Foods with Integrity providing thematic tailwind for PepsiCo (PEP)
Under Chief Executive Officer Indra Nooyi, PepsiCo has been investing heavily to cater to consumers’ increasing preference for healthier snacks such as unsweetened tea and baked chips.PepsiCo said it now gets more than 45 percent of its net revenue from what it calls “guilt-free” products – beverages that have fewer than 70 calories per 12 ounces and snacks that have lower amounts of salt and saturated fat.
These include snacks such as Baked Lays, Quaker Breakfast Flats and new versions of Mirinda and 7UP, which have 30 percent less sugar.PepsiCo’s revenue rose 1.6 percent to $12.05 billion, beating analysts’ estimate of $11.98 billion.Excluding items, the company earned 94 cents per share, beating the average analyst estimate by 2 cents.Coca-Cola on Tuesday reported a smaller-than-expected quarterly profit on higher costs of franchising its bottling operations and announced job cuts to boost savings.
Read Full Story: PepsiCo profit beats but lower margins weigh on shares | Reuters
