logo
Frito-Lay closes plant in Rancho Cucamonga

Frito-Lay closes plant in Rancho Cucamonga

More than five decades of snack food production came to an end this week when Frito-Lay closed manufacturing operations at its Rancho Cucamonga facility, eliminating hundreds of jobs in the process.
The plant has been a major employer in the area since opening in 1970, staffing thousands over its 55-year run.
The facility also gained cultural significance as the birthplace of Flamin' Hot Cheetos, which were introduced in 1991, though the origin story has been the subject of litigation.
Frito-Lay is owned by parent company PepsiCo Foods U.S., which confirmed the shutdown of manufacturing operations at the site.
'We are truly grateful for all the support over the last five decades from our Rancho Cucamonga manufacturing team as well as the local community,' the company said in a statement Monday. 'We are committed to supporting those impacted through this transition and we are offering pay and benefits to impacted employees.'
The company did not specify how many employees were affected.
Former workers posted on social media that they were given 10 weeks of severance pay.
The abrupt nature of the closure left employees scrambling to figure out their next steps.
'I was supposed to get married this year, now I have to find a new job or at least figure a way to survive,' one laid-off worker said on Reddit.
The Employment Development Department confirmed that Frito-Lay had not filed a Worker Adjustment and Retraining Notification, or WARN, with the state, which typically requires employers to give 60 days advance notice of mass layoffs.
The Rancho Cucamonga closure is part of a broader pattern of PepsiCo facility shutdowns. Earlier this year, the company announced the closure of a Frito-Lay plant in Liberty, N.Y., laying off 287 workers, and cut 56 jobs at a warehouse in Maryland.
The closures come as PepsiCo faces declining snack sales. In its most recent earnings call, chief executive Ramon Laguarta said the company was 'right-sizing the cost' of its snacks division after Frito-Lay sales volume dropped slightly in the first quarter.
Warehouse, distribution, fleet and transportation services will continue to operate out of the facility.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

2 Magnificent S&P 500 Dividend Stocks Down 2% and 16% to Buy and Hold Forever
2 Magnificent S&P 500 Dividend Stocks Down 2% and 16% to Buy and Hold Forever

Yahoo

time3 hours ago

  • Yahoo

2 Magnificent S&P 500 Dividend Stocks Down 2% and 16% to Buy and Hold Forever

Key Points Home Depot and PepsiCo have seen results affected by larger economic forces. Home Depot will undoubtedly see sales growth accelerate when people take on major renovations. PepsiCo has a stable of well-known brands. 10 stocks we like better than Home Depot › Over the last year through July 18, the S&P 500 index has gained 13.6%. However, while certain stocks have done well, others have lagged. Home Depot (NYSE: HD) and PepsiCo (NASDAQ: PEP), two well-known companies, have been laggards. They have lost 1.8% and 15.9%, respectively, during this time. The market seems to have become concerned about short-term issues while ignoring the business' long-term strengths. That provides an opportunity for investors, who should get rewarded for their patience. In the meantime, you can collect dividends while waiting for their results and stock prices to recover. 1. Home Depot Many homeowners and professional contractors shop at Home Depot. The largest home-improvement retailer offers convenience and competitive prices. Its results can be sensitive to the economy, and more specifically, the housing cycle. Macroeconomic factors, such as interest rates, housing sales, and employment affect Home Depot's sales. Right now, people have been holding off on major home projects as high prices for things like food and housing eat away at discretionary income. Additionally, elevated interest rates have made borrowing, and hence large renovations, more costly, causing people to put them on hold. That's certainly hurt Home Depot's top line. Fiscal first-quarter same-store sales (comps) fell 0.3%, although foreign-currency translations subtracted 0.7 percentage points. The period ended on May 4. However, at some point, homeowners will proceed with renovations. It's just a matter of time before people remodel the kitchen or bathroom, for instance. When they do, it seems likely they'll return to Home Depot. In the meantime, shareholders can enjoy the 2.6% dividend yield, more than double the S&P 500's 1.2%. The board of directors also has a history of increasing payments. It has boosted dividends every year since 2010. Even during the Great Recession, Home Depot kept payments constant from 2007 through 2009. Aside from prioritizing dividends, the company has the wherewithal to keep making payments. Management expects this year's diluted earnings per share to fall about 3% from $14.91. That works out to about $14.26 a share, which would easily cover the $9.20 annual dividend. 2. PepsiCo PepsiCo has a stable of beverage and convenience food brands. These include Pepsi, Gatorade, Doritos, and Quaker. Nonetheless, sales have been sluggish, hurt by consumers weary from overall price increases. PepsiCo recently reported second-quarter results. Adjusted sales, which remove foreign-currency translation effects and acquisitions/divestitures, rose 2%. However, volume remained under pressure, subtracting 1.5 percentage points, while price increases were responsible for a 4-percentage-point increase. Management continues to expect low-single-digit-percentage revenue growth this year. The market seemed relieved by these results, sending the stock price up 7.5% following the earnings release. While that's encouraging, PepsiCo can't rely solely on price increases to drive revenue growth. It will need to boost volume. Based on its well-established brands that have a strong presence in the marketplace, I expect that it will happen once consumers get their bearings. Meanwhile, management and the board of directors certainly have confidence in PepsiCo's long-term future. Earlier this year, it increased the quarterly dividend by 5%. It looks like the company can easily cover the $5.69 annual rate since it expects adjusted EPS to come in above $8. PepsiCo has an impressive dividend history that not many other companies can claim. The recent increase ran its streak to 53 straight years, making the company a Dividend King. The stock has an attractive 4% dividend yield. Should you invest $1,000 in Home Depot right now? Before you buy stock in Home Depot, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Home Depot wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $665,092!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,050,477!* Now, it's worth noting Stock Advisor's total average return is 1,055% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot. The Motley Fool has a disclosure policy. 2 Magnificent S&P 500 Dividend Stocks Down 2% and 16% to Buy and Hold Forever was originally published by The Motley Fool Sign in to access your portfolio

