 2026년 3분기 실적 발표 콜: 유기적 성장률 3.1%, 마진 압박

핵심 요약

• 2026년 3분기 펩시코의 자체 사업 매출 성장률이 3.1%로 가속화되며 2023년 4분기 이후 가장 빠른 성장을 기록했습니다. 보고 기준 매출은 5% 이상 증가했고, 핵심 영업이익은 3%, EPS는 2% 상승했습니다.
• 글로벌 음료 출하량은 3% 증가했습니다. 글로벌 식품 출하량은 1% 증가했으며, 남아프리카공화국 곡물 사업을 제외하면 4% 증가해 성장이 주로 출하량 증가에 의해 견인되었음을 나타냈습니다.
• 해외 자체 사업 매출은 8% 증가했고, 영업이익률은 105bp 확대되었습니다. 해외 사업은 연초 대비 현재까지 펩시코 전체 이익의 45%를 창출했습니다.
• 북미 식품 부문은 2분기 대비 개선되어, 미국 스낵 출하량이 지난해 한 자릿수 초반 감소세에서 올해 한 자릿수 초반 성장세로 돌아섰습니다. 북미 음료 부문은 특히 탄산음료를 중심으로 성장세가 둔화되었습니다.
• 경영진은 투입 원가 상승, 비우호적인 제품 믹스, 지속적인 투자 확대로 마진이 기대치를 하회함에 따라 EPS 가이던스를 하향 조정했습니다. 매출 전망치는 변동이 없었습니다.
• 펩시코는 브랜드 및 마케팅 투자를 유지하는 한편 구조적 비용 절감, 매출 관리, 그리고 잠재적인 보틀링 재프랜차이즈 확대를 추진할 계획입니다.

주요 재무 데이터

사업 및 영업 실적

해외 사업은 펩시코의 핵심 성장 동력으로 유지되었습니다. 경영진은 이러한 실적이 주로 날씨나 월드컵 효과에 기인하기보다는 구조적인 성장이라고 설명했습니다. 회사는 유럽, 중동, 아시아 및 라틴 아메리카의 식품과 음료 분야 모두에서 경쟁력이 강화되었다고 보고했습니다.

북미 식품 부문에서 펩시코는 이전에 단행한 가격 재조정, 혁신, 신제품 플랫폼이 출하량 성장 회복에 기여했다고 밝혔습니다. 미국 스낵 출하량은 소비 여건과 상업적 실행력 문제로 회복세가 당초 예상보다 약했으나, 지난해 한 자릿수 초반 감소에서 올해 한 자릿수 초반 성장으로 전환되었습니다.

회사는 부담 없는 가격대, 용량 조절형 포장 규격, 웰빙 소비(permissible consumption) 중심 제품에 우선순위를 두고 있습니다. 100칼로리 및 120칼로리 팩 사업 규모는 30억 달러를 넘어섰으며, 웰빙 스낵 포트폴리오 역시 30억 달러 이상의 매출을 올리고 있습니다. 경영진은 이러한 전략을 뒷받침하는 브랜드로 썬칩(SunChips), 스마트푸드(Smartfood), 네이키드(Naked), 팝코너스(PopCorners)를 꼽았습니다.

북미 음료 부문은 여전히 주요 우려 지역으로 남아 있습니다. 수분 보충 및 에너지 음료 플랫폼은 비교적 양호한 실적을 거두었으나, 펩시코는 탄산음료 분야에서 효과적으로 경쟁하지 못했다고 밝혔습니다. 회사는 핵심 브랜드에 대한 투자를 늘리고 고객 수준 및 매장(POS) 단위 실행력을 개선할 계획입니다.

광고 및 마케팅(A&M) 투자는 해외 및 북미 사업 부문 모두에서 증가했습니다. 경영진은 이번 분기 동안 미국 내 두 사업 부문 모두에서 A&M 투자가 두 자릿수 비율로 증가했으며, 2027년에 접어들어서도 우선순위로 유지될 것이라고 설명했습니다.

경영진 가이던스

경영진은 매출 기대치가 유효하게 유지되고 있으며 4분기 매출이 전분기 대비 개선되고 2027년에는 추가 가속화를 목표로 하고 있다고 밝혔습니다. 다만 예상보다 낮은 마진으로 인해 EPS 가이던스를 하향 조정했습니다.

