American consumers are feeling uneasy about the economy—and that nervousness is starting to show up clearly in the financial results of major food and beverage companies.
From snack makers to restaurant chains, businesses that rely on everyday shoppers are reporting weaker sales and warning that customers are cutting back. Rising prices, concerns about job security, and general economic uncertainty are all weighing on household budgets.
Mondelez International, the company behind popular brands like Oreo cookies and Ritz crackers, said this week that sales in North America declined as shoppers pulled back. Company executives blamed what they called “economic anxiety and low consumer sentiment” for the slowdown.
Restaurants and Snack Makers Feel the Pressure
The mood is similar at Chipotle Mexican Grill. Scott Boatwright, the chain’s chief executive, said customer traffic dropped for the fourth quarter in a row as diners rethink how often they can afford to eat out.
“People are pulling back on overall restaurant spend,” Boatwright said, noting that many families are simply choosing to cook more meals at home.
Even PepsiCo, one of the world’s largest snack and beverage companies, is adjusting its strategy in response to tighter consumer wallets. With the Super Bowl approaching—a traditionally huge weekend for chip sales—the company announced plans to cut prices on some products by as much as 15 percent.
Chief executive Ramon Laguarta said lower- and middle-income Americans in particular are “stretched” and struggling to keep up with higher costs.
Falling Confidence and Rising Concern
The corporate warnings come at a time when overall consumer confidence in the United States has fallen sharply. According to the Conference Board, a widely watched research group, consumer sentiment recently dropped to its lowest level in more than 10 years.
That gloomy outlook is making affordability a central topic in boardrooms across the country.
Laguarta told analysts that price concerns have created the “biggest friction” in reaching everyday shoppers. PepsiCo reported a decline in snack sales during the final months of last year, a sign that even popular brands are not immune to economic pressures.
Rachel Ferdinando, who runs PepsiCo Foods in the U.S., said the company has been hearing the same message over and over from customers.
“We’ve spent the past year listening closely to consumers,” she said, “and they’ve told us they’re feeling the strain.”
Companies Rethink Pricing Strategies
Mondelez executives expressed similar concerns. Chief executive Dirk Van de Put said many North American consumers feel uncertain about the future and are tired of constantly rising prices.
“They’re worried about overall affordability,” he said. “They are fed up with the price increases.”
Van de Put added that Mondelez may be able to lower some prices this year, especially as the cost of cocoa has fallen from record highs. But he cautioned that any reductions would likely be limited.
At Chipotle, financial chief Adam Rymer said the company plans to be careful about raising prices further in 2026. With inflation still high and wage growth slowing, he said many customers are actively looking for ways to save money.
“I think consumers are ultimately just concerned,” Rymer said. “You see this through sentiment—whether it’s on job security or concerns about prices going up in the future.”
Some Bright Spots Remain
Not every company is struggling to the same degree. Some consumer spending indicators remain relatively strong, and certain businesses are still seeing solid demand.
Starbucks, for example, recently reported an increase in same-store sales, which it credited to internal efforts to improve service and refresh its brand. Procter & Gamble, the maker of household staples like Tide detergent and Crest toothpaste, also said it expects growth to rebound later this year, even though recent U.S. sales have softened.
Still, the overall trend suggests that shoppers are becoming more cautious and more selective.
Looking Ahead
PepsiCo, which has faced pressure from activist investor Elliott Management, is trying to respond with a combination of price cuts and cost savings. The company plans to simplify some products, reduce expenses, and focus discounts on key brands such as Lay’s, Doritos, Ruffles, and Tostitos.
Laguarta described the strategy as “surgical,” targeting specific products and sales channels rather than broad, across-the-board reductions. The company hopes that increased efficiency and productivity will help offset the financial impact of lower prices.
Investors reacted quickly to the latest earnings reports. PepsiCo shares rose nearly 5 percent after the company outlined its new plans. But shares of Mondelez and Chipotle both fell in after-hours trading as Wall Street digested their warnings about cautious consumers.
For now, the message from corporate America is clear: even if the broader economy remains stable on paper, many U.S. households are feeling pinched—and they’re adjusting their spending accordingly.
