PepsiCo faces mounting pressure from investors to implement operational changes as shifting consumer habits weigh on its U.S. snack and beverage sales. Despite a recent quarter of revenue growth, the company is grappling with declining domestic demand and evolving preferences that have challenged its core business.

During an earnings call on Thursday, CEO Ramon Laguarta acknowledged dissatisfaction with the company’s performance in the United States, even as overall sales rose. “We’re not satisfied with the performance in the U.S.,” Laguarta told analysts and investors, underscoring the need to explore options for long-term improvement. He indicated the company remains open to reviewing various structural changes, although he later clarified in a CNBC interview that a split of operations is not currently under consideration.

PepsiCo’s stock has declined roughly 12 percent over the past year, hitting six-year lows, prompting calls from some shareholders for more significant adjustments. Proposals under discussion include segmenting the business by geography—separating North America from international operations—or dividing the company between food and beverage units. Another area of focus is the company’s bottling operations, which PepsiCo brought in-house in recent years. Some analysts and investors suggest re-franchising these units to reduce capital intensity and improve returns, a model largely used by competitor Coca-Cola.

David Wagner, portfolio manager at Aptus Capital Advisors, a PepsiCo stakeholder, described re-franchising bottling as the likeliest path forward, citing its low returns and high capital demands. He cautioned that a more drastic separation of snack and beverage segments would be disruptive and likely dependent on continued underperformance in North America.

Financial results for the quarter ending Sept. 5 showed revenues of $25.2 billion, up 5.6 percent from the prior year, and core operating profit increased 7 percent to $4.3 billion. However, a significant portion of revenue growth derived from international markets, which now account for 41 percent of total sales. Some profit gains were also influenced by a $178 million tariff refund. PepsiCo’s management warned that profit margins could come under pressure due to rising commodity costs, including diesel fuel.

In the U.S., consumer spending on snacks such as Cheetos and beverages like Pepsi has softened amid inflationary pressures, impacted in part by geopolitical issues like the conflict involving Iran and resulting fuel price increases. Additionally, reductions to federal food stamp benefits and changes in state regulations limiting purchases of sugary drinks have created further headwinds.

Evolving consumer preferences add complexity to the company’s challenges. Approximately 30 million Americans use GLP-1 weight loss medications, fueling demand for snacks that feature higher protein and fiber content. Concurrently, initiatives promoting healthier eating, such as the Make America Healthy Again movement, are influencing regulations on food ingredients in schools and retail markets, pressuring manufacturers to reformulate products.

In response, PepsiCo has lowered prices on select snack items and expanded its portfolio of offerings without artificial colors, including the Simply NKD line of Cheetos and Doritos. The company is also promoting protein-rich snack options and smaller 100-calorie multipacks as it seeks to adapt to changing consumption patterns while managing operational costs.