Away-from-home channels grew high single digits and contributed margin-accretive growth for both beverages and foods.
North America faced volume challenges but showed signs of stabilization and improvement in key subsegments like extruded snacks and no-sugar colas.
PepsiCo reported solid Q2 2025 results with strong performance in International markets and sequential improvement in North America.
Productivity initiatives are expected to accelerate in the second half of the year, with a focus on cost reduction and efficiency improvements across the enterprise.
The International business delivered mid-single-digit growth and became accretive to PepsiCo's overall profitability.
Adjusted earnings per share were $3.19, up about 5% versus the prior year quarter in constant currencies.
Adjusted operating margin was nearly 47% for the first half of the year, with restaurant margin increasing about 5% in constant currency.
Full year adjusted operating margin target remains mid- to high 40% range, with company-operated restaurant margin target adjusted to around 14.8%.
International Developmental Licensed (IDL) Markets delivered comp sales growth of more than 5.5%, led by Japan and positive comps across all geographies.
McDonald's reported global system-wide sales growth of over 6% in constant currency and global comparable sales growth of nearly 4% in Q2 2025.
The Internationally Operated Market (IOM) segment saw comp sales increase by 4%, with all markets driving positive comp sales growth.
U.S. comparable sales were up 2.5% in the quarter, outperforming near competitors despite challenging QSR traffic trends.
The global energy drink category remains healthy with accelerating growth across regions, driven by product functionality, lifestyle positioning, and diverse offerings.
In the U.S., Nielsen reports a 13.2% increase in energy drink sales for the 30-week period ending July 26, 2025, with Monster's Ultra family contributing significantly.
In EMEA, the category grew approximately 15.4% FX neutral, with Monster outperforming many markets and becoming the seventh largest FMCG brand in Western Europe.
Asia Pacific saw a 20.9% growth FX neutral, with notable increases in South Korea (+28.9%) and China (+20.2%).
Latin America grew 13.9% FX neutral, with specific growth in Brazil (+10.4%) and Chile (+4.2%), despite challenges in Argentina.
Management emphasizes innovation and household penetration as key drivers for sustained growth.
A $9.3 billion noncash impairment charge was recorded due to a sustained decline in stock price, reducing the carrying value of intangible assets.
Emerging markets grew top line by around 8% through both price and volume, with the highest operating income margin ever.
Inflation is expected to be about 5% to 7% for the year, with pricing increases around 1%, indicating pricing below inflation.
North America retail showed improvement excluding cold cuts and bacon, with a 2.7% decline in the latest 4-week period versus a 4% year-to-date decline.
Tariffs are expected to impact margins by approximately 100 basis points this year, with a potential full-year annualized impact of 180 basis points if tariffs remain.
The second quarter results came in line with expectations, showing an improvement in year-over-year top line performance.
Dafinchi
