PepsiCo's revenue fell slightly in the fourth quarter as North American consumers continued to pull back on purchases of Frito-Lay snacks and drinks.
The Purchase, New York, company reported revenue of $27.78 billion for the October-December period Tuesday. That was short of Wall Street's forecast of $27.89 billion, according to analysts polled by FactSet.
PepsiCo warned last fall about “subdued” demand in North America. That was partly because of a big recall of Quaker Oats granola bars and cereals. But customers have also been skipping snacks — or switching to cheaper brands — after years of price increases.
PepsiCo's snack food and beverage volumes both climbed 1% globally in the fourth quarter, with strong growth in Africa and Asia. But snack food and beverage sales dropped 3% in North America.
Net income rose 17% to $1.5 billion. Adjusted for one-time items, PepsiCo earned $1.96. That was higher than the $1.94 analysts forecast.