투입 원가 상승과 비우호적인 제품 믹스가 추가적인 압박의 주요 원인이었습니다. 펩시코의 헤지 프로그램은 일반적으로 6개월에서 12개월을 커버하지만, 원자재 비용이 상승함에 따라 일부 헤지가 만료되고 있습니다. 북미 음료 부문의 3분기 관세 관련 혜택 역시 재현되지 않을 예정이어서 기저 마진 비교에 압박을 더하고 있습니다.

회사는 구조적 비용 절감, 생산성 향상 조치, 매출 관리를 통해 이러한 압박을 일부 상쇄할 계획입니다. 경영진은 새해가 시작되면서 일부 효과가 나타나기 시작할 것으로 예상하지만, 펩시코가 내년 2월 4분기 실적을 발표할 때 더욱 구체적인 2027년 전망을 제시할 예정입니다.

리스크 및 관전 포인트

• 기존 헤지 만료로 원자재 비용이 상승하여 4분기 및 2027년까지 잠재적 압박 요인으로 작용하고 있습니다.
• 경영진은 에너지 및 농산물 비용 상승이 여러 비용 항목에 영향을 미치는 인플레이션 압박 요소라고 언급했습니다.
• 제품 믹스가 마진에 부담으로 작용하고 있는 가운데, 회사는 브랜드, 마케팅 및 성장 투자를 지속적으로 집행하고 있습니다.
• 북미 음료 부문의 실행력은 특히 탄산음료를 중심으로 여전히 경영진의 기대치를 하회하고 있습니다.
• 펩시코는 재정적 압박을 받는 소비자의 상황이 향후 12~18개월 동안 실질적으로 개선되지 않을 것으로 예상함에 따라, 가격 접근성과 용량·가격 구조의 중요성이 더욱 커지고 있습니다.
• 3분기 관세 관련 혜택 소멸은 북미 음료 마진에 기저 압박을 가할 것입니다.

애널리스트 Q&A 주요 내용

애널리스트들은 북미 시장에서의 가격 인상, 출하량 회복, 인플레이션 간의 균형에 반복적으로 주목했습니다. 경영진은 단일 가격 인상 조치에 의존하기보다 가격 책정, 제품 믹스, 포장 구조, 순매출 관리, 생산성 향상을 조합하여 활용할 것이라고 밝혔습니다.

비용 규율과 관련하여, 펩시코는 간접비, 본사 비용, 배분 비용 및 성장에 직접 연결되지 않는 기타 지출을 검토 중이라고 밝혔습니다. 절감된 비용은 마진을 방어하는 동시에 북미 식품 및 음료 부문에 대한 투자를 늘리는 데 활용될 예정입니다.

경영진은 미국 사업 모델의 잠재적 구조 변화에 대해서도 논의했습니다. 펩시코는 일부 지역에서 식품과 음료 간 결합을 심화하고, 파트너사가 실행력과 마진을 개선할 수 있는 지역에서는 보틀링 재프랜차이즈를 가속화하는 하이브리드 방식을 검토하고 있습니다.

'원 노스 아메리카(One North America)' 이니셔티브는 물류창고 및 운송 부문에서 진전을 이루고 있으며, 현재 중소형 및 대형 소매점 매장에서의 배송 실행력에 집중하고 있습니다. 경영진은 지리적 특성에 따라 최적의 모델이 다를 것으로 예상하고 있습니다.

포트폴리오 전략과 관련해 펩시코는 전략적 가치와 수용 가능한 재무적 수익을 제공하는 소규모 보완적 인수(tuck-in acquisitions)에 열려 있다는 입장을 유지했습니다. 그러나 당면 과제는 기존 성장 플랫폼의 규모를 확장하고 내부 자원을 수익성이 더 높은 브랜드와 소비자 세그먼트로 재배치하는 것입니다.

실적 발표 컨퍼런스 콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

Operator

Good morning, and welcome to PepsiCo's 2026 third 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

Good morning, everyone. Thank you, Kevin. 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 updated business plans, guidance and outlook. Forward-looking statements inherently involve risks and uncertainties and only reflect our view as of today, October 8, 2026, 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 2026 earnings release and third quarter 2026 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, Stephen Schmitt. [Operator Instructions]

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

Operator

[Operator Instructions] Our first question comes from Dara Mohsenian with Morgan Stanley.

