PepsiCo Q1 Earnings Beat Expectations on Snack Growth

PepsiCo Inc. reported first-quarter earnings that surpassed Wall Street expectations on Thursday, with adjusted earnings per share of $1.61 and revenue of $19.44 billion, driven by volume growth in its North American snack business following recent price reductions.

The results marked a rebound for the company's long-struggling North American foods division, which includes Frito-Lay and Quaker Oats products. Volume in that segment rose 2 percent, the first increase in more than two years. This turnaround followed price cuts of up to 15 percent implemented in February on popular brands such as Lay's, Doritos, Cheetos and Tostitos, aimed at recapturing customers who had shifted to cheaper alternatives amid inflation pressures since 2022. Executives noted that these adjustments, combined with new product launches featuring simpler ingredients and enhanced nutritional profiles, helped regain market share.

Net income attributable to PepsiCo climbed 27 percent to $2.33 billion from $1.83 billion in the year-ago period, while earnings per share reached $1.70, up from $1.33. Total net sales increased 8.5 percent year over year, bolstered by the acquisition of soda brand Poppi and...