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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Brooke DiPalma · Senior ReporterUpdated Thu, October 9, 2025 at 5:19 PM GMT+2 3 min readPepsiCo (PEP) is doubling down on its snack business after years of declining volume growth.On Thursday, the company beat low earnings estimates from Wall Street in its third quarter report. But the snacking slowdown continued in the US: North America food revenue fell 3%, and units sold declined 4%.PepsiCo CEO Ramon Laguarta told Yahoo Finance that a major overhaul is underway."The situation in the US is accelerating top line," Laguarta told Yahoo Finance's Brian Sozzi. "We're very aggressively taking costs out of the system, especially Frito-Lay. ... It has been a very meaningful restructuring."This year, the company laid off 7,000 people from the Frito-Lay network, calling it "tough" but "something we had to do." Laguarta said that, starting in May and extending into the fourth quarter, investors can expect "some additional planned closures and warehouse closures."SAN ANSELMO, CALIFORNIA - JANUARY 29: Bags of Lay's Classic potato chips are displayed at a grocery store on January 29, 2025 in San Anselmo, California. (Courtesy:Getty Images) · Justin Sullivan via Getty ImagesIn September, activist investor Elliott Management disclosed a $4 billion stake in the company, calling for a turnaround, especially in its snack business. The company also faces pressure from RFK Jr.'s Make America Healthy Again (MAHA) initiatives.Elliott Management has called on PepsiCo to "right-size" its asset base, optimize its portfolio and for its to target "organic & inorganic reinvestment."Elliott Management did not respond to comment on the recent Pepsi changes. But on a call with investors Laguarta said it had a "couple of interactions [that were] very constructive and collaborative" and that they're "both aligned on one thing...PepsiCo is undervalued."On Thursday, PepsiCo shared plans to remove artificial flavors from snacks like Cheetos and Doritos. Also, it plans to expand the use of avocado oil and olive oil across its Lay's brand — and lean into its healthier snack brands like Simply, Sabra, Sun Chips, and Siete Foods, which the company acquired earlier this year. Consumers will notice a change in labeling on chips bags to highlight that the products are made with real potatoes. In addition, new pack sizes are in the works. This comes as the company as struggled with competition as rising costs have pushed consumers away."When you look at the middle and lower income cohorts within Pepsi's snacking business, they are shunning the category or Pepsi's brands because of price and because of less chips in the bag," RBC Capital Markets Managing Director Nik Modi told Yahoo Finance LIVE. 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