질의응답

Dara Mohsenian

So Ramon, I thought, first, maybe we could just get a bit of a state of the union from you on the revenue side as we approach calendar year-end here. Obviously, internationally, another strong set of results in the quarter. You did have some weather and World Cup boost in theory. We are seeing a volatile environment. So just would love your thoughts on the sustainability of the strong growth that you're seeing internationally and the forward growth opportunities?

And then just shifting to NA, again, from a revenue standpoint, numerous strategy changes this year, volume I don't think has responded as much as some as hoped, clearly in North America. So just look back on the efforts in '26 so far, any plans to tweak pricing or plans from here? We've heard a lot about snacks pricing recently in the marketplace. So just any strategy tweaks going forward?

And then, Steve, if I can just slip in 1 on the margin side. Obviously, the earnings revision in Q4 is margin driven with the top line expectations holding. So just help us understand what changed there. But I think really the context is when you have a big Q4 revision, it may imply further pressure in '27. So just -- as we look out to '27, I know you won't give guidance, but just some of the key buckets to margins as we look out to '27, reinvestment to reinvigorate North American volumes, commodity pressure, given that's a big change for Q4. Any incremental cost savings thoughts. Those would all be helpful just conceptually for '27.

Stephen Schmitt

Great. Dara, this is Steve, and thanks for the question. Good morning, everyone. Maybe I'll start with the second question and then kick it to Ramon for the State of the Union where you began your question. So -- before I get into the guidance revision, maybe I'll talk a little bit about the quarter, at least from a highlight standpoint. And the reality is that we're pleased with many aspects of our Q3 performance. Organic revenue accelerated to 3.1%, reported revenue was north of 5%, core operating profit increased 3% and EPS to increase 2%. Importantly, as we look at the health of the business around the world, global beverage volume was up 3%, global food volume was up 1%, and it's actually up 4% if you exclude the grains business in South Africa. And overall, International had really quarter. Organic revenue increased 8%, operating margin expanded 105 basis points.

Now shifting to the North America business. Our Foods business in North America, organic sales improved from Q2 and our beverage business in North America decelerated.

So if I turn to guidance, there are always a number of factors that go into how we think about guidance. The largest changes and you mentioned, we said in our prepared remarks, was margin performance is below where we expected it to be. Input costs are trending higher and mix has been a headwind in particular. But despite these pressures, I think it's important to note that we've decided to sustain key investments around the company to make sure that we stimulate growth and build momentum. This includes A&M, which increased in international. It also increased in North America importantly.

So it's the margin piece that's driving the guide down EPS, but sales, as you mentioned, we expect to be robust. Another mention, we're also identifying structural cost reduction areas, and we're going to be using revenue management tools in the coming months to partially mitigate this margin pressure that we have in the fourth quarter, these benefits should start helping as we turn the calendar year.

So that's how I think about guidance, the revision. You mentioned '27, so maybe I'll touch on that, too. In '27, we have clear priorities. We certainly want North America to grow faster and more efficiently. We're going to continue to fuel the international business and maintain momentum there. And we're going to be very disciplined with costs and capital allocation. So as you imagine, we've been working through our '27 plans for some time. We're just not in a position today to provide a complete view of what our expectations might be, and I'd rather not give a partial view now. So we'll give more detail on our 2027 expectations in Feb when we report the fourth quarter. So I know that was a lot, but now I'll kick it over to Ramon and give a state of the union.

Ramon Laguarta

Okay. So you guys got a lot -- the framework there. So -- listen, we're pleased with the acceleration of the business. So going into the year, our priority #1 was to accelerate top line across the company. Now if you think about the enterprise, we grew 3.1% in organic net revenue in Q3. That is the fastest rate of growth since Q4 '23. So clearly, an important milestone for us to cross the 3%. And we like the way that growth came, which was volume led. So if you think as Steve mentioned, a 3% growth in beverages, global beverage volume and 4% in snacks globally, the snacks business, not the foods. We had some large business in South Africa that are very heavy kind of commodity type that impacted the overall global.

