Here’s how the company did compared with what Wall Street expected:
- Earnings: 96 cents per share vs. 93 cents per share forecast by Thomson Reuters
- Revenue: $12.562 billion vs. $12.398 billion forecast by Thomson Reuters
Pepsi has continued to see weakness in its largest business, North American beverages, as it has been unable to keep pace with changing tastes. Notably, it’s lost traction with its Gatorade sports drinks to upstart brands like Core.
“North American Beverages has seemingly evolved little during recent years, while the industry has continued to change at an unprecedented pace and key competitors have taken action to adapt,” Lauren Lieberman at Barclays wrote recently.
By contrast, its snack business, which includes Doritos chips and Lay’s potato chips, has continued to perform strongly.
Earlier this week, rival Coca-Cola reported earnings and revenue that topped expectations as new Diet Coke flavors helped return the brand to positive volume growth in North America.
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