PepsiCo announced on February 24, 2026 that it will permanently close its Frito‑Lay manufacturing facility in Rancho Cucamonga, California. The announcement follows the plant’s shutdown of snack production in June 2025 and the scheduled termination of distribution and warehousing operations on June 6, 2026.
Manufacturing at the Rancho Cucamonga site ceased in June 2025, after which the plant continued to handle distribution and warehousing for the region. The final closure of those operations on June 6, 2026 will result in the layoff of approximately 248 employees, while the earlier manufacturing shutdown affected hundreds of workers.
The decision is part of PepsiCo’s broader strategy to rationalize its North American snack footprint and improve operational efficiency. By consolidating production at other facilities, the company aims to reduce overhead, streamline logistics, and focus on higher‑margin snack categories that align with shifting consumer preferences toward healthier, ingredient‑transparent products.
PepsiCo’s Q4 2025 earnings, released February 3, 2026, showed a revenue of $29.34 billion, up 5.6% year‑over‑year, and a net income of $2.54 billion, up 66% year‑over‑year. The company beat analyst expectations for both revenue and earnings per share, driven by strong international beverage volumes and U.S. low‑sugar beverage sales that offset softness in the U.S. snack segment. Management reaffirmed its fiscal 2026 guidance, projecting organic revenue growth of 2% to 4% and core constant‑currency EPS growth of 4% to 6%.
Ramon Laguarta, Chairman and CEO, said, “PepsiCo's fourth quarter results reflected a sequential acceleration in reported and organic revenue growth, with improvements in both the North America and International businesses. Accelerated net revenue growth and strong productivity savings led to strong operating margin expansion and double‑digit EPS growth in the fourth quarter.” He added, “For fiscal 2026, we aim to accelerate growth by restaging large, global brands, introducing an expansive set of product innovation in emerging and functional spaces, and offering sharper value to address consumer affordability dynamics. We also aim to deliver a record year of productivity savings which will help fund investments to accelerate growth.” Laguarta also noted, “We're taking targeted actions to deliver more value on key snack brands in the U.S., including price reductions on Doritos and Cheetos, to drive volume recovery.”
The closure will reduce PepsiCo’s manufacturing capacity in California but is expected to generate cost savings and improve the company’s ability to invest in high‑margin product development. While the plant’s shutdown will impact local employment, the broader restructuring is intended to strengthen PepsiCo’s competitive position in a market where inflation, shifting dietary preferences, and supply‑chain pressures continue to challenge traditional snack volumes. The company’s focus on healthier, “permissible” snack options and targeted price adjustments reflects its strategy to maintain volume and margin in a tightening consumer environment.
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