On Thursday PepsiCo reported its quarterly sales grew by more than 5% as consumers bought more of its Tostitos and pancake mixes. Shares of the company rose 2% in premarket trading. The company reported compared with what Wall Street was expecting.
Earnings per share: $1.66, adjusted, vs. $1.49 expected. Revenue: $18.09 billion vs. $17.23 billion expected. Pepsi reported fiscal third-quarter net income of $2.29 billion, or $1.65 per share, up from $2.1 billion, or $1.49 per share, a year earlier.
Excluding items, the company earned $1.66 per share, beating the $1.49 per share expected by analysts surveyed by Refinitiv. Net sales rose 5.3% to $18.09 billion, topping expectations of $17.23 billion. Organic revenue grew 4.2% in the quarter.
Both its Frito-Lay and Quaker Foods businesses reported organic revenue growth of 6%, despite economies opening up and consumers feeling more comfortable leaving their homes. Frito-Lay saw higher sales in its Tostitos, Cheetos and Doritos, while Quaker Foods’ pasta and macaroni and cheese dishes reported double-digit sales growth.
Its North American beverage unit’s organic sales rose by 3% in the quarter. Its Bubly sparkling water brand, Lipton tea and Starbucks licensed products all saw double-digit sales growth.
The company also said that Bubly, Gatorade Zero and Mountain Dew Zero Sugar combined have surpassed $1 billion in sales so far this year. Pepsi’s international business reported organic sales growth of 4%, fueled by higher demand for snacks.