NEW YORK, July 11 (Reuters) - PepsiCo ( PEP ) CEO Ramon

Laguarta said Thursday there is "much more price sensitivity"

across U.S. income groups and not just low-income consumers,

highlighting its sensitivity to broad shifts in consumer demand.

The Diet Pepsi and Tostitos tortilla chips maker, which fell

short of Wall Street expectations for revenue for its second

quarter Thursday, said consumers continued to face a squeeze

from rising prices and constrained wages.

"They're saying 'There's been a lot of inflation and my

disposable income is stretched,'" Laguarta said in an interview.

"It's not only the lower-income consumer, it's throughout."

Companies like PepsiCo ( PEP ) hiked prices by double digits during

and after the pandemic to recoup once-in-a-generation levels of

cost inflation. On Thursday, the New York-based company said it

had raised prices by 5% overall in the most recent quarter ended

June 15, helping protect its margins which rose compared with a

year before.

Costs have started to come down, with U.S. consumer prices

unexpectedly falling in June. But some costs, like agricultural

commodities, remain elevated, PepsiCo ( PEP ) said Thursday in prepared

remarks.

Laguarta had said in April that lower-income consumers were

"stretched" and "strategizing a lot to make their budgets get to

the end of the month."

In a call with analysts Thursday, he said higher-income

consumers were skipping meals at expensive restaurants and

dining at cheaper ones instead, or opting out of them altogether

for at-home entertainment options.

"Once we address that situation, we'll be back in growth,

and we feel pretty good about the tools and the resources we

have," Laguarta said.

PepsiCo ( PEP ) is investing in parts of its Frito-Lay North America

business, its second-largest after beverages, to keep consumers

buying its popcorn, potato and tortilla chips.

The company is also looking to cut costs and make its

business more efficient, Laguarta said.

Brian Jacobsen, chief economist at Annex Wealth Management,

said: "Consumers are feeling the pinch of high prices. Last year

the consumer was told to just be quiet and accept higher prices.

Now they're fed up.

"Wage gains are okay, but they're not great, so consumers

are rebelling by cutting back on non-essentials and shopping

around for everything else," Jacobsen added. "It's not a trend

that's anything to worry about. It's just a return to prudence

instead of profligacy."