So -- good, I would say, very positive threshold, we cross the threshold of 3%. And obviously, it is on its way to the long-term 4% that we want to get to.

Now international was a big driver of that, and we're very pleased with the momentum that we've been building on international now for many quarters. It is not there, you mentioned weather and some -- I think it's much more structural. I think we're becoming much more competitive in both foods and beverages in more markets. The scale of the business now is to the point that we put on the remarks, that is year-to-date, international is already 45% of our profit so that we keep building it. And it's broad. It's broad based. It's in Europe, it's in Middle East, it's in Asia. It's in LatAm. So good performance overall.

Now we're not satisfied with the performance in the U.S. And as Steve mentioned, I would provide some nuance though. The volume bed that we made in Snacks, North America, especially with the price reset, we're happy with the turnaround in the volume performance. If you think about last year, that business was low single-digit negative volume growth. This year, we're low single-digit positive volume growth. That is a major turnaround. And it was -- it is the price, but it's also some of the innovation, some of the new platforms we're building aligned with the portfolio of the future. So good progress there.

We're going to keep investing in those platforms going forward. I think we can accelerate the category. We gained share in volume now for multiple quarters in Foods North America, in Snacks North America, we're starting to turn that into value share as well. So that was the playbook. As you said, less volume growth than what we had initially anticipated. It had to do with the consumer environment. It had to do with some of the commercial execution, that's getting better, and we feel good.

Now we don't feel good about the beverage business. I think in the beverage business, as we put in our remarks, we're competing well in some platforms like hydration, like energy, and we're not competing well in soft drinks. So we're putting all the urgency of the business and the focus in improving our performance in soft drinks. We're cutting cost in many areas of the business where including corporate and allocated including overhead costs everywhere to invest back into the beverage business, also the food business in North America. And we're looking at any other opportunities to improve our execution because I think there's also an element of execution that can improve.

So that is the state of the union there. For us, priority, as Steve was saying, going into next year, is to maintain the top line momentum. That's why we continue to invest in the business, double-digit A&M in both businesses in the U.S. this quarter. We continue to invest in A&M going forward. We want to go enter '27 with a lot of momentum and make sure that we manage the business for the long term, which is what we're doing.

Operator

Our next question comes from Bonnie Herzog with Goldman Sachs.

Bonnie Herzog

I guess a follow-up on all of Dara's questions. Maybe just a question on PFNA. Curious if you would consider accelerating SKU rationalization and some of the underperforming brands in that business, thinking about maybe in an attempt to redeploy investments behind SKUs that are actually showing signs of improvement or momentum? And I guess, if not, could you just maybe walk us through the puts and takes of your current portfolio and why you believe you have the right brands in place? And then how should we think about you potentially supplementing growth as you potentially pursue M&A in that business to, again, kind of reignite growth?

Ramon Laguarta

Yes. I think it's a good point, Bonnie. I think the -- there are two elements or two big vectors of growth in the U.S. Foods business. One is making sure that you provide the right value, right? So affordability, price points, entry points to the different categories, subsegments, making sure that we're competitive in that space with a consumer that is clearly challenged, we don't expect the consumer to suddenly become much more in a much better place in the next 12, 18 months. So value, affordability, price points, giving the people the right format.

The second one is, I guess, what you're referring to, which is the portfolio, the portfolio of the future and how we're evolving the portfolio to satisfy the various demand moments of that business. Now there is -- I think we have been investing in multiple platforms that position us very well for the future. Then the first one is portion control and affordability, and we talked about this in the past. We think that 100-calorie packs, 120-calorie packs, that is critical for the future. That business is already $3-plus billion. We continue to invest. All the permissible portfolio we have over $3 billion as well of permissible portfolio, which is going to be the growth space for the future, I think we have great brands in that space. If you think about SunChips, Smartfood, Naked, simply, pop corners and others that I forget at this point, so that is a great portfolio that is growing. We're obviously launching Doritos protein and some other variants that we see also having very good consumer momentum.

So we're doing both things, trying to make sure the core is still very relevant with the right pricing, right advertising, right emotional connection with the consumer. And then building these new platforms that is where the double-digit growth are including, I wouldn't say indulgence continues to be a great space, right? So if you think about Misvikis with avocado oil or baked with olivo oil, so those are spaces where we're also investing and where we can premiumize the brand.

