PepsiCo blamed the second-quarter slowdown in its North American food unit on consumers tightening their belts. The period was marked by elevated pump prices tied to the US-Iran war, a squeeze that hit lower-income households the hardest and weighed on discretionary snack and beverage purchases.

Revenue in the company's North American food unit fell 2%, while volumes remained flat, even as the junk food giant slashed prices on some of its brands by as much as 15% earlier this year to lure working-class consumers.

"Results were tempered in the quarter as U.S. food and beverage category performance moderated with consumer budgets tightening due to rising inflationary pressures," CEO Ramon Laguarta stated in a press release.

"Our North America business was softer than we anticipated in the second quarter, and we now expect a more gradual improvement in performance trends for the balance of this year," CFO Steve Schmitt said in prepared remarks.

PepsiCo reaffirmed its full-year guidance and reported adjusted earnings of $2.20 a share for the second quarter, slightly above the Bloomberg Consensus estimate.

The company has also raised prices on some smaller bags and is expanding its product line to include more protein and fiber as consumer tastes shift toward healthier options.

Here's JPMorgan analyst Andrea Teixeira's first take on PepsiCo earnings:

Peter Grom of UBS' first take:

Separate but notable is a chart from food retail equity analyst Scott Marks at Jefferies that shows a sharp decline in average benefits per SNAP participant (read report) ...

Pepsi shares slipped nearly 2% in premarket trading Thursday. The stock is down about 1% year-to-date and lagging the broader S&P 500 index.