PepsiCo Inc. reported the fastest sales growth in at least a decade and raised its forecast, benefiting from thirsty consumers returning to restaurants, bars, and stadiums and others diving into bags of chips.
Second-quarter revenue rose 13% on an organic basis, excluding acquisitions and currency changes, reaching $19.2 billion, the company said Tuesday in a statement. Analysts expected $17.9 billion on average.
Shares of PepsiCo rose as much as 2.3% to an intraday record of $152.95 in New York trading. They were up less than 1% this year through Monday’s close, trailing the 17% gain in the S&P 500 but ahead of Coca-Cola Co., which was down slightly.
PepsiCo’s earnings in the quarter grew to $1.72 a share, excluding some items, compared with the $1.53 average of analysts’ estimates. The company raised its forecast for full-year core per-share profit growth to 11% on a constant-currency basis.
While pandemic restrictions continued to weigh on some markets, quarterly sales rose in all major geographic regions, including Frito-Lay North America and PepsiCo Beverages North America. Organic revenue fell 14% at Quaker Foods North America as more people eat breakfast outside the home.
Performance still hasn’t returned to pre-pandemic levels, Johnston said; “People are getting out more, but they are not anywhere near where they were,” he said. Food service comprises 20% of the beverage business and 10% of snacks.
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