So I think the portfolio is in a very good place from the -- where the consumer is today or when the consumer is going tomorrow. Now is there opportunities for M&A in small subsegments? We've been looking at that for quite some time, both in Foods and Beverages. We acquired not too long ago. was another good example in the beverage business. And we keep looking at opportunities to complete the portfolio, smaller tuck-in opportunities that we don't -- we never say no. If it's -- it has strategic value, it has financial returns and it makes sense for the levers of growth that we can provide.

So -- but I think we're in a good place from where the portfolio is going. Now we need to put more investment in scaling up those platforms. That's what we're trying to do taking cost from other parts of the portfolio -- of the P&L and investing in those growth platforms for the future.

Operator

Our next question comes from Peter Grom with UBS.

Peter Grom

Great. So I wanted to ask just on North America and maybe just carbonated soft drinks in general. Remember, it's pretty clear that you are not pleased with kind of the performance of the business. But as you take a step back, can you maybe unpack why performance has fallen short of expectations. And as you think about the path forward, what you plan to do differently?

And then, Steve, just maybe more of a housekeeping question on the organic sales outlook. Approximately 3% growth can mean a lot of different things. So I'm just curious if the right takeaway is that you would expect sequential improvement from the 3% growth or 3.1% growth that we just saw in the third quarter and the fourth quarter.

Ramon Laguarta

Yes. I would think about the -- starting from the last point. I would think that way. I think we're expecting sequential improvement as you -- we go into Q4 and especially, as we go into next year. So I'll continue to invest. It's our #1 priority, invest in growth, invest in growth. Steve mentioned, we didn't take any resources away from the business in Q4. On the contrary, we're trying to invest more in growth across the world, international and the U.S. to make sure that we continue the sequential improvement or acceleration of the business on the top line. So that's from the -- how we're thinking about top line.

Now soft drinks U.S., let's start with LRB U.S., right? LRB U.S., I think we're -- one important priority for us this year was to accelerate the hydration business. That business is -- has accelerated in volume and in net revenue. The overall category is very important for us that the hydration category, which has tailwinds given some of the food -- the eating habits and drinking habits of the population. So that was critical. We made that happen. It's working well, and we'll continue to innovate in and in Propel and investing in those brands to accelerate. So that part is a good one for us.

Energy as well. I think the Alani plus sales use makes sense. By the time we get the two brands into the business, and well executed, that will be an important source of growth for us.

Now in soft drinks, we -- as you said, we're dissatisfied. I think there is a -- two things that we're trying to do. One is increased investment behind the brands. So invest more behind Poppy, Pepsi, Mountain Dew and some of the other brands we have in soft drinks. And the second one is improve the execution. I think there's opportunities for us to become a better -- raise the bar on execution in our beverage business, and the team is fully focused. We have great partners in our bottling partners as well. And we're -- that's the focus, execution improvements and more investments in the brands to be competitive with our key competitors that have having increased their investment in the portfolio and it's working.

Operator

Our next question comes from Lauren Lieberman with Barclays.

Lauren Lieberman

I'm going to do two things because everyone is doing two things. So the first was just in thinking about the 4Q guide and the margin, I just wanted to ask again maybe a little bit differently. If you can try to clarify how much of the margin pressure is incremental investment versus incremental unexpected inflation. So I think that's really important to just understand both what you're doing versus what you're dealing with is an external environment standpoint.

And then the second thing is just the ROI on the spending you're doing. I know, Ramon, you pointed to volumes in U.S. Snacks starting to get better. But like the time to think bigger, if you will, like the innovation platform you've had is massive and super impressive. But everything that you've been talking about of them on is sounds a little bit tactical. So like are there things you need to reevaluate on, how you communicate with consumers, how you're doing your A&P, Bonnie's point on SKU rationalization. But like the innovation is there, but is it time to step back and have bigger thoughts about like how you do things -- going to be so tactical in nature?

