Frito-Lay shutting down production at Southern California plant

June 12, 2025 11:50 AM PDT | By EODHD
 Frito-Lay shutting down production at Southern California plant
Image source: Kalkine Media
[Crunchy Salt Corn Chips] bhofack2/iStock via Getty Images * Frito-Lay (NASDAQ:PEP [https://seekingalpha.com/symbol/PEP]) is shutting down production at its Rancho Cucamonga plant in Southern California after 50 years in operation. * Although no reason was given for the decision, Frito-Lay North America ("FLNA"), a division of PepsiCo (NASDAQ:PEP [https://seekingalpha.com/symbol/PEP]) reported an 11% decline in operating profit in Q4 2024 [https://investors.pepsico.com/docs/default-source/investors/q4-2024/q4-2024-earnings-release_tgzvps60bh39qrbu.pdf], primarily reflecting operating cost increases and a decline in organic volume. * The company no longer strips out Frito-Lay North America financial results. The division is now included with Quaker Foods into a single unit, PepsiCo Foods North America ("PFNA"). * Although the company will maintain its distribution, fleet, and warehouse operations at the Rancho Cucamonga plant, shutting down manufacturing is expected to result in the loss of “hundreds” of jobs, according to _USA Today._ * Because the Rancho Cucamonga plant is not registered with California’s Worker Adjustment and Retraining Notification (WARN) database -- which requires employers to give 60 days’ notice before layoffs – the timing of the closure and the actual number of employees impacted is unknown.


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