Why Krispy Kreme Rocketed Higher Today
Why Krispy Kreme Rocketed Higher Today

Yahoo

time5 hours ago

  • Yahoo

Why Krispy Kreme Rocketed Higher Today

Key Points Meme stock fever appears to have come back into the market over the past couple of days. Meme traders target heavily shorted stocks in hopes of generating a squeeze. The beaten-down Krispy Kreme appears to be a current meme stock favorite. 10 stocks we like better than Krispy Kreme › Shares of doughnut-slinger Krispy Kreme (NASDAQ: DNUT) rocketed 26.7% in Tuesday trading, after the stock appears to have been caught up in a new round of meme stock fever. Meme stocks are beaten-down stocks with a high short interest, which retail investors on message boards such as Reddit target for purchase in hopes of generating a short squeeze. Krispy Kreme, along with several other names, is soaring today as part of a current meme stock cohort, it seems. No news and a 26% gain is a dangerous combination There wasn't any new news to speak of regarding Krispy Kreme. In fact, the most recent news hasn't been good at all. Back in May, the company's first-quarter report was rather dismal, leading the company to cut its dividend and end its partnership with McDonald's, which proved to be unprofitable for Krispy Kreme. The company's debt has grown to $935 million, and the doughnut maker is unprofitable on a generally accepted accounting principles (GAAP) basis in the wake of softer-than-anticipated demand this year. As a result, Krispy Kreme's short interest had increased to 14.2% of shares outstanding, but a higher 26.4% of its publicly traded float, as of June 30. That's a high-enough short interest, especially in a lower-float stock, to cause a big move on a surge of unexpected buying. And it appears meme stock traders happened to target Krispy Kreme today. In addition to Krispy Kreme, it appears beaten-down, scandal-plagued retailer Kohl's (NYSE: KSS) was also a meme trade target, with that stock up 38% on the day as well. Meme stock trading isn't for the faint of heart For those tantalized by the massive gains in a short amount of time, please realize that meme stock trading is highly risky, and that the quick gains of today can fade just as quickly. At the Motley Fool, we preach long-term investing in high-quality companies, a strategy that has shown long-term outperformance without the risks, headaches, and taxes inherent in trying to time volatile short-term trades on lower-quality stocks. So unless you are a meme investor by trade, I'd recommend staying away from Krispy Kreme unless you think a genuine turnaround at the business level is within sight. As of now, that turnaround isn't anywhere to be seen. Should you invest $1,000 in Krispy Kreme right now? Before you buy stock in Krispy Kreme, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Krispy Kreme wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $665,092!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,050,477!* Now, it's worth noting Stock Advisor's total average return is 1,055% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Billy Duberstein and/or his clients has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Krispy Kreme Rocketed Higher Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Jim Cramer unpacks Tuesday's market action as winning stocks take a breather
Jim Cramer unpacks Tuesday's market action as winning stocks take a breather

CNBC

time5 hours ago

  • CNBC

Jim Cramer unpacks Tuesday's market action as winning stocks take a breather

CNBC's Jim Cramer analyzed Tuesday's market action and told investors to step back as big winners — more speculative stocks and those related to the data center — cool down after huge runs. "I say let the rotation play out. Give it some space," he said. "The stocks that are rallying have been down for days, maybe weeks, maybe even some cases, months." Tuesday saw the S&P 500 eke out another record close, settling up 0.06%, while the Dow Jones Industrial Average gained 0.40% and the tech-heavy Nasdaq Composite dipped 0.39%. These stock moves reflect fears that the economy is slowing down, Cramer said. Some on Wall Street are buying up companies that typically do well in a recession "and ringing the register on everything else," he continued. Cramer pointed to gains in names like consumer staples PepsiCo and Procter & Gamble, as well as pharmaceutical giants Johnson & Johnson and Merck. He explained that traders are instead focused on lower short-term interest rates they fear are indicative of a recession. Cramer also pushed back against the notion that the data center bull market is waning. To Cramer, Tuesday's session was "a moment where the winners had to cool off and the losers had to play catch up." A number of more speculative stocks had seen "parabolic moves," Cramer said, and the market needed to take a breather. He noted that popular names like Palantir, AppLovin, Robinhood and Coinbase declined on Tuesday. "I know it's hard, with so many people saying that this is the beginning of the big correction, to point out that plenty of stocks are actually doing quite well and are just playing catch-up. But that's all they're doing," he said. "The market hasn't changed stripes…it's just wearing a different style for a few days while it waits for the dry cleaning to come back." Click here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store