PepsiCo’s sales jump after it cuts prices

PepsiCo's sales jump after it cuts prices


PepsiCo said Thursday that lower prices and new products boosted demand in the first quarter.

Revenue jumped 8.5% to $19.44 billion in the January-March period compared to the same period a year ago, the Purchase, New York, company said Wednesday. That handily beat Wall Street’s forecast of $18.95 billion, according to analysts polled by FactSet.

PepsiCo has been cutting prices on Lay’s, Doritos, Cheetos and Tostitos chips this year to win back customers exasperated by years of price hikes. New products like Cheetos NKD and Doritos NKD, which have no artificial ingredients, and snacks with enhanced ingredients, like Smartfood FiberPop and Doritos Protein, are also attracting shoppers, the company said.

Net income rose 27% to $2.33 billion for the quarter. Adjusted for one-time items, the company earned $1.61 per share. That also beat Wall Street’s forecast of $1.54 per share.



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