Stephen Schmitt

Lauren, it's Steve. Let me talk a little bit about margin first. I won't get into granular detail, but I can give you at least a few things on, I guess, cost A&M and tariffs. So one, I would talk about on cost inflation overall, the teams internally have done a really nice job with our hedging programs. They're typically 6 to 12 months and it yielded us from some costs up into this point where we're starting to see these hedges roll off in our -- essential input costs starting to ramp. So in spite of that, we are going to be investing in growth across the company. I think it's important to mention not just internationally, but we want to make sure we build momentum in the North America business.

The piece on margin that is important to model is we did have a benefit in our Beverage North America business in the third quarter related to tariffs. We talked a little bit about in our remarks about how much that was. And so once that goes away, that puts some more underlying pressure on the North American Beverages business that we didn't have in the third quarter.

Sorry, in investments in A&M, we will continue to do that. Obviously, we want to have momentum going into next year.

Ramon Laguarta

On the -- on the A&M investment, I think two points there. One, quantity and then quality. I think quantity, we're looking at every cost in the company and making sure that any cost that is not linked to growth is not there, including overheads, including corporate and allocated, including any line that you can think of because we think quantity matters and we need to invest more in growth in the U.S. business, both beverages and food, and they both -- they share.

Now quality is, as you saw, we're making some important pivots in how we're thinking about investing that A&M with much higher return. We just announced -- we announced a few weeks ago a partnership with publishers. That is an important capability for us as we go into this partnership, we'll be able to invest with much more data, much more granularity, understand consumers and be able to talk to consumers in a different way, where I think we're going to get better return on the investment -- not one thing. I'm sure given what I know about the capabilities we both have. So I think both quantity and quality, you will see more investment in A&M, and you see better investment in selling every consumer about our products and selling them in a way that they will be much more enlighted with it. So I think that's how we're thinking about it. Obviously, we continue the journey of increasing the competitiveness in the U.S. and accelerating the categories, which is the role that we need to play for the long term.

Operator

Our next question comes from with Jefferies.

Unknown Analyst

I know there have been many questions around this topic, but just to make sure that we understand specifically, particularly because of various media reports of higher pricing or lower pricing or whatever it happens to be, what exactly is the plan? Which direction are you -- what is the correct direction of travel? And that's on North American Foods.

And then on beverages, the word urgency you've used many, many times. What does that mean? Because urgency sounds tactical, as Loren had mentioned, but brand building and all those other things usually take a lot of time and could use a pivot. So just trying to understand what do you really mean by urgency in terms of what you want to do on the beverage side? Both of these questions, of course, are North America specific.

Ramon Laguarta

Yes. I would say urgency, means we're going to look at every cost with aggressive lenses and with the lenses that everything that is not related to growth will not be part of the company. So that, to me, is an important mindset and then putting the money against the brands that will drive us growth. So that from the -- then on the executional side, raising the bar on what is expected from everyone in the company in every customer negotiation, in executing in every point of sale, in the levels of granularity and executional excellence that we're going to look in our people. So those is how we're thinking about it.

Now we're also looking at are all the decisions that we've made in terms of how we execute the business, the right decision should we look at partnerships in other ways. So we're looking at every single element of the strategy in terms of executing in the U.S., and we're not taking anything for granted in that space.

Now what was the other -- price in North America.

Price in North America. We're pleased with the -- as I was saying earlier, in Dara's question, we're pleased with how the pricing investment has worked for us in the food business. We were negative low single digit in volume in snacks in the U.S., now we're positive volume and units and gaining share. So that gives us, I think, flexibility in what do we do to absorb this new wave of inflation that is coming to every country, not only the U.S., given energy prices and given agricultural prices. So we're going to see a mix of net revenue management tactics that will impact some pricing, but also mix and all the decisions that we can make around that. And we're going to see a lot of productivity the one we've been doing for many years, but additional areas of productivity to minimize the decisions we have to make in increasing the cost to our consumers.

Now we feel good about the way we're thinking about this. We're putting some guardrails to our people, making sure that next year's pricing is going to be below 25. So we continue to be very affordable. In most of the take home parts of the business. We don't set pricing. Obviously, our customers do, but we have the right conversations, and we have the right partnership in how we drive volume in the category. So we're trying to be very cautious, but there's going to be a set of tactics between net revenue management and productivity to mitigate the inflation that is coming through our various lines of the P&L, as Steve was saying earlier. Do you want to say anything else, Steve?

