PepsiCo raises its sales forecast due to strong demand for more expensive snacks and sodas

PepsiCo Inc increased its full-year revenue forecast on Tuesday, as consumers purchased more sodas and snacks despite rising prices. In premarket trading, the company's stock rose about 1% to $171.80. Packaged food manufacturers have seen little impact from decades of high inflation on consumer demand, particularly in the United States, where people prefer to eat at home rather than out.
However, signs are emerging that a price increase ceiling has been reached, with some grocery stores now opposing price increases from food companies.However, this had little impact on PepsiCo's overall net revenue, which increased 5.2 percent to $20.23 billion in the second quarter ended June 11, exceeding analysts' expectations of $19.51 billion, according to Refinitiv IBES data.

Organic revenue at Frito-Lay North America increased 14 percent in the reported quarter, with its Doritos, Cheetos, and Ruffles snack brands all growing by double digits. Organic revenue at PepsiCo's North America beverage unit increased by 9%. On an adjusted basis, the company earned $1.86 per share, compared to $1.74 per share expected.