Pepsi, Chipotle, P&G cut earnings forecasts

Of Procter and bet to ChipotleConsumer companies are reducing their forecasts, projecting that tariffs weigh on their profits and exert more pressure on an already unstable consumer.

At least a dozen companies have reduced or achieved their full -year prospects so far in this profit season, with several more weeks of quarterly reports still on deck.

For many companies, tariffs mean higher prices in key products, such as Peruvian avocados or saccharina to make toothpaste, which will become their profits. But uncertainty raised by the commercial war is as harmful to the results of companies as consumers withdraw their expenses.

The cautious projections are produced in the middle of a 90 -day pause of the highest rates under the so -called reciprocal tariff plan of President Donald Trump. Until the early July, most imports will face a 10%tariff, excluding assets from China, which are subject to duties of 145%, together with aluminum, cars and other non -exempt articles.

Even so, the situation changes almost daily. The secretary of the Treasury, Scott Besent, told investors at a closed door meeting on Tuesday that he hopes “there will be a decalcalation” in Trump’s commercial war with China in the “very close future.” The White House also said Wednesday that car manufacturers could gain exemptions for some rates.

According to current rates, coffee, board games and airplanes are more expensive for companies. It is likely that many executives choose to increase prices to mitigate the dent to the profit margins.

“The aircraft already costs too much. I don’t want to pay more for airplanes.” American Airlines CEO Robert Isom said Thursday. “It makes no sense. And certainly, we are taking guidance. Certainly, this is not something we intend to absorb. And I will tell you that it is not something that waits that our clients welcome. So we have to work on this.”

Tariffs worldwide, including reprisals and not only those of the United States, “will really press” the progress in the improvement of the industry supply chain, said the CEO of Airbus Americas, Robin Hayes, at a lunch of Wings Club in New York. The United States aerospace industry has a commercial surplus, which helps soften the country’s general deficit.

Calls are growing between airlines and aerospace suppliers to restore the terms of a more than 45 -year agreement that allows the industry to operate mainly tax free. Other industries are also pressing for tariff exemptions.

But except the cuts in rates or new linings for goods, trips is not the only sector that will see price increases. P&G, Keurig dr pepper and Hasbro Everyone said Thursday that prices could increase in the near future to compensate for higher costs.

“There will probably be prices [changes] – Tariffs are inherently inflationary, but we are also looking for supply options, “said the CEO of P&G, Jon Moeller, in the” Squawk Box “of CNBC.

Although he predicted that the costs produce their coffee and the soft drinks would increase, Dr. Pepper of Keurig did not reduce his prognosis of the whole year. The company registered a strong growth of profits for the first quarter, reinforced by the sale of its minority participation in the coconut water manufacturer Vita Coco, giving the beverage giant the flexibility to reiterate its perspective.

Tariffs will take time to affect prices on the shelves of groceries and shopping centers. But they are already mentally affecting buyers.

Earlier this month, us The feeling of the consumer fell to its second lowest reading since 1952. Buyers are already withdrawing their expenses, since they fear accelerated inflation, loss of jobs and a possible recession, companies said this week.

“The main driver would say that it is a more nervous consumer that reduces short -term consumption, and the impact on the cost structure and our ability to offer profits is a lower growth rate,” said the CFO of P&G Andre Schulten in a call with the media on Thursday, explaining the company’s reasoning to reduce its prognosis.

P&G, which has the main domestic brands such as Charmin and Tide, reduced its perspective for central action and income for the full fiscal year, which is in its last quarter. Its third quarter sales did not reach Wall Street estimates.

“It is not illogical to see the consumer adopt the attitude of ‘Wait and see’, and we saw traffic on the retailers,” said Schulten.

PepsicAnother basic food from the grocery store cited a “moderate” consumer, together with tariffs, as the reason why he reduced his prognosis for the profits of constant currencies of the whole year per action.

The anxious consumer is also weighing in Chipotle, the first of the main restaurant companies that are quoted in the stock market in informing their results.

The Burrito chain reduced the upper end of its perspective for the growth of sales of the same store throughout the year. Executives said traffic began to decrease in February when diners began to worry more about their finances. The trend has continued in April.

“We could see this in our visits study, where to save money due to concerns about the economy was the overwhelming reason why consumers were reducing the frequency of restaurant visits,” said the CEO of Chipotle, Scott Boatwright, to analysts.

For its part, Hasbro chose to reiterate its prognosis, which offers a wide range of $ 100 million to $ 300 million wind against its tariff business. The toy company’s perspective assumes that China’s rates could vary from 50% to the current rate of 145%.

Executives also warned about the possible losses of jobs linked to the highest costs.

Airlines are also seeing a weaker demand, particularly in their economic cabins. Delta airlines CEO Ed Bastian told CNBC in an interview earlier this month that Trump’s tariff policy at that time was the “incorrect approach” and that he was harming both the demand of the national economic class and corporate trips due to uncertainty.

American Airlines On Thursday he took his financial guide from 2025, joining Southwest Airlines, Alaska airlines and Delta, each citing an American economy that is too difficult to predict. United Airlines He took the unusual step to offer two perspectives if the United States economy worsens, but still hopes to make money this year.

– Leslie Josephs of CNBC contributed to this report.