Stephen Schmitt

Nothing.

Operator

Our next question comes from Kevin Grundy with BNP Paribas.

Kevin Grundy

Great. Ramon, question on potential consideration for bigger strategic changes that could unlock value. PepsiCo spent a lot of time on North America. I know you're not pleased with where that is at the moment. I think it's clear that the results they have singularly driven the stock price lower because international continues to perform really, really well. So can you comment on the Board's consideration for bigger strategic changes? I think there's an to be made that there's real latent value in your stock price. So whether this is splitting North America and international, which have very different financial profiles now splitting snacks and beverages, which you're well aware, has been discussed for decades among the investment community brand divestitures, bottler refranchising. I did ask in the context that perhaps is a better structure for shareholders that maximizes value. So your updated thoughts there would be appreciated.

Ramon Laguarta

Yes. Thanks. Listen, obviously, we're not satisfied with the performance. That means that we have to look at options that improve our performance long term, right? I mean, it's not only about the short term, it's the long term. So we have been talking about how, especially to your point on go-to-market and business model. We're open to revisiting every option. We're working with the team on accelerating some of the tactics on the integration part, so -- where we can eliminate cost. But also, we're looking at -- are there opportunities to expand or accelerate some of the refranchising in some parts of the country where we have good partners and where it makes sense that, that partnership will drive better execution and potentially better margin for the company.

So we're opening all the avenues. Clearly, as you were saying, the performance of the business, requires that we are open and we're realistic with the realities of the marketplace, the inflation, the consumer realities. And where does it make more sense to invest the resources of the company to drive growth long term. So yes, we're looking at everything, and these are important decisions that we'll be making with a sense of urgency and with the strategic midterm long-term vision that we always run the company with.

Operator

Our next question comes from Robert Ottenstein with Evercore ISI.

Robert Ottenstein

Two quick ones. One, I was wondering if you could give us an update on your efforts to integrate the food and beverage business in the U.S., I think you were piloting something in Texas, and I think it's been going on now about 8 or 9 months. So I'd love to get an update on that. And then second, you're doing more and more with Carlsberg internationally. And I guess it's working well. But I'd love to hear what you've learned from that experience working with Carlsberg and particularly, a beer company and how you've been able to maintain strong execution?

Ramon Laguarta

Good. So listen, we've been with beer companies around the world for quite some time. ABI, we have partnership in Brazil and Argentina and some other parts of the world. And with Carlsberg, we've had relationships for many years in Norway and Sweden. So this is an expansion of a strategy, which is in countries where we have business that competes well, but it's not the leading business, merging with the resources with a beer company makes a lot of sense. It gives us presence in the on-premise channel, and it gives us very good execution scale in the home channel. So this is working. Carlsberg has been an incredible partner. The latest example of that partnership is the in the U.K., the Britvic acquisition they made, and that has been a very successful investment for Carlsberg and also for PepsiCo, as we keep growing share in the U.K.

Now we've expanded to other geographies, the strategic, I would say, we're both together for the long term. And we believe this is a win-win and the resources that have been invested on both sides is great. So we'll continue with Carlsberg, but we -- it's the same philosophy we have with many of our bottlers globally.

Now on one North America, we keep working not so much the strategy anymore, but the execution of this tactic. And there is a lot of positive news. We will update you to all the investors in a future meeting. Now the integration is working well on the physical side with warehouses and the transportation. Now we're into the details of delivery into the small shops, the bigger shops. So clearly, there is a lot of value we're seeing, both for the customer and for us. This will apply to some parts of the country, as we said. I think long term, this will apply to some parts of the country. Now there are other parts of the country, well, this will not apply and that's the comment I made earlier about, can we accelerate refranchising in some other parts of the company -- of the country and take value earlier. So again, this is the hybrid approach, the nuance approach by geographies. And this is -- the team continues to, I think, learn and execute the details that matter in this kind of transformation.

Operator

Our next question comes from Andrea Teixeira with JPMorgan.

