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WSJ What’s News

What’s News in Earnings: Consumer Shakiness Worries Food and Drink Companies

WSJ What’s News

The Wall Street Journal

News, Daily News

44K Ratings

🗓️ 5 May 2025

⏱️ 9 minutes

🧾️ Download transcript

Summary

Bonus Episode for May 5. Consumers are in belt-tightening mode. Many are buying less, reconsidering their purchases and feeling rattled by volatile markets and the Trump administration’s shape-shifting tariff policies. For soda makers like Pepsi and restaurant chains like McDonald’s, those are worrisome developments. So how are they responding? WSJ reporter Laura Cooper discusses what companies are saying in earnings reports and analyst calls. Chip Cutter hosts this special bonus episode of What's News in Earnings looking at what’s going on under the hood of the American economy. Sign up for the WSJ's free Markets A.M. newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Last year, Amazon was the world's largest corporate buyer of renewable energy.

0:07.0

Seeing all and more of our energy come from wind farms like this one.

0:14.0

Guys, what happened to recording at the solar farms?

0:18.0

To learn more, visit about amazon.com. recording at the solar farms.

0:21.8

To learn more,

0:27.1

is it about Amazon.com at UK forward slash sustainability?

0:35.7

Hey listeners, it's Monday, May 5th.

0:37.1

I'm Chip Cutter for the Wall Street Journal,

0:37.7

and this is what's news and earnings, our look at the broad themes that stood out in the latest earnings

0:41.3

season. Today, we're taking a look at what's happening to some of the country's food and

0:45.1

beverage companies. One of the big takeaways so far, consumers are hitting pause on spending

0:49.6

in all sorts of noticeable ways.

0:57.2

Something is happening in the economy right now.

0:58.7

Consumers feel shaky.

1:01.7

Many are in belt tightening mode and they're buying less.

1:05.5

For big soda makers, for big food companies, that's a worrisome development.

1:09.4

Wall Street Journal reporter Laura Cooper covers the world of beverage and tobacco makers and she's here to explain all that these companies and others are facing. Laura, great to see you. Great to see you, Chip.

1:15.9

So, big picture, what do the earnings report show us about how consumers are feeling right now?

1:21.5

So consumers are feeling really cautious. Many of the chief executives that were speaking on the

1:26.0

earnings calls I listened to over the last couple of weeks said that they're seeing consumer softness, that they're being more

1:31.2

judicious about how they spend their money. That being said, some consumer groups are getting

1:35.3

hit harder than others, but the general consumer sentiment is just largely not good. And does this

...

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