Revenue rose 2.6% to $23.94 billion in the July-September
period. That was better than the $23.84 billion Wall Street was
expecting, according to analysts polled by FactSet.
In North America, PepsiCo said sales volumes for its Frito-Lay
snacks and other foods fell 2% in the quarter while sales
volumes for its beverages were down 3%. Sales volumes were
higher in Latin America and Asia.
Net income fell 11% to $2.6 billion. Adjusted for one-time
items, the company earned $2.29 per share. That also beat
analysts’ forecasts of $2.26.
The company, based in Purchase, New York, said Thursday that its
feeling some pressure from Elliott Investment Management, an
activist investor that recently took a $4 billion stake in
PepsiCo.
In a letter sent to PepsiCo’s board last month, Elliott said the
company has been hurt by loss of market share in its North
American beverage business and slowing growth and weaker profits
in its North American food business.
Elliott wants PepsiCo to slim down its food and beverage
portfolio so it can reinvest in core brands like Mountain Dew or
new products like protein snacks. It also wants the company to
consider refranchising its North American bottlers, an action
that its rival Coca-Cola took in 2017.
Shares of PepsiCo Inc. are up a fraction before the opening bell
Thursday.
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