Andrea Teixeira

I was hoping if -- and I do appreciate I would say, more of an open conversation about resisting the refranchising in the U.S. And then the One PepsiCo commentary you just gave to Robert. When you said urgency, how is the shape and form and to your point by hybrid, the complexity of your system and the many partnerships you have? Who we should be thinking? How we should be measuring success? And then the timing of it, it seems like it's going to be like a multiyear as it was, frankly, with all the companies in the industry. So how we should be thinking? And what -- in terms of like potential savings for more the savings, I would say, synergies in terms of execution, the eye on the ball, the last mile your ability to obviously check the coolers and any AI that you've been using for productivity that could illustrate an acceleration of that execution and potentially convert into savings given the -- obviously, the DSD system now with higher cost of service. It can improve that. And perhaps if can complement on that when it comes to large customers and accounts, how that system, the hybrid system will work better for you than, I would say, a full refranchising. I know it's a lot in there, but just to think about strategically now and how fast we could see the results coming through?

Stephen Schmitt

Andrea, it's Steve. Thanks for the question. Maybe I'll just talk a little bit about urgency. The sense of urgency around the company, as you would expect, is very high and all that we're doing and the business reviews and how we're operating and our attention to detail on costs and looking at other parts of the company, whether even that's corporate and unallocated to make sure every dollar we're spending on shareholders' behalf is providing a benefit to the business and a return that we'd be proud of. And so -- there's a lot in the question that you asked, I don't think I'll go through all of the different details. But just you should know it from a sense of urgency standpoint, just in the short time that I've been here, you can see it shifting gears in all that we're doing.

Ramon Laguarta

Yes. And then if you think about growth, margin and long-term marketplace performance, we're looking at execution as an important lever. And so everything you said around where can we execute better as a combined business grow from the growth cost or where we can leverage a partner. I think we're obviously looking at all of it at this point. And the solution will be a mix of solutions for different parts of the country. The key point being growth, marketplace execution, competitive performance and margin and we'll get to that when the moment comes.

Operator

Our next question comes from Michael Lavery with Piper Sandler.

Michael Lavery

Just wanted to come back to pricing, but on the North American Beverages side. And just appreciate, of course, aluminum costs are up, diesel, the tariff refund goes away. And there certainly is the case for pricing there that it sounds like you're making, but -- how do you balance that with the need to compete more effectively that you've also called out? And just help us understand what your pricing approach is and how we should think about volume growth expectations?

Ramon Laguarta

Yes, I think the same answer I gave to the food business. I think there will be a mix of tactics on net revenue, trying to provide as much value as possible to consumers in the right occasions and the right -- moments with the right brands and then continue to go very aggressively at productivity, not only -- I mean we've been on productivity from multiyear, and we mentioned automation, digitalization, standardization of the company network rationalization that you've seen in some of the beverage business with some asset divesting. But we're even accelerating that even with more structural productivity and making sure that all the money that is not linked to growth disappears from the company, all the duplications, I referred earlier in the call to overheads, to incorporate and allocate it, things that don't make sense, make sure that we -- with a sense of urgency, we pivot those resources towards growth and making sure they were affordable that we capture the opportunities for net revenue management and growth in the business.

Operator

Our last question comes from Peter Galbo with Bank of America.

Peter Galbo

Just two really quick cleanup questions from me. Steve, I think just in the context of the Q4 kind of guidance reduction, maybe you can just give us a sense order of magnitude, how much kind of the inflation expectation moved up that drove that? And in that context, I know you don't want to get into '27, and we're all trying to kind of develop a framework to think about it. But just as some of these hedges kind of rule and obviously, you're working through the plan, just -- if we're constructing a narrative for next year? Is it very much the case of, a, maybe expect a bit more of that pressure, at least in the first half of next year? I just want to make sure that we're kind of trying to level that expectation as best we can at this point.

Stephen Schmitt

You're welcome. The -- look, the piece that I would assume is commodities are ramping up, right? And we'll see some of that in Q4 as the hedges roll off. Our hedging program again is 6 to 12 months. We'll give you a more complete view on how that all comes together in February. But as a general trend, commodities continue to ramp up.

Ramon Laguarta

Okay. So listen, thank you for the conversation today, and thank you for the investment in PepsiCo and the confidence you give us by investing in our company. Thank you. And -- see you all around. Thank you.

Operator

Thank you. Ladies and gentlemen, this does conclude today's presentation. We thank you for your participation. You may now disconnect, and have